The term ‘financial management’ refers to the planning, directing, monitoring, organising, and controlling of the monetary resources of an organisation in such a manner so as to best contribute to helping an organisation accomplish its objectives.
For State Sporting Organisations (SSOs) financial management and reporting involves board secretaries, treasurers, officers, board and committee members being able to;
- read and interpret financial statements and consider financial reports and legal requirements;
- examine the types of reports which should be provided to the board;
- reflect on the financial and non-financial metrics which provide knowledge about your SSO’s organisational performance;
- assess the board’s or committee of managements responsibilities with regard to reporting against legislative and funding requirements;
- effectively manage SSOs funds; and
- implement sound financial practises and understand your organisations financial position and obligations.
SSOs should keep accurate and up-to-date records of financial transactions. The exact requirements may vary depending on the legal structure of your organisation.
Even if you have a treasurer in place or have an auditor checking your accounts, the law is clear that members of the Board or Management Committee of an incorporated association and the directors of corporations are directly responsible for making sure that the finances are accurate and up-to-date.
Financial Reporting and Auditing
A requirement to provide financial reports and have your accounts audited depends on the legal structure (i.e. incorporated as associations under the Associations Incorporation Act 2009 (NSW) (the Act) or as company limited by guarantee.
All company officeholders need to understand their legal obligations under the Corporations Act 2001. This includes keeping accurate financial records, passing solvency resolutions, and keeping company details up to date and your turnover.
The Board or Management Committee must ensure proper accounting and other records are maintained and must distribute copies of financial statements as required by the Act.
- publish annual reports consistent with the Act;
- report consolidated national financial accounts annually;
- report any required financial and other related information to the Office of Sport (OoS) as required;
- disclose administration expenses in accordance with the requirements of the Australian Securities and Investments Commission's requirements; and
- obtain Members’ approval of the annual accounts.
Subject to below the Board or Committee of Management must also submit the annual accounts of the SSO to a General Meeting of the SSO.
Associations who are incorporated under the Act must prepare a financial report to be presented to their members at the AGM.
More information about accounting and auditing for incorporated associations can be found at NSW Fair Trading.
More information about accounting and auditing for compaies limited by guarantee, can be found at the Australian Securities and Investment Commission (ASIC).
Financial Management Toolkit
The Financial Management Toolkit has been developed to assist SSOs improve their financial management practices and skills.
The Toolkit is constructed across the following six key streams.
Note: as with any legal and financial documents, this does not replace obtaining legal and financial advice on each sports specific requirements and it is recommended you do so.
The information provided in the framework and tool kit is for your information only. The authors and the NSW Office of Sport accept no responsibility for the accuracy of the information or your reliance upon it.