P&Cs are responsible for managing money raised for their school communities. Independent financial review and audit processes help provide assurance that funds have been handled properly and that financial records are accurate. 

This resource explains, at a high level, what financial reviews and audits are, how requirements are determined, and where to find authoritative information. 

Why this matters 

Financial reviews and audits: 

• support transparency and accountability 
• help identify errors or issues early 
• protect volunteers and committee members 
• build trust with members and the wider school community 

They are an important part of good governance, even where not strictly required. 

Financial review and audit: what’s the difference? 

A financial review is a limited, independent check of a P&C’s financial records and statements. It provides assurance that the financial information is plausible and consistent. 

An audit is a more detailed and formal examination of financial records and controls, conducted by a qualified auditor. 

Which applies to your P&C depends on your reporting obligations and financial circumstances. 

How requirements are determined 

What is required is not just about size. 

Requirements depend on: 

• whether your P&C is registered with the ACNC 
• whether your P&C reports to Access Canberra only 
• the applicable revenue thresholds 
• what your constitution requires 

The ACNC and Access Canberra have different thresholds for financial review and audit. 

P&Cs must check the current requirements that apply to their specific circumstances. 

Where to find information 

Because thresholds and requirements can change, P&Cs should rely on official sources for current information, including: 

• the Australian Charities and Not-for-profits Commission (ACNC) 
• Access Canberra 

These bodies set out when a financial review or audit is required and what must be submitted. 

Good governance practice 

Even where a P&C is not required to undertake a financial review or audit, ACT Parents strongly recommend P&Cs undertake a review as a matter of good governance. 

Independent review can: 

• provide confidence to members 
• support smoother AGMs 
• identify issues before they become problems 

This is why ACT Parents offers support programs such as the P&C book swap, which can assist smaller P&Cs with lower revenue to meet good governance expectations. 

Preparing for a review or audit 

Good preparation makes the process far less stressful. 

This includes: 

• keeping records up to date throughout the year 
• reconciling accounts regularly 
• ensuring documentation is complete and accessible 
• allowing enough time before the AGM 

A separate checklist of documents is available to help P&Cs prepare. 

Risks to be aware of 

Failing to meet review or audit requirements can: 

• delay AGMs 
• affect reporting to regulators 
• create additional scrutiny or compliance action 

Leaving preparation to the last-minute increases stress and risk. 

Related resources 

• Record keeping and reporting 
• AGM and annual obligations 
• Managing P&C money and risk 
• Treasurer guidance 

Need a hand? We’re here to help.