Following on from the basics of financial reports, it's important to know that under the Queensland Associations Incorporation Act 1981, incorporated associations have different financial reporting and auditing requirements based on their size. These rules ensure transparency and accountability.
Here's a simplified summary based on the QLD Government guidelines (always refer to the official Act or seek advice for specifics):
Club Size Categories (Generally Based on Revenue or Assets):
Level 3 (Small Associations): Typically those with total revenue OR total assets below a certain threshold (e.g., under $100,000 - check the Act/OFT for current figures).
AGM Requirements: Must present their financial statements (P&L, Balance Sheet) to members at the AGM.
Audit/Review: Generally do not need their financial statements externally audited or reviewed unless their own constitution requires it, or members vote to have it done.
Level 2 (Medium Associations): Those with revenue or assets between the small and large thresholds (e.g., $100,000 - $1 million - check the Act/OFT for current figures).
AGM Requirements: Must present financial statements at the AGM.
Audit/Review: Financial statements usually need to be reviewed by an independent accountant (less rigorous than a full audit) OR fully audited. The club's constitution or members may specify which.
Level 1 (Large Associations): Those with revenue or assets above the higher threshold (e.g., over $1 million - check the Act/OFT for current figures).
AGM Requirements: Must present financial statements at the AGM.
Audit/Review: Financial statements must be audited by a qualified auditor.
Key Takeaways for Your Club:
Know Your Level: It's crucial for your committee (especially the Treasurer) to understand which size category your club falls into based on its revenue and assets each financial year. For some of our largest clubs they may fall under the Level 2 category.
Check Your Constitution: Your club's own constitution might impose stricter requirements (e.g., requiring an audit even if the Act doesn't for your size).
Plan Accordingly: Knowing your requirements helps you plan for the costs and time involved in any necessary review or audit before your AGM.
QLD Government Resource:
Detailed Guide: QLD Gov Financial Reporting Requirements (PDF) (This document provides the specific details and thresholds).
Understanding these requirements ensures your club meets its legal obligations for financial accountability.
