Not-for-profit Charity Financial Statement Audits

The preparation of quality financial statements in the not-for-profit sector, continues to be of upmost importance. Finding the right auditor to review and/or audit those statements can be invaluable to maintaining the integrity of your entity.

The requirement to have an audit conducted on the financial statements in this sector is typically in response to ‘tiers’ of revenue; where an organisation has revenue in excess of $1m it is mandated to have an audit of the financial statements conducted. Where revenue is between $250,000 and $1m an organisation requires either an audit or review of their financial statements. In the instance revenue is less than $250,000 there is no requirement for audit unless the governing deed or constitution mandates an audit.

Alternatively, a government or other body that provides funding to the organisation may in fact also mandate an audit to be conducted by an independent auditor as part of the provision of funding to the organisation, irrespective of whether the revenue is below the ‘tier’ requirement for audit or review.

At Oak Audit & Assurance, the not-for-profit and charity sector is a specific interest area, and as such, we are well placed to take on this style of audit engagement.

Our experience in the not-for-profit and charity sector includes conducting audits across a range of entity and governance types, falling into the following categories;

• Incorporated Associations
• Companies Limited by Guarantee
• Private Ancillary Funds (PAF)

The above categories, when registered, includes registered charities under the Australian Charities and Not-for-profits Commission (ACNC) Act 2012.