Not-For-Profit Audits

Transparent financial reporting helps charities and not-for-profit organisations demonstrate responsible stewardship of the resources entrusted to them. Optimum Auditing Services provides independent audits and eligible review engagements for organisations accountable to members, boards, donors and funding bodies.

We recognise the demands placed on finance staff and volunteer committees. Our approach combines a clear information request with constructive communication and careful consideration of the organisation’s activities and funding arrangements.

ACNC audit and review thresholds

For reporting periods from 2022 onwards, the ACNC classifies registered charities by annual revenue:

These are the general ACNC requirements. Exceptions or approved reporting arrangements may apply, including for eligible Basic Religious Charities. A governing document, funding agreement or another regulator may require an audit even where the ACNC does not. Not-for-profit organisations that are not ACNC-registered must assess their own applicable requirements.

A review provides limited assurance and primarily uses enquiries and analytical procedures. An audit provides reasonable assurance through more extensive evidence-gathering procedures. We confirm the engagement required before commencing.

Confirm the thresholds on the ACNC website and read ACNC’s audit and review guidance. Guidance checked 27 September 2026.

Understanding your organisation’s finances

• Donations, fundraising receipts, membership income and service revenue.
• Grants, funding conditions and the treatment of restricted funds.
• Payroll, superannuation, expenses and expenditure approvals.
• Cash, investments, property and other significant assets.
• Related party transactions and relevant disclosures.
• Financial sustainability and the assumptions underlying forecasts.

The procedures are tailored to material balances and reporting risks. We consider how income is received, how spending is authorised and how management monitors funds that must be used for a particular purpose.

Constructive communication with your board

We discuss significant findings with management and those charged with governance. Where relevant, we explain weaknesses identified in controls and practical matters that warrant attention. This communication helps your governing body understand the findings and decide how to respond.

Preparing for the engagement

Useful starting documents include the constitution or governing rules, registration details, draft financial statements, trial balance, bank reconciliations, board minutes, funding agreements and prior audit or review reports. Grant schedules and evidence of restricted expenditure may also be required.

We agree a timetable that takes account of annual reporting, member meetings and funder deadlines. Complete records and prompt responses to queries support efficient completion.

Grant acquittals and additional reporting

A funder may require an assurance report on a particular grant or statement of expenditure. We assess those terms separately so the report addresses the specified purpose. A financial report audit does not automatically satisfy every funding agreement.

Regulatory reference: ACNC guidance on reviews and audits.