Financial Management - Newtown Neighbourhood Centre

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FINANCIAL MANAGEMENT 

NEWTOWN NEIGHBOURHOOD 

CENTRE INC 

POLICY AND PROCEDURE MANUAL 

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FINANCIAL MANAGEMENT AND ADMINISTRATION 

Policy: 

Financial Management and Administration 

Sub heading; 

Financial Management and Administration 

Status: 

Operational 

Approval date: 28.4.09 

Approved By: 

Management Committee 

Review Date: April 2012 

Staff Training Date: EO, Managers, Administrators June July 

General staff informed March 2009 

Uncontrolled Webcopy When Printed 

Financial Management Policy Approved by: NNC Board Approval Date: 28.4.09 Page 1

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INDEX 

Section Topic Page No. 

1.0 

2.0 

3.0 

4.0 

5.0 

6.0 

CHART OF ACCOUNTS 5 

1.1 Chart of Accounts Policy 5 

1.2 Chart of Accounts Procedure 5 

FINANCIAL MANAGEMENT 7 

2.1 Financial Management Policy 7 

2.2 Financial Management Procedure 7 

2.3 Role of Administrators 7 

FINANCIAL REPORTING 10 

3.1 Financial Reporting Policy 10 

3.2 Financial Reporting Principles 10 

3.3 Financial Reporting Procedure 12 

3.4 Financial Statements Procedure 12 

3.5 Principle Accounting Records 14 

3.6 Assets Register 15 

3.7 Asset Register Procedure 16 

3.8 Depreciation Policy 17 

3.9 Depreciation Procedure 17 

3.10 Subsidiary Records and Audit Trail 18 

AUDITING OF REPORTS 20 

4.1 Auditing of Reports Policy 20 

4.2 Selecting an Auditor Procedure 20 

4.3 Auditing of Reports Procedure 20 

4.4 DoCS Requirements for Auditor’s Report 21 

ANNUAL REPORT 22 

5.1 Annual Report Policy 22 

5.2 Annual Report Procedure 22 

5.3 The Public Officer 23 

5.5 Appointment and removal of Public Officer 24 

5.5 Obligations of the Public Officer 24 

ANNUAL BUDGET 26 

6.1 Annual Budget Policy 26 

6.2 Annual Budget Procedure 26 


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6.3 The Budget 27 

6.4 Project Budget Procedure 28 

6.5 Administration Fees 28 

7.0 

8.0 

9.0 

10.0 

11.0 

CASH FLOW MANAGEMENT 29 

7.1 Cash Flow Management Policy 29 

7.2 Cash Flow Management Procedure 29 

INCOME GENERATION 31 

8.1 Income Generation Policy 31 

8.2 Income Generation Procedure 31 

ACCOUNTS PAYABLE 33 

9.1 Accounts Payable Policy 33 

9.2 Accounts Payable Procedure 33 

9.3 Reimbursement of Expenses 35 

9.4 Reimbursement of Expenses Procedure 36 

9.5 Petty Cash 36 

9.6 Petty Cash Procedure 36 

9.6 NNC Business Credit Cards & Fuel Cards 36 

9.7 NNC Business Fuel Cards 37 

AUTHORITIES AND DELEGATIONS 38 

10.1 Authorities and Delegations Policy 38 

10.2 Authorities and Delegations Procedure 38 

ACCOUNTS RECEIVABLE 42 

11.1 Accounts Receivable Policy 42 

11.2 Accounts Receivable Procedure 42 

12.0 

TRAVEL/TRANSPORT/VEHICLES, ACCOMMODATION and 

MEAL EXPENSES 

12.1 Travel/Transport/Vehicles, Accommodation and Meal 

Expenses Policy 

12.2 Travel/Transport/Vehicles, Accommodation and Meal 

Expenses Procedure 

45 

45 

45 

13.0 

MOBILE PHONES 49 

13.1 Mobile Phone Policy 49 

13.2 Mobile Phone Procedure 49 


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14.0 

15.0 

16.0 

REPORTING FRAUDULENT OR ILLEGAL ACTS 52 

14.1 Reporting Fraudulent or Illegal Acts Policy 52 

14.2 Reporting Fraudulent or Illegal Acts Procedure 52 

INSURANCE 54 

15.1 Insurance Policy 54 

15.2 Insurance Cover Procedure 54 

15.3 Insurance Cover 54 

15.4 Levels and/or Dollar Values of Insurance Cover 57 

15.5 Insurance Policy Register 57 

RETENTION OF ACCOUNTING RECORDS 58 

16.1 Retention of Accounting Records Policy 58 

16.2 Recordkeeping Procedure 58 

17.0 REFERENCES 60 


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1.0 CHART OF ACCOUNTS 

1.1 Chart of Accounts Policy 

1.1.1 Policy Statement 

The Newtown Neighbourhood Centre has established and maintains a standardised Chart of 

Accounts, which is a full list of the accounts codes used in the Newtown Neighbourhood 

Centre finance system. 

1.1.2 Responsibility 

The Board of Management, the Executive Officer and the Financial Administrator 

1.1.3 Distribution 

The Board of Management, the Executive Officer, the Financial Administrator and Managers. 

1.1.4 Procedures 

The following procedures will apply to this policy: 

 

Chart of Accounts Procedure 

1.2 Chart of Accounts Procedure 

It is the responsibility of the Board of Management and the Executive Officer to ensure the 

Newtown Neighbourhood Centre maintains a Chart of Accounts that is a consistent reporting 

structure that serves the annual budget management needs and legal responsibility 

requirements. 

1.2.1 Chart of Accounts accounting groups 

The Chart of Accounts needs to be divided into six major accounting groups: 

a) Assets 

b) Liabilities 

c) Equity 

d) Income 

e) Cost of Goods Sold 

f) Expenses 

a) Assets 

 

 

Account codes listed under Assets include economic resources controlled by the 

Newtown Neighbourhood Centre as a result of past transactions or events and from 

which future economic benefits may be obtained. 

Assets are further classified as being either financial assets (e.g., cash, accounts 

receivable, loans, investments and advances etc.) or non-financial assets (e.g. 

inventories, buildings, machinery and equipment, capital leases and work in progress 

etc.). 


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b) Liabilities 

Liabilities are financial obligations to outside organisations and individuals as a result 

of transactions and events on or before the accounting date. 

 

 

Account codes listed as liabilities are those that result from contracts, agreements and 

legislation in force at the accounting date that require the Newtown Neighbourhood 

Centre to repay borrowings or to pay for goods and services acquired or provided 

prior to the accounting date. 

The liabilities generally consist of accounts payable, accrued interest payable, 

accrued salaries and wages, superannuation, public debt, etc. 

c) Equity 

 

The term Equity is generally used when referring to the equity available from an 

asset, in simple terms equity is the amount of money you have tied up in an asset. 

d) Income 

The amount left over after all the revenues for a period is accounted for, and all costs 

and expenses for the same period are deducted. Income is also called net income, 

profit, or net profit. 

e) Cost of Goods Sold 

Cost of Goods Sold is a general ledger account under the perpetual inventory system. 

 

 

Under the periodic inventory system there will not be an account entitled Cost of 

Goods Sold. Instead, the cost of goods sold is computed as follows: cost of beginning 

inventory + cost of goods purchased (net of any returns or allowances) + freight-in - 

cost of ending inventory. 

This account or this calculation matches the cost of the goods sold with the sales. 

f) Expenses 

Expenses are the costs of resources consumed and identifiable with the operations of 

the accounting period. 

Examples include operating expenses, grants and contributions, salaries etc. 

These groupings are further subdivided into the account groupings that appear on the 

Newtown Neighbourhood Centre financial statements. 

For example, financial statements often include one expense item called Travel. This 

one line item, however, may consist of several types of travel expenses, such as car 

hire, accommodation costs, and meal expenses, and so on. 

It is important to maintain this level of detail in subsidiary accounting records for 

management and budgetary purposes, but only totals are used for reporting purposes. 

Every account, regardless of how small, should be included in the Chart of Accounts. 

Each account should reference the major grouping to which it is assigned, the 

financial statement reference account, the account number and a brief description of 

the account. 


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2.0 FINANCIAL MANAGEMENT 

2.1 Financial Management Policy 


The Newtown Neighbourhood Centre is committed to managing its finances in an efficient 

and effective manner in accordance with all legislative financial management policies and 

requirements. 

This is achieved by sound financial management in the form of appropriately recording and 

reporting financial information together with the appropriate budget development and 

management, and by ensuring appropriate management and operation of the funds within the 

Newtown Neighbourhood Centre’s bank account/s. 


The Board of Management, the Executive Officer and the Financial Administrator. 


The Board of Management, the Executive Officer, the Financial Administrator and the 

Managers. 


The following procedures will be used to ensure sound financial management: 

 

 

Financial management procedure 

Role of Financial Administrator 

2.2 Financial Management Procedure 

2.2.1 Responsibilities of Board of Management 

It is the responsibility of Board of Management to ensure the affairs of the Newtown 

Neighbourhood Centre are managed effectively. The Board of Management will: 

a) Ensure that an approved auditor audits the accounts yearly 

b) Ensure all financial transactions are recorded; using standard accounting practices 

c) Comply with relevant legislative and funding body requirements 

d) Use funds solely for the furtherance of the organisations purposes and priorities 

approved by the Board of Management 

e) Not allow one person to have complete authority over any of the organisations 

financial transactions 

f) Prevent Newtown Neighbourhood Centre from incurring unauthorised debts 

g) Ensure that all debts are settled in a timely manner and not allow ordinary operating 

expenses to become undischarged debts beyond a three month period from the time 

they were incurred 


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h) Use restricted or tagged contributions for designated purposes only 

i) Operate at all times within a financial environment as defined by the organisations 

approved budget and within Newtown Neighbourhood Centre Policy 

j) Not approve expenditure that, although in keeping with the organisations broad 

policies and aims, is beyond the organisations ability to meet 

k) Report any exceptions to the above to the Board of Management at the earliest 

possible time 

l) Ensure that internal and external financial reporting and accounting requirements are 

met. 

2.3 Role of Administrators 

The Financial Administration is responsible for maintaining the accounting books on MYOB 

or equivalent, for processing all receipts and payments, for assisting the Treasurer and 

Executive Officer in the preparation of the annual budget, for preparing monthly, quarterly 

and annual financial reports. 

2.3.1 Monthly Reports 

The following reports are prepared by the Financial Administrator at the end of each month: 

a) A balance sheet 

b) A budget based profit and loss statement for each funding source, and 

c) A consolidated summary of all funding. 

These reports are given to the Executive Officer who reviews them with the Treasurer and 

highlights any issues before providing them to the Board of Management. 

2.3.2 Responsibilities 

Additionally the Financial Administration is also responsible for: 

a) Preparation of all financial records for the annual audit 

b) Costing of expressions of interest, tenders and submissions in conjunction with the 

Executive Officer. 

c) Liaison with the Treasurer to prepare narrative reports regarding finances 

d) In consultation with the Treasurer and Executive Officer preparing books for audit 

and annual accountability statements for funding bodies 

e) In consultation with the Treasurer and Executive Officer preparing draft and 

annual budgets 

f) Making recommendations to the Executive Officer and appropriate staff in budget 

item allocation 

g) Using MYOB developing and maintaining all financial records on computerised 

invoicing system to meet GST requirements 

h) Preparing all financial requirements for Australian Taxation Office 


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i) Preparing salaries, provide pay slips and maintain staff records on entitlements, 

mileage reimbursement, FBT, EBT, Payment Summaries and other salary related 

matters 

j) Remittance of all superannuation payments 

k) Attending to accounts payable and preparing invoices, cheque requisitions and 

other relevant documentation 

l) Monitoring petty cash and procedures 

The Centre Administrator is responsible is responsible for: 

a) Maintaining the Assets Register 

b) Ensuring all insurance is up to date 


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3.0 FINANCIAL REPORTING 

3.1 Financial Reporting Policy 


Newtown Neighbourhood Centre will present its financial position in reports that are accurate 

and transparent, meeting the accountability and reporting requirements associated with 

preparing reports for its funding bodies, its members, and for internal management decision 

making. 


The Board of Management, the Executive Officer and the Financial Administrator 


The Board of Management, the Executive Officer, and the Financial Administrator 

3.1.4 Procedure and Principles 

The following procedures and principles will apply to this policy: 

 

 

 

 

 

 

 

Financial Reporting Principles 

Financial Reports Procedure 

Financial Statements Procedure 

Principle Accounting Records Procedure 

Subsidiary Accounting Records and Audit Trail Procedure 

Asset Register Procedure 

Depreciation Procedure 

3.2 Financial Reporting Principles 

3.2.1 Financial reports shall be transparent 

The Newtown Neighbourhood Centre must provide full disclosure of all processes, 

procedures and assumptions to ensure credibility of the annual reports. 

The Newtown Neighbourhood Centre is responsible to its members and funding bodies and 

must communicate that it has spent funds wisely and effectively. 

Reports must include what the Newtown Neighbourhood Centre has done and how it went 

about it. 

Reports must also show whether the Newtown Neighbourhood Centre has achieved its 

objectives during the year and explain its plans for the future. 


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3.2.2 Financial reports shall be inclusive 

The Newtown Neighbourhood Centre shall engage its stakeholders in preparing and 

enhancing the quality of reports. 

The Newtown Neighbourhood Centre will acknowledge the involvement and contribution of 

volunteers and the receipt of funding from governments, philanthropic trusts, foundations and 

other sources. 

3.2.3 Financial reports shall be complete 

The Newtown Neighbourhood Centre must include all relevant information. 

The Newtown Neighbourhood Centre will enhance the financial report by including input, 

output and outcome measures in the financial reports. 

This provides evidence of what the Newtown Neighbourhood Centre funding achieved rather 

than simply how it was spent. 

3.2.4 Financial reports shall be auditable 

The Newtown Neighbourhood Centre information must be disclosed in a way that enables 

internal and external auditors to attest to its reliability. 

The provision of audit reports enhances the confidence that can be placed in the Newtown 

Neighbourhood Centre reports. 

3.2.5 Financial reports shall be relevant 

The Newtown Neighbourhood Centre must provide information that is relevant to its 

members and funders. 

3.2.6 Financial reports shall be accurate 

The reports prepared by the Newtown Neighbourhood Centre must be accurate to allow 

readers/users to make decisions with confidence. 

3.2.7 Financial reports shall be reliable 

Reports should be presented in a way that is neutral and avoids bias. 

The Newtown Neighbourhood Centre must report honestly on the events, activities or 

strategies that have impacted on its performance. 

Both satisfactory and unsatisfactory performance needs to be documented. 

3.2.8 Financial reports shall be comparable from year to year 

The Newtown Neighbourhood Centre presentation of reports must be consistent from year to 

year to allow comparisons to earlier reports and to other comparable organisations. 

3.2.9 Financial reports shall be presented with clarity 

The information provided by the Newtown Neighbourhood Centre needs to be presented with 

clarity, so it is easily understood, without loss of detail. 

The Newtown Neighbourhood Centre needs to support the financial information with a 

narrative to enhance interpretation of the report. 


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3.2.10 Financial reports shall be prepared and presented in a timely manner 

 

 

The Newtown Neighbourhood Centre must prepare its financial reports and make them 

available to members, funding bodies and Office of Fair Trading within the required time 

period. 

Additionally the Newtown Neighbourhood Centre needs to ensure its reports provide an 

opportunity to explain future plans and developments in the environment in which the 

Newtown Neighbourhood Centre operates. 

3.3 Financial Reporting Procedure 

3.3.1 The financial year for the Newtown Neighbourhood Centre shall be specified in its 

Constitution and is from July to June each year. 

3.3.2 The Board of Management will ensure it measures performance and reports against defined 

benchmarks and indicators to inform the funding bodies, government, members and general 

public about the efficiency and effectiveness of the services delivered by the Newtown 

Neighbourhood Centre 

3.3.3 The Board of Management will utilise the financial reports of the Newtown Neighbourhood 

Centre to assist in the continual improvement of the Newtown Neighbourhood Centre 

services. 

3.4 Financial Statements Procedure 

The Newtown Neighbourhood Centre must maintain a number of financial statements to 

ensure it financial accountability to all its funding bodies and members. 

3.4.1 Balance Sheet or Statement of Financial Position 

a) The Newtown Neighbourhood Centre must keep a balance sheet or statement of its financial 

position, which is a summary of the Newtown Neighbourhood Centre financial position at a 

single point in time. The Newtown Neighbourhood Centre balance sheet will have three parts: 

i. assets 

ii. liabilities 

iii. ownership equity. 

b) The difference between the assets and the liabilities is known as equity or the net assets or the 

net worth of the Newtown Neighbourhood Centre and according to the accounting equation, 

net worth must equal assets minus liabilities. 

c) The balance sheet is the first report to look at to check if the Profit and Loss reports are 

accurate, as this is where mistakes are easy to spot. 

d) Balance Sheet or Statement of Financial Position Checklist: 

i. Every single line on the Balance Sheet needs to make sense 

ii. Every bank account for the Newtown Neighbourhood Centre needs to show the 

correct balance on the Balance Sheet. Check the amount showing on the Balance 

Sheet against the latest bank statements 


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iii. Consider the balances of Newtown Neighbourhood Centre fixed assets, check these 

are correct 

iv. All accumulated depreciation accounts should be minus figures 

v. All liability accounts should have positive figures. (GST Paid on Purchases is the 

only exception to this rule)The Newtown Neighbourhood Centre Historical Banking 

should always be zero. 

3.4.2 Profit and Loss statement 

a) The Newtown Neighbourhood Centre are required to prepare and publish financial statements 

that reflect funding sources compared against program expenses, administrative costs, and 

other operating commitments. This report is referred to as the Profit and Loss Statement. 

b) Types of Profit and Loss reports: 

i. The simple Profit and Loss report shows how much came in and how much went out 

of the Newtown Neighbourhood Centre during any date range. 

ii. 

iii. 

iv. 

The Profit and Loss year to date report shows how the Newtown Neighbourhood 

Centre is faring for any date range and compares these figures with the year so far. 

Profit and Loss reports needs to be prepared for each project, program, activity or 

service delivered by the Newtown Neighbourhood Centre. 

A consolidated Income and Expenditure report which shows the total profit and loss 

for the Newtown Neighbourhood Centre must also be prepared. 

3.4.3 Reporting of Financial Statements at Board of Management meetings 

a) The Financial Administrator shall prepare monthly and quarterly financial statements 

b) The Treasurer shall present these reports to the Board of Management for endorsement at 

each Board of Management meeting. 

c) The Treasurer must highlight any issues requiring consideration by the Board of 

Management. 

d) Financial concerns, issues, budget revisions and so on must be recorded in the minutes of the 

Board of Management meeting. 

3.4.4 Budget Statement 

a) The Newtown Neighbourhood Centre should develop and maintain a cash budget. 

b) This allows the Board of Management to make management decisions regarding the cash 

position (or cash reserve) of the Newtown Neighbourhood Centre. 

c) Without the type of monitoring the budgeting process allows, the Newtown Neighbourhood 

Centre may be unaware of the cycle of cash through the Newtown Neighbourhood Centre. 

d) At the end of a year or a business cycle, the monthly cash budgets will show the Board of 

Management how much cash is coming into the Newtown Neighbourhood Centre and the 

way it is being used. 

e) A cash budget also allows the Board of Management to evaluate and plan for the capital 

needs of the Newtown Neighbourhood Centre. 

f) The cash budget assists the Board of Management to assess short-term and long-term 

funding/income/borrowing needs. 


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g) A cash budget should be used by the Board of Management as a planning tool for all 

management decisions in regards to the Newtown Neighbourhood Centre. 

3.4.5 Budget versus Actual Statement 

a) The preparation of a cash budget provides the first step toward good financial management by 

the Newtown Neighbourhood Centre. 

b) The next step is to analyse the budget versus actual expenditure to see how close the 

Newtown Neighbourhood Centre is performing to its expectations. 

c) The Budget versus Actuals Statement will highlight if any unexpected cash outflows have 

occurred and if so, whether the Newtown Neighbourhood Centre financial position seriously 

will be seriously affected. 

d) A simple method for monitoring the cash budget is to prepare a budget-versus-actual report of 

actual and budgeted expenses every month. 

e) This type of report consists of three columns. The first column shows the budgeted amounts, 

the second column shows actual Newtown Neighbourhood Centre performance, and the third 

column shows the difference in terms of a percent. 

3.4.5 General Purpose Financial Report 

a) The Newtown Neighbourhood Centre must prepare a general purpose financial report for 

each reporting entity that includes an Income Statement; a Balance Sheet; a Cash Flow 

Statement; a Statement of Changes in Equity; Explanatory Notes; and Financial Schedules 

and Explanatory Notes for Administered Items. 

b) A "general purpose financial report" is defined as a financial report intended to meet the 

information needs common to users who are unable to command the preparation of reports 

tailored so as to satisfy, specifically, all of their information needs. 

3.5 Principal accounting records 

3.5.1 In addition to the financial statements listed above, the Newtown Neighbourhood Centre will 

maintain appropriate subsidiary records and audit trails. 

3.5.2 The following bookkeeping records (but not limited to) will be maintained by the Newtown 

Neighbourhood Centre. 

a) Cash Flow Books 

The Newtown Neighbourhood Centre will maintain a hardcopy or electronic cash book to 

record all cash receipts and payments. All transactions in the cash book should be reconciled 

monthly with bank statements. 

Note: Internet banking enables Newtown Neighbourhood Centre to conduct regular, quick 

and accurate reconciliations 

b) General ledger 

The Newtown Neighbourhood Centre will maintain a general ledger to record all assets and 

liabilities, income and expenditure. 


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The general ledger must contain summaries of all transactions for a given period, and provide 

a running total of all assets and liabilities. 

c) General journal 

The Newtown Neighbourhood Centre will maintain a general journal to record one-off 

transactions, especially at balance date. 

The general journal is used mostly at year end when many adjustments may have to be made 

d) List of members 

The Newtown Neighbourhood Centre will maintain a register of financial and non-financial 

members. 

The register will record names, addresses and other information about members. This is 

requirement under the Incorporated Associations Act 1984. 

e) Petty Cash 

The Newtown Neighbourhood Centre will maintain a petty cash book to record small 

payments from petty cash, such as for pens, pencils and one off small items. 

f) Payroll records 

The Newtown Neighbourhood Centre will maintain payroll records that meet the required 

taxation and employment legislations. 

g) Statutory records 

The Newtown Neighbourhood Centre will keep statutory records, including minutes of all 

meetings according to the required legislation (e.g. Incorporated Associations Act). 

h) Asset register 

The Newtown Neighbourhood Centre will maintain an accurate and up to date asset register 

to record specific details of major assets. 

3.6 Asset Register 

3.6.1 Asset Register Principles 

The Newtown Neighbourhood Centre needs an asset register to: 

a) Process the purchase of fixed assets in accordance with the Newtown Neighbourhood 

Centre’s authorisation and recordkeeping procedures 

b) Maintain adequate accounting records of assets - cost, description, and where they are kept in 

the organisation 

c) Maintain accurate records for depreciation 

d) Provide management with information to help plan future asset investments 

e) Record the retirement and disposal of assets. 


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3.7 Asset Register Procedure 

3.7.1 The Newtown Neighbourhood Centre will maintain an asset register, which enables the 

Newtown Neighbourhood Centre to keep track of its assets and provides a fair estimate of the 

organisation’s worth. 

3.7.2 Maintaining an up to date and accurate Assets Register fulfils taxation and statutory 

obligations. 

3.7.3 To set up an Asset Register record all the physical assets, regardless of the funding source. 

The types of physical assets that need to be recorded include: 

i. Office equipment 

ii. Motor vehicles 

iii. Furniture 

iv. Computers 

v. Communications systems 

vi. Equipment 

3.7.4 As a general rule, record each asset separately. (The exception is multiple assets that combine 

to perform one function if the value of the individual components is less than $3,000 but the 

total value of the asset is more than $3,000. Examples are personal computers consisting of a 

monitor, keyboard and central processing unit, or a set of books and periodicals.) 

3.7.5 Serial numbers, make, model, etc. must be recorded in the Asset Register. 

3.7.6 Assets needing replacement should be treated as a maintenance cost. 

3.7.7 When the purchase cost is not known, the asset should be recorded at the cost of a comparable 

item at current prices. 

3.7.8 All assets must be recorded in the Assets Register at the time of acquisition and where 

relevant [the insurance broker/insurer] informed to ensure that the acquired asset is covered 

by insurance. 

3.7.9 The cost should include installation costs, computer cabling, transportation and other 

associated costs incurred to make the asset usable. 

3.7.10 Purchase orders, invoices and delivery dockets can be used to provide the detailed 

information to enter on the Asset Register. 

3.7.11 Leased assets also need to be recorded. There are two types of leasing arrangements: 

operating lease and finance lease. A finance lease finances the cost of a leased asset. These 

finance leases must be recorded in the assets register. An operating lease is when the leased 

item is 'given back' at the end of the lease period. 

3.7.12 All approved asset(s) movements shall be recorded on the Assets Register for each particular 

Project by the Centre Administrator. 

3.7.13 The Newtown Neighbourhood Centre should follow good business practice and allow 

provisions for an asset replacement reserve. 

3.7.14 Each asset item should be checked at least once a year. 


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3.7.15 Purchase of assets proposed need to be included in the Board of Management approved 

Annual Budget for the particular Project to which the proposed asset is related. 

3.7.16 For purchase of assets over $2,000 (other than those included in the Board of Management 

approved Annual Budgets) must first be approved by the Board of Management and be 

affordable out of the current account of the Project for which the proposed additional asset is 

being sought. 

3.8 Depreciation Policy 


All property, plant and equipment having a limited useful life are systematically depreciated 

on a straight-line basis over their useful lives in a manner that reflects the consumption of 

their future economic benefits. The basis for depreciation and the depreciation rates are 

reviewed annually. 


The Executive Officer, Treasurer and Financial Administrator 


The Executive Officer, Treasurer and Financial Administrator. 

3.8.4 Procedure 

Depreciation Procedure 

3.9 Depreciation Procedure 

3.9.1 The Financial Administrator calculates and records the depreciation charges on all assets on a 

regular (e.g., quarterly) basis. 

3.9.2 Depreciation schedule should be made available to auditor to include in the end of financial 

year reports. 

3.9.3 The following depreciation rates and useful lives are recommended as a guide: 

Asset type Depreciation Rate Useful Life 

Computer equipment 25% 4 years 

Other equipment 12.5% 8 years 

Motor Vehicles 16.67% 6 years 

Leased plant and 

equipment 

12.5% 8 years 


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3.9.4 Depreciating assets 

a) Assets costing less than $300. are to be fully depreciated at time of purchase. 

b) Assets costing more than $ $300. are to be entered into the Assets Register and depreciated 

over their estimated useful life of that asset. 

c) Rates of depreciation for assets shall be set strictly in accordance with Accounting Procedures 

and Australian Tax Office Allowances. 

d) Depreciation is defined as “the systematic charging of an expense, on an annual basis, 

representing the benefit to the user provided by the asset over its useful life”. 

3.9.5 Disposal of assets 

a) When the Newtown Neighbourhood Centre disposes of an asset, by selling the item, giving it 

away or disposing of it, the Asset Register needs to be updated to include the date of disposal, 

the disposal amount and the method of disposal. 

b) Depreciation should be ceased at the end of the month the asset was disposed of. Trading an 

asset in, should also be treated as a disposal. 

c) When the Newtown Neighbourhood Centre sells an asset, the proceeds need to be recorded in 

the Newtown Neighbourhood Centre’s financial records as well as the assets register. 

d) Assets should not be deleted from the assets register until after the end of the financial year as 

the information needs to be incorporated into the annual statement of your financial position. 

At the beginning of the next financial year, the disposed of assets should be recorded 

separately. 

e) Disposal on any asset(s) with an estimated value of $1,000 or greater against any Project 

must first be approved by the Board of Management. 

f) Once approved for disposal, any remaining cost is to be written off against the particular 

Project during the financial year in which the asset is no longer to be in use. 

g) Any profit made by any asset disposal shall be credited against the particular Project during 

the financial year in which the asset is no longer to be in use. Assets disposal below $300 

will be approved by the Executive Officer and its sale credited to the particular project as per 

sales of disposal value in excess of $300. 

h) An asset disposal form shall be completed for disposal of assets and this shall be approved by 

the Executive Officer for estimated value below $300 and by the Board of Management for 

values greater than $300. 

3.10 Subsidiary records and audit trails 

3.10.1 In addition to the principle accounting records the Newtown Neighbourhood Centre must also 

keep a number of other subsidiary records for the audit trail. 

3.10.2 Depending on the accounting systems used within the Newtown Neighbourhood Centre, 

some of these records may be hardcopy whereas others will be maintained electronically. 

3.10.3 Examples of subsidiary records include: 


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a) Receipt books for collecting all money. Tax-deductible funds should always issue receipts 

showing their Deductible Gift Recipient (DGR) number. Duplicate copies of receipt books 

provide a sound audit trail. 

b) Bank deposit books. The Newtown Neighbourhood Centre must record details of cash and 

cheques deposited in banks. Deposit books provide a necessary audit trail for both manual and 

computer-based systems. 

c) Cheque books. One of the most frequently used documents by Newtown Neighbourhood 

Centre. 

d) Documentary evidence (vouchers etc.) must be retained to support payments, including any 

petty cash disbursements. This is a necessary audit trail that must be retained by the Newtown 

Neighbourhood Centre for several years. 

e) Tax invoices. Vital if the Newtown Neighbourhood Centre is registered for GST and wishes 

to claim input tax credits. The Newtown Neighbourhood Centre may be requested to make 

these available for auditing purposes or for an enquiry by the Australian Tax Office. 

f) Stock sheets. These are usually prepared at the end of accounting periods by the Newtown 

Neighbourhood Centre to record all stock on hand, such as books held for resale. 

g) Working papers. These papers support the amounts shown in the financial statements 

circulated to the Board of Management members. These are important, since they explain 

how figures have been compiled and assumptions used in their compilation. These papers 

provide a vital audit trail, and may be used in legal processes. 

h) Budget papers. The Newtown Neighbourhood Centre should maintain budget papers that 

record all income and expenditure and other activities. These papers show how figures have 

been compiled, and are useful when comparing actual results against budget. These papers are 

important planning documents which help the Newtown Neighbourhood Centre to budget for 

future years. 

i) Treasurer's report. A crucial document, since it deals with the Newtown Neighbourhood 

Centre detailed financial report. This report provides a clear and concise overview of the 

Newtown Neighbourhood Centre financial health and likely outcomes for the year. 

Source: The Institute of Chartered Accountants of Australia, Voluntary Treasurer's Handbook, 2000. 


SECTION 4 


4.0 AUDITING OF REPORTS 

4.1 Auditing of Accounts Policy 


Newtown Neighbourhood Centre will have its financial processes audited annually by an 

independent external auditor. 







 

 

Selecting an Auditor Procedure 

Auditing of Reports Procedure 

4.2 Selecting an Auditor Procedure 

4.2.1 The Newtown Neighbourhood Centre should exercise care when selecting an auditor and 

carrying out an audit. 

4.2.2 The Newtown Neighbourhood Centre shall not select an auditor who is a member or closely 

related to a member of the Management Committee. An auditor must be independent and 

registered to either the Institute of Chartered Accountants in Australia or Australian Society 

of Certified Practicing Accountants. 

4.2.3 Notice of intention to nominate an auditor to replace the current auditor shall be given to the 

Secretary at least twenty-one (21) days before the Annual General Meeting. 

4.2.4 The Secretary shall send a copy of the nomination to the current auditor at least seven (7) 

days before the Annual General Meeting. 

4.2.5 The current auditor shall be entitled to attend the Annual General Meeting. 

4.2.6 Where the current auditor submits a resignation, or notifies the Secretary of an intention to 

seek re-election as auditor, the above shall not apply. 

4.3 Auditing of Reports Procedure 

4.3.1 The auditor is to be appointed each year at the Newtown Neighbourhood Centre Annual 

General Meeting. 


SECTION 4 


4.3.2 The Newtown Neighbourhood Centre must undertake an annual audit each year (or more 

often, depending on requirements of the Newtown Neighbourhood Centre) by an 

independent qualified auditor. 

4.3.3 The Treasurer will present the audited report for the previous year at the Annual General 

Meeting. 

4.3.4 The Executive Officer must ensure that the auditor is given full and free access at all 

reasonable times to all accounts and such other information, documents and records which the 

auditor considers necessary for audit purposes. 

4.3.5 The Executive Officer ensures matters/deficiencies identified by the auditor’s report receive 

prompt attention and action, where necessary. 

4.3.6 Audit reports and any statement of action taken are held at Newtown Neighbourhood Centre’s 

office for five (5) years from the date of the audit. 

4.3.7 The Executive Officer needs to ensure that the audited financial statements are submitted to 

the Executive Officer that the funding bodies are included in the annual report and in the 

annual returns submitted to the Australian Securities and Investment Commission. 

4.3.8 The Newtown Neighbourhood Centre should refer to their funding agreements with each of 

their funding bodies to ensure that financial reporting meet the requirements of all of their 

funding bodies. (An example of the DoCS requirements for the Auditor’s Report is outlined 

below). 

4.4 DoCS requirements for the Auditor’s Report 

The Auditor’s Report should include: 

a) The auditor’s qualifications and the registration number(s) of the relevant professional body 

or Australian Securities Insurance Commission. 

b) A statement that the examination of the records of the organisation being audited has been 

completed in accordance with Australian Auditing Standards and has included substantive 

testing of your systems. 

c) A list of the financial statements (e.g., income and expenditure statement, balance sheet, etc.), 

which has formed the basis of the report and a certification that these “fairly represent the 

financial position of the organisation and the result of its operation pursuant to this 

Agreement for the year ending (auditor to insert date)”. 

d) The auditor’s signature and date on which the report was certified. 

e) Any concerns held by the auditor are to be recorded on the auditor’s report with a certification 

that, “because of the issues raised the financial statements do no present fairly the financial 

position of the organisation for the year ended (auditor to insert date) according to the 

Australian Auditing Standards and this Agreement”. 

Note: The Auditor’s Report must be on the auditor’s letterhead and signed by the auditor. 


SECTION 4 


5.0 ANNUAL REPORT 

5.1 Annual Report Policy 


The Newtown Neighbourhood Centre will prepare an Annual Report each year in accordance 

with the Financial Management and Financial Reporting Requirements sections of the 

funding agreements of each of its funding bodies and with the Australian Accounting 

Standard (AAS) 29. 

The Annual Report provides a record of the Newtown Neighbourhood Centre responsibilities, 

achievements and outcomes to the Newtown Neighbourhood Centre stakeholders, including 

the public. 


The Executive Officer, the Treasurer, and the Centre and Financial Administrators. 


The Executive Officer, the Treasurer, and the Centre and Financial Administrators. 



 

Annual Report Procedure 

5.2 Annual Report Procedure 

5.2.1 The Annual Report is to be tabled at the Newtown Neighbourhood Centre Annual General 

Meeting, each year, and is based on the information obtained in that financial year. 

5.2.2 The Annual Report submitted to members is a financial statement which is not misleading 

and which gives a true and fair view of the following: 

a) a narrative summary of significant financial outcomes for Newtown Neighbourhood Centre 

programs or activities 

b) economic or other factors which have affected the achievement of the Newtown 

Neighbourhood Centre operational objectives 

c) the income and expenditure of the association during its last financial year 

d) the assets and liabilities of the association at the end of its last financial year 

e) the mortgages, charges and other securities affecting any of the property of the association at 

the end of its last financial year 

f) information on major capital programs 

g) key efficiency and effectiveness indicators 


SECTION 4 


h) amounts of losses and/or damage to property or money, and where appropriate, the amount of 

losses recovered 

i) financial statements, which include: 

j) Statement of Financial Performance 

k) Statement of Financial Position 

l) Statement of Cash Flows 

m) Notes to the Financial Statements 

n) the Treasurer’s report on the financial statements; and 

o) any other matters considered relevant by the President / Secretary. 

Note: If an incorporated association fails to hold an annual general meeting or to submit a financial 

statement to members, each member of the committee of the association is guilty of an offence and 

liable to a penalty of up to 2 penalty units ($220). 

5.2.3 Lodgement of documents with the Registry of Co-operatives & Associations after the 

Annual General Meeting 

a) Within one month of the annual general meeting, the public officer is required to lodge an 

annual statement (Form 12) certified by two members of the committee (who are authorised 

to do so by a resolution of the committee) with the Registry of Co-operatives & Associations. 

(Form 12 can be downloaded from 

http://www.fairtrading.nsw.gov.au/About_us/Forms/Associations_forms.html#Form_12_Ann 

ual_Statement ) 

b) The annual statement form is to be accompanied by the following documents: 

i. a copy of the financial statement submitted to members, 

ii. a copy of the terms of any resolution passed at the annual general meeting concerning 

the financial statement, and 

iii. the prescribed fee. 

c) Failure to properly lodge the annual statement means the public officer is guilty of an offence 

and liable to a penalty of up to 2 penalty units ($220). 

d) For further information see ‘Statutory and Reporting Obligations of an Incorporated 

Association' available from 

http://www.fairtrading.nsw.gov.au/Cooperatives_and_associations/Associations/Rules_and_o 

bligations/Statutory_and_reporting_obligations.html 

5.3 The Public Officer 

5.3.1 An incorporated association is required to have a public officer who has attained the age of 18 

years and is a resident of New South Wales. 

5.3.2 The public officer is the official contact point for an incorporated association. The public 

officer can be a committee member, a member of the association or an outsider. The public officer’s 

address may be used as an official address for the service of documents on the association. To this 

end, the public officer is required to bring all documents received by him or her to the attention of the 

committee as soon as practicable. 


SECTION 4 


5.3.3 Unless the rules of an incorporated association provide otherwise, the public officer of an 

incorporated association may hold any other office of the association. 

5.4 Appointment and removal of the Public Officer 

5.4.1 The committee of an incorporated association appoints the public officer for the association. 

5.4.2 The public officer shall be deemed to have vacated the office if the public officer: 

a) dies 

b) resigns from the position of public officer 

c) is removed from office by way of a resolution passed at a general meeting of the members of 

the incorporated association 

d) becomes bankrupt 

e) becomes a patient under the Mental Health Act, or 

f) ceases to be a resident of New South Wales. 

5.4.3 The position of public officer must not remain vacant for more than 14 days. Within 14 days 

of a vacancy occurring, the committee must notify the Registry of Co-operatives and 

Associations of the vacancy and appoint a new public officer. The new public officer is also 

required to give notice of his or her appointment to the Registry within 14 days of the 

appointment. Notice of a vacancy and subsequent appointment of a public officer is required 

to be given on the Notice of vacancy/appointment/change of address of public officer (Form 

9). Form 9 can be downloaded from 

http://blis.fairtrading.nsw.gov.au/__data/assets/licence_file/98275/ap4550b.pdf ) 

5.4.4 Where the committee of an incorporated association fails to notify the Registry of the vacancy 

or fill the position within 14 days, each member of the committee is guilty of an offence and 

liable to a penalty. 

5.4.5 Upon vacating the position, the public officer should pass on all information held on behalf of 

the association to his or her successor. 

5.5 Obligations of the Public Officer 

5.5.1 Notice of appointment 

A new public officer must lodge a notice of vacancy/appointment/change of address of public 

officer (Form 9) notifying of their appointment, within 14 days of the appointment. 

5.5.2 Notice of change of address 

Where a public officer changes his or her address, the public officer must give the Registry 

notice within 14 days by lodging a notice of vacancy/appointment/change of address of public 

officer (Form 9). 


SECTION 4 


5.5.3 Register of committee members 

The register of committee members of the association is to be kept at the residential address 

of the public officer and must be made available for inspection by any person, free of charge, 

at all reasonable hours. 

Where an incorporated association has ceased to exist, the last public officer must keep the 

register for a period of at least 2 years after the date on which the association ceased to exist. 

5.5.4 Annual statements 

The public officer must lodge an Annual statement (Form 12) with the prescribed fee, within 

one month after the date of each annual general meeting of the association. 

The statement is a summary of the year’s financial transactions. A penalty may be imposed on 

the public officer for failure to lodge the form in the required time. 

If the public officer is not able to lodge the annual statement in time, an application for 

extension of time for holding an annual general meeting or lodging statement (Form 11) 

setting out the reasons for the delay should be lodged, with the prescribed fee, before the due 

date. 

Form 11 can be downloaded from 

http://blis.fairtrading.nsw.gov.au/__data/assets/licence_file/82475/ap4550c.pdf 

5.5.6 Change of name of the association 

The public officer must apply to the Commissioner for Fair Trading for approval of a change 

of name within one month after the passing of a special resolution to change the association’s 

name. An application for approval for change of name (Form 4) must be lodged, together with 

the prescribed fee. 


http://blis.fairtrading.nsw.gov.au/__data/assets/licence_file/96603/ap4550j.pdf 

5.5.7 Alteration of objects or rules 

After the passing of a special resolution altering the statement of objects or rules of an 

incorporated association, the public officer must lodge a notice of alteration of objects or rules 

(Form 6) with the prescribed fee, setting out the particulars of the alteration. 


http://blis.fairtrading.nsw.gov.au/__data/assets/licence_file/108165/ap4550h.pdf 

A penalty may be imposed on the public officer for failure to lodge the form in the required 

time. 

5.5.8 Receiving documents on behalf of the association 

The public officer has an obligation to bring all documents addressed to the association to the 

attention of the committee as soon as practicable. This obligation continues for a period of 12 

months after a person has ceased to be the public officer of the association. 


SECTION 4 


6.0 ANNUAL BUDGET 

6.1 Annual Budget Policy 


Newtown Neighbourhood Centre will develop a budget, which is a financial representation of 

the organisation’s mission and strategic goals. This will be used as a tool for allocating 

resources and implementing strategic plans. Newtown Neighbourhood Centre will develop 

budgets at organisational and project levels which are carefully planned, implemented and 

controlled. 


The Executive Officer, Treasurer, Financial Administrator and Managers. 


The Executive Officer, Treasurer, Financial Administrator and Managers. 



 

 

Annual Budget Procedure 

Project/Service/Activity/Program Budget Procedure 

6.2 Annual Budget Procedure 

6.2.1 An annual budget is developed by the Executive Officer in consultation with the Treasurer 

and other key personnel including the Managers. 

6.2.2 The annual budget contains sufficient detail to allow an accurate projection of income and 

expenditure and presents a true cash flow position that does not confuse or mislead any audit 

trail. 

6.2.3 The budget is developed to ensure that projected income will meet projected expenditure. 

6.2.4 The budget represents a proposed plan for raising and spending funds for specified programs, 

functions, activities, or objectives during a financial year. 

6.2.5 The annual budget should denote the Newtown Neighbourhood Centre’s total overall 

operating budget as well as individual operating budgets for specified programs, activities and 

grants. 

6.2.6 The Board of Management should review and adopt an annual budget at the start of each 

financial year. 

6.2.7 This duly enacted budget authorises and provides the basis for the control of financial 

operations during the year. 


SECTION 4 


6.2.8 To ensure effective budgetary control and accountability, the approved budget should be 

incorporated into the accounting and financial reporting systems. 

6.2.9 The Newtown Neighbourhood Centre's proposed budget should be "balanced" in that 

projected revenues are equal to estimated expenses at all budgetary levels. However, if the 

Newtown Neighbourhood Centre has an undesignated fund balance amount, which has 

accumulated from excess revenues in prior years, the Board of Management may use a 

combination of projected revenues and designated fund balance to balance the budget for a 

given year. 

6.2.10 The annual budget is reviewed quarterly and if necessary revised to prevent cost over or under 

runs. The Board of Management endorses revised budgets before being implemented. 

6.2.11 The Board of Management may amend the budget during the year due to changes in budget 

estimates, the receipt of new grant funds, etc. However, each and every change or amendment 

to the budget must be approved by the Executive Officer and recorded in the official minutes. 

Also, it may be necessary to secure the approval of a particular funding agency if the 

amendment involves changes to the budget initially approved or awarded by the agency. 

6.2.12 The Board of Management may decide to allow the Executive Officer to make budget 

changes or amendments, within certain dollar limits, without securing prior Board of 

Management approval. However, if this practice is approved by the board, there should be a 

requirement that the budget changes are to be reported to the Board of Management at its next 

meeting, acted upon by the Executive Officer and entered into the official minutes. 

6.3 The Budget 

6.3.1 Managing the Budget 

To ensure the affairs of the Newtown Neighbourhood Centre are managed effectively, the Board of 

Management will: 

a) Prevent the Newtown Neighbourhood Centre from incurring unauthorised debts 

b) Ensure that all financial transactions are recorded; using standard accounting practices and 

comply with relevant legislative and funding body requirements 

c) Use funds solely for the furtherance of the Newtown Neighbourhood Centre purposes and 

priorities approved by the Board of Management 

d) Ensure that debts are settled in a timely manner and not allow ordinary operating expenses to 

become undischarged debts beyond a three month period from the time they were incurred 

e) Use restricted or tagged contributions for designated purposes only 

f) Not allow any one person to have complete authority over any of the Newtown 

Neighbourhood Centre’s financial transactions 

g) Operate at all times within a financial environment as defined by the Newtown 

Neighbourhood Centre’s budget and within the Newtown Neighbourhood Centre’s Policy 

h) Not approve expenditure that, although in keeping with the Newtown Neighbourhood 

Centre’s broad policies and aims, is beyond the Newtown Neighbourhood Centre’s ability to 

meet 

i) Ensure that an approved auditor audits the accounts yearly 

j) Report any exceptions to the above to the Board of Management at the earliest possible time 

k) Ensure that internal and external financial reporting and accountability requirements are met. 


SECTION 4 


6.3.2 Preparing the Newtown Neighbourhood Centre annual budget 

a) Review past records of revenue and income (membership, sales, grants, fund-raising, 

consultancy, interest) 

b) look at past records of expenditure (room hire, wages and telephone) 

c) assess income and expenditure 

d) predict increases or decreases in the year ahead 

e) consider timing 

f) notice when most income flowed in and when regular bills are paid 

g) look at likely variations in the year ahead 

h) discuss the options 

i) present the budget for sign off 

j) Incorporate the budget into financial accounting systems for monitoring and reporting. 

6.4 Project Budgets Procedure 

6.4.1 A project budget is developed for each budget by the Managers in consultation with the 

Executive Officer and presented to the Board of Management for approval at the start of each 

financial year. Project budgets must use a similar format and follow similar procedures to the 

annual budget. 

6.4.2 The budget for each project is held with and managed by each of the Managers. 

6.5 Administration Fees 

6.5.1 All individual projects are managed and supported by NNC. As a result NNC pays for such 

ongoing expenditure such as rent, computers costs, stationary printing etc. Therefore Individuals 

budgets must pay administration fees to NNC. 

6.5.2 All projects that receive funding will pay NNC 20% administration component 

6.5.3 Projects who receive one off funding and are under $20,000. will pay 10% 

6.5.4 Any one off funding received to purchase equipment will not incur any administration 

component. 


SECTION 4 


7.0 CASH FLOW MANAGMENT 

7.1 Cash Flow Management Policy 


The Newtown Neighbourhood Centre will act responsibly and ensure that systems are in 

place that prevents the Newtown Neighbourhood Centre from trading while insolvent. Any 

breach of this requirement can create financial risks for individual Board of Management 

members. 


The Executive Officer, Treasurer, and Financial Administrator 





 

Cash flow management procedure 

7.2 Cash Flow Management Procedure 

7.2.1 The Newtown Neighbourhood Centre’s Executive Officer will manage Cash flow to ensure 

the Newtown Neighbourhood Centre has enough money to pay its bills. These bills include 

day-to-day running expenses and large sums predicted and planned for in the Newtown 

Neighbourhood Centre’s annual budget. 

7.2.2 The Newtown Neighbourhood Centre’s Board of Management will conduct a cash flow 

forecast (sometimes called a cash budget). A cash flow forecast has the following 

characteristics: 

a) It is a numerical picture of the Newtown Neighbourhood Centre’s predicted flow of funds for 

a particular period, usually month-by-month for the year ahead. 

b) It allows the Newtown Neighbourhood Centre to predict what cash will come in and how 

much will go out over that period. 

c) It is an extension of the Newtown Neighbourhood Centre budget, and a cash flow forecast 

should be conducted at the same time as the budget is prepared for the year ahead. 

d) It is also an extension of the Newtown Neighbourhood Centre overall budgeting, but income 

and expenditure are allocated against a timeframe and the forecast does not follow accrual 

accounting. This means cash is recorded as it comes in and as it goes out, not when the 

financial commitment was made (e.g., invoices sent or supplies ordered). 

7.2.3 To create a cash flow forecast, look at the Newtown Neighbourhood Centre figures for the 

previous year. Look over: 

 

previous budgets, 


SECTION 4 


 

cash flow statements or cash-flow forecasts to see if they show any clear seasonal 

patterns of income and expenditure 

refer to the current strategic plan and budget to see if any major income or 

expenditure is expected, and when this is likely to occur. 

7.2.4 Managers responsible for their own budgets should be included in the forecasting process to 

ensure the forecast resembles that total picture for the Newtown Neighbourhood Centre. 

7.2.5 Draft the forecast so that the actual figures can be inserted next to the forecasted figures. This 

will enable quick analysis of the data and highlight any significant variations. The point of the 

exercise is to make sure that the Newtown Neighbourhood Centre knows at any time, the 

exact financial position of the Newtown Neighbourhood Centre. 

7.2.6 The cash flow forecast must also include estimated bank balances for easy comparison with 

Newtown Neighbourhood Centre’s actual bank balances. The closing balance for each period 

is the opening balance for the next period. 

7.2.7 Common elements of a cash flow forecast are: 

a) Cash in - Grants, sale of goods and services, subscriptions, return on investments, donations, 

fundraising activities, sale of assets, tax refunds. 

b) Cash out - Operating activities, such as staff, telephone bills, power bills, rent, travel, 

stationery, printing and copying, postage, as well as servicing finance, tax, cash used to buy 

assets, equipment purchases and special project costs. 

7.2.8 How to improve your cash flow management 

You can improve your cash flow management by: 

i. Developing an accurate cash flow forecast linked to your budget and strategic plan 

ii. Separating the recording and handling of cash 

iii. Banking cash promptly, banking will be carried out every fortnight except at busier 

times such as festival when it will be banked weekly. Banking will always be carried 

out by two people 

iv. Paying most expenses by cheque so you have a record 

v. Having all cheques countersigned 

vi. Keeping cash in a safe place, On Friday money will be transferred form the small safe 

to the main office. safe 

vii. Reconciling bank statements regularly 

viii. Collecting money from debtors as quickly as possible 

ix. Centralising payment procedures 

x. Developing close relationships with suppliers to negotiate mutually beneficial 

payment policies 

xi. Reviewing your cash situation regularly and analysing significant discrepancies from 

your budget 

xii. Having appropriate authorisation and risk management policies 

xiii. Managing cash holdings profitably. 


SECTION 4 


8.0 INCOME GENERATION 

8.1 Income Generation Policy 


The interests of Newtown Neighbourhood Centre must be considered paramount in all 

income generation activities. The level of exposure to risk must be kept to a minimum. All 

financial arrangements and income generating practices must be carried out in an ethical 

manner. 







 

Income generation procedure 

8.2 Income Generation Procedure 

8.2.1 Investment 

a) Any funds not needed in the short term will be invested in an interest bearing account, such as 

a cash management account or a term deposit. 

b) The Executive Officer in consultation with the Treasurer and Financial Administrator is 

responsible for identifying appropriate investment options. 

8.2.2 Fundraising 

a) The Board of Management or its Fundraising Committee will not pursue or in any other way 

support any fundraising activity or process which: 

b) Could in any way be considered unethical or illegal or which directly contravenes the mission 

or guiding principles of Newtown Neighbourhood Centre. 

c) In any way involves any person, either as staff member or as an agent of an outside 

organisation, when that person is known to have been associated with or prosecuted for any 

form of embezzlement. 

d) Could result in the Newtown Neighbourhood Centre’s good name being compromised, 

brought into ill repute or being associated in any way with another organisation or individual 

of ill repute. 


SECTION 4 


e) Involves the organisation outlaying large sums of money on order to match a similar 

investment by an outside agency or utilises financial reserves or current account to float a 

fundraising venture. 

f) Does not have the full understanding and approval by the Board of Management; and 

g) Results in the use of funds for purposes other than those for which the funds were raised. 

h) The Board of Management will: 

i. Ensure that all fundraising ventures are approved by the Board of Management at a 

duly convened Board of Management Meeting and minuted prior to being 

undertaken. 

ii. Provide regular reports to the Board of Management in relation to raising, securing 

and using the funds. 

iii. 

In the cause of fundraising ventures that entail risk for the organisation, the fund 

raising sub-committee will indicate to the Board of Management the financial 

position of any such venture and of possible issues and risks associated with the 

venture. 

8.2.3 Donations 

a) The Newtown Neighbourhood Centre accepts donations from individuals and companies. 

b) All donations must be made payable to Newtown Neighbourhood Centre. 

c) Receipts will be issued immediately. 

d) Donations over $2.00 are tax deductible for the Newtown Neighbourhood Centre that have 

been endorsed as a Deductible Gift Recipient by the Australian Taxation Office. 

e) To determine if the Newtown Neighbourhood Centre is eligible for DGR status refer to the 

ATO website www.ato.gov.au. 

8.2.4 Sponsorship 

a) The Board of Management must outline clear guidelines for the creation of productive 

partnerships between Newtown Neighbourhood Centre and the private sector, i.e. sponsorship 

alliances with corporations, foundations, individuals and other non-government organisations. 

b) A sponsorship is about relationship building and is a powerful way to build and strengthen 

partnerships. It is recognised that such alliances can provide important financial and 

marketing support to potential partners of the Newtown Neighbourhood Centre while at the 

same time generate additional revenues to support Newtown Neighbourhood Centre's 

mission. 

c) All event and project sponsorships must have significant financial commitment from the 

sponsor to help offset the costs associated with the activity. 

d) All sponsorship relationships with Newtown Neighbourhood Centre must be identified and 

recorded for information purposes to encourage a donor-centered approach to revenue 

generation. 

e) Naming rights associated with any sponsorship must be approved by the Board of 


f) Sponsorship over $500 will be embodied in written contractual agreements between Newtown 

Neighbourhood Centre and the sponsorship partner. 

8.2. 5 Funding Agreements 

The Newtown Neighbourhood Centre must ensure that grants and contributions received are properly 

recorded, accountings required as a condition of any grant are completed and restrictions on the use of 

such funds, such as contributions given for a restricted purpose (e.g., program delivery, capital 

expenditure etc.) and prohibitions on the use of the principal of an endowment, are obeyed. 


SECTION 4 


9.0 ACCOUNTS PAYABLE 

9.1 Accounts Payable Policy 

9.1.1 Policy statement 

All payments are made in accordance with the approved budget and authorised in writing. All 

accounts are paid on time and advantage is taken of early payment discounts. 


The Newtown Neighbourhood Centre’s Executive Officer, Treasurer and Financial 

Administrator 



Administrator 



 

 

Accounts Payable Procedure 

Petty Cash Procedure 

9.2 Accounts Payable Procedure 

9.2.1 Authorisation for purchases 

a) Authorisation for purchases rests primarily with the Executive Officer for items up to $2000. 

and Managers for items up to $500. 

b) Other items, not of a continuous / usual expense or not authorised through the budget, require 

the approval of the Board of Management. 

c) All payments should be in accordance with the approved budget and should be authorised in 

writing/ 

d) Where routine transactions (e.g. electricity bill) need to be completed $2000. between Board 

of Management meetings and have not received prior authorisation through the annual 

budget, such transactions should be approved by the Executive Officer and tabled at the next 

Board of Management meeting/ 

e) Where an urgent non-routine payment needs to be made between Board of Management 

meetings, the Executive Officer can obtain email or fax approval from either the Treasurer or 

the President 

f) Individual items of expenditure in excess of $2000. other than salaries or those that are not a 

continuous or usual expense (e.g., office equipment) have to be approved by a Board of 

Management meeting prior to being incurred. 

9.2.2 Purchase documentation 


SECTION 4 


a) All documentation relating to purchases are stored in the Accounts Payable folder in the 

Financial Administrator’s in tray and distributed to appropriate staff for approval to pay and 

allocation of account and job codes. 

b) Purchase documentation should be signed approved to pay and dated by the appropriate staff 

member and returned to Accounts Payable promptly. 

9.2.3 Recording purchases in the accounting system 

a) Recording purchases accurately and completely in the accounting system is the responsibility 

of the Financial Administrator. 

b) Purchases will be sorted, identified and entered at least weekly. 

c) All suppliers must be paid on time. 

9.2.4 Payment vouchers/Cheque Requisitions 

a) Payment vouchers/Cheque Requisitions are prepared and authorised for each purchase. 

b) The Payment Voucher/ Cheque Requisitions will identify the project making the expenditure, 

date required, payment method, name of supplier, the amount, the item being purchased and 

the budget account itemised. 

c) The voucher/requisition is then signed by the compiler and expenditure approved by the 


9.2.5 Payments by cheque and electronic banking 

a) Payments by cheque and electronic banking are normally conducted by the Executive Officer 

or a delegated person in his/her absence e.g., Programs Manager 

b) All payments (except petty cash) must be made by cheque, or electronic banking (e.g., 

Commbiz) 

c) A Cheque Requisition (payment voucher) must be completed for every cheque and electronic 

transfer/online banking. 

d) All cheques and electronic transfers must be counter signed by 2 approved signatories (Note: 

this is a requirement for every non-profit organisation). 

e) All relevant signatories should be informed that if a person supplies their electronic banking 

password to another person and fraud occurs, the first person will be held accountable for the 

fraud. 

f) All cheques must be stamped ‘Not Negotiable’ (except petty cash and wage cheques). 

g) Blank cheques must never be signed. 

h) A single item cannot be split over several tax invoices to avoid signing-off by the appropriate 

signatory – i.e. ‘order splitting”. 

9.2.6 Filing documents relating to purchases 

a) All purchase documentation including purchase orders, delivery dockets, invoices, statements 

and vouchers are to be matched and sorted into projects, and filed in date order for future 

reference. 

b) All these items need to be compiled with the cheque requisitions and filed with them. 


SECTION 4 


c) All documents relating to purchases will be immediately filed after processing to facilitate the 

auditing process. 

9.2.7 Invoices 

a) If an invoice is received directly by the Accounts Payable Department, it will be documented 

on the mail log and then forwarded to the appropriate person / department to confirm receipt 

of goods and/or services. 

b) The person authorising payment, should indicate on the invoice ‘approved to pay’ and record 

the appropriate expense code and job number. 

c) If an invoice is received directly by an individual staff member, it should be sent directly and 

promptly to Accounts Payable for further processing. 

d) Accounts Payable cannot process documentation unless it is on a valid tax invoice. 

e) If a statement or reminder notice is issued, payment cannot be made without a copy of the 

original invoice. 

f) Invoices must be paid in accordance with the payment terms specified by the supplier. 

g) Invoices and/or other supporting documentation are attached to the cheque requisition / 

payment voucher in preparation for signing. Each payment voucher is authorised by either a 

Board of Management member or Executive Officer. Note that the (Executive Officer can 

only authorise up to $2000. and Managers $500. 

9.2.8 Reporting 

Monthly financial statements should be prepared by the Financial Administrator and given to the 

Treasurer who will present them to the Board of Management for endorsement. 

9.3 Reimbursement of Expenses 


The Newtown Neighbourhood Centre has clearly defined procedures in place to ensure that 

expenses incurred by staff when undertaking activities or purchases on behalf of Newtown 

Neighbourhood Centre are reimbursed. 

The Newtown Neighbourhood Centre shall inform staff of reimbursement entitlements. All 

staff shall be reimbursed for all reasonable staff travel, accommodation and meal expenses 

incurred as a result of work related activities. Reimbursement of expenses will be up to 

amounts specified within the Newtown Neighbourhood Centre’s procedural guidelines for 

travel, accommodation and meal expenses. 



Administrator 



Administrator 


Reimbursement of Expenses Procedure 


SECTION 4 


9.4 Reimbursement of Expenses Procedure 

9.4.1 All staff who incur expenses directly as a result of carrying out work or purchasing materials 

on behalf of Newtown Neighbourhood Centre are entitled to reimbursement of approved 

expenses. 

9.4.2 Approved expenses will normally consist of: 

Supplies and equipment 

Travel costs 

Car mileage will be reimbursed at a pre-determined rate e.g., 55c per km. 

9.4.3 Expenses will only be reimbursed upon submission of relevant tax invoices/receipts attached 

to a claim form or timesheet. 

9.4.4 Expenses will only be reimbursed for expenses incurred in the current financial period 

allowing up to one month after the close of the accounting period. Claims received after this 

time will not be reimbursed. 

9.4.5 Some expenses may be reimbursed at pre-determined rates, e.g., motor vehicle expenses, 

meal expenses, even though the actual cost may be higher or lower than the pre-determined 

maximum amount. 

9.5 Petty Cash 

9.5.1 Overview 

For operational efficiency, it is necessary in certain circumstances to make payments by cash. 

Generally, the amount involved is small. Nevertheless, it is essential that there is an effective 

system for controlling and recording the drawing and expenditure of petty cash. 

9.6 Petty Cash Procedure 

a) The petty cash float is to remain constant at $ 400.for the NNC float and, will be supervised by 

the Financial Administrator and $1000. For the BHP float and will be supervised the BHP 

Administrator. 

a) Petty cash dockets/receipts and records will be maintained accurately on a monthly basis. 

b) Dockets/receipts are to be attached to the Petty Cash Voucher. 

c) Small purchases will be made and reimbursed through petty cash. 

d) Petty cash is used for reimbursement of individual purchases for business purposes that are of 

a dollar value not warranting an alternative purchase method. 

9.7 NNC Business Credit Cards 

9.7.1 For operational efficiency, it is necessary in certain circumstances to make payments by credit 

cards. It is essential that there is an effective system for controlling and recording credit card 

expenditure and reconciliation. Where deemed necessary by Executive Officer and Manager 

certain staff members may be provided with a NNC business credit card. 


SECTION 4 


a) The Credit Card monthly allowance is constant at $ 2000.for each credit card. 

b) Credit cards can only be used to purchase products and or service directly related to NNC 

programs. 

c) Staff members are responsible for maintaining the security of the NNC credit card. 

d) Receipts and records must be obtained for each purchase. Receipts will be attached to the 

monthly statement for reconciliation 

e) Records will be maintained and accurately reconciled on a monthly basis. 

e) All credit card statements must be signed of by credit card holder to state that the expenditure 

is a true and accurate record in accordance with NNC policy. 

f) All credit card statements are to be reviewed by direct supervisor and signed off for 

certification and forward to Financial Administrator in a timely manner. 

g) The Financial Administrator will advise the Executive Officer if there has been any breach or 

discrepancy of the credit cards. 

9.8 NNC Business Fuel Cards 

9.8.1 For operational efficiency, it is necessary to purchase petrol for the NNC work vehicle with 

NNC fuel cards. It is essential that there is an effective system for controlling and recording 

fuel card expenditure and reconciliation. Where deemed necessary by Executive Officer and 

Manager certain staff members may be provided with a fuel card. 

a) When filling up NNC vehicles an NNC fuel card must be used. 

b) Fuel Cards can only be used to purchase fuel for NNC motor vehicles. 

c) Staff members are responsible for maintaining the security of the NNC fuel cards. 

d) Receipts and records must be obtained for each purchase. Receipts will be attached to the 

monthly statement for reconciliation 

e) Records will be maintained and accurately reconciled on a monthly basis. 

h) All fuel card statements must be signed of by fuel cardholder to state that the expenditure is a 

true and accurate record in accordance with NNC policy. 

i) All fuel cards statements are to be reviewed by direct supervisor and signed off for 

certification and forward to Financial Administrator in a timely manner. 

j) The Financial Administrator will advise the Executive Officer if there has been any breach or 

discrepancy of the fuel cards. 


SECTION 4 


10.0 AUTHORITIES and DELEGATIONS 

10.1 Authorities and Delegations Policy 


The Newtown Neighbourhood Centre has clear lines of authority and delegation to ensure 

sound financial management. This policy has been designed to ensure delegation authority is 

exercised by the most appropriate and well-informed individuals. 

The Newtown Neighbourhood Centre has strict controls in place for the authorisation of 

expenditure and the signing of cheques. 


The Board of Management and Executive Officer. 


The Newtown Neighbourhood Centre’s Executive Officer, Managers, Treasurer and Financial 

Administrator 



 

Authorities and delegations procedure 

10.2 Authorities and Delegations Procedure 

Note: Delegations are attached to the position and not the occupant of the position. 

10.2.1 Role of Board of Management 

The Board of Management is ultimately responsible for the overall financial management of 

the Newtown Neighbourhood Centre, overseen by the Treasurer. 

10.2.2 Role of Treasurer 

The Treasurer is responsible for ensuring that the financial policy and procedures set down by 

the Board of Management are followed. The Treasurer is also responsible for ensuring that 

Newtown Neighbourhood Centre is operating in a financially sound manner.(Appendix C- 

A008) 

10.2.3 Role of Executive Officer 

The Executive Officer is to work closely with the Treasurer, supervise the Financial 

Administrator and is responsible for ensuring that the financial policy and procedures set 

down by the Board of Management are implemented. 


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10.2.4 Role of Managers 

The Managers are responsible to the Executive Officer to carry out the day-to-day financial 

tasks of the Newtown Neighbourhood Centre and its projects. 

10.2.5 Role of the Financial Administrator 

The Financial Administrator is supervised by the Executive Officer. The Financial 

Administrator is to carry out the day-to-day financial tasks of Newtown Neighbourhood 

Centre. 

Refer section 2.3 for more detailed description of the role of the Financial Administrator 

10.2.6 Newtown Neighbourhood Centre Bank Accounts 

The Financial Administrator shall keep a secure register of the bank accounts held by 

Newtown Neighbourhood Centre. The registry should include a record of the following: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Bank 

Branch location 

Account type 

Account number 

BSB number 

Account manager 

Contact details 

Date account opened 

Date account closed 

Interest rates and fees 

Rollover date/Renewal dates for term deposits and investment accounts 

Credit card holders 

Expiry dates for credit cards 

10.2.7 Signatories 

The names and signatures of the current cheque signatories are held by the Financial Administrator 

and Executive Officer. 

a) The addition and removal of cheque signatories must adhere to the following principles: 

i. No cheque signatories should be related or living in the same premises 

ii. No cheque signatories should have ever been bankrupted or convicted for fraud 

iii. 

iv. 

Signatories should not authorise payments which involve a conflict of interest, e.g., 

authorisation of payment as reimbursement for own expenses 

When there are changes to signatories, such as a change in office bearers the bank 

should be advised immediately 


SECTION 4 


v. Two signatures/electronic funds transfers authorisations are required for approved 

expenditure. 

10.2.8 Delegation Authorities 

a) The general principle is that the authority for expenditure of Newtown Neighbourhood Centre 

funds is allowed within the Board of Management approved budget provided that any single 

item of expenditure item does not exceed the relevant financial delegation. 

b) The financial delegation limit shall apply to recurrent and capital expenditure apart from 

specifically excluding items indicated by the Board of Management. Expenditure on excluded 

items must be approved by the Board of Management. 

c) Authority for approval of expenditure over the limits of delegation is exercised directly by the 

Board of Management or through delegation of this authority to the Executive Officer when 

considered necessary. 

10.2.9 Authorisation Limits 

a) The Board of Management needs to allocate appropriate levels of financial delegation to each 

staff member. 

b) This entitles an employee to spend up to this level before seeking approval from managers to 

exceed this limit. For example, the administration assistant may be authorised to spend $50 

from petty cash, while a project officer may be authorised to spend $200 from petty cash. 

c) Level of Financial Delegation: 

Executive Officer $2000. 

Managers $ 500. 

d) For all purchases or expenditure over $10,000 three quotes must be obtained. The most 

economical and efficient quote will be authorised by the Executive Officer. 

All purchases or expenditure between $3,000 - $10,000 two quotes will be obtained and the most 

economical and efficient will be authorised by the Executive Officer. 

All purchases or expenditure under $3,000 will be authorised by the Executive Officer. 

10.2.10 Accounting Authorities 

a) The Board of Management is responsible for allocating accounting authorities to the 


b) The following delegations to the Executive Officer are suggested: 

i. Opening Accounts 

ii. Bank Accounts 

iii. Ledger, Trust, General accounts 

iv. Sign Payment Summaries 

v. Variation and Authorisation of Accounts Payable 

vi. Cheque Signatures (all accounts) 

vii. Placement of Investments 


SECTION 4 


viii. Initial authority to refund private telephone rental or other agreed personal 

expenses/allowances 

ix. Engagement of Consultants and use of Contractors 

x. Asset Management 

xi. Debt Management 

xii. Travel and accommodation, including use of taxis, car hire, venue hire etc 

10.2.11 Delegation responsibilities and accountability 

a) Where any delegation is given to the Executive Officer, Financial Administrator or Managers 

except in so far as a contrary intention appears, the power may be exercised and the duty 

performed by the person for the time being acting in that position. 

b) A delegated person may appoint another person or body to advise about the exercise of 

delegated authority (including decision making), however the delegate always remains 

responsible and accountable for the decision or action. 

c) In exercising delegations, the Executive Officer, Financial Administrator or Managers are 

subject to the requirements of the Public Finance and Audit Act 1983. 

d) The delegations granted apply only in respect of operations and functions within the 

responsibility span of the Executive Officer, Financial Administrator or Managers exercising 

the delegation and within budgetary limits, except where stated. 

e) In relation to Restricted Funds, delegations must be exercised in accordance with the terms 

and conditions governing each account. 

f) Delegates are accountable to the Board of Management for the results of exercising their 

delegations and responsibilities allocated to them. 

10.2.12 Cash Disbursement Authorisation 

a) All cheques including payroll cheques, (with the exception of direct deposit payroll items) 

will be signed by the Executive Officer or designated member/s of the Board of Management 

and one other signatory. 

b) Voided cheques will have VOID written boldly in ink on the face and have the signature 

portion of the check crossed out. Voided cheques will be kept on file. 

c) In no event will: 

i. Invoices be paid unless approved by two authorised signatories 

ii. Blank cheques (cheques without a date or payee designated) be signed in advance 

iii. Cheques be prepared on verbal authorisation, without invoice and ABN provided by 

payee 

iv. In the event that it is necessary to issue a duplicate cheque for cheques in an amount 

over $15, the bank must be notified immediately and a stop payment put on the original 

cheque 


SECTION 4 


.11.0 ACCOUNTS RECEIVABLE 

11.1 Accounts Receivable Policy 


All sales and revenue producing activity is recorded fully and accurately in the organisation’s 

accounting system to reflect an accurate view of income received by the organisation. The 

debtor’s policy and procedures are strictly followed to ensure bad debts are eliminated or 

minimised. 


The Executive Officer and Financial Administrator 



Administrator and staff 



 

Accounts Receivable Procedure 

11.2 Accounts Receivable Procedure 

11.2.1 Vendor establishment 

Prior to becoming an approved supplier, a vendor is required to complete the Newtown 

Neighbourhood Centre’s Vendor Input Form. 

11.2.2 Creating and issuing invoices 

a) A customer card and invoice is created in the accounting system upon confirmation of a sale. 

b) Full details concerning the sale should be included on the invoice to avoid confusion and 

dispute. 

c) Ensure any paperwork relating to the sale is filed appropriately for easy retrieval (e.g., user 

agreements). 

d) Sales remain open until payment is received or written off as a bad debt. 

e) Invoices can be issued at the time of the sale or for permanent users (regular clients) or can be 

issued monthly with payment due within 14 days. 

11.2.3 Matching payments and sales 

When payments are received they must be accurately matched against an open sale invoice 

and allocated to the appropriate budget item account before being deposited into the bank 

account. 


SECTION 4 


11.2.4 Receiving and applying payments against sales 

Receiving and applying receipts against sales is done using the accounting system. Record 

payments in the accounting system and on paperwork relating to the sale. 

11.2.5 Banking receipts and banking review 

Monies received are stored in the money holder (on top of the Safe) and transferred to the safe 

as soon as practicable. No money in the money holder is transferred every Friday either to the 

bank or to the safe. All money is banked as soon as practicable or at least every fortnight. 

The bank statement is reviewed for electronic payments weekly and balances monitored to 

ensure the account does not become overdrawn. 

11.2.6 Debtors review and follow up 

A debtors list is produced and reviewed monthly using the following guidelines: 

Week 4: Photocopy and resend invoice with “reminder sticker 

Week 5: Follow up phone call 

Week 6: Debtors Letter No1 

Week 8: Debtors Letter No 2 

Week 10: Place with collection agency. 

11.2.7 Writing off bad debts 

a) Bad debt is the portion of receivables that can no longer be collected, typically from accounts 

receivable or loans. Bad debt in accounting is considered an expense. 

b) Appropriate debt recovery and collection procedures will be developed to ensure adequate 

controls are in place to minimise bad debts. 

c) All practical means will be undertaken to recover outstanding amounts due to the Newtown 


d) A range of negative service indicators may be imposed on an overdue debt. Further goods and 

services will be discontinued and details of general debtors forwarded to the Newtown 

Neighbourhood Centre Debt Collection Agency. If it is commercially viable, legal action may 

be taken to recover amounts outstanding. 

e) Debts will be written off only when all reasonable attempts at recovery have been taken and 

recovery has proven to be unsuccessful and further action is either not cost effective or highly 

unlikely to succeed. 

f) The decision to write off individual debts should include consideration of the cost of recovery 

action versus the amount of the debt being pursued. 

g) The Financial Administrator will recommend debts to be written off. 

h) The Executive Officer must approve all debts for write off after being satisfied that the 

recovery procedures have been complied with and that all reasonable attempts at recovery 

have been exhausted. 

i) An estimate is made at the end of each financial year of the amount of bad debt. This is then 

accumulated in a provision, which is then used to reduce specific receivable accounts as and 

when necessary. 


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j) Annually the provision for bad debts will recognise any doubt as to the collectability of debts 

and the potential for a current debt to deteriorate and become bad. 

11.2.8 Reconciliation Process 

a) Bank statements will be received directly by the Financial Administrator 

b) The Financial Administrator will reconcile bank statements monthly. 

c) The Executive Officer shall verify the reconciliation of the bank accounts on at least a 

quarterly basis. 

d) On all cheques outstanding over 90 days, the Financial Administrator should follow up with 

payees. 

11.2.9 Private Monies 

No employee shall: 

a) deposit public or other monies to the credit of a private bank account; 

b) hold private moneys with other monies under his or her control; 

c) deposit private monies to the credit of a bank account of a Newtown Neighbourhood Centre; 

d) keep or permit any private monies to be kept in a safe or strong room of a Newtown 



SECTION 4 


12.0 TRAVEL/TRANSPORT/VEHICLES, ACCOMMODATION 

AND MEAL EXPENSES 

12.1 Travel/Transport / Vehicles, Accommodation and Meal Expenses Policy 


Travel is all travel within Australia that involves absence from the staff member's normal 

workplace. This includes local travel, intra or interstate travel; or subsidised travel associated 

with conference attendance. The nature of the travel, its duration and costs determines the 

approval process requirements. 

All staff shall be reimbursed for reasonable staff travel, accommodation and meal expenses 

incurred as a result of work related activities. Reimbursement of expenses will be up to 

amounts specified within the Newtown Neighbourhood Centre’s procedural guidelines for 

travel, accommodation and meal expenses. 


The Newtown Neighbourhood Centre’s Executive Officer, Managers and Financial 






The following procedures apply to the Travel/Transport/Vehicles, accommodation and meal 

expenses policy: 

 

Travel/Transport/Vehicle, Accommodation and Meal Expenses Procedure 

12.2 Travel/Transport/Vehicles, Accommodation and Meal Expenses 

Procedure 

12.2.1 General Travel 

a) All travel is approved by the Executive Officer or Managers. 

b) Travel by the Executive Officer in excess of $300. must be approved by the Board of 


c) The authorised standard for air travel on official Newtown Neighbourhood Centre business is 

Economy Class. Bookings of a higher standard must be approved by the Executive Officer 

and one member of the Board of Management. 

d) Expenses not exceeding $100 (incl. GST) may be claimed through the Petty Cash System. 


SECTION 4 


e) To obtain reimbursement of travel expenses, staff must complete the Staff Expense 

Reimbursement Form, provide tax invoices/receipts and obtain their supervisor’s 

authorisation on the form. 

12.2.2 Rental of Vehicles 

a) Ensure adequate insurance coverage is taken 

b) All traffic offences will be the responsibility of the employee 

c) If the driver of the vehicle is shown to be under the effects of drugs or has any blood alcohol 

level at the time of driving the vehicle, the financial responsibilities of repairs and/or 

replacement of vehicle will revert to them. 

12.2.3 Taxi Travel 

a) Where Newtown Neighbourhood Centre vehicles or public transport is unavailable or 

inconvenient and it is more economical to do so, then taxis are a recommended means. 

b) Under no circumstance should taxis for personal use be reimbursed by the Newtown 


c) Prior approval must be obtained from the Executive Officer before any taxi travel for 

Newtown Neighbourhood Centre business is undertaken. This is particularly important where 

taxi usage is outside of normal work hours. 

d) Reasonable and acceptable after hours taxi usage for Newtown Neighbourhood Centre 

business include: 

i. where after hours overtime is required and approved by the Executive Officer, and 

circumstances do not permit ease of transport from work to home due to the 

unavailability of a regular bus service, and/or the unavailability of the employee’s 

usual transport, or the safety of staff is a consideration. For example, staff having to 

walk to the bus stop late at night. Note that this does not include employees who are 

on rostered shift work, as such work represents their normal working hours; 

ii. approved intra/interstate travel usage for transport between airport terminus to 

conference/meeting/seminar destination and return; or transport from 

conference/meeting/seminar to overnight hotel accommodation. For the latter, this 

generally should be a point close to the conference/meeting/seminar destination; and 

iii. where exceptional or unusual circumstances exist and prior approval was unable to be 

obtained, approval must be sought immediately after the travel event. For example, an 

unplanned event or work conditions requiring key staff to work after hours, instances 

include: a computer system crash, staff or student sickness, or late night call outs for 

illegal entry on Newtown Neighbourhood Centre premises. Reasonable judgement 

and discretion should be used in determining which events or conditions should 

apply. 

e) All staff related taxi transactions/claims are to be forwarded onto the Executive Officer or 

Managers , for review and signature, in accordance with the Newtown Neighbourhood Centre 

delegations framework. 

12.2.4 Private Vehicle Motor Use 

a) Where staff are required or elect and are approved to use their own motor vehicle on official 

business they will be reimbursed at the SACS Award rate. 

b) Staff will then complete the Staff Expense Reimbursement Form 


SECTION 4 


c) Travel from home to the usual place of work and return (or an equivalent distance) is 

considered private and cannot be claimed as official business travel. 

d) The Newtown Neighbourhood Centre must maintain a Register of Employee owned vehicles 

used to conduct Newtown Neighbourhood Centre business or activities for insurance purposes 

(Template C-T004) 

12.2.5 Meal Expenses 

a) Staff will be reimbursed for meal expenses while they are travelling for work as per the SACS 

Award 

b) Staff must complete a Staff Expense Reimbursement Form to reclaim meal expenses. 

12.2.6 Travel Insurance 

Seek approval from the Executive Officer prior to travel. 

12.2.7 Cash Advances 

a) To obtain cash in advance to cover anticipated expenses, an “Advance of Funds’ form must 

be completed and approved by the Executive Officer where in excess of $ 100. Each advance 

must be accounted for (with relevant receipts) and excess funds refunded within 2 weeks of 

the journey completion. 

12.2.8 Accommodation 

a) Staff will be reimbursed for accommodation expenses while they are travelling for work up to 

the following rates: 

Accommodation in metropolitan cities (e.g., Sydney) $ $120. 

Accommodation outside metropolitan cities $ $75. 

b) Staff must complete a Staff Expense Reimbursement Form to reclaim accommodation 

expenses. 

c) Sustenance allowance may be provided. (This is a set amount of money provided for food 

only where no receipts are required). 

12.2.9 Business Meals and Entertainment 

a) Expenses for business meals and entertainment must be considered reasonable and prior 

approval for these types of expenses must be sought. Reasonable costs for business meals and 

entertainment will be paid only when prior approval was granted and receipts are presented. 

b) Meals and entertainment necessary for the conduct of Newtown Neighbourhood Centre 

business should not be lavish, extravagant or unreasonably costly. There are 3 broad 

categories for re-imbursement: 

 

 

 

the business meal 

entertainment directly related to a business discussion 

entertainment preceding or following a bona-fide business discussion 

Note: All receipts must be presented. 


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12.2.10 Traffic Fines and Infringement Notices 

a) All penalties imposed on users of Newtown Neighbourhood Centre vehicles as a result of any 

traffic or parking offence are the responsibility of the driver. 

b) Under no circumstances can fines incurred be paid or reimbursed from Newtown 

Neighbourhood Centre funds. The cost must be borne personally by the driver responsible for 

the offence. 

12.2.11 Accidents, Theft and Insurance 

a) In addition to any legislative requirements, it is mandatory for details of all incidents to be 

reported immediately to the Executive Officer. 

b) Personal belongings lost or stolen from a Newtown Neighbourhood Centre vehicle, or loss or 

damage to personal belongings as a result of accident are not covered by the Newtown 

Neighbourhood Centre motor vehicle comprehensive insurance policy. 

12.2.12 Driver Requirements for Newtown Neighbourhood Centre vehicles 

a) Before driving a Newtown Neighbourhood Centre or hire car, staff should make themselves 

familiar NNC motor vehicle policy and with the features of the vehicle. 

b) The usual driver of the vehicle will be the staff person to whom the vehicle is allocated. 

c) The vehicle may be driven by any authorised member of staff of the Newtown 

Neighbourhood Centre for official business purposes. 

d) A staff member with full private use of a vehicle may nominate one person (over 25 years of 

age) as an authorised driver of the vehicle. 

e) It is the driver's responsibility to ensure validity of licence and class appropriate for the type 

of vehicle being used. 

f) In the event of an accident or damage to the vehicle the driver must complete a Motor Vehicle 

Damage Report Form and an Incident/Hazard report and submit them to Executive Officer. 

g) If the staff member's licence is suspended or cancelled, arrangements must be made for the 

vehicle to be returned to the Newtown Neighbourhood Centre for the duration of the 

suspension or cancellation. 

12.2.13 Miscellaneous 

a) Any personal travel that is combined with a business trip must be approved in writing by the 

Executive Officer. If the Executive Officer is the traveller, then travel must be approved by a 

Board of Management member. 

b) If employees travel with a family member, their costs must be borne by the employee. This 

includes the employee being charged for the difference between the single and dual 

occupancy rate, if applicable. 

c) Reasonable personal communication costs are allowable. 

d) Bar costs must be borne by the employee unless otherwise authorised. 

e) Laundry costs are allowable for business trips of more than one week but should not be 

excessive. If costs are unreasonably high, the employee may be asked to compensate any 

costs. 

f) Recreational costs, e.g., gym visits or movies are to be borne by the employee. 

g) Any legal offences, including road offences, will be the responsibility of the employee. 


SECTION 4 


13.0 MOBILE PHONES 

13.1 Mobile Phone Policy 


Mobile phones will be allocated to staff by the Newtown Neighbourhood Centre only when 

there is a genuine need by the Newtown Neighbourhood Centre or other benefit to the 

Newtown Neighbourhood Centre. Criteria under which staff may be allocated mobile phones 

include, but are not limited to: 

A requirement to undertake frequent out of office duties, including travel 

A requirement to be on call 

Limited access to a fixed phone (e.g., outdoor staff) 

A requirement to perform a specific security or OH&S function 

Client services, productivity or efficiency will be improved. 

The Newtown Neighbourhood Centre will be responsible for payment of all work related calls 

made on Newtown Neighbourhood Centre mobiles and personal mobiles. 








The following procedures will be used for mobile phones: 

 

Mobile Phone Procedure 

13.2 Mobile Phone Procedure 

13.2.1 The purchase and use of mobile telephones are to be justified in terms of the essential need 

for regular communication with Newtown Neighbourhood Centre and/or other parties in 

relation to official Newtown Neighbourhood Centre business during absences from Newtown 

Neighbourhood Centre, which occur on a frequent basis. 

13.2.2 It is expected that the use of mobile telephones will be primarily for business use and 

‘reasonable’ private use. 

13.2.3 Excessive ‘private’ use may require justification to the Executive Officer or Board of 

Management and reimbursement by the employee of a proportion of the organisation’s 

mobile phone charges. 

13.2.4 Mobile telephones are to be purchased by submitting a Newtown Neighbourhood Centre 

Cheque Requisition Form to the Executive Officer. 


SECTION 4 


13.2.5 The Asset Register will include a list of all mobile telephones. The Executive Officer should 

immediately be advised of the loss or theft of Newtown Neighbourhood Centre owned mobile 

telephones. 

13.2.6 The use of mobile phones must be cost effective. All users must adhere to the following 

practices: 

a) Where possible, landlines are to be used in preference to mobile calls. 

b) Mobile calls should be limited to those necessary for effective business. 

c) Calls should be kept brief. 

d) Reasonable care must be taken to prevent damage, loss or theft. 

e) University mobile phones may not be used for unlawful activities, commercial 

purposes unrelated to the Newtown Neighbourhood Centre, or personal gain. 

13.2.7 Private use of mobile phones is to be kept to a minimum. 

13.2.8 All users need to be aware that the Financial Administrators retains mobile phone account and 

call details. These records may be accessed by authorised staff for audit and investigation 

purposes, and may be subpoenaed as evidence for legal proceedings. 

Note: Under no circumstances will the Newtown Neighbourhood Centre cover the costs for plans 

entered into privately, whether on Newtown Neighbourhood Centre or privately owned phones. 

13.2.9 Responsibilities of Mobile Phone Users 

Mobile phone users are: 

a) to abide by the Newtown Neighbourhood Centre mobile phone policy. 

b) to comply with the fair and reasonable use practices noted above. 

c) responsible for any and all activities associated with that phone. 

d) to register the phone by notifying the Centre Administrator of the new serial number on 

receipt of a new handset. This information shall then be recorded on the Assets Register by 

the Centre Administrator 

e) to ensure the safekeeping, care and custody of the mobile phone. 

f) to immediately report lost/stolen mobile phones to the Preferred Supplier's Helpdesk and the 

Centre Administrator 

g) to check their account for accuracy and inform the Financial Administrator of errors. 

h) to ensure the number is published on the staff phone directory. 

i) to identify personal calls and reimburse the Newtown Neighbourhood Centre at least once a 

quarter. 

j) prohibited from using the phone to harass, menace, intimidate or send offensive messages to 

others. 

k) to consider safety and etiquette - mobile phones must not be used while driving (unless using 

a hands free kit), when training, at meetings, near blasting operations , in aeroplanes, near 

sensitive electronic equipment, or where otherwise signed. 

l) to return the mobile phone and SIM card to their Executive Officer upon concluding 

employment with the Newtown Neighbourhood Centre, or when the phone is no longer 

required. 


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13.2.10 Responsibilities of Approving Officers 

The Executive Officer has the delegation to approve the allocation of mobile phones to their 

respective staff members. They are also responsible for: 

a) Assessing which staff members will be allocated a mobile phone. 

b) Ensuring users are aware of the Newtown Neighbourhood Centre Mobile Phone Policy. 

c) Ensuring the handset is obtained from the Newtown Neighbourhood Centre Preferred 

Supplier. 

d) Mobile phones cannot be used when driving a motor vehicle. 

e) Ensuring the phone number and serial number details are sent to the Centre Administrator 

when the phone is received. 

f) Notifying the Centre Administrator when re-allocating a mobile phone. 

g) Notifying the Centre Administrator about unused mobile phones so accounts can be 

cancelled. 

h) Monitoring usage of mobile phones by approved users. 

i) Termination of Employment 

j) When a user ceases employment with the Newtown Neighbourhood Centre their phone must 

be returned to the Executive Officer. 

k) If the phone is not returned the user will be charged the replacement cost of the phone. The 

SIM card will be cancelled and the phone locked, rendering the handset useless. 

l) Outstanding personal calls must be paid for on termination of employment. 


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14.0 REPORTING FRAUDULENT OR ILLEGAL ACTS 

14.1 Reporting Fraudulent or Illegal Acts Policy 


The Newtown Neighbourhood Centre has transparent processes for reporting fraudulent or 

illegal business transactions conducted in the name of Newtown Neighbourhood Centre. 


Board of Management Executive Officer, Managers and all staff. 


Board of Management Executive Officer, Managers and all staff. 



 

Reporting Fraudulent or Illegal Acts Procedure 

14.2 Reporting Fraudulent or Illegal Acts Procedure 

14.2.1 Prevention of Fraud and Illegal Acts 

a) The potential impact of fraud and illegal acts represents a significant risk to the Newtown 

Neighbourhood Centre assets and reputation. 

b) The Newtown Neighbourhood Centre is required to establish and maintain processes for the 

prevention, detection and elimination of fraud and illegal acts and to identify and manage 

these risks through the risk management program. 

14.2.2 Reporting Responsibilities 

a) Any person who becomes aware of fraudulent or illegal business transactions conducted in 

the name of the Newtown Neighbourhood Centre shall properly report the fraudulent or 

illegal act to the Board of Management and the Board of Management will take appropriate 

action. This includes: 

i. Any person who suspects that fraud or illegal activities are taking place must report 

that suspicion immediately to their immediate supervisor. If the employee believes 

that the supervisor is involved, or is otherwise uncomfortable reporting in this 

manner, he or she must immediately notify the Board of Management. The Board of 

Management to whom such reports are made must review them, and if they have 

merit, report them to the next level of management or to the Newtown 

Neighbourhood Centre Auditor. For complete guidance on reporting irregularities, 

see Part D. 

ii. Individuals conducting business on behalf of the Newtown Neighbourhood Centre are 

personally responsible for the consequences of any violations they commit. 


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iii. Individuals conducting business on behalf of the Newtown Neighbourhood Centre 

must do so for the benefit of the Newtown Neighbourhood Centre. Where a potential 

for personal gain exists, this potential conflict of interest must be reported 

immediately, and be carefully evaluated before any financial transactions are allowed 

to occur. 

b) Failure to prevent fraud or illegal acts within your Newtown Neighbourhood Centre may lead 

to: 

i. Damage to Newtown Neighbourhood Centre reputation and culture 

ii. Loss of revenue and associated costs 

iii. Reduced capacity to perform core activities 

iv. Litigation (from failure to meet regulatory or other obligations) 

c) Newtown Neighbourhood Centre should put in place an appropriate risk management strategy 

by identifying the appropriate contributing risk factors. 


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15.0 INSURANCE 

15.1 Insurance Policy 


The Newtown Neighbourhood Centre will comply with all statutory and legal requirements 

relating to the Insurance of Assets, Employees, Liabilities and Volunteers for the 

organisation. A registered insurance broker will be appointed to aid in formulating the various 

types and levels of insurance cover. 


The Board of Management, Executive Officer and Centre Administrator. 


The Board of Management, Executive Officer and Centre Administrator. 



 

Insurance Cover Procedure 

15.2 Insurance Cover Procedure 

15.2.1 Insurance protects the Newtown Neighbourhood Centre and its members from the financial 

costs of mistakes, disasters and accidents that befall individuals and property. 

15.2.2 The Newtown Neighbourhood Centre should review and renew insurance policies annually. 

15.2.3 The Newtown Neighbourhood Centre must ensure insurance cover is adequate and that 

insurance policies protect against a loss or serious damage that could result in the Newtown 

Neighbourhood Centre having to close. 

15.2.4 The insurance provider should be notified as soon as possible of the purchase of new assets, 

changes to staff numbers or volunteers, changes to activities/services conducted by the 

Newtown Neighbourhood Centre or any other changes that will impact the current insurance 

policy. 

15.2.5 The type of insurance taken out by the Newtown Neighbourhood Centre will depend on the 

activities, assets and funding agreements held by the Newtown Neighbourhood Centre. 

15.2.6 The Centre Administrator shall maintain an insurance file and keep copies of all insurance 

agreements, requests and policies, as well as dated notes of all conversations. 

15.2.7 Always ask for written confirmation of verbal discussions with the insurance provider to 

ensure a record is kept in case of future issues/problems. 


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15.2.8 Public Liability records should be kept for 37 years and other policies for seven years in case 

of a claim. 

15.2.9 The Board of Management shall ensure that the Newtown Neighbourhood Centre is not over 

or under insured. 

15.2.10 The Centre Administrator should start seeking quotes six weeks before the current insurance 

policy expires. 

15.2.11 When requesting a renewal on the Newtown Neighbourhood Centre’s insurance policy, 

ensure that the insurance provider has an up to date profile of the Newtown Neighbourhood 

Centre and its activities. 

15.3 Insurance Cover 

Insurance policies will provide cover for (but not be limited too) the following, noting that in 

each category of insurance cover it is essential to clearly nominate the level and/or dollar 

value of cover: 

a) Risk Management 

b) Public / Products Liability 

c) Association Liability Burglary / Theft 

d) Fire and Perils 

e) General Property 

f) Money in Transit 

g) Motor Vehicles – Newtown Neighbourhood Centre Vehicles 

h) Motor Vehicles – Staff and Volunteers Vehicles 

i) Students 

j) Volunteers 

k) Workers Compensation 

l) Volunteers Personal Accident Insurance 

a) Risk Management 

Providing insurance cover is the identification, measurement and economic control of those 

risks that threaten the assets and/or earnings of, or the essential services provided by the 

organisation. 

Risk management insurance requires documentation of the recognisable risks and action taken 

to prevent such risks becoming an actuality. 

b) Public / Products Liability 

Providing insurance cover for all sums for which the insured organisation may become liable 

to pay as compensation, up to the insured organisations sum insured, for bodily injury and/or 

property damage caused by an occurrence within Australia. 


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This category of insurance shall include cover for all events associated with and arising from 

any activities conducted by any Newtown Neighbourhood Centre project at locations other 

than the normal business address of Newtown Neighbourhood Centre. 

c) Association Liability (incorporating Professional Indemnity and Directors and Officers 

Liability). 

 

Providing insurance cover to protect the insured organisation and its Directors, Officers and 

Volunteers against legal liability which has been brought about through the conduct of the 

insured’s activities and/or the provision of services 

d) Burglary / Theft 

 

Providing insurance cover against loss of, or damage to, equipment and/or office contents as a 

result of forcible and/or violent entry or theft by a person feloniously concealed on the 

premises. 

e) Fire and Perils 

 

Providing insurance cover against loss of, or damage to, equipment and/or office contents 

from fire, explosion, earthquake, strikes, lightning, storm and tempest, impact, accidental and 

malicious damage and glass breakage. 

f) General Property 

 

Providing insurance cover against loss and/or damage to the insured’s specified equipment, 

tools and/or contents from fire, explosion, earthquake, strikes, lightning, storm and tempest, 

impact – including whilst in transit and burglary/theft from a securely locked motor vehicle. 

g) Money in Transit 

 

Providing insurance cover against loss of money due to armed hold up and/or theft by third 

parties, including damage to safes, strongboxes and the like. 

h) Motor Vehicles – Newtown Neighbourhood Centre Vehicles 

 

Providing comprehensive insurance cover for the Newtown Neighbourhood Centre equal with 

its agreed capital value and type of use. Cover shall include the loss of no claims bonus and/or 

reimbursement of excess and/or hire cost. 

i) Motor Vehicles – Staff and Volunteers Vehicles 

 

 

Each staff member and each volunteer shall provide the respective Manager with written 

evidence of their comprehensive insurance cover which permits occasional use of their 

vehicle for Newtown Neighbourhood Centre project business – otherwise such vehicles must 

not be used in the conduct of Newtown Neighbourhood Centre business. 

It should be noted that the driver must have a current driver’s licence and that the car is 

registered (also to ensure 3rd party personal injury coverage – with the ‘green slip’). 

j) Students 

 

Students on placement from various educational and/or training institutions (Universities, 

TAFE etc.) must have appropriate insurance cover which must be verified by the respective 

Managers before the student commences accessing NNC motor vehicle. 


SECTION 4 


 

 

It is important for Managers to check the type and level of insurance cover being provided by 

institutions and, if necessary, verify with the Newtown Neighbourhood Centre’s Insurance 

Broker that such cover is acceptable. 

Should insurance cover be deemed inadequate or not be provided at all, Managers shall not 

proceed with the placement. 

k) Volunteers Personal Accident Insurance 

 

Providing insurance cover for Volunteers in the event of accidental injury and/or death whilst 

carrying out volunteer work authorised by the insured organisation. 

Note: Some insurance companies will not cover volunteers over the age of 80. 

l) Workers Compensation 

 

The Newtown Neighbourhood Centre Inc shall arrange Workers Compensation Insurance 

Cover for all employees in accordance with all statutory and legal requirements. 

15.4 Levels and/or Dollar Values of Insurance Cover 

In each and every category of insurance cover the Board of Management shall establish 

appropriate levels and/or dollar values after consultation with and advice from qualified 

advisory organisations and a registered insurance broker, including levels of excess payable. 

15.5 Insurance Policy Register 

The Register of Insurances shall be maintained by the Centre Administrator. This Insurance 

Register must be at all times kept up to date and in line with Insurance Policy, renewals 

and/or changes. 


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16.0 RETENTION OF ACCOUNTING RECORDS POLICY 

16.1 Retention of Accounting Records Policy 


Newtown Neighbourhood Centre will implement strong recordkeeping to ensure the 

organisation operates efficiently and effectively whilst meeting legislative and compliance 

obligations and expectations of its members and community. 


The Executive Officer and Financial Administrator 


The Executive Officer, Managers and Financial Administrator 



 

Recordkeeping procedures 

16.2 Recordkeeping Procedure 

16.2.1 The recordkeeping procedures of the Newtown Neighbourhood Centre cover all essential 

financial recordkeeping functions: 

a) Keeping financial records 

b) Storing records over time 

c) Protecting the integrity and authenticity of records 

d) Ensure appropriate security 

e) Enabling access and use of records 

16.2.2 Recordkeeping applies to information on computers, servers, backup systems, hardcopy filing 

systems and electronic and hardcopy archiving systems. 

16.2.3 Newtown Neighbourhood Centre will retain financial records for the period of which the 

record must be kept before it may be destroyed. 

16.2.4 “Retention Period” means the period for which a record must be kept before it may be 

destroyed. Retention periods are measured in years or semesters following the occurrence of a 

specified event such as the end of a financial or calendar year, the end of a specified appeal 

period, the completion of an audit by an Independent Auditor or the discharge of a loan. 

16.2.5 The Newtown Neighbourhood Centre will implement a systematic approach to the creation, 

maintenance, use and disposition of all financial records. This will ensure that the 

organisation can control the quality and quantity of information created and received. 


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16.2.6 The Newtown Neighbourhood Centre will develop a recordkeeping system, which captures, 

maintains and provides access to financial records over time. 

16.2.7 This recordkeeping system will include a systematic listing of the financial records created 

and maintained by the Newtown Neighbourhood Centre in which the period of time that each 

record series is to be maintained or reviewed for destruction or kept for permanent archival 

retention is stated. 

16.2.8 Financial documentation should be organised in an efficient and effective filing system. The 

filing system should include separate compartments or folders for separate items such as: 

a) Correspondence 

b) Bank statements 

c) Outstanding bills 

d) Paid bills and receipts 

e) Asset file with instructions and guarantees 

f) Lease file for equipment hire and rental hire 

g) Insurance 

h) Cash book – record of receipts and payments 

i) Statutory information – constitution, budget and minutes. 


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17.0 REFERENCES 

B-R001 

Australian Auditing Standards 

B-R002 Associations Incorporation Regulation 1999 

http://www.legislation.nsw.gov.au/fullhtml/inforce/subordleg+484+1999+FIRST+0+N 

B-R003 

B-R004 

B-R005 

Australian Securities and Investment Commission 

www.asic.gov.au 

Australian Society of Certified Practising Accountants 

www.cpaaustralia.com.au 

Australian Taxation Office 

www.ato.gov.au 

B-R006 Incorporated Associations Act 1984 

http://www.legislation.nsw.gov.au/fullhtml/inforce/act+143+1984+FIRST+0+N 

B-R007 

NSW Office of Fair Trading 

www.fairtrading.nsw.gov.au 

B-R008 Public Finance and Audit Act 1983 

http://www.legislation.nsw.gov.au/fragview/inforce/act+152+1983+FIRST+0+N/ 

B-R009 Social and Community Services Award, NSW 

http://www.industrialrelations.nsw.gov.au/awards/controller.jsp?awardCode=783&view=currentRates 

B-R0010 

B-R011 

B-R0012 

The Institute of Chartered Accountants in Australia 

www.charteredaccountants.com.au 

McMillan, E.J. 2008 Model Policies and Procedures for Not for Profit 

Organisations. John Wiley & Sons. New Jersey. 

Other Legislation Regulations, Guidelines and Policies 

GST Act 

http://www.austlii.edu.au/au/legis/cth/consol_act/antsasta1999402/ 

Fringe Benefits Tax 

http://www.ato.gov.au/nonprofit/content.asp?doc=/content/33618.htm 

Public Benevolent Institutions 

http://www.ato.gov.au/nonprofit/content.asp?doc=/content/26553.htm 

Charity Fundraising Act 1991, 

www.olrg.nsw.gov.au/charitable_info.asp 

Workers Compensation Act, 1987 

http://www.legislation.nsw.gov.au/viewtop/inforce/act+70+1987+FIRST+0+N/ 

Superannuation Guarantee Act 1992 

http://www.austlii.edu.au/au/legis/cth/consol_act/sga1992430/ 

Deductible Gift Recipient 

http://www.ato.gov.au/nonprofit/content.asp?doc=/content/16413.htm&page=2&H2 


SECTION 4 


ACKNOWLEDGEMENTS: 

Southlake Community Services Inc 

Dr Pat Johnson 

Mrs Val Murray, avm Safety Solutions 

Westpac: Guide for community treasurers 

Ourcommunity.com.au: Resources and Policy Bank 

Canterbury Earlwood Caring Association: Policies and Procedures Manual 2007, 

Volume 2 

NCOSS: Insurance: What’s it all about? A guide for not for profit organisations 

New South Wales Government, Department of Commerce, Office of Fair Trading: 

Statutory and reporting obligations 

The Institute of Chartered Accountants in Australia – Enhancing not for profit annual 

and financial reporting & Checklist for Improving Not for Profit 

Reporting 

Washington State PTA Leadership Resources 2005-2006 – Audit Checklist/Financial 

Management 

Queensland University of Technology, Australian Centre for Philanthropy and Nonprofit 

Studies – Standard Chart of Accounts for Non Profits 

Dubbo Neighbourhood Centre

Financial Management - Newtown Neighbourhood Centre

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