1. Summary A brief overview of the ALSA Main financial position So far we have spent $23,722.84 and have received $23,800. Income $13,200 received from sponsorship to date $10,600 received from affiliation fees – Not all affiliation fees have been paid.

2. Expense Breakdown $12,173.50 on ALSA Executive and Committee flights and registrations – In addition we have lent Conference $10,000 (to be repaid when they close their books) and have paid $9000 towards our registration costs. $7,256.68 on O-week $3,692.66 on International Relations (NZLSA Flights and Registration, AsiaLSA Flights and Registration) $600 on printing and pens (for the Health and Wellbeing Guide and Council Materials)

3. Managing Cash Flows This highlights the importance of affiliation fees - due to the nature of when we receive sponsorship payments, we have very late cash inflows even though the majority of our expenses occur early in our term. We are still waiting on Conference 2012 books to close – when this does we should receive any profit made on Conference.

4. Later this year When we receive more income from the sponsorship agreements in place and those remaining LSSs who still owe affiliation, we plan to spend the money: – On the Conference Bursary – Topping up the Equity Fund which enables LSSs to come to Councils – Repaying ALSA Committee Members for their flights to Perth as at the moment they have to bear the cost themselves

5. Regulation of ALSA Main’s Financial Management I am currently developing a set of procedures which will seek to better regulate the management of ALSA’s finances. This will ensure that ALSA is financially strong and a set of guidelines will enable the VP(FM) to manage a strong portfolio regardless of their personal expertise in compliance.

6. Launch of ALSA Financial Database This can be found at the LSS Secure section on the ALSA Website. This contains: – Simple budget templates – General suggestions on what to consider when writing a budget – General suggestions on how to manage your surplus funds – General suggestions on how to choose a savings account – General suggestions on how to have good financial controls (managing petty cash, debit card considerations, etc). – General suggestions regarding tax considerations

7. ALSA Financial Database The Financial Database could: – provide a framework and guidelines for your LSS’s finance team to operate under; – ensure you have a sound knowledge of your LSS finances, so that you can make better leadership decisions; and – help avoid your LSS enter into financial difficulties.

8. Position Description Amendment of VP(FM) The position description has been amended by the Executive to ensure that the VP(FM) going forward will keep the information current, up-to-date, and accurate (to the best of their ability).

9. Position Description Amendment of VP(FM) To ensure that the Financial Database is regularly maintained once handover occurs, and the Database accurately explains best practice suggestions that your LSS could adopt. “To maintain the ALSA Financial Database which reflects current best practice”

10. ALSA Financial Database The information provided is high level background and not advice (formal or informal). Do not rely on it unless you seek out expert advice from a firm – I have a decent handle on what I am saying but I am not an expert and if you are going to make financial or any other decisions based on it, you need to talk to someone with more expertise and insurance!

11. Income Tax There has been audit activity in relation to one LSS where they were required to pay income tax going forward (and backpay any income tax not paid in previous years!) This is concerning because it MIGHT mean that other LSSs could face similar consequences With council permission, ALSA can seek clarification from the ACNC but this clarification will not be binding and CANNOT protect LSSs You should consider your own tax position in light of this audit activity and make sure you are confident your LSS is complying with any ATO requirements.

12. Questions There will be a break out group where I will seek to work through the documents I have provided, and go into further detail regarding tax (income tax in particular). Please avoid asking LSS specific questions as I am not licensed to give you advice that can be relied on.