Not for Profit Audits

Auditing not for profit organisations requires specialised knowledge and understanding of the industry and operating environment.  At GPS we are passionate about making a positive impact on our community and we have been privileged to service the not-for-profit sector through our service offerings to clubs and associations, charities, schools, community based and religious entities.

Clubs and Associations (Sporting, Community based, Licenced)

There is often in place legislation that overlays the operation of these entities. In the case of sporting clubs and related entities there is the Incorporation Act of each state covering their structure, mode of operation and reporting requirements.

If these clubs are licenced they are subject to Gaming legislation, licencing requirements.

ACNC Entities (Charities)

These entities are regulated by the Australian Charities and Not-for-profits Commission (ACNC). The ACNC audit requirements are based on the turnover of each entity and its classification as small, medium or large.

Small Charity: less than $250,000 in revenue.

• A small association is not required to complete an audit or review of its accounts unless:

• it is a requirement of the association’s rules that one be completed;

• it is a requirement under the terms of the association’s funding agreement or licence;

• the majority of members at a general meeting pass a resolution that an audit will be completed; or

• the association is directed to do so by the Commissioner.

Medium Charity: $250,000 to $1,000,000 in revenue. 

Medium-sized charities can have their financial report reviewed or audited. The process of reviewing an association’s accounts is not as detailed as the process of completing an audit. A reviewer will look over the association’s financial report and provide a statement whether anything has come to their attention which might suggest that the association’s report does not comply with the requirements of the Act.

In comparison, an auditor must collect evidence relating to the association’s financial records and transactions to satisfy themselves that the report is a true and correct reflection of the association’s finances. This enables them to provide a formal opinion about whether the accounts meet the relevant legal requirements.

Large Charity: over $1,000,000 in revenue.

Large charities must have their financial report audited.  The audit must be conducted by a registered company auditor; an audit firm or an authorised audit company.

Parent and Citizens Associations

Parents and Citizens’ (P&C) Associations operate under the Education (General Provisions) Act 2006 and Education (General Provisions) Regulation 2017.  Queensland P&Cs are a statutory body under the Statutory Bodies Financial Arrangements Act 1982.  P&Cs must be audited annually.

Community Based Entities

There are many ancillary functions in our society where people gather together to provide services to the community (eg lions club, arts and craft  based clubs, meals on wheels, home support , aged care , the list goes on. There structures can be varied but essentially, they are monitored by legislation.

Religious entities (Churches, Colleges)

These entities can be complex and depending on their services they are bound by legislation again. Religious bodies are regulated by Commonwealth government legislation and are subject to the Corporations Act and other legislation, depending on their functions, namely school day care, retirement villages and the like.

Why choose GPS Audit Assurance?

The benefits of using GPS Audit Assurance are:

• We specialise in delivering audits. This means our team has a wealth of technical expertise in every aspect of the audit process.

• We understand that within the strata industry there are ever changing regulatory requirements and challenges. We have a dedicated team of experienced staff who have a comprehensive knowledge of your industry and regulatory requirements.

• Owner Protection. We will provide suggestions to improve your financial and risk management systems to lower risk

• An efficient risk-based audit approach performed at cost-competitive price.

• Our commitment to using current audit software allows for a timely audit whilst ensuring we remain fully compliant with ever changing accounting and auditing standards

Speak to us about not for profits audits today