Hi Mike

Based on the auditor contravention report guidelines yes it should be reported in 2022/23 if the breach has not been rectified at the time of the audit.

The ACR guidelines at Test 4: Trustee behavior test states that:

"You must report a contravention of a section or regulation listed in tables 1A and 1B where an identified contravention from a previous financial year has not been rectified at the time of the current audit.

Where the event contravenes a section or regulation only at the time it occurs (for example, a section 66 contravention), but it remains unrectified in the following years, it should continue to be reported. Even though the contravention does not actually occur in the following years, it should be reported under the section that was originally contravened."

Further as it is a loan to a member it is a breach of SIS as at 30 June 2023 (and during the year) re the in-house asset rules and the loan to member rules. As a result it is a breach that has occurred during the financial year that you are auditing and should be reported if the breach meets the criteria (such as being greater than $30,000).

Thanks

The Auditors Institute