Tier 2 incorporated associations financial reporting
Understand financial reporting and AGM requirements for Tier 2 (small) incorporated associations in NSW, including exemptions for registered charities and extension of time applications.
Tier 2 (small) incorporated associations must ensure their records accurately explain their financial transactions and financial position.
Tier 2 incorporated associations are those whose:
- total revenue in the income and expenditure statement (such as. gross receipts) for a financial year is $250,000 or less, and
- current assets are $500,000 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.
Incorporated associations must lodge Form A12 T2 Annual summary of financial affairs:
- within one month after the annual general meeting (AGM), and
- no later than 7 months after the incorporated associations financial year end with NSW Fair Trading.
Before the annual general meeting (AGM)
As soon as practical after the end of the incorporated association’s financial year, the committee must:
- 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.
Audit of financial statements
NSW Fair Trading does not require Tier 2 incorporated associations to audit their financial statements. However, it may direct an incorporated association to conduct an audit and submit an auditor's report.
An incorporated association’s constitution or funding arrangements may require an audit.
At the annual general meeting
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.
After the annual general meeting
Within one month following the AGM, the committee must lodge with NSW Fair Trading:
- the Form A12 T2 Annual summary of financial affairs
- the financial statement presented to members at the AGM and other documents such as the minutes, agenda and notice of meeting are not required to be lodged, unless specifically requested by NSW Fair Trading.
Extension of time
An incorporated association 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 it:
- cannot hold its annual general meeting within 6 months after the end of its financial year, or
- is unable lodge its Form A12 T2 Annual summary of financial affairs by the due date.
Visit incorporated associations forms and fees for more information on lodgement.
Exemption for registered charities
An NSW incorporated association registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC), may be exempt from its financial reporting requirements to NSW Fair Trading. It does not need to lodge its annual financial summary with NSW Fair Trading or pay the annual fee. To use this exemption, the ACNC’s Annual Information Statement for NSW organisations includes extra questions to collect information for NSW Fair Trading.
Information is available in Exemption Order No. 001/18 Financial reporting requirements.
An NSW incorporated association also registered as a charity with the ACNC, must lodge an Annual Information Statement. This includes financial statements if required. These documents must be lodged with the ACNC each financial year. The incorporated association must answer all questions. The ACNC will then share this information with NSW Fair Trading.
The incorporated association must continue to hold their annual general meeting (AGM) within 6 months of the end of their financial year. All financial statements must be prepared as required by the Associations Incorporation Act 2009. They must be submitted to its members at this meeting. As a Tier 1 incorporated association, this would include preparing and providing an audit report.
All incorporated associations must notify NSW Fair Trading of any changes to the incorporated association. This includes the incorporated association’s name, details, constitution, or public officer.
Visit incorporated associations forms and fees for information on how to lodge.
You can confirm your incorporated association's charity status by searching the ACNC charities register.
Visit the ACNC website for more information regarding reporting obligations for charities.
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.