This section allows the trustee to advise us on some governance issues.
Insert X in the Yes or No box, where applicable.
All ancillary funds must complete all questions.
A – Have the fund's financial statements been audited or reviewed?
Each financial year the trustee must arrange for an auditor or reviewer to audit the financial statements of the fund.
An ancillary fund with revenue and assets of less than $1 million in a particular financial year may have its financial statements reviewed rather than audited, unless either:
- the Commissioner advises otherwise
- your trust deed requires an audit.
A reviewer must meet the requirements provided in private ancillary fund guidelines – subsection 19(4) or public ancillary fund guidelines – subsection 19(4). An auditor must meet the requirements provided in private ancillary fund guidelines – subsection 19(1) or public ancillary fund guidelines – subsection 19(1).
The audit or review must be finalised before the fund is required to lodge the return.
For more information, refer to private ancillary fund guidelines – sections 18 and 19 and public ancillary fund guidelines – sections 18 and 19.
B – Has the Commissioner been advised of any changes 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).
For more information see Private ancillary fund guidelinesExternal Link – section 13 and Public ancillary fund guidelinesExternal Link – section 13.
C – Has the fund entered into a financial dealing with a person or entity associated with the founder or trustees of the fund?
Dealings (except by way of gift), 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.
For more information see Private ancillary fund guidelinesExternal Link – subsection 21(7) and Public ancillary fund guidelinesExternal Link – subsection 21(7).
D – Has the fund’s auditor or reviewer confirmed compliance with the AF guidelines relating to the relevant reporting period?
Each financial year the trustee must arrange for an auditor or reviewer to audit compliance with the guidelines by the fund and the trustee.
An ancillary fund with revenue and assets of less than $1 million in a particular financial year may have its compliance with the guidelines reviewed rather than audited, unless either:
- the Commissioner advises otherwise
- your trust deed requires an audit.
The reviewer must meet the requirements provided in private ancillary fund guidelines – subsection 19(4) or public ancillary fund guidelines – subsection 19(4).
The audit or review must be finalised before the date the fund is required to lodge the return.
For more information see Private ancillary fund guidelinesExternal Link – sections 19 and 25 and Public ancillary fund guidelinesExternal Link – sections 19 and 25.
E – Does the fund maintain a current written investment strategy?
An AF trustee must prepare and maintain a current investment strategy for the fund that sets out the investment objectives of the fund and details the investment methods the trustee will adopt to achieve those objectives.
The investment strategy (and a record of the associated decision-making processes) must be available in a written form so that the trustee, an auditor, a reviewer, or the Commissioner can determine whether the fund has complied with the AF Guidelines.
For more information see Private ancillary fund guidelinesExternal Link – section 20 and Public ancillary fund guidelinesExternal Link – section 20.
F – Did the fund wind up or cease to be a public or private AF?
If the AF was wound up or ceased to be a public or a private AF during the financial year, it must include the audit or review report when it lodges the ancillary fund return.