All funds

A Have the fund's financial statements been audited?

Each financial year the trustee must arrange for an auditor to audit the financial statements of the fund.

The audit must be finalised before the fund is required to lodge the return.

B Has the trustee advised the Commissioner of every change to the fund's governing rules?

The trustee must let us know, within 21 days of any change in the fund's deed or will using the approved form:

• Notification of change to the governing rules of an endorsed private ancillary fund (NAT 73402)
• Notification of change to the governing rules of an endorsed public ancillary fund (NAT 74034)

C Has the market value of assets other than land been estimated as at the end of the financial year?

The trustee must have estimates of market value of the assets, other than land and buildings, current on 30 June 2012.

Estimates must be completed before the fund is required to lodge their return for the relevant financial year.

The market value must be estimated in accordance with the applicable ancillary fund guidelines and any other directions from us.

We consider that, where there are circumstances that make the value apparent (for example, all assets of the company are in cash or listed shares), the trustee may use the market value established by the account balance for cash or the listed price of the shares.

However, we also consider that estimating the market value of shares in a private company is likely to be difficult or complex and so must be estimated by a certified and independent valuer or by the  Australian Valuation Office AVO), which is part of the ATO.

D Has the market value of land been estimated within the last three financial years?

The trustee must have estimates, which have been made within the last three financial years, of the market value of assets that are land, including buildings.

Estimates must be completed before the fund is required to lodge a return for the relevant financial year.

The market value must be estimated in accordance with the ancillary fund guidelines and any other directions from us, and must be made by a certified and independent valuer or by the AVO.

E Was every financial dealing of the fund with an associated person or entity made at arm's length?

Dealings with a founder, donor, trustee, director, officer, agent, member or employee of the trustee, or an associate of these entities must be at arm's length or on terms more favourable to the fund than would otherwise be expected under an arm's length transaction.