There are a number of references in various standards and legislations about the need for associations to keep proper accounting records. While legislation concentrates on the need to ‘correctly record and explain the transactions of the association and its financial position’ (Associations Incorporation Act 2009 Section 50. (1)(a)), an appropriate accounting and financial management system is also necessary to enable the governing body to effectively and efficiently discharge its responsibilities to its members in running the club.
In other words, systems should not only provide a mechanism to record historical transactions but also enable informed decisions to be made about the future of the entity, both short-term and long-term. Without these systems, it will be extremely difficult for an auditor to give an unqualified audit opinion on the financial state of the club.
| Associations Incorporation Act | Associations incorporated under this Act must comply with reporting requirements, including the submission of annual financial statements and annual reports |
| Australian Corporations Act | Sets out various financial requirements for companies operating in Australia |
| Australian Charities and Not-for-profits Commission (ACNC) Act 2012 | Comply with their reporting requirements, including submitting an Annual Information Statement and financial reports Financial reporting – ACNC |
| Collections Act Collections Regulation |
Engaging in public fundraising activities, such as street collections or fundraising appeals, must adhere to regulations under this Act, including reporting on fundraising activities and financial information. |
| Fair Trading Act | Comply with consumer protection laws under this Act, which includes providing accurate and transparent information to the public. |
| Australian Taxation Office | Meet taxation reporting requirements, such as lodging annual tax returns, GST reporting (if applicable), and maintaining proper records for tax purposes |
Apart from references in various legislation and regulations to the requirement to maintain proper accounting records, the Associations Incorporation Regulation 2016 contains the following clause in Section 17 Treasurer:
It is the duty of the Treasurer of the association to ensure:
- Correct books and accounts are kept showing the financial affairs of the association, including full details of all receipts and expenditure connected with activities of the association. Providing timely and accurate reports to the Management/ Executive Committee on a regular basis is critical to their ability to discharge their responsibility
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