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Contents (2009 - 7)
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Associations Incorporation Act 2009 No 7
Current version for 1 September 2016 to date (accessed 27 April 2017 at 13:22)
Part 5
Part 5 Financial reporting
Division 1 Tier 1 associations
42   Application of Division
(1)  This Division applies to any association:
(a)  whose gross receipts (as calculated in accordance with the regulations) for the financial year last ended, or
(b)  whose current assets (as calculated in accordance with the regulations),
exceed such amount as may be prescribed by the regulations (a Tier 1 association).
(2)  Despite subsection (1), this Division does not apply to any association that the Secretary declares not to be a Tier 1 association.
(3)  Such a declaration may be made in respect of an association whose gross receipts for the financial year last ended were negligible, but whose current assets are such that it would (but for the declaration) be a Tier 1 association, and not otherwise.
43   Financial statements
(1)  As soon as practicable after the end of each financial year, the committee of a Tier 1 association:
(a)  must cause financial statements for that year to be prepared in relation to the association’s financial affairs (including its affairs as trustee of any trust), and
(b)  must cause the financial statements to be audited in time for them to be submitted to the association’s next annual general meeting.
Maximum penalty: 5 penalty units.
(2)  The financial statements must be prepared in accordance with the Australian Accounting Standards and must deal with such matters as are prescribed by the regulations.
(3)  The auditor’s report:
(a)  must be prepared in accordance with the Australian Auditing Standards, and
(b)  must state whether the association has kept such financial records as are necessary to enable financial statements to be prepared in accordance with the Australian Accounting Standards.
44   Submission of reports and statements to AGM
At each annual general meeting of a Tier 1 association, the association’s committee must cause:
(a)  the association’s financial statements for the previous financial year, and
(b)  the auditor’s report for those statements,
to be submitted to the meeting.
Maximum penalty: 5 penalty units.
45   Lodgment of documents with Secretary
(1)  A Tier 1 association must lodge the following documents with the Secretary in accordance with this section:
(a)  a summary, in the approved form, of the association’s financial affairs for the previous financial year,
(b)  the association’s financial statements for that year,
(c)  the auditor’s report for those statements,
(d)  a document setting out the terms of any resolution passed at the association’s annual general meeting in connection with the documents referred to in paragraphs (b) and (c).
Maximum penalty: 5 penalty units.
(2)  The documents referred to in subsection (1):
(a)  must be lodged within:
(i)  one month after the annual general meeting for the current financial year, or
(ii)  7 months after the end of the previous financial year,
whichever is the earlier, or within such further time as the Secretary may allow, and
(b)  must be accompanied by the fee prescribed by the regulations.
(3)  For the avoidance of doubt, the documents referred to in subsection (1) are taken not to have been lodged if the relevant fee has not been paid.
Division 2 Tier 2 associations
46   Application of Division
This Division applies to any association to which Division 1 does not apply (a Tier 2 association).
47   Financial statements
(1)  As soon as practicable after the end of each financial year, the committee of a Tier 2 association must cause financial statements for that year to be prepared, in accordance with this section, in relation to the association’s financial affairs (including its affairs as trustee of any trust).
Maximum penalty: 5 penalty units.
(2)  The financial statements must give a true and fair view of the association’s affairs and must deal with such matters as are prescribed by the regulations.
48   Submission of financial statements to AGM
At each annual general meeting of a Tier 2 association, the association’s committee must cause the association’s financial statements for the previous financial year to be submitted to the meeting.
Maximum penalty: 5 penalty units.
49   Lodgment of summary with Secretary
(1)  A Tier 2 association must lodge with the Secretary, in accordance with this section, a summary, in the approved form, of the association’s financial affairs for the previous financial year.
Maximum penalty: 5 penalty units.
(2)  The summary:
(a)  must be lodged within:
(i)  one month after the annual general meeting for the current financial year, or
(ii)  7 months after the end of the previous financial year,
whichever is the earlier, or within such further time as the Secretary may allow, and
(b)  must be accompanied by the fee prescribed by the regulations.
(3)  For the avoidance of doubt, the summary is taken not to have been lodged if the relevant fee has not been paid.
Division 3 General
50   Keeping of accounts and minutes of proceedings
(1)  An association:
(a)  must keep records that correctly record and explain its financial transactions and financial position, and
(b)  must keep minutes of the proceedings of its committee meetings and general meetings.
Maximum penalty: 5 penalty units.
(2)  In the case of a Tier 1 association within the meaning of Division 1, the records referred to in subsection (1) (a) must be sufficient to enable financial statements to be prepared in accordance with the Australian Accounting Standards.
(3)  If any document required to be kept under this section is, either in whole or in part, in a language other than the English language, a copy of the document wholly in the English language must be kept with the document.
(4)  The regulations may make provision for or in respect of the keeping and inspection of records and minutes under this section.
51   Audit at the Secretary’s direction
(1)  The Secretary may direct an association to cause the whole or any specified part of an association’s financial records to be audited, and an auditor’s report lodged with the Secretary, within a specified time.
(2)  Such a direction may be given regardless of whether the financial records have previously been audited.
(3)  An association to which such a direction is given must ensure that the direction is complied with.
Maximum penalty: 5 penalty units.
(4)  An auditor’s report under this section must state whether the association’s financial records:
(a)  have been properly kept, and
(b)  give a true and fair view of the association’s affairs.
52   Auditor to be qualified and independent
(1)  Subject to subsection (2), an audit under this Part must be carried out by:
(a)  a registered company auditor within the meaning of the Corporations Act 2001 of the Commonwealth, or
(b)  a person approved by the Secretary for the purposes of this Part, either generally or in relation to a specified association or class of associations, or a person who belongs to a class of persons so approved.
(2)  Except with the written approval of the Secretary, an audit under this Part may not be carried out by any person who is, or who has at any time within the last 2 years been:
(a)  a member of the association, or
(b)  an employee of, or provider of professional services (other than audit services) to, the association or to a committee member or public officer of the association.
53   Power of Secretary to grant exemptions
(1)  The Secretary may, by order in writing, exempt an association or any class of associations, from the requirements of this Part in relation to the preparation and auditing of financial statements.
(2)  Any such exemption:
(a)  may be given subject to conditions, and
(b)  may be limited as to time, and
(c)  may be varied, suspended or revoked by the Secretary by a further order in writing.
(3)  An order under this section takes effect:
(a)  if it applies to a particular association, when the order is served on the association, or
(b)  if it applies to a class of associations, when the order is published in the Gazette.