Auditing or reviewing parish accounts

Description

This article explains parish responsibilities for keeping financial records, when an audit or review is required, and who is qualified to carry it out.

Overview

Every parish must keep proper accounts of all money received and spent. These accounts must be audited or reviewed each year by a qualified professional.

This requirement is outlined in Section 30 of the Parochial Administration Ordinance.

What the Ordinance says

Section 30(1): Oversight of parish accounts

Parish Councils must:

Keep accurate financial records for each calendar year (ending 31 December)
Ensure those records are audited or reviewed by someone authorised by the Australian Charities and Not-for-Profits Commission (ACNC)
Provide copies of the reviewed or audited accounts to each Vestry or governing body in the parish

Section 30(2): Review instead of audit

If a parish’s annual revenue is under $3 million, it can choose to have a review instead of a full audit, in line with ACNC rules.

Who can do the review or audit?

According to the ACNC, the review or audit must be done by:

A registered company auditor (under the Corporations Act 2001)
An audit firm or authorised audit company
A member of a recognised professional accounting body:
CPA Australia
Chartered Accountants ANZ (CAANZ)
Institute of Public Accountants (IPA)

The reviewer must also be qualified to conduct reviews under the Corporations Act.

Finding someone to do the review

The Diocese does not maintain a list of approved auditors or reviewers.

If you’re unsure where to start, check with colleagues in your Deanery to see who they use.

What should reviewers check?

There is no standard checklist provided by the Diocese. However, CPA Australia may publish general review standards, which can be a helpful reference.