Treasurer's Guide to WA Incorporated Sporting Clubs 2026

Revenue is calculated under Australian Accounting Standards, before any tax liabilities.

Included (if from ordinary activities): membership fees and subscriptions, service fees, interest, government and other grants, donations, bequests, sales of goods, and other fundraising inflows.

Excluded: gains on the sale of non-current assets (for example club property), unrealised gains (for example revaluations), and amounts collected on behalf of third parties.

Source: Consumer Protection WA, Tiered financial reporting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/tiered-financial-reporting).

The association can apply to the Commissioner to be declared a specific tier for that year. The application must be lodged no later than three months after the financial year ends. It is granted only if the Commissioner is satisfied that the revenue increase came from unusual, non-recurring circumstances.

Source: Consumer Protection WA, Tiered financial reporting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/tiered-financial-reporting).

A Tier 1 association prepares annual financial statements to present to members at the AGM, using either the cash or accrual method:

• Cash basis: a statement of all monies received and paid, a reconciled statement of all bank balances, and a statement of total assets and liabilities at year end.
• Accrual basis: an income and expenditure statement and a balance sheet.

A review or audit is not needed unless members resolve to have one or the Commissioner directs it.

Source: Consumer Protection WA, Tiered financial reporting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/tiered-financial-reporting).

A Tier 2 association prepares an annual financial report that complies with Australian Accounting Standards. It contains:

• financial statements: an income and expense statement, a balance sheet, a cash flow statement and a statement of changes in equity
• notes, including the disclosures needed for a true and fair view
• the management committee declaration

Committee declaration: passed by resolution of the committee. It states whether there are reasonable grounds to believe the association can pay its debts when due, and whether the statements comply with the Act. It must state the date and be signed by at least two authorised committee members.

The report must then be reviewed by an independent reviewer every year, and the review report presented at the AGM.

Sources: Consumer Protection WA, Tiered financial reporting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/tiered-financial-reporting) and Accounts and auditing (https://www.consumerprotection.wa.gov.au/book/export/html/4934).

A Tier 3 association prepares an annual financial report in accordance with Australian Accounting Standards, made up of financial statements, notes and the committee's declaration (the declaration works the same way as for Tier 2).

The report must be audited every year, and the audit report presented to members at each AGM. The auditor must be independent, hold a current Certificate of Public Practice and be a member of CA ANZ, CPA Australia or the Institute of Public Accountants, or be a registered company auditor, or be approved by the Commissioner. They must give an independence declaration before starting work.

The audit report must state whether the statements comply with the Act (with reasons if not), describe any defects or irregularities, include the required auditing disclosures and give the date it was prepared.

Source: Consumer Protection WA, Tiered financial reporting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/tiered-financial-reporting).

• Tier 1 (under $500,000): not required by default. It is required only if a majority of members pass a resolution at a general meeting, or the Commissioner directs it. If a funding agreement or licence requires an audit, members must still pass a resolution at a general meeting to undertake one.
• Tier 2 ($500,000 up to under $3 million): an annual review is mandatory, and the review report is presented at each AGM. An audit is required only if a majority of members resolve it at a general meeting, or the Commissioner directs it.
• Tier 3 ($3 million or more): an annual audit is mandatory, and the audit report is presented at each AGM.

A review reports whether anything suggests the financial report does not comply with the Act. An audit involves gathering evidence about records and transactions and ends in a formal opinion on compliance.

Source: Consumer Protection WA, Tiered financial reporting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/tiered-financial-reporting).

The reviewer or auditor must be independent and be one of:

• a member of Chartered Accountants Australia and New Zealand, CPA Australia or the Institute of Public Accountants
• a registered company auditor
• a person approved by the Commissioner for Consumer Protection

An auditor must also hold a current Certificate of Public Practice.

Before starting work, the reviewer or auditor must give the committee a written independence declaration.

Consumer Protection says to avoid appointing a past or present committee member, a member of the association, an employee, supplier or servant of the association, or an employer, partner or family member of a committee member.

The committee should get an engagement letter covering responsibilities, scope of work, total cost and expected completion time. A reviewer or auditor appointed by the committee for the Tier 2 or Tier 3 requirement stays until their report is presented at the AGM, or until they resign.

Source: Consumer Protection WA, Accounts and auditing (https://www.consumerprotection.wa.gov.au/book/export/html/4934).

The Act requires annual financial statements or reports to be presented to members at each AGM:

• Tier 1: the annual financial statements.
• Tier 2: the annual financial report and the review report.
• Tier 3: the annual financial report and the audit report.

Consumer Protection also advises that the meeting:

• allow time for the treasurer or another committee member to summarise the accounts and explain major items
• give members the opportunity to ask questions
• ideally have copies available at the meeting, online, or circulated before or after it

Sources: Consumer Protection WA, Accounts and auditing (https://www.consumerprotection.wa.gov.au/book/export/html/4934) and Annual general meeting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/types-meetings).

• First AGM: within 18 months of the association becoming incorporated.
• After that: once in every calendar year, within six months after the end of the association's financial year. The financial year is defined in the club's rules.
• Extension: the Commissioner can approve a later AGM, but only if the request is made before the six-month period expires. Requests are lodged through Associations Online. Consumer Protection says an extension will generally only be considered where the delay is due to circumstances beyond the association's control, or is in the best interests of members.
• Notice: notice of an AGM should be sent to all members, irrespective of voting rights, and must also follow the club's rules.

Source: Consumer Protection WA, Annual general meeting (https://consumerprotection.wa.gov.au/inc-guide-incorporated-associations-western-australia/types-meetings).

All incorporated associations must keep financial records that accurately show their transactions and financial position, kept so they can be "conveniently and properly audited".

Consumer Protection lists these as good practice, with documented policies for:

• budgets
• recording all income (grants, fees, donations, fundraising, sales, interest)
• paying and recording bills
• petty cash
• tax records such as GST, superannuation, fringe benefits and PAYG withholding, where they apply
• salary, leave and reimbursements, with time and wage records kept under the relevant award or industrial law
• monthly bank reconciliations
• an up-to-date asset register
• secure filing of insurance policies, leases, contracts and funding agreements

Whether members can inspect records at other times depends on the inspection provisions in the club's own rules.

Source: Consumer Protection WA, Accounts and auditing (https://www.consumerprotection.wa.gov.au/book/export/html/4934).

Resignation: a reviewer or auditor can resign at any time by written notice. The association must lodge a notification with Consumer Protection within 14 days.

Removal: members must pass a resolution at a general meeting, and:

1. Written notice of the intended motion goes to all members at least two months before the meeting.
2. A copy of the notice goes to the auditor or reviewer and to the Commissioner.
3. The auditor or reviewer has 30 days from receiving the notice to make a written submission to the committee.
4. If a submission arrives, the committee must give every member a copy at least seven days before the meeting.
5. The auditor or reviewer may attend the meeting and speak before any vote.

If these steps are not completed, the removal resolution has no effect.

Rights while in office: the auditor or reviewer receives all notices about general meetings, may attend any general meeting and may be heard on business relating to their role.

Source: Consumer Protection WA, Accounts and auditing (https://www.consumerprotection.wa.gov.au/book/export/html/4934).