Tier 2 incorporated associations financial reporting
Understand financial reporting and AGM requirements for Tier 2 (small) incorporated associations in NSW, including extension of time applications.
Definition of a Tier 2 incorporated association
You are a Tier 2 (small) incorporated associations are if your:
- total revenue in the income and expenditure statement (such as gross receipts) for a financial year is $500,000 or less, and
- current assets are $1,000,000 or less.
Current assets are assets held by the incorporated association at the end of its last financial year. It includes amounts held in financial institutions, stocks, and debentures. Real property or depreciable assets are excluded.
Annual financial reporting requirements
As a Tier 2 incorporated associations, you must ensure your records accurately explain your financial transactions and financial position.
Prepare statements for the annual general meeting (AGM)
As soon as practical, after the end of the incorporated association’s financial year, the committee must do the following:
- Prepare financial statements that include:
- an income and expenditure statement listed by category, and all income and expenses incurred from running the incorporated association
- a balance sheet that sets out current and non-current assets and liabilities
- a separate income and expenditure statement, and balance sheet which must be done for each trust where the incorporated association is the trustee
- any mortgages, charges, or other securities on property owned by the incorporated association.
- Check the financial statements. They should show an accurate and fair view of the incorporated association's financial performance. It is good practice to record this confirmation in the minutes of the committee meeting.
- Ensure the AGM is held within 6 months of the end of the financial year.
Consider requesting an audit of financial statements
As a Tier 2 incorporated association, NSW Fair Trading does not require you to audit your financial statements. However, it may direct you to conduct an audit and submit an auditor's report.
Your constitution or funding arrangements may require an audit.
Present statements at the AGM
The committee must:
- arrange for the financial statements to be presented to members at the meeting
- include a copy of the financial statements and any resolutions about those statements in the AGM minutes.
Lodge annual summary and financial statement
Within one month following the AGM, the committee must lodge the following with NSW Fair Trading:
- the Form A12 T2 Annual summary of financial affairs
- the financial statement presented to members at the AGM.
You must lodge these documents within one month after the AGM and no later than 7 months after the end of the incorporated association’s financial year.
You do not need to lodge other documents such as the minutes, agenda or notice of meetings unless NSW Fair Trading specifically requests it.
Request an extension of time to hold an AGM or lodge a summary
You should lodge a Form A11 Application for extension of time for holding annual general meeting or lodging annual summary of financial affairs with the prescribed fee if your incorporated association:
- cannot hold the AGM within 6 months after the end of its financial year, or
- is unable to lodge its Form A12 T2 Annual summary of financial affairs by the due date.
Visit incorporated associations forms and fees for more information.
Ask NSW Fair Trading a question
If you are unable to find the information you need, you can call us on 1800 502 042 between 8:30am and 5pm, Monday to Friday.
NSW Fair Trading can only provide information based on the content available on the website and cannot provide legal advice.