This article was compiled by FMC Treasurer, Phil Glasson. If you or your club wants to add to this resource, or assist us building resources about any topic for the Outdoor Community, then drop us a line!
Audit is a very structured process which can only be done by qualified auditors and will cost money. It is overkill for any tramping club !
Financial review is a lower level of check but there are still standards required of the Reviewer and a club might still have to pay.
All most clubs requires is that a person, independent of the committee have a look through the books to check that the club’s policy around payment approval is being followed, that income is recorded and that the Annual Accounts are fair and accurate. This person doesn’t need to be a qualified accountant but should have some competency in this area.
A club is NOT required by law to have either a Financial Review or an Audit. What a Club is required to do by law, is to follow its own Rules (aka Constitution) . If the Rules say your club has an Audit then you are supposed to have an audit !
The advice is to change your rules to read something along the lines:
The committee will ensure that the Annual Accounts are inspected each year by a person appointed at the AGM who is not on the committee. This report must be presented to the AGM.
[NB there is no reference in this wording to Financial Review or Audit – both of which have specific legal meanings.