Hi, my question is a bit involved so I hope I have broken it down to make it easier to understand.
Background
- ABC Company Limited by Guarantee (ABC Ltd) are a not for profit, registered for GST but not a registered charity.
- ABC Ltd has one paid employee, and 7 volunteer Directors of the Board.
- ABC Ltd has 7 divisions, all in Australia.
- 6 Divisions are unincorporated and fall under the Peak Body, ABC Ltd, all have their own bank accounts and committees consisting of a Chairman, Secretary & Treasurer.
- 7th Division is an incorporated association, and they have their own bank accounts and committees consisting of a Chairman, Secretary & Treasurer.
- All bookkeeping for all divisions is done via an online accounting software. Each divisions enters their income and expenses.
- ABC Ltd do the BAS and tax returns as one entity. The Divisions do not see the BAS returns so it is unclear exactly what is and is not being claimed. The Divisions only see the audited financials from the accountant (or are supposed to).
- ABC Ltd income is basically derived from people paying a membership fee. Very little of this goes back to the Divisions.
- Division income is generally from running events, including the incorporated division.
The question is, does this seem right? What we need to know is if the current way of doing things is correct and/or acceptable or should the incorporated division have their own ABN and be doing their own reporting and lodging?
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126 views
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