Statement of accounts and audits under other Acts
A body corporate under other Acts must keep a statement of accounts and decide whether to audit its accounts.
Read more about auditing accounts and bank accounts for bodies corporate with a CMS registered at Titles Queensland.
Statement of accounts
A statement of accounts shows the body corporate’s income and spending for the year.
The body corporate must keep a statement of its accounts. A new statement should be prepared each year, and it should also show the corresponding amount for the previous year.
A copy of the statement of accounts must be sent with the notice of annual general meeting. If a motion to audit the accounts was passed at a previous general meeting, the auditor’s certificate should also be included.
Subsidiary bodies corporate should also add a motion to the annual general meeting agenda to adopt the statement of accounts.
Auditing accounts
Subsidiary bodies corporate
A subsidiary body corporate can pass a motion at its annual general meeting not to audit its accounts. The motion is passed by special resolution.
If the motion not to audit the accounts does not pass, the body corporate must audit its accounts. It will need to pass a motion (by resolution) to appoint a qualified auditor. The auditor will audit the statement of accounts for the upcoming year.
An owner wanting body corporate accounts to be audited should vote ‘no’ to the motion not to audit the accounts.
Precinct or principal bodies corporate
Statements of accounts must be audited each financial year for:
- precinct bodies corporate under the Mixed Use Development Act 1993 (MUD Act)
- principal bodies corporate under the Sanctuary Cove Resort Act 1985 (SCR Act) and Integrated Resort Development Act 1987 (IRD Act).
The auditor must be agreed to by an ordinary resolution at a general meeting.
Qualified auditor
A qualified auditor means a:
- registered auditor under the Corporations Act
- Certified Practicing Accountant (CPA) or Fellow (FCPA), CPA Australia member
- Chartered Accountant (CA) or Fellow (FCA), Institute of Chartered Accountants member
- Member, Institute of Public Accountants (MIPA) or Fellow (FIPA), Institute of Public Accountants member.
For precinct bodies corporate under the MUD Act, and principal bodies corporate under the SCR Act or IRD Act, the auditor must also:
- have a total of 2 years’ auditing experience
and
- must not be a committee member, body corporate manager or an associate of them.
