Life Interests Testamentary Trusts

Not for Profit – Should you be getting an Audit?

Not-for-profit Associations are viewed in three tiers for the purposes of determining audit requirements:

  • Tier 1 – Revenue less than $250,000. No audit or review required, unless specifically requested by the members or regulator;
  • Tier 2 – Revenue from $250,000 to $1 million. A review by an independent accountant is required as a minimum;
  • Tier 3 – Revenue more than $1 million. An audit is required.

Even if an audit is not legally required, you may want to because:

  • Associations need to have an appropriately drafted set of Financial Statements for presentation at the Annual General Meeting and an audit may assist with this;
  • Review/audit provides peace of mind to honorary committee members and may assist in attracting new committee members;
  • The ability to apply for grant income from government or other agencies may have audit as a
  • If revenue levels are close to a threshold you should consider the requirement of the upper level as it may impact you in the near future.

If you have questions please feel free to contact Bryan McKimmie or Sandra Rowley at Langley McKimmie Chartered Accountants on 03 5427 8100 for an initial consultation.

We service clients in the Woodend and Macedon Ranges region within Victoria Australia.

The content within these articles was correct at the time of writing. Please contact us for updated information and advice. 

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.

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