Winding up a Fund in SF360

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Overview


Winding up of a super fund requires dealing with and disposing of all of the fund's assets so that none remain, and completing all the reporting and administrative obligations of the fund:

  • Complete any requirements that the trust deed specifies about winding up the fund;
  • The trustees need to arrange for all investments to be sold and deposit the money into the super fund’s bank account;
  • Payout or roll over all super benefits (leaving a sufficient amount to pay final tax or expenses if required);
  • Appoint an approved SMSF auditor to complete the final audit;
  • Complete and lodge the final SMSF annual return (including wind up details);
  • Pay any outstanding tax liabilities of the fund;
  • After all expected liabilities have been settled and requested refunds are received, close the fund’s bank account.

Summary


Winding up Funds in SF360:

There are four main steps that should be followed when winding up a superannuation fund in SF360:

  1. Process ALL transactions for the fund
  2. Reverse Tax Effect Accounting (Optional)
  3. Enter an end date for the fund
  4. Perform final create entries and clear amounts in the clearing account
Step 1Step 2Step 3Step 4

Step 1 - Process all transactions for the fund


The first step to winding a fund up requires all of the entries for the current period (up to the date of the wind up) to be processed via manual Transaction Input or uploaded and matched using SF360's Connected Services and Smart Matching features.

  • All disposals of Assets will need to be processed so the investments show nil quantities. SF360 will then know to reverse any revaluation/devaluation differences when the final create entries is processed.
  • Turn off Tax Effect Accounting (if applicable)
  • Where a member is in receipt of a pension, ensure that the minimum pro-rata pension payment has been paid
  • For Pension funds, ensure that fund has applied for and received an actuarial certificate. See Fund Pension Policies
  • Where the fund is paying market Linked or defined benefit pensions, this pension will need to be transferred to another complying super fund.

Example 1: On the wind up date of 25 May 2015, an accumulation fund with assets below is to be rolled over to a new superannuation account.

  1. 1,000 units of shares at $29.48 per share (originally purchased at $50 per share)
  2. Fund Bank Account of $150,000
  3. A property to be sold for $605,000 (Book value at $585,000)

 From Main Toolbar, select Accounting - Transaction List.  Select Journal from the drop-down list. 

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Put the transaction date as of the wind up date, credit all investments and post to Account Code 46000 (Benefits Paid/Transfers out) in order to process disposals. All Units on hold need to be filled in the Units field to trigger a full disposal. (Note bank accounts are recommended to be processed at the last step as this would show the final figure to pay out to the members)

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Click on More beside the Account 46000 and select Transferring from one Super Fund to another from the drop-down list as Type of Payment.

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Fill in the Rollover Fund from existing contacts. Alternatively, add new contacts as Other Entity. See Contacts

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After completing the journal, the transaction can be found below. Note net gain/loss on disposal will be automatically calculated and posted to Account Code 24700 (Changes in Market Values of Investments). 

 

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Members Statement


When winding up a fund, please ensure that the member components in the Members Statement are all 0.

If these member components are not 0, you will need to clear out the member components. To clear out the members components, use the Update Member Components feature to set all member component amounts to 0.

Please refer to Update Member Components for more information

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Comments

2 comments
  • Recording an end date for members accounts at Step 3 causes issues with the Rollover transactions in Step 4 because you can no longer select the member and complete the forms.

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  • Hello Emma! Thank you for your feedback. We have updated the article to reflect changes in the software. The member end dates are no longer needed. Thanks again!

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