An update on Audit Areas at HQB

HQB Manager, Mandy Bedi, now an ASIC approved SMSF auditor

We have been lucky enough to have Mandy as part of our audit team for many years now, and her professional development has led to her formally being recognised as an ASIC approved SMSF auditor!

This is a huge accomplishment earned through hours of practical experience and competency exams to ensure a certain level of expertise for auditing self- managed superannuation funds. Congratulations, Mandy!

This now adds to a team of 4 ASIC approved SMSF auditor At HQB.

Charity Financial Reporting under the microscope following ACNC findings

Recently, The Australian Charities and Not-for-profits Commission (ACNC) released findings based on an annual examination of nearly 300 medium and large charities. We found some areas of concern which are of interest to us, as auditors, and could also be interesting to some of our clients. The report highlighted the following:

1. Incomplete Reporting:
   • 30% of annual financial reports were missing one or more necessary components and, as a result, were not compliant with ACNC reporting obligations.
2. Government revenue received not adequately disclosed:
   • 20% of the Annual Financial Reports contained defects in this area. The ACNC has published a new best practice guide for reporting on Government revenue. This guide provides that if a charity receives 10% or more of its revenue from Government the following should be disclosed:
   • Total revenue received from each level of Government
   • Names of Government Departments or agencies from which it received revenue as well as the amount of revenue received from each one (up to 10 )
   • Revenue from providing goods and services to beneficiaries that receive related Government financial assistance (eg NDIS)
3. Inconsistencies between the information disclosed in the Annual Information Statement and the Annual Financial Report:
   • 5% of Charities reviewed fell into this category.

HQB offers specialist financial advice to not-for-profit entities. With the 30 June 2021 reporting season fast approaching, do not hesitate to contact James or Michelle if you need assistance or advice in relation to your reporting obligations.

– Michelle Paull & Nicola Dawson

Posted 21.06.2021