Blue & Gold Forum

Trust Rules

FINANCIAL AUDIT


85. The Society Board will in respect of each year of account ending on 31st August:

  • a. cause to be prepared a revenue account or revenue accounts which:
    • (i) singly or together deal with the affairs of the Society and any subsidiary company or society as a whole for that year; and
    • (ii) give a true and fair view of the income and expenditure of the Society and any subsidiary company or society for that year;
  • b. cause to be prepared a balance sheet giving at that date a true and fair view of the state of the affairs of the Society and any subsidiary company or society.

86. The Society Board is to lay a revenue account and balance sheet duly audited and signed by the auditor and incorporating the report of the auditor thereon before each annual general meeting, accompanied by a report by the Society Board on the position of the affairs of the Society and any subsidiary or holding company or society signed by the chair of the Society Board meeting at which the report is adopted.

87. The Society Board is not to cause to be published any balance sheet unless it has previously been audited by the auditor and it incorporates a report by the auditor that it gives a true and fair view of the income and expenditure, or the state of the affairs of the Society, as the case may be. Every revenue account and balance sheet published is to be signed by the Secretary and by two Society Board members acting on behalf of the Society Board.

88. A qualified auditor must be appointed to audit the Society’s accounts and a balance sheet for each financial year. In this rule “qualified auditor” means a person who is a qualified auditor under Section 7 of the Friendly and Industrial and Provident Societies Act 1968 and Section 25 of the Companies Act 1989.

89. The auditor shall, in accordance with Section 9 of the Friendly and Industrial and Provident Societies Act 1968, make a report to the Society on the accounts examined by them and on the revenue account or accounts and the balance sheet of the Society for the year in question.

90. None of the following persons is to be appointed as auditor of the Society:

  • a. an officer or servant of the Society; or
  • b. a person who is a partner or close relative of or in the employment of or who employs an officer or servant of the Society.

91. Save as provided in this Rule every appointment of an auditor is to be made by resolution of a general meeting of the Society. The exceptions are:

  • a. the first appointment of an auditor is to be made within three months of the registration of the Society and is to be made by the Society Board if no general meeting of the Society is held within that time;
  • b. the Society Board may appoint an auditor to fill any casual vacancy occurring between general meetings of the Society.

92. An auditor appointed to audit the accounts and balance sheet of the Society for the preceding year of account (whether by a general meeting or by the Society Board) is to be re-appointed as auditor of the Society for the current year of account (whether or not any resolution expressly re-appointing them has been passed) unless:

  • a. a resolution has been passed at a general meeting of the Society appointing somebody instead of them or providing expressly that they are not be re-appointed; or
  • b. they have given to the Society notice in writing of their unwillingness to be re-appointed; or
  • c. they are not permitted by these Rules to be the auditor; or
  • d. they have ceased to act as auditor of the Society by reason of incapacity;
  • e. proper notice of an intended resolution to appoint another person in their place has been given but the resolution cannot be proceeded with because of the death or incapacity of that other person.

93. A resolution at a general meeting of the Society:

  • (i) appointing another person as auditor in place of a retiring auditor; or
  • (ii) providing expressly that a retiring auditor is to not be re-appointed

will not be effective unless notice of the intention to move it has been given to the Society not less than twenty-eight days before the meeting at which it is to be moved.

If such a notice is given the following procedure will be adopted:

  • (a) The Society will send a copy of the notice to the retiring auditor.
  • (b) If it is practicable to do so the Society will give notice of the intended resolution to its members with the notice of the meeting.
  • (c) If that is not practicable, the Society will publish details of the notice by advertisement not less than seven days before the meeting in a newspaper circulating in the area in which the Society conducts its business.
  • (d) If the retiring auditor makes any representations in writing to the Society in response to the notice or notifies the Society that they intend to make such representations, the Society will notify the members as required by Section 6 of the Friendly and Industrial and Provident Societies Act 1968.



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