Finances

The Finances page helps societies track and manage their financial compliance obligations under the Incorporated Societies Act 2022. It guides users through preparing financial statements, meeting reporting standards, obtaining required authorisations, and submitting documents to regulators on time.

What You Can Do on This Page

·       Enable or disable financial management tracking in WiseComply

·       Add or update the society's balance date (year end)

·       Track whether statements meet minimum reporting or XRB accounting standards

·       Record audit requirements and completion (for societies over $3 million operating expenses)

·       Confirm committee members have authorised financial statements

·       Confirm submissions to the Registrar and Charities Services

·       Confirm annual returns have been filed

·       Confirm accounting records retention (current period plus 7 years)

·       Confirm notifications of balance date changes

Key Parts of the Finances Page

Actions Panel Shows financial tasks including:

·       Add the start of financial year (balance date)

·       Links to update or confirm financial activities

Obligations Panel Outlines what the page helps manage:

·       Track income, expenses, and financial transactions

·       Maintain budgets and financial forecasts

·       Generate financial reports for meetings and regulatory requirements

Financial Management Toggle Optional feature to enable WiseComply for financial tracking and reporting.

Financial Management Dashboard Shows completion status across three key areas:

·       Number of tasks completed

·       Number requiring action

·       Number ongoing

·       Toggle to show/hide completed items

Common Tasks

Adding or Updating Balance Date

1.         Click "Add the start of financial year" in Actions panel

2.         Enter the balance date (year end date)

3.         Save the date

4.         Update if the balance date changes (must notify Charities Services within 3 months if applicable)

Confirming Financial Statement Preparation

1.         Navigate to Section 1

2.         Click "Required" button next to relevant preparation task

3.         Confirm statements have been prepared using appropriate standards

4.         Confirm preparation completed within 6 months of balance date

5.         Save confirmation

Recording Audit Requirements

1.         In Section 1, confirm whether operating expenses exceed $3 million for 2 consecutive years

2.         If yes, confirm a qualified auditor has been commissioned

3.         In Section 2, confirm when audit is complete

4.         Save confirmations

Authorising Financial Statements

1.         Ensure at least 2 committee members review statements

2.         Obtain their signatures

3.         In Section 2, confirm authorisation has been completed

4.         Record date of authorisation

Confirming Submissions

1.         Navigate to Section 3

2.         After submitting to Registrar, click to confirm submission and date

3.         If registered charity, confirm submission to Charities Services

4.         Confirm annual return filed with both regulators

5.         Save all confirmations

Important to Know

About Balance Date:

·       The balance date is the last day of the society's financial year

·       Must be confirmed in WiseComply and kept up to date

·       If changed, Charities Services must be notified within 3 months (if registered)

·       Used to calculate deadlines for financial statement preparation

About Financial Statement Standards:

·       Small societies (under $50,000 in assets and operating payments for 2 consecutive years): Use minimum reporting standards

·       Larger societies: Must use XRB (External Reporting Board) accounting standards

·       All societies must prepare statements within 6 months of balance date

·       Standards ensure consistency and transparency in financial reporting

About Audit Requirements:

·       Societies with operating expenses over $3 million for 2 consecutive years must have accounts audited by a qualified auditor

·       Auditor must be independent and appropriately licensed

·       Audit must be completed before submitting financial statements

·       Smaller societies may choose voluntary audits or reviews

About Authorisation:

·       At least 2 committee members must review and sign financial statements

·       This confirms the committee takes responsibility for the accuracy of the statements

·       Should occur before submission to regulators

·       Often done at a committee meeting, recorded in minutes

About Submissions:

·       Financial statements must be submitted to the Registrar within 6 months of balance date

·       Registered charities must also submit to Charities Services within 6 months

·       Annual returns must be filed with both regulators (if applicable)

·       Late submissions can result in penalties or compliance issues

About Record Retention:

·       Accounting records must be kept for current accounting period plus past 7 years

·       This includes invoices, receipts, bank statements, and supporting documentation

·       Records must be accessible for review if needed

·       WiseComply helps track confirmation that records are being retained properly

Common Questions

• What's the difference between financial statements and an annual return? Financial statements show the society's financial position (income, expenses, assets, liabilities). An annual return is a broader compliance document that includes financial information plus other details like officer changes and member numbers.

• Do we need an auditor? Only if operating expenses exceed $3 million for 2 consecutive years. However, societies can voluntarily choose to have accounts audited or reviewed for good governance.

• What are XRB accounting standards? Standards set by the External Reporting Board for financial reporting. Larger societies must follow these to ensure consistent, professional financial statements.

• Can we change our balance date? Yes, but you must notify Charities Services within 3 months if you're a registered charity. Consider the implications for reporting deadlines and inform the Registrar.

• What happens if we miss the 6-month deadline? Late submission can result in penalties, compliance notices, or in serious cases, risk to the society's registration. Contact the Registrar immediately if you'll be late.

• Who can sign off on financial statements? At least 2 committee members must authorise (review and sign) the statements. Typically, this includes the Treasurer and President or another senior officer.

• Do we need to use WiseComply for financial management? No, the toggle is optional. However, WiseComply helps track your compliance with financial obligations. You can manage finances externally and use WiseComply just for tracking confirmations.

• What if we're not sure which standards apply to us? Check your asset levels and operating payments for the past 2 years. If under $50,000 for both, you can use minimum reporting standards. If above, use XRB standards. When in doubt, consult an accountant.