Important changes to the Associations Incorporated Act 1964
Recent amendments to the Associations Incorporate Act 1964 (the Act) have meant that reporting thresholds for Incorporated Associations have been adjusted and now align more closely with the reporting thresholds required by the Australian Charities and Not-for-profits Commission (ACNC). These changes took effect from 1 October 2016.
WLF’s Audit, Assurance and Advisory division sent an email outlining the changes to our clients in this sector in late September. However we also wanted to take this opportunity to remind Associations of the changes and any possible implications to your operations.
The new reporting thresholds are outlined in the table below.
|ACNC reporting requirements||Incorporated Association Act reporting requirements|
|Small organisation: Annual revenue is less than $250,000||No obligation for review or audit||No obligation for audit|
|Medium organisation: Annual revenue is $250,000 or more, but less than $1 million||Financial statements to be either reviewed or audited||Financial statements to be audited (no option available for review)|
|Large organisation: Annual revenue is $1 million or more||Financial statements to be audited||Financial statements to be audited|
Before making any changes to your association’s audit requirements, we encourage you to consider the benefits to your organisation of an independent audit process. An audit provides independent oversight giving those charged with governance comfort that there are adequate controls and processes in place. An audit can also be a deterrent to fraud or misappropriation of the organisation’s assets.
If you have any questions about how the changes might impact on your Association please contact us and we can work with you to ensure the appropriate and best outcome.