Rulebooks and bankbooks: Meeting financial reporting obligations as a sporting club
A sporting club may handle a considerable amount of money in a single financial year. Whether it be membership revenue, ground maintenance costs or even the weekly sausage sizzle intake – everything adds up!
If your sporting club is an incorporated association, it is important that all of these transactions (among others) are recorded so that your club complies with the requirements of the Associations Incorporation Reform Act 2012 (Vic).
Under the Act, it is necessary to keep accurate records that help to record and explain:
a) the different transactions you make as a club; and
b) your club’s overall financial position and performance.
This information is important as it allows clubs to keep track of income and expenditure throughout the financial year. It also allows financial statements to be prepared. A club Secretary must lodge these statements with the Register of Incorporated Associations every year, and ensure that records are kept for an additional seven years after the included transactions have been completed.
Obligations will differ depending upon the annual revenue. Refer to the table below to determine your club’s particular responsibilities.
| Your total revenue | Your financial reporting responsibilities | Submission of final reports | |
| Tier One |
Less than $250,000 |
Financial statements must be prepared. A formal review is not required, however, a majority of members present at a general meeting may vote to do so. |
At the first AGM of each financial year, financial statements must be submitted by the the committee to the members. |
| Tier Two |
$250,000 - $1,000,000 |
Financial statements must be prepared and reviewed by an independent accountant. |
At the first AGM of each financial year, financial statements must be submitted by the committee to the members. |
| Tier Three |
More than $1,000,000 |
Financial statements must be prepared and audited by an independent accountant. |
At the first AGM of each financial year, financial statements must be submitted by the committee to the members. |
If you would like more information, or if you would like us to assist you in reviewing your club’s constitution or policies, please contact:
Ashleigh Wall
Special Counsel
T 03 5226 8559
E awall@harwoodandrews.com.au
Jesse Drever
Lawyer
T 03 5225 5226
E jdrever@harwoodandrews.com.au
