Sample Terms of Reference for a Finance, Audit and Risk Committee are available to members of Associations Forum. Please contact Kathy Nguyen kathy_[at]_associations.net.au to request a copy. Contents1 Introduction1.1 Importance of the Committee1.2 Treasurer or no Treasurer2 Duties and Responsibilities2.1 Internal financial management, reporting and monitoring2.2 Internal Controls to prevent and detect fraud, errors and misstatements

While auditing is generally accepted as an integral process in the good governance of an association, the true value an association can gain from its audit is often less understood. The auditor's role is, essentially, to independently verify the accuracy of the association’s financial statements. However, the present competitive environment dictates that boards and governing committees have an obligation to their members to ensure that the audit is more than an external validation of the…

A detailed look at how the Finance & Treasury Association (FTA) fell into financial difficulty and the steps it took to stay in business, as described by FTA president Mike Dontschuk. The Finance & Treasury Association (FTA) is an association for professionals working across all aspects of treasury and financial risk management. It is a Company Limited by Guarantee incorporated under Australia’s Corporations Act, and began as the International Treasury Club. In 1982 its…

Does your organisation shy away from salary packaging because it “all sounds too hard” or the “administration is a nightmare”? Well read on and discover how simple it can be to offer your employees some really significant tax savings. Many employers opt for the external bureau when offering salary packaging to staff, and this is one way to combat the administrative difficulties. However, it can actually be very easy to run a simple in-house system that generates the best…

As part of its ongoing initiatives in not-for-profit reporting, in 2013 the Institute of Chartered Accountants in Australia published the fourth edition of Enhancing Not-for-Profit Annual and Financial Reporting, which was first launched in 2007. The guidance is a tool designed specifically for the NFP sector to attain best practice in their annual and financial reports, as well as providing an overview of applicable legislation and resources.

What at first appeared to be simplifications to reporting requirements for not-for-profits now appear to impose further disclosure in coming years. Early in 2010 the Federal Government and the Australian Accounting Standards Board (AASB) introduced new financial reporting standards. The good news for companies limited by guarantee - which encompasses many not-for-profit (NFP) associations – applies for the financial year ending 30 June 2010. Late changes to the Corporations Act…

Jonathan Casson, Partner, Holman Webb Lawyers, reports on Aid/Watch, the landmark decision concerning whether organisations engaging in political communication and lobbying could be considered ‘charitable institutions’ – qualifying for tax exemption. Aid/Watch Incorporated v Commissioner of Taxation [2010] HCA 42 is the latest in a line of cases between the Tax Commissioner and Not-For-Profit (NFP) organisations over the last decade regarding the tax authorities’ attitude…