Rollover Evidence Must be Provided to Auditors

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This is a note from Heffron, a respected SMSF Administration business.

SMSF members who have rolled out of their fund into an Australian Prudential Regulation Authority (APRA)-regulated fund will still be required to show evidence of that action to the SMSF auditor, despite no longer being members of the fund.

Heffron senior SMSF technical specialist Annie Dawson said the need to show evidence of a rollover was a requirement for SMSF members leaving or winding up a fund and moving to another superannuation fund, despite the evidence being a member document and not a fund document.

“The auditor is seeking assurance the monies have remained in the superannuation system and rolled to the fund that the rollover benefit statement was directing the money towards,” Dawson said during a webinar today.

“We are seeing clients providing copies of member statements with the inbound rollover or if they can log in to the new fund, creating screenshots of their balance in the new fund.”

“Fund trustees will also write to members when they have received a rollover from an SMSF acknowledging the receipt of the rollover, and any of those things an auditor will accept as evidence.”

Heffron head of SMSF technical and education services Lyn Formica said the request for the evidence was consistent with the work of an SMSF auditor and was part of the protections put around retirement savings.

“It does seem like overkill to some people and SMSF members may regard it as personal information and question why should they have to supply it,” Formica said.

“The auditor has to prove that if you are not entitled to a benefit payment, the rollover has gone into another superannuation fund, otherwise the original fund would have breached the rules by transferring it directly into the hands of the member.”

Dawson noted the introduction of SuperStream may change the requirement, but until it was clear it should be expected auditors will seek those details for a rollover.

“We may see when the SuperStream requirements come in from 1 October the reporting of payments of a rollover out of an SMSF will happen through that system and be verified by the ATO, and that requirement might fall away for auditors as the ATO will provide the checks and balances that monies went where they were supposed to go,” she said.

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In 2019, the ATO conducted a compliance review of 51 top 100 audit firms including BPR Audit Pty Ltd.

  • 2 firms were referred to ASIC due to failure to identify contraventions
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We are a Top 100 SMSF Audit Firm and our philosophy is as follows:

  • On-Shore – All audits completed in Australia. No off-shoring.
  • Truly Independent – Audit Firm only. We do not provide accounting or tax services. We do not operate as part of larger network or have any affiliation with a network group.
  • Adhere to Service Standards – We are known for our excellent turnaround times and responding to client requests for assistance in a timely manner. Service Standards is our key KPI.
  • Assist clients in providing solutions – We derive satisfaction in assisting clients and facilitating solutions for those superfunds that have issues from time to time.
  • Technical Excellence – There are three people in the firm with over twenty years each experience in SMSF Audit and Administration.
  • Second Tier SMSF Audit Firm – We wish to be fully engaged with all our clients as well as provide benefits of scale.
  • Technology – Our firm uses on-line audit software which facilitates the flow of information from our clients. We are proficient in Class Super (Class Audit Partner), BGL 360 and Supermate.

Our firm has been auditing self managed superannuation funds since 1999. We are registered with ASIC (two registered SMSF Auditors in the practice) and are members of the SMSF Association. We have the Auditor and Advisor designations.

We provide SMSF independent audit services for accounting firms, financial planning and self managed superannuation fund administrators. We are happy to provide references/testimonials upon request.