The initial audit process

If you have been advised that you are being allocated a “case manager” then it is likely you are going to have your SMSF put through an initial audit. This will add a few weeks to the SMSF establishment. Below is an example of the letter you will likely receive. You can expect a similar letter in the mail shortly. The audit is set up in 2 parts.
1. The interview
2. The document review

The interview is a phone meeting where the ATO representative asks a number of questions relating to running an SMSF.
With an SMSF all trustees are equally responsible and accountable for:

  • managing and running the fund
  • making decisions
  • making sure the fund complies with the law.

You should familiarise yourself with the information on our audit page here:

Below is a list of the docs you need to provide. All the required documents are included in your Welcome Pack and explanations on how to access them are detailed under the example letter. The ATO systems cannot handle large files so you will need to go in and seperate the required docs individually.

Preparing the paperwork

Additional Information
You have already signed every required document electronically. The “EstablishmentDocuments.pdf” in the welcome pack contains every document that is asked for. However the ATO servers have a limit on file size so you need to seperate the docs. The “EstablishmentDocuments.pdf” is a culmination of the other files in the Welcome Pack. You can seperate the EstablishmentDocuments.pdf or print off the docs individually and scan them back to the ATO rep. Details on where to find the seperate docs are below.

Paperwork to forward to the ATO

The trust deed
copy of the trust deed and company docs
You can find these in your Welcome Pack under…
Item 1 “Your Establishment documents”
Deed_1234.pdf. is the trust deed
Constitution_12324.pdf are the company set up docs
IMPORTANT – only sign the last page of the deed and the last page of the constitution.
The trust deed and constitution contain many templates that are there to be used at a later stage if required. You do not sign these when establishing the fund. These templates include forms for add other members, making changes and offering loans.

Varying the deed
copy of any instruments varying the trust deed. As this is new SMSF there are no variations. If you have added any members after establishing the fund you will have been sent signing docs to add the member.

Minutes of meeting
copies of meeting minutes.
There are 2 sets of minutes.
1. The minutes for the company and
2. The minutes for the SMSF
These meeting minutes are just records of what is agreed to be done.

What is required here is the “initial minutes of the SMSF” which can be found in the SMSF_minutes_1234.pdf. It is the 2nd document.
For your information the SMSF minutes file includes the following documents…
a) The initial minutes to establish the fund
b) The investment strategy
c) Trustee consent form
d) Application for membership
e) Nomination of dependents
f) Trustee declaration

Evidence of accounts
evidence of account/s held by the fund at banks and other
financial institutions (including share trading accounts), the
evidence should be in the form of a bank statement or
letter issued by the bank/financial institution

If you have set up any accounts under the SMSF name include them here.

Investment Strategy
– details of the investment strategy prepared for the fund
The investment strategy can be found in the SMSF_minutes_1234.pdf. It is the 2nd document. You are to prepare and amend the investment strategy regularly to ensure it considers the needs of the members in retirement.

Asset purchases
copies of the acquisition or transfer contract for all assets
acquired by the fund if applicable

If you have made any purchases get copies of the payment receipts or invoices.

– details (including amounts) of any rollovers/proposed
rollovers from commercial or industry funds to the SMSF,
including the benefit statements issued by the commercial
or industry funds
– details of any rollovers proposed from other SMSFs for
each member of the fund. The details must be in the form
of a member benefit statement and/or letter issued by the
trustees of the other SMSF

If you have received a rollover already the other fund will have mailed out a “rollover statement”. If you have have received your rollover but do not have the rollover statement ask us as it might have been sent to our PO Box. If you do not have the rollover statement and neither do we you’ll need to request a copy from your other fund.

Trustee declarations
– copy of the signed trustee declaration form (publication
number NAT 71089) for each of the trustees

The trustee declaration can be found here.

Invoices and receipts
– details and/or supporting evidence (such as invoices) of
any commissions, fees or other payments made, or
intended to be made, in relation to the setting up of the fund
and/or rollover or payment of superannuation benefits to
members (including: date, amount and reason for the
payment, name and ABN/TFN of the individual or entity to
whom the payment was made.

Anything that has been paid using SMSF funds. Also the invoice for the establishment of the SMSF. This will be in the establishment documents section of the portal.

Once you have sent in the docs and completed the audit interview your SMSF approval should come through within 2 weeks.

If you are unsure of anything just be reminded that all the establishment docs are in the welcome pack and if you have any queries we are here behind the scenes to assist.