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Common mistakes to avoid when filing financial statements

Top ten mistakes:

  1. Submitting an incomplete financial statement
  2. Submitting the financial statement without the certificate - Form IS4
  3. The Annual General Meeting date isn’t provided
  4. The audit or review report is missing
  5. Submitting bank statements instead of financial statements
  6. Submitting a cash book instead of financial statements
  7. Not filing a nil financial statement when the society has had no expenditure or income and has no assets and liabilities
  8. Filing for the wrong financial year
  9. Filing for the same financial year twice
  10. Submitting poor quality financial statements

 


 

1. Submitting an incomplete financial statement

A complete financial statement should include the following:

  • Statement of income and expenditure
  • Statement of financial position
  • Details of all mortgages, charges, and securities of any description affecting any of the society’s property (where applicable)
  • Audit or review report (where applicable).

 

You might like to use the sample financial statement as a guide for preparing your society’s statement.

 

2. Submitting the financial statement without the certificate - Form IS4

You need to include a certificate stating that the financial statement has been submitted to and approved by the members of the society at a general meeting. This certificate needs to be signed by an officer of the society e.g. – president, treasurer or secretary.

If you’re filing your financial statements manually, they should be submitted with a completed financial statement cover sheet (Form IS4 – Financial statement cover sheet). This cover sheet must state the date of the general meeting at which the financial statement was approved.

Download Form IS4 - Financial statement cover sheet [PDF 62KB]

 

3. The Annual General Meeting date isn’t provided

You need to provide the Annual General Meeting (AGM) month when you file financial statements. The Form IS4 – financial statement cover sheet, with the AGM month details provided, should be submitted together with the financial statement.

 

4. The audit or review report is missing

An audit report needs to be submitted with the financial statement if the rules of the society specify that an auditor must be appointed to audit the financial statement.

Similarly, where the rules of the society specify that a reviewer must be appointed the review report must be submitted with the financial statement.

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5. Submitting bank statements instead of financial statements

Submitting a bank statement is not enough to meet the society’s financial reporting obligations under section 23 of the Incorporated Societies Act 1908. Incorporated societies have to submit an annual financial statement to the Registrar. A complete statement should include the following:

  • Statement of income and expenditure
  • Statement of financial position
  • Details of all mortgages, charges, and securities of any description affecting any of the society’s property (where applicable)
  • Audit or review report (where applicable).

 

You might like to use the sample financial statement as a guide for preparing your society’s statement.

 

6. Submitting a cash book instead of financial statements

Submitting a cash book is not enough to meet the society’s financial reporting obligations under section 23 of the Incorporated Societies Act 1908. Incorporated societies have to submit an annual financial statement to the Registrar. A complete statement should include the following:

  • Statement of income and expenditure
  • Statement of financial position
  • Details of all mortgages, charges, and securities of any description affecting any of the society’s property (where applicable)
  • Audit or review report (where applicable).

 

You might like to use the sample financial statement as a guide for preparing your society’s statement.

 

7. Not filing a nil financial statement when the society has had no expenditure or income and has no assets and liabilities

Every incorporated society has to submit an annual financial statement to the Registrar, even if it’s been inactive for the past financial year.

In this case, if the society has had no expenditure or income and has no assets and liabilities during this timeframe, a statement is still required to be filed to report this inactivity.

You might like to use the sample nil financial statement as a guide for preparing your society’s statement.

 

8. Filing for the wrong financial year

The financial statement must cover the correct reporting period. For example, for the 31 March 2016 financial year, the financial statement should cover the society’s transactions for the period 1 April 2015 to 31 March 2016.

 

9. Filing for the same financial year twice

Before filing, check the Register to confirm that the society hasn’t already filed a financial statement for that particular financial year.

 

10. Submitting poor quality financial statements

Financial statements have to be of good quality and all data should be readable. A clear, legible copy of the financial statement should be submitted for registration.

 

Last updated 25 September 2015