4.14.3.90 Audit Requirements for Special Disability Trusts

Summary

This topic contains information on a process to ensure that the trust is managed for the primary purpose of providing care and accommodation for the principal beneficiary. The process is an audit of the trust. It contains the following:

• who can request an audit,
• when can an audit be requested,
• performing an audit,
• duration of the audit,
• trustee obligations when requested to do an audit,
• information that must be included in an audit, and
• frequency of an audit occurrence.

Who can request an audit

The following persons may request an audit of the trust:

• the principal beneficiary,
• an immediate family member of the principal beneficiary,
• a person who is, under the law of the Commonwealth, a state or territory, the legal guardian or financial administrator of the principal beneficiary,
• a person who is otherwise acting as the principal beneficiary's guardian on a long-term basis, and
• the Secretary.

When can an audit be requested

An audit can be requested at any time.

Performing an audit

A person who is a member of CPA Australia, the Institute of Chartered Accountants in Australia, the National Institute of Accountants or a person approved by the Secretary for the purpose, must conduct the audit. They cannot be an 'immediate family member' of the principal beneficiary or the trustee.

Duration of an audit

The audit must be for at least a whole financial year and up to a maximum period of 5 financial years. The requesting party must specify the duration of the audit.

Trustee obligations when requested to do an audit

The trustee/s of the trust must, within a reasonable time after receiving a request:

• cause an audit of the trust to be carried out in relation to the period mentioned in subsection (2), or
• if, at the time of the request for the audit, an audit (the earlier requested audit) of the trust had already been carried out, or was being carried out, for the purpose of this section in relation to that period - give a copy of the report of the earlier requested audit to the person making the request.

Information that must be included in an audit

An audit must include the following information:

• a statement to the effect that the trust's financial statements give a 'true and fair' view of the trust's financial position and performance as at 30 June of the relevant financial year,
• if the person requesting the audit requests the audit for the purpose of determining whether the trustees have met the requirements of ALL provisions of the relevant deed of trust - a statement indicating whether the trust has met the requirements of all of the provisions of the deed of trust,
• if the person requesting the audit requests the audit for the purpose of determining whether the trustees have met the requirements of SPECIFIED provisions of the relevant deed of trust - a statement indicating whether the trust has met the requirements of those specified provisions of the deed of trust.

Note: Information mentioned above must comply with the relevant Australian Auditing Standards.

Frequency of an audit occurrence

If at the time of an audit request, an audit has already been carried out for the same 12 month financial period, a copy of the audit report can be provided to meet the request provisions.