Sometimes even the word “audit” sends shivers down the spine; after all aren’t auditors those frightening professionals wielding a big stick? KSA knows that an annual audit can create a daunting situation for trustees and we aim to make your audit experience as pleasant as possible. You’re able to openly communicate with the audit team and you’ll be informed of any significant audit issues. Of course, KSA issue the fund with the required Audit Report on completion, but you’ll also receive a detailed management letter that advises on issues requiring your attention and action. This management letter can help you avoid future year audit issues by warning you well in advance of any potential breaches. KSA want your annual audit to be a positive experience where your retirement savings reap the benefits.
Know your audit fee
Each trustee is different and that makes every superannuation fund unique. Investments and funding
structures vary considerably across all funds. As all super funds are varied, KSA have a varied approach to audit fees. Our fee structure allows the funds with more simple investments to pay a simple fee while the more complex funds may have an additional audit fee attached to a particular type of investment.
Sole purpose of a SMSF
Trustees should always understand the Sole purpose test in superannuation legislation and its practical
application toward their funds. Superannuation savings has, as a fundamental rationale, the requirement to provide income in your retirement. A regulated superannuation fund, therefore, must always ensure it is operating for the core purpose of benefits upon retirement or in a member’s transition to retirement. There are other additional or “ancillary” purposes that may exist with the sole purpose of retirement benefits. These supplemental purposes are related to the condition of release for reasons other than retirement and have strict guidelines to follow. Trustees have the duty and responsibility to ensure their fund is maintained for one or more of the core purposes, or risk civil penalty.
The role of professionals in your SMSF
There are many professionals involved in assisting SMSF trustees to manage their retirement benefits. It is helpful for the trustees to know which resource to access in each situation. Sometimes the roles of each professional may appear blurred, although each conducts very distinct functions. A tax accountant can prepare the fund’s financial reports and annual return with expert knowledge in taxation and accounting. Investment strategies, estate planning and retirement planning are handled by a specialist financial advisor who can ascertain your whole financial position. An approved SMSF auditor carries out a financial and compliance audit on your fund and must always maintain their independence from the fund accounts preparations. Audit feedback should enable trustees to gain a greater understanding of SMSF compliance matters and to better manage retirement benefits.