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I am auditing a fund with 2 members. One member exited the fund during the audit year due to matrimonial issues. Accountant directed all accounting fee in respect of the exit issue to the exited member. Is this acceptable when members are supposed to be allocated management fee in a fair and reasonable manner?
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Hi Stephen
The expenses need to be allocated in a "fair & reasonable manner" (refer SIS Reg 5.02(3)) and also as per the trust deed. It does not seem fair and reasonable to allocate the expenses to 1 member.
Often the court orders re member splits on divorce / separation refer to how the expense is to be allocated so this should also be referred to.
Thanks
SMSF AAA