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SPS Audit - Audit and Assurance Sunshine Coat, Queensland T: 07 5442 3454 F: 07 5442 1360 M: 0400 6444 73 E-mail: Stephen@spsaudit.com.au |
INCORPORATED ASSOCIATIONS
There are over 20,000 incorporated associations or Clubs registered in
Queensland and most of us are involved in at least one, be it through
kids sport, hobbies or activities we enjoy.
On 15th June, 2007, the Office of Fair Trading enacted a number of
changes to the legislation that governs incorporated associations in
Queensland.
Some of the major changes are as follows:
Financial Reporting Requirements
The financial reporting requirements for incorporated associations are
now broken down into 3 groups, dependent on the size of each
association.
Level 1 associations are defined as having either current assets of more
than $100,000 OR total revenue of more than $100,000. There is no change
to financial reporting requirements for these associations. Financial
statements must be audited and lodged with the Office of Fair Trading
within 30 days of the annual general meeting being held.
Level 2 associations have either current assets OR total revenue between
$20,000 and $100,000. These associations don’t have to have an audited
financial report but can lodge financial statements that have been
verified by an auditor rather than actually audited.
Level 3 associations have total revenue AND current assets of less than
$20,000. These associations are required to lodge financial statements
that have been verified by the President or Treasurer of the
association. No audit is required.
If you are involved in a senior capacity in a Club or Association, make
sure your Club or Association is lodging the required statements.
Public Liability Insurance
Previously, legislation required any association to take out $1.1
million cover for personal injury public liability insurance. Under the
new legislation, an association’s management committee is now required
to assess the Association’s individual situation and determine the level
of insurance required, if any. Also, new members and new Committee
members must be advised of the level of public liability insurance
coverage held.
Also, the management committee must review insurance requirements
annually and report the results at the annual general meeting. Should
the management committee not take out public liability insurance,
members must be advised of the risks involved. Also, any person the
association deals with must be advised if the Association does not have
any public liability insurance.
Other
There are a number of other changes involving members rights, Office of
Fair Trading rights to information etc that can be found on the Office
of Fair Trading website at
www.fairtrading.qld.gov.au
If you have a senior role in a Club, make sure you are aware of your obligations.