Packages Guide

SELF MANAGED SUPERANNUATION SPECIALIST OUTSOURCING

EXECUTIVE SUMMARY

Elite Super is a Self Managed Super Fund (SMSF) specialist firm that operates exclusively for accounting and financial planning firms. We specialise in the annual administrative work and audits for Self Managed Superannuation Funds. We also specialise in Self Managed Superannuation consultancy and advisory to accountants and financial planners.

Elite Super has many years of experience in the Self Managed Super area and we strive constantly to offer our clients expert SMSF services. We aim to develop a relationship with our clients similar to a business partner. We help promote the growth of SMSFs within small practices and, especially since superannuation is such a growth industry, we help small practices take advantage of this growth market.

CONTENTS

Advantages of using Elite Super

Our assurances to you

The Packages –

The Elite Compliance Package
The Elite Audit Only Package
The Elite Technical Advice Package
The Elite Establishment Package
The Elite SMSF Trustee Toolkit & Pension Toolkit

Elite Price Structures

Turn around of work

Contact us

Advantages of using Elite Super

Elite Super reduces your costs –

SMSF knowledge is a specialist field and small practices can generally not afford to employ SMSF specialist staff. Now with SMSF auditor competencies required, this puts extra pressure on accountancy practices.
Our services can be an alternative to hiring new staff and can alleviate pressure on existing staff.
Employee on-costs and non billable super related expenses are alleviated (such as costly SMSF software, systems and training)
Low profit margins exist in smaller firms with SMSF work as the principals and / or the senior staff do not have the “volume” of SMSFs to gain economies of scale.
Using Elite Super can allow your firm to build your fee on top of our fee due to our low fixed fee structure (so your firm can start to make money on SMSFs, not write off!)

Elite Super allows you to properly service your clients –

Your firm can still offer a specialist service to your clients even though your firm does not itself specialise in SMSFs. You do not have to turn away SMSF work because you do not feel comfortable with SMSFs.
Outsourcing the SMSF compliance allows your firm to pursue other areas of your profession (in which your firm may be best at)
Elite Super takes the worry out of SMSF work. Small and sole practices are overwhelmed with tax law and its administration let alone worry about the SIS Act and Regulations as well.
Elite Super services ensure that your clients are looked after by specialists. You can assure your clients that their interests are what you are concerned about.
If audit independence is an issue in your firm, our service will put in place this independence.

The ATO tougher stance on auditors -

The ATO are now auditing the auditors of SMSFs not just the trustees. The ATO are taking a much tougher stance with penalties being issued for not doing the audit correctly.
Mere failure to notify the trustees of a contravention results in a maximum fine of 50 penalty points (sec 129 and 130 of SISA). Some contraventions are not easily identifiable to an untrained advisor so why would you risk it?.
The ATO are now disqualifying auditors and reporting them to their professional association if the auditors failed to carry out or perform adequately and properly the duties of an auditor under the law. (sec 131 and 131A of SISA). Why would you risk disqualification?.

Litigation increasing for advisors

Breaches of SISA recommended by any type of advisor, (being an accountant, financial planner or solicitor) may result in penalties being imposed by the ATO. The trustees can recover any monetary penalties from the advisor per sec 215.
The trustee does not need the ATO to take action before they can take action against their advisor. Sec 218 allows the trustees to show incorrect advice has resulted in costs being incurred (say to rectify the breach).
Ignorance of what is in your clients trust deed could result in the fund breaching the deed and also a breach of sec 55. Any person recommending a strategy which breaches the trust deed also breaches sec 55 and is liable for any damages or losses incurred.

Our Experience

Elite Super staff have approximately a decade of experience working with SMSFs. Our staff also have a legal background and this aids with technical questions of real property and SMSFs, trust law, and SIS Law interpretation. Recent qualifications include SMSF professional advisory qualification through The Strategist Group, and the Advanced Diploma of Financial Services (Financial Planning) through Tribeca Learning. We strive to be constantly on top of the current SIS Law and ATO changes to offer the best possible service to our clients.

Our assurances to you

It is extremely important to us that we have no direct contact with your clients, so as to maintain our assurance to you that your clients stay your clients. All communication with the trustees of the fund is undertaken by your firm. Our point of contact for information is always through your firm. We do all our work for accounting and financial planning firms. We have the highest levels of confidentiality with your firm and your clients. If you request, we would be happy to put in place a binding agreement stipulating that Elite Super would never engage your clients.

Our Packages –

The Elite Compliance Package

This package comprises a complete accounting, taxation, administrative and audit package for your clients as follows -

Annual Accountancy and Audit Work
(bound set for each member of the fund) -

Audited Financial Statements (Audit Report, Trustees Declaration, Statement of Financial Position, Operating Statement, Notes to the Financial Statements and Statements of members funds)
ATO income tax and regulatory return
Member Contribution Statement (MCS)

Loose documents –

Annual minutes and resolutions
Ad hoc minutes and resolutions
Representation Letter from trustees
Engagement letters (for accountancy and audit)
Audit management letter and/or sec 129 notice for breaches.

Because of the size of this company, we send the audit of the fund to another specialist firm to put in place the needed independence.

Compliance Rectification

This package involves all liaison work with your firm to help your clients regain compliance if their fund is non complying. You may have obtained a new client from another advisor, for example and wish Elite Super to fix the compliance side of the fund before any annual work is commenced. This can be a time consuming job, however we can assist your firm each step of the way, from the statement of advice regarding the state of the funds compliance, right through to the fund regaining SIS compliance.

Compliance Rectification is not part of the annual accounting and audit packages.

The Elite Audit Only Package

This package involves your firm preparing the annual financial statements, minutes, and tax return in house and delivering the work to us to be audited.

Under this package we will provide you with

An Audit Report in the approved ATO form
Engagement letter engaging Elite Super as the auditor
Representation Letter from the trustees
audit management letter and/or sec 129 notice for breaches.

We can provide assistance in Compliance Rectification (see above Elite Compliance Package) however this is not part of the Elite audit package.

The Elite Technical Advice Package

Because we are specialists in the SMSF area, we are only too happy to assist your firm with technical advice. This advice is written advice and depending on the complexity of the question/advice sort, and depending on whether your firm is a client of Elite Super already, our fees are on a scale per hour.

The Elite Establishment Package

1. Establishment of Self Managed Superannuation Funds

Elite Super can completely set up the SMSF for your clients as individual trustees or corporate trustees.

(a) Individual Trustee Establishment

This package provides in one complete SMSF permanent folder -

trust deed,
Product disclosure statement,
Membership applications, Consent to act as trustees
Establishment minutes, forms and templates

(b) Corporate Trustee Establishment

This package provides in one complete SMSF permanent folder -

trust deed,
Product disclosure statement,
Membership applications, Consent to act as trustees
Establishment minutes, forms and templates

This package also provides for incorporation of the Corporate Trustee in one complete Corporate Secretarial folder –

Company constitution
Establishment minutes, forms and templates
Various registers for minutes of meetings, directors etc

2. Establishment of Pensions

Elite Super can set up and prepare all the necessary documentation for the establishment of the following pensions

- Account based pensions
- Transition to retirement pensions

The pension package includes all required ATO forms, trustee minutes, Product Disclosure Statements and calculations.

The Elite SMSF Trustee Toolkit & Pension Toolkit

Trustee Toolkit

The ATO are looking closely at whether Trustees have the necessary minuting of their investment decisions. Elite Super has developed a minute/template toolkit for SMSF trustees to help trustees stay compliant with the SIS Law. Each and every minute or template a trustee could ever require (in accumulation and pension phase) is contained in our toolkit. The software is a series of word documents, easy for your trustee clients to use as templates. The toolkit also contains 14 different types of investment strategies your client can tailor to their risk profile and investment portfolio. The investment strategies are Regulation 4.09 compliant, if tailored to the super funds investments.

We have found that many accounting and financial planning firms are purchasing the toolkit and using the templates as part of the administration function for their SMSF clients. This is built into the fee base of the client. The toolkit is invaluable when you consider the cost of having an investment strategy prepared by a licensed financial planner is upwards of $500.

Pension Toolkit

This is a complete Pension Toolkit covering:

- Account based pensions, and

- Transition to retirement pensions

It contains all necessary minutes, letters and agreements including Product Disclosure Statements for each pension type. An invaluable toolkit for any practitioner implementing pensions for their clients.

Elite Price Structures

The Elite Compliance Package

This package fee is determined by the number of investments in the SMSF (at the end or start of the year, which ever is more).

Package Fees

Investments Category

1 Tiny fund
2 to 5 Extra Small Fund
6 to 9 Small Fund
10 to 19 Medium Fund
20 to 29 Large Fund
30 to 39 Extra Large Fund
40 to 49 Giant Fund
Greater than 50 Extra Giant Fund

The Elite Audit Only Package

Package Fees

Category	Type of investment
A	Cash Only
B	Cash, listed company shares and managed funds
C	Non-standards investments such as related party transactions, golf club memberships, real estate and artwork
D	You don't want to audit it. We will,

The package fee may be adjusted by the following extras or deductions –

EXTRAS ON TOP OF THE PACKAGE FEE

New Funds

An extra of 25% is added on top of package fee because from 01-07-08 all new funds (funds less than 15 months old), all contraventions, regardless of materiality, must be reported to the ATO. We are therefore not able to audit sample and must review all investments, expenses and income items for these funds.

Contraventions

If an audit contains a material breach, up to an extra $300 is added for the A.C.R and the audit qualification. This will depend on the breach involved.

Compliance Package Set-up Fee 5 – 25%

The one off set up fee is added to the package fee to reflect set-up time. The extra fee is based on whether Elite Super is preparing comparatives or not.

Comparative Set up on our system 25% extra
No comparative set up 5% extra
New Fund establishment 0%

The set up extra is therefore up to your firm whether a comparative is required in the set up year (subsequent years come automatically with comparatives).

Urgent Extra Fee 30%

Where your client requires their fund completed urgently, we can guarantee to have a query list to you within 24 hours of receiving the paper work. We will then guarantee to have the work completed and delivered via courier / express post within 72 hours of receiving the information required to complete the fund. New funds will require an extra 8 hours to set up.

GST Registered SMSF extra fee 10 – 30%

The time required to prepare / audit a GST registered fund varies from fund to fund depending on the percentage of the funds activities that related to GST. We can give a more exact quote on receipt of the fund records.

Audit of Unusual Investments & difficult audits– case by case basis

Investments that are unusual such as particular artwork or wine collections for example may need extra audit work to verify these assets. Audit of these types of investments is on a scale per hour and will be quoted to you before the commencement of the audit.

Out Of Pockets

These will be charged on top of our package fee. For example title search fees and actuary costs will be added on top of the package fee. From 01-07-08 we will be charging an out of pocket for heavy folders to be posted back to accountants.

First Year & Upgrades of Trust Deeds

This requires a review of the funds trust deed. The extra for the first year is 5% on the package fee. (This extra will be rebated to the fund if the trustees decide to upgrade their trust deed through Elite Super)

“Post” Unit Trust Investments - Audit

Investments in a post ‘99 Unit Trust, that is a related Unit Trust requires the auditor to check whether the conditions of Regulation 13.22 are fulfilled. Audit of this type of investment is on a scale per hour and will be quoted to you before the commencement of the audit.

Compliance Package - Pension Phase

For funds in 100% pension phase (all members in pensions) a 10% extra will be charged.

If some of the members are in the pension phase and some are in accumulation phase, an extra 15% will be charged to calculate the split between taxable and non taxable super fund income. NB - an actuary maybe required for non segregated pension assets and this cost will be added on as a disbursment.

Audit only - Pension Phase

For funds in 100% pension phase (all members in pensions) a 5% extra fee will be charged to check whether the pension meets the pension requirements. If some members are in pension phase and some in accumulation phase, an extra of 10% will be charged to check whether the pension meets the pension requirements and also to check the tax calculation for the split between taxable and non taxable income.

DEDUCTIONS TO THE PACKAGE FEE

Assets held in a portfolio – Compliance Package

Where assets are held in a portfolio, and your firm and the trustee of the fund does not require the investments to be individually listed in the financial statements, each asset class in the portfolio is counted as 5 investments (if the fund has more than 5 in that asset class). For example, a SMSF has the following asset allocation across their portfolio with more than 5 assets in each portfolio asset class –

Australian Shares	}
International Shares	}total investment in shares counts as 5 investments
Listed Property	} counts as 5 investments
Australian Fixed Interest	}
International Fixed interest	}total investment in Fixed Interest counts as 5 investments
Cash / CMT	} counts as 1 investment

Early Bird Deductions

Where Elite Super receives all of the SMSF client’s documentation as requested early in the year we offer discounts on the package fee as follows –

Before 31 July	20% deduction on package fee.
Before 31 August	10% deduction on package fee
Before 30 September	5% deduction on package fee

These early bird deductions are applied before any other extra’s are added on to the package fee if applicable.

Employee Deductions

If your firm’s staff members are trustees of a SMSF, they receive a 35% deduction on the package fee. Principals of the firm receive a huge 50% deduction on the package fee. We aim to look after the owners and staff of our clients. This employee and principal deduction applies to the Elite Compliance Package and the Elite Audit Only Package.

The Elite Technical Advice Package

Consulting only Client

Hourly fee is located on the 'Package Prices' on our website

Elite Super Compliance Client/Audit Client

Hourly fee is located on the 'Package Price' on our website

The Elite Establishment Package

The prices for establishment of SMSFs and Pensions are located on the 'Package Prices' on our website.

The Elite SMSF Trustee Toolkit & Pension Toolkit

The price for the Elite Super SMSF Trustee minute and template toolkit and Pension Toolkit is located on the 'Package Prices' on our website.

Turn-around of work

Our Commitment

Elite Super guarantee that a list of queries will be produced and sent to your firm within 3 weeks from receipt of the information from your firm (failure to honor this guarantee is a deduction of 10% in the package fee). Where possible email and faxing of information is used to speed up the workflow. We guarantee that from the time that we receive all queries and all information to complete the financials and or the audit we will have three weeks to package the work and send it back to your firm (failure to honor this guarantee is a deduction of 10% in the package fee).

These deadline guarantees can not be honored where a new fund is required to be set up on our system (Compliance Package), or the work arrives after 1st March.

Your Commitment

Once we commence the work, we may require extra information to complete the audit of the fund and/or complete the tax and accounting work. Unfortunately, in the past we have had accountants who have not sent us the required information for several months. We have therefore set a time limit of 4 weeks from the date of request. At the expiry of this time and with 2 email attempts to obtain the necessary information, we will issue an interim account for the percentage of work complete to the accounting firm.

Contact Us

For more information contact –

You can email us on This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Mail Suite 2, 29 Tozer Street, West Kempsey NSW 2440

Phone 02 65 626551

Fax 02 65 628551

Mobile (Katrina Fletcher) 0427 925 772