[wellylug] Very Important: Meeting of 13th Feb 2005

David Murray newslists at electronincantation.net.nz
Wed Feb 15 22:31:35 NZDT 2006


On Wed, 15 Feb 2006, Mark Foster wrote:

>
>
> On Wed, 15 Feb 2006, Michael Bordignon wrote:
>
>> Mark Foster wrote:
>> 
>>> How much does it cost to engage an auditor to audit the yearly accounts?
>> 
>> As far as I'm aware one of the few obligations as such is to send the IRD 
>> an Annual Financial Statement, which can be created in something like MYOB. 
>> I may be wrong about having to be audited, but it seems unnecessary for a 
>> organisation such as WellyLUG..
>
> Well I know for example that the radio club I have been involved with since 
> ~96 has been keeping an auditor and using them yearly.
>
> The car club i'm involved with has been actively discussing incorporation, 
> this from one of our contributors:
>
> Lawyer charge for registration and lodgement process $1800
> Accountant to set up financial and audit processes $750
> Accountant for yearly tax returns $195
> We were to have a bank account set up as a Trust. This would cost between 
> $1200 - $2000 depending on details and requirements.
>
> -- This to incorporate our club as a non profit society.
>
> Now i'm sure this is probably on the paranoid side, but ultimately, unless 
> much of the above can be done for much cheaper or free, incorporation has to 
> be very seriously weighed against its benefits...
>
> ... I'm not saying its a _bad_ idea, just that, in view of the current 
> situation, I dont know that its the best fix, in light of this information. 
> (assuming it is actually a fix at all... we'd have to find enough people to 
> serve on committee to start with)

The last time I looked into this sort of thing, all that is required for 
incorporation is an application to the Dept of Internal Affairs that is 
signed by at least 20 members, and that has a copy of the organisation's 
constitution attached.

A constitution is absolutely required, as it specifies how the society 
shall be wound up, how officers of the society are elected, who qualifies 
for membership, procedures for disciplining wayward members, what the 
various officers do, etc.

All this is quite straight forward. It would, however, require some 
thought, discussion, committment, and agreement by members, and would 
also require an inaugrial General Meeting of the society at which the 
constitution is adopted, and officers and committee members elected.

None of this is difficult or expensive.

No lawyers are required. No accountants are required.

Proper financial records MUST, however, be kept - but this can be done on 
paper and with one receipt book and one bank account.

Easily done - I've done it myself, altho' a couple of decades ago now!


Regards

David Murray




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