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Md Ashfaque Alam

Feb 24, 2021

Auditing a Pension Fund

in SMSF Technical Forum

I am auditing an SMSF which is in fully pension. I have a couple of questions.

(1) I noticed that the fund's ABN cannot be found under Superannuation ABN register as complying fund because it had outstanding lodgement. 2016-2018 tax returns were lodged in 2019 and I 'm currently auditing 2019 and 2020. I called the ATO to find out if this fund is a complying fund but they did not give me any information as I am not the registered tax agent of this fund. I know the SMSF can lose the concessional tax rate if it is not compliant. My question is if I need to lodge an ACR for this or just mention this to the trustee on the management letter.

(2) I noticed the fund has paid minimum pension showing on the bank statements. However there are also some personal expenses paid from the SMSF bank account which are also treated as pension payment. Is this allowable?

Regards,

Ash

2 answers0 replies

Comments (2)

Md Ashfaque Alam

Feb 25, 2021

Thanks very much. I really appreciate your timely reply.

THE AUDITORS INSTITUTE

Feb 25, 2021

Hi Ash

I agree if a Fund has an annual return that has not been lodged by its due date it loses its "complying" status until it has lodged the return. The Fund cannot be found under Super Fund look up unless the ABN itself is entered & it then records that "regulation details removed". You do not need to lodge an ACR re this but it should be reported to the Trustee in the management letter.

Yes personal expenses paid from the SMSF bank account can be treated as a pension payment and is allowed. From an audit perspective the member should sign a resolution agreeing with the amount of pension that was paid in relation to the year being audited.

Thanks

SMSF AAA