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Must Annual Financial Statements be signed for AGM?

By R Glass on Thu, 29 Nov 2018 at 11:51

If the AFS are not ready must the AGM be postponed or can the AGM continue with unsigned financials?

Is their any sanction for not completing the financial audit within a specified period?


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RE: Annual Financial Statements

Murray Bennett replied on Fri, 30 Nov 2018 at 10:15

At the AGM the members consider the annual financial statements (AFS) Note that it does not say “approval of the annual financial statements”. This is because the AFS already have to be approved by the Trustees before the Auditor will issue the final set – that is also signed by the Auditor.
Without the AFS the meeting would not be able to approve the estimate of income and expenditure with or without amendment so the final AFS are necessary.

RE: Must Annual Financial Statements be signed for AGM?

Graham Paddock replied on Fri, 30 Nov 2018 at 11:24

The AFS considered at the AGM do not have to be either signed or audited. One of the items on the AGM agenda is appointing an auditor for the statements, so the audit process need not have started.
PMR 26(4) requires presentation of the audited AFS to a general meeting (not necessarily the AGM) so in theory you could hold the AGM on the first day of the next FY, assuming you had done all the homework and got all the other documentation prepared and notice sent out earlier.
However, as the AGM and the audit of the AFS both have 4 month time limits (no penalty for non-compliance) it is usual for trustees to get the AFS audited before the AGM and avoid the expense involved in having to hold another general meeting to consider them.

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