Associations must keep records that correctly record and explain their financial transactions and financial position.
Tier 1 associations (see below for definition) must ensure their financial records are sufficient to enable financial statements to be prepared in accordance with the Australian Accounting Standards.
Where any of the financial records are kept in a language other than English, an English translation must also be kept with the documents.
Tier 1 and Tier 2 associations
An association's reporting obligations under the Associations Incorporations Act 2009 (the Act) is based on its status as either a Tier 1 (large) or Tier 2 (small) association.
Tier 1 associations are those whose total revenue as recorded in the income and expenditure statement (i.e. gross receipts) for a financial year is more than $250,000 (excluding GST) or current assets* are more than $500,000.
Go to the Tier 1 association's financial reporting page for more information.
Tier 2 associations are those whose total revenue as recorded in the income and expenditure statement (i.e. gross receipts) for a financial year is $250,000 (excluding GST) or less and current assets* are $500,000 or less.
Go to the Tier 2 association's financial reporting page for more information.
*Current assets refers to assets (other than real property or assets that are capable of depreciation) held by the association as at the end of the association's last financial year. It includes amounts held in financial institutions, stocks and debentures.
Summary of annual financial reporting requirements
The association must hold its annual general meeting (AGM) within 6 months after the end of the association’s financial year.
Before the AGM, the committee must:
- Prepare financial statements as soon as practical after the end of the association's financial year.
- Tier 1 associations must prepare financial statements in accordance with Australian Accounting Standards.
- Tier 2 associations must prepare financial statements that give a true and fair view of the association's affairs.
- Arrange for the statements to be audited if it is a Tier 1 association or if it is otherwise required to do so eg. by the association's constitution or under a funding agreement.
- Consider the financial statements and confirm the statements provide a 'true and fair' view of the association's financial performance and position. This confirmation should be recorded in the minutes of the committee meeting.
At the AGM, the committee must present the financial statements to the AGM, together with the auditor's report for a Tier 1 association. The AGM minutes should include a copy of the financial statements, any auditor's report and a record of any resolution passed in relation to the financial statements or auditor's report.
After the AGM, the committee must:
- Lodge the Annual summary of financial affairs - Tier 1 (form A12-T1) or Annual summary of financial affairs - Tier 2 (form A12-T2) within 1 month of the AGM and no later than 7 months after the end of the association's financial year, together with payment of the prescribed lodgement fee.
- Tier 1 associations must also lodge a copy of the audited financial statements, audit report and any resolution passed in relation to the financial statements or auditor's report.
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