Financial reporting

Compliance Guidelines

This guide outlines the basic financial reporting requirements for your club. You can find more details on the Office of Fair Training (OFT) website: financial responsibilities for incorporated associations

Did you know? If your club also operates under any other law for any purpose, for example the Collections Act 1966, the Gaming Machine Act 1991 or the Liquor Act 1992, the financial reporting requirements of those acts must also be followed.

The treasurer should provide a report at each management committee meeting so that all management committee members understand the club’s financial position. This report, which includes the financial statements and any payments needing approval or ratification, helps ensure that all decisions made by the management committee are in the best financial interests of the club. 

While the treasurer might be responsible for preparing financial statements and reporting at meetings, it is the entire management committee who are accountable for the financial management of your club.

This is one reason why all spending must be pre-approved by the management committee. The president, treasurer, or any other management committee member can’t simply spend money just because they think it’s a good idea!

Leading up to your AGM

1. Prepare your annual financial statements
2. Verify or audit your financial reports

Your club’s financial reporting obligations are determined by its size (see Quick Guide below). All financial reports must be either audited or verified before your AGM.

*This information is correct and up-to-date as of November 2023. Check the OFT website to confirm and view further details. 

At the AGM

Hold your AGM

Your AGM must be held within six months after the end of your financial year, which is defined in your constitution.

Adoption of the financial statement

The management committee must ensure financial statements are prepared and presented to the AGM for adoption.

Adoption means formal acceptance or approval of your audited or verified financial statements. By presenting the financial statements to the AGM, the management committee is inviting members to review, accept and formally acknowledge them as the official financial records for the past financial year. This process provides transparency and accountability for members.

Appoint an auditor or verifier

The club must appoint an auditor or verifier for the next financial year at the AGM.

After the AGM

Lodge your annual returns

Post AGM, the club must lodge two returns.

UQ Sport – lodge within two weeks of your AGM

• Financials that were presented at the AGM
• AGM minutes
• President, secretary and treasurer’s reports
• Details of any newly elected management committee members, including name, role, email address and mobile number.

Office of Fair Trading – lodge within one month of your AGM

• Complete and lodge the Associations Incorporation form 12 – Annual return of association. 
• The annual return must include a copy of the financial statement presented at the AGM, signed and dated by either the president or the treasurer, including:

1. A profit and loss statement (income and expenditure)
2. A balance sheet (assets and liabilities)
3. All mortgages, charges and securities that affect any of your club’s property at the close of the financial year
4. A copy of the auditor’s report, or the verification statement, signed in accordance with your club’s reporting requirements.

Did you know? The secretary, president and treasurer could be fined under the Associations Incorporation Act (Section 59BA) and your club could be ineligible for some grants if you don’t submit your annual return on time.

Other reporting requirements

Record keeping

Your club is required to maintain financial records, including as a minimum:

• a cash book or statement of amounts received and paid
• a receipt book of receipt forms
• all club bank statements
• a register of assets
• a petty cash book

Best practice financial record keeping would also include:

• records of the invoices the club has issued
• records of expenses paid and their receipts, especially if the club is registered for GST
• the financial transactions, both payments and receipts, kept up-to-date in the bookkeeping records. Regular (at least monthly) reconciliations should be made between the bookkeeping records and bank statements to ensure all transactions are recorded and reconciled
• a record of liabilities, such as loans and outstanding payments
• financial reports and statements, including the annual financial statements and audit report or verification statement
• records of any grants, donations or other funding received, along with terms and conditions
• minutes of meetings where financial decisions were made or financial reports were presented

The management committee should review the club’s financial records regularly to ensure that the club is on track.

Cloud-based bookkeeping systems are increasingly being used by clubs as they are relatively inexpensive (some systems offer discounts to not-for-profit clubs), save a lot of time and offer the benefits of accessibility, easy reporting, integration with your club’s bank accounts and regular backups. 

They also allow for an easy handover when your treasurer changes. Your auditor or accountant may wish for the club to use a system that they can connect with or already use.

Whatever system you use, your records should be easy to find, easy to understand and kept on file for at least seven years.

Did you know? Your club must hold an account with a financial institution in Queensland and your club’s legal name needs to be on the bank statements. Not sure of your club’s legal name? Search the Queensland Government charity or association register.

Approving or ratifying all payments

All payments made by your club need to be either approved or ratified by the management committee. Approval or ratification can occur at management committee meetings, or in between meetings by agreement in writing.

Ratifying means formally approving or confirming a payment that has already been made. When the management committee ratifies a payment that has already been made, such as to purchase a new freezer urgently to stop food spoiling if the old freezer breaks down, they are officially recognising and approving the payment after the fact. It’s a process to ensure financial decisions are valid and agreed upon by the committee.

Petty cash

All payments exceeding $100 must be paid by electronic funds transfer or by cheque. Any expenditure less than $100 can be disbursed using the club’s petty cash and noted in the petty cash record book.

Asset register

The asset register lists all club assets, including the date an asset was acquired, its cost, depreciation, location (if applicable) and when and how it was disposed of. Your asset register helps your management committee monitor your club’s assets and helps your auditor prepare accurate financial statements. Asset management software can greatly streamline your asset register.

Raffles and other games of chance

Most raffles run by sports clubs in Queensland would be classified as Category 1 games under the Charitable and Non-profit Gaming Act 1999. Category 1 games are raffles where the gross proceeds are expected to be $2,000 or less.

If you run such raffles, you must keep:

• accounting records, correctly recording and explaining the transactions for each game
• a master register of games conducted, including details such as the type of raffles, drawing dates, number of tickets sold, price per ticket and
• retail prize value
• a ticket register
• a cashbook showing the movement of funds in and out
• bank statements and deposit records showing transactions in relation to your raffles
• receipt books showing receipts for money collected from ticket sales
• a statement of raffle receipts and payments, showing income and expenditure relating to your raffles over a period of time
• expense records showing where you spent money in relation to raffles
• copies of advertisements and notices promoting your raffles

Further information about raffles and other non-profit gaming can be found at QLD Office of Liquor and Gaming Regulation ‘Charitable and Non-Profit Gaming Rule 2010’