Simple Fund Trustee s

Simple Fund Trustee s Training Manual BGL Corporate Solutions Pty Ltd Suite 2, 606-608 Hawthorn Road, Brighton East, Victoria, 3187, Australia PO Box 8063, Brighton East, Victoria, 3187, Australia Email: info@bglcorp.com.au Website: www.bglcorp.com.au

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Table of Contents Copyright and Disclaimer...1 Introduction...3 Training Manual Conventions...5 Lesson 1 - Simple Fund Help and Training Resources...7 Task 1.1 - Checking Your Version...11 Task 1.2 - Client Centre...15 Lesson 2 - Adding a new fund...19 Task 2.1 - Creating a New Fund Ledger...21 Task 2.2 - Input Fund Master Details...23 Task 2.3 - Input Fund Contact Details...27 Task 2.4 - Input Fund Reporting Details...35 Task 2.5 - Input Fund Members...39 Lesson 3 - Superannuation Fund Accounting...43 Double Entry Accounting...45 Transaction Type...47 Chart of Accounts...51 Lesson 4 - Setting up Opening Balances...53 Task 4.1 - Input Members Balances...55 Task 4.2 - Input Remaining Opening Balances...59 Task 4.3 - Balancing Forward...65 Lesson 5 - Member Lump Sum Rollin...67 Task 5.1 - Recording Lump Sum Rollin...71 Lesson 6 - Processing Investment Transactions...75 Task 6.1 - Managed Investment Purchase...77 Task 6.2 - Term Deposit Purchase...81 Task 6.3 - Instalment Payments...83 Task 6.4 - Investment Property Purchase...89 Lesson 7 - Recording Income, Expenses and Tax Payments...93 Task 7.1 - Recording Dividends...95 Task 7.2 - Recording Accrued Distributions...97 Task 7.3 - Dividend Reinvestment...105 Task 7.4 - Recording Contributions...109 Task 7.5 - Tax Instalments Paid...113 Lesson 8 - Recording Disposals...117 Task 8.1 - Investment Disposal...119 Lesson 9 - Year End Processing...123 Task 9.1 - Updating Security Prices...131 Task 9.2 - Create Year End Entries...133 Task 9.3 - Preparing Financial and Investment Reports...135 Task 9.4 - Preparing a Year-End Trial Balance...145 i

Table of Contents Lesson 10 - Fund In.Out...147 Task 10.1 - Fund In/Out...149 Appendix A - 2011 Member Statement...151 Appendix B - 2011 Balance Sheet...153 Appendix C - 2012 Trial Balance...155 Conclusion and Summary...157 ii

Copyright and Disclaimer BGL Corporate Solutions Pty Ltd Suite 2 606-608 Hawthorn Road Brighton East, Victoria, 3187 Australia PO Box 8063 Brighton East, Victoria, 3187 Australia Telephone (03) 9530 6077 / 1300 654 401 Facsimile (03) 9530 6964 International + 61 3 9530 6077 Email - Administration - Sales - Training Home Page Client Centre / Support info@bglcorp.com.au sales@bglcorp.com.au training@bglcorp.com.au http://www.bglcorp.com.au http://clients.bglcorp.com.au/ BGL operates a call back support service during the below hours: Monday to Thursday Friday 7.30am to 7.30pm (AEST) 7.30am to 6.30pm (AEST) This Training Manual has been prepared by BGL Corporate Solutions Pty Ltd for users of Simple Fund. Every effort has been made to ensure the accuracy and completeness of this Manual. However, the software author or supplier cannot be held liable for any errors or omissions, and this Manual should not be relied upon as a detailed specification of the system. In addition, the software author and supplier reserve the right to issue revisions, enhancements and improvements to the software at any time without notice. This Manual forms part of the computer software, which is subject to a Software Subscription Agreement with an authorised user. It therefore remains the property of the software author and supplier and is subject to copyright and trade secrets protection. It must not be copied, disposed of, distributed or otherwise be made available to any person, other than employees of the authorised Simple Fund for Windows client, without the prior consent of the software author and supplier. 1

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Introduction This training manual sets up an existing self-managed superannuation Fund on Simple Fund. It is designed for users with limited superannuation accounting knowledge or who solely use Simple Fund to manage their own superannuation Fund. If you are an experienced superannuation Fund accountant, you may find more benefit in using the Simple Fund Introduction Training Manual. This manual assumes Simple Fund has been set up on your computer, you have some knowledge of Windows and some understanding of accounting for superannuation Funds.. There are a number of standard data input and keystroke conventions used in Simple Fund and this Training Manual. This Training Manual is divided into ten lessons: Lesson 1 - Simple Fund Help and Training Resources Simple Fund Help and Training Resources section provides an overview of Simple Fund and will explain how to get the most out of the software and documentation.. Lesson 2 - Adding a new fund This lesson assists you in setting up the basic administration information for your superannuation Fund. Lesson 3 - Lesson 3 - Superannuation Fund Accounting This lesson provides an overview of the basic accounting concepts that relate to self-managed superannuation Funds. This will assist in determining which accounts to use when posting transactions in Simple Fund. Lesson 4 - Setting up Opening Balances This lesson teaches you how to input the opening balances for an existing Fund. Lesson 5 - Member Lump Sum Rollin When Funds are rolled into your Fund from a Lump Sum benefit, you can use the Lump Sum Rollin screen to record the member components. This lesson teaches you how to use this feature. Lesson 6 - Processing Investment Transactions This lesson teaches you how to process investment transactions including share purchases, managed Fund purchases, term deposits and cost base adjustments, Lesson 7 - Recording Income, Expenses and Tax Payments This lesson teaches you how to record cash dividends, accrued distributions, dividend reinvestments, contributions and tax payments. 3

Introduction Lesson 8 - Recording Disposals This lesson teaches you how to process investment disposals. Lesson 9 - Year End Processing This lesson teaches you how to process year-end entries and to teach you which calculations the create entries process performs. It also shows you how to prepare year-end reports. Lesson 10 - Fund In/Out This lesson teaches you how to export a Fund for backup purposes. Version 2013 4

Training Manual Conventions Simple Fund Conventions One of the main objectives of Simple Fund is to enable superannuation data to be entered as quickly as possible. The following design features are just some of the ways Simple Fund speeds up the data entry process: 1. Within all transaction screens you are able to skip to the next field, using the Tab key if you do not wish to enter data. 2. Alternatively you can use the Enter key to pre fill fields with the details from the last transaction. 3. When entering cash payments or receipts Simple Fund automatically assumes all payments are debits and all receipts are credits. 4. You can use the standard windows shortcut keys Cut (Ctrl + X), Copy (Ctrl + C) and Paste (Ctrl + V) to move data amongst fields. 5. Simple Fund has its own shortcut keys should you prefer to use the keyboard rather than the mouse. Some common shortcut keys used throughout Simple Fund are as follows: Alt + N - creates a new record. Alt + E - edits the current record. Alt + C - opens the chart of accounts screen. Alt + S - posts (saves) the current data. Alt + X - exits the current screen without saving. Note - shortcut keys are referenced on each Simple Fund button with an underlined character. E.g. The shortcut key is Alt + C Training Manual Conventions When "click" is used you are required to move the mouse pointer to the field or button and press the left mouse button. When the word "highlight" is used you are required to move the mouse pointer to the data and press the left mouse button. Buttons to be clicked are shown on the screen in bold and italics. ie Select. Keys to be pressed are shown on the screen in bold. ie Tab Data required to be input by you will be displayed in BOLD, ITALICS AND UPPERCASE. Data should be input in proper case (upper and lower characters). Any text with the prefix "KB" indicates a link to an article in the Knowledge Base on the BGL Wiki. 5

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Lesson 1 - Simple Fund Help and Training Resources Overview of Help Simple Fund, like many computer software packages, requires data to be input in certain ways and will not give you the correct result if data is not input correctly. Simple Fund expects you have a good understanding of superannuation accounting. Although there are sometimes a number of ways that transactions can be input, Simple Fund adopts the most commonly used and audit preferred method. BGL has designed many sources of help information for Simple Fund users. All Help resources can be accessed from the Ribbon Toolbar, Help And Web Access Tab, in the Help group. 1. Help Context sensitive screen by screen Help. There are three topics: Overview, How Do I... and Fund and the ATO that should be read by all new users before entering data into Simple Fund. 2. Training Manuals Training Manuals are included as part of Help. These include: Simple Fund Introduction This takes you through the most common tasks, from setting up opening balances, entering current year transactions and generating reports. Simple Fund Trustee Training Manual This explains the basic accounting concepts of superannuation fund accounting. It then sets up a fund with opening balances, and demonstrates the most common superannuation fund transactions. Simple Fund Advanced Building on the knowledge gained in the Introduction Training, this covers more complex Simple Fund tasks. Simple Fund Pensions This provides a general overview of the rules and regulations applying to allocated pensions and how to set up and administer pensions in Simple Fund. Simple Fund Refresher This course provides experienced users with an opportunity to update their knowledge and skills of Simple Fund. All Training Manuals can also be downloaded in PDF format from the Client Centre via Your Support Training Manuals 7

Lesson 1 - Simple Fund Help and Training Resources 3. Knowledge Base From the BGL Wiki, current subscribers can access over 300 articles on your BGL software, from installations, instructions and trouble-shooting. Note: All BGL Help Resources are online on BGL Wiki. If you are connected to the Internet, Simple Fund will connect you automatically to BGL Wiki. This will enable you to always have access to the updated help files. If you are not connected to the Internet, Simple Fund will open the offline Help Files. BGL Connect BGL Connect is a program installed as part of your Simple Fund program. It connects and automates a number of BGL services, products, tasks, schedules and messaging in a single proactive software application. Main Features of BGL Connect: It includes a reminder system for tasks and ability to drag and drop documents into your BGL application. It provides update notifications, access to the BGL Wiki and help resources. It allows you to log and track support calls. It gives you direct and easy access to the BGL Client Centre. It integrates with Portal by BGL and enables documents to be delivered to your clients, signed and received back into your BGL software automatically. Once you have successfully installed BGL Connect, the BGL Connect icon will appear on the Windows Taskbar. All features of BGL Connect can be accessed from the BGL Connect Panel. Click on the BGL Connect icon on the Windows Taskbar to access the panel. This panel provides you access to the following BGL resources and services: BGL Wiki Training Manuals Your Support Calls Log a Support Call Client Services Feedback Wishlist Contact BGL 8

Lesson 1 - Simple Fund Help and Training Resources Clicking on any of the links will provide you access to that particular function. Refer to the BGL Connect Help File for more information. BGL SmartDoc BGL SmartDoc is a feature integrated into the BGL Connect program that allows users to drag and drop documents using the drop zone. These documents get saved in Document Management in the software in Simple Fund and are also pushed to Portal by BGL. Using the BGL SmartDoc drop zone icon,, you can drag and drop documents from any location on your computer to save into Simple Fund or Portal by BGL. Refer to the BGL Connect Help File for more information. 9

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Task 1.1 - Checking Your Version Task 1.1 - Checking Your Version Objective In this task you will learn how to check what version of Simple Fund you are currently using. By the end of this task, you will be able determine when you are required to download and install an update of Simple Fund. Instructions From the Ribbon Toolbar: On the Help and Web Access tab, in the Help group, click About. Simple Fund will display the Information screen: 11

Task 1.1 - Checking Your Version Simple Fund will display the Release and Release Date of the Simple Fund program you are using. To ensure you have the latest version of Simple Fund, compare the software version and date with those shown on the BGL Client Centre. Automatic software update notifications Simple Fund can automatically prompt you when a new release is available on BGL's internet site. Simple Fund will check your version at startup and prompt you to update if there is a newer release. From the Ribbon Toolbar: On the Administration tab, in the Setup group, click Defaults Click the Tasks/Help tab Click Software update notifications Click Only notify supervisors of updates. Simple Fund will only check your version when you log in with a user name that has Supervisor access. This is set up in Administration User Maintenance. 12

Task 1.1 - Checking Your Version Click Save End of Task 1.1. Proceed to Task 1.2. 13

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Task 1.2 - Client Centre Task 1.2 - Client Centre Objective In this task you will learn: what the BGL Client Centre is the benefits of the BGL Client Centre how to set up your BGL Client Centre account By the end of this task, you will be able to log into the BGL Client Centre and utilise all the available functions. What is the BGL Client Centre? The BGL Client Centre provides you with a direct connection to BGL. At the Client Centre you can: view your details log a support call monitor the status of current support calls and mark them as resolved modify the problem of logged calls view the problem and resolution details of your past calls view the consultant allocated to solving your problem view BGL announcements view and pay subscription invoices register for training courses, user groups and update seminars register for BGL functions book a call-back time for your support calls access BGL Wiki access BGL Forum download PDF copies of Training Manuals provide feedback to BGL add or vote for enhancements to the software using the Wishlist system What are some of the benefits? Easier and quicker to log calls Ability to provide more information about your problem Faster response to your support queries Ability to see the status of your support call with BGL at any time Ability to easily contact the consultant handling your call Note: These function can also be performed using BGL Connect. How do I set up my account? It will take you a few minutes to set up your account. Each BGL client can only have one account so the account you set up will be used by everyone in your organisation. 1. Open up your web browser (e.g. Internet Explorer, Mozilla Firefox) 2. Input http://clients.bglcorp.com.au/ in the address line of your browser. 15

Task 1.2 - Client Centre 3. Click Register for the Client Centre on the left menu 4. Input the following details to set up your account: Admin Contact Email: Product ID: Username: Password /Confirm Password: Security Word: Click: Input your admin contact email address. This is the email address to which BGL currently sends newsletters, invoices and subscription renewals Input the Product ID for one of your BGL products. The Product ID can be found in your BGL software. From the Ribbon Toolbar, select Help and Web Access tab, in the Help group, and click About. Input a username that your organisation will use to access the BGL Client Centre (at least 4 characters) Input a password for your organisation to use to access the BGL Client Centre (at least 5 characters) The word in the image must be typed into the box 16

Task 1.2 - Client Centre Your Client Centre account will now be activated. Make sure you record your Username and Password in a safe place. You will also need to pass the username and password detail to other people in your organisation who need to access the BGL Client Centre. Your login details will also be emailed to your admin contact email. If you have any problems setting up your account, please email admin@bglcorp.com.au or call BGL on 1300 654 401. Logging in to the Client Centre You can now log in to the BGL Client Centre at http://clients.bglcorp.com.au by entering your Username and Password. End of Lesson 1. Proceed to Lesson 2. 17

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Lesson 2 - Adding a new fund Objective In this lesson you will learn how to transfer an existing fund's historical information into Simple Fund and input the opening balances using the Fund Setup wizard. By the end of this lesson, you will be able to: create a new fund input fund reporting and address details create an individual and other entity type in Simple Fund create member details Details The 2011 Financial Statement and other supporting schedules for the BGL Training Fund are detailed in the Appendices (A-F). You will be using the Fund Setup screen to input the data from Appendices (A-B) into Simple Fund. Fund Setup is designed as a checklist to assist users to complete the 10 step process for new funds enabling quicker, more accurate posting and work flow tracking for the initial fund establishment process. Learning Tasks Task 2.1 - Creating a New Fund Ledger Create the ledger for the Jones Family Superannuation Fund. Fund Code Fund Name JONES Jones Family Superannuation Fund Task 2.2 - Input Fund Master Details Input the Fund Master Details: Date Formed 14/06/2002 TFN 999 999 99 ABN 1111 111 7111 Fund Type (APRA) Fund Type (ATO) Fund Industry Benefits Structure Self Managed Super Fund Self Managed Super Fund Finance, Insurance, Real Estate and Business Services Defined Contribution (Accumulation) 19

Lesson 2 - Adding a new fund Task 2.3 - Input Fund Contact Details Input Fund contact names and addresses. Contact John and Mary Jones 12 Market Street, South Melbourne, 3205 (03) 9696 0000 Postal Address John and Mary Jones Registered Address John and Mary Jones Trustee John and Mary Jones Auditor Sam King Level 12, 217 Collins Street Melbourne, Vic, 3000 Tel: 03 9895 0001 Fax: 03 9895 0002 Prof Bodies ICAA Auditor Number 123456 Task 2.4 - Input Fund Reporting Details Input the Reporting details: Financial Year 14/06/2002 to 30/06/2011 Current Period 01/07/2010 to 30/06/2011 Reporting Options Detail Member Balances Resident Fund Add Imputed Credits Add Foreign Credits Add TFN Credits Tax Rate 15% Task 2.5 - Input Fund Members The two members of the Fund are John Jones and Mary Jones. Their details are as follows: John Jones Mary Jones Date Joined Fund 14/06/2002 14/06/2002 Death benefit $1,000,000 $1,000,000 Commenced service 06/06/1980 14/06/1980 period TFN 999 999 941 999 999 870 20

Task 2.1 - Creating a New Fund Ledger Task 2.1 - Creating a New Fund Ledger Objective In this task you will learn how to set up a new fund ledger using the Fund Setup wizard. By the end of this task, you will be able to use the Fund Setup wizard to start the initial fund establishment process in Simple Fund. Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Step 1 - Add a fund Add the Jones Family Superannuation Fund. Click Fund Code Fund Name Input JONES and press [Tab] Input JONES FAMILY SUPERANNUATION FUND Click Save (ALT + S). Simple Fund will now create a new fund ledger. End of Task 2.1. Proceed to Task 2.2. 21

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Task 2.2 - Input Fund Master Details Task 2.2 - Input Fund Master Details Objective In this task you will learn how to input the general reporting information for the fund. By the end of this task, you will be able to input the fund formation date, TFN, ABN and fund type into Simple Fund. Details Date Formed 14/06/2002 TFN 999 999 99 ABN 1111 111 7111 Fund Type (APRA) Fund Type (ATO) Fund Industry Benefits Structure Self Managed Super Fund Self Managed Super Fund Finance, Insurance, Real Estate and Business Services Defined Benefit Fund Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Step 2 - Fund Details Click Click the Details tab. Date Formed Input 14/06/2002 Reference Leave this blank. It is used when uploading data from sources such as internet banking and Praemium and Macquarie. Portfolio ID Leave this blank. This field is used when data is imported using Praemium Web Feed. 23

Task 2.2 - Input Fund Master Details TFN: Input 999 999 99. RSE Number: ABN: Input 1111 111 7111. Leave this blank. A Registrable Superannuation Entity (RSE) means a regulated superannuation fund or an approved deposit fund or a pooled superannuation trust but not include a self managed superannuation fund. Registration of RSEs is affected under Part 2B of the Superannuation Industry (Supervision) Act 1993(the SIS Act) Fund Type (APRA) Fund Type (ATO) Fund Industry (ATO) Leave this as Self Managed Superannuation Fund. Leave this as Self Managed Superannuation Fund. Select Finance, Insurance, Real Estate and Business Services. Benefits Structure Leave this as Defined Benefit Fund. SRN/HIN Recording the SRN/HIN is optional. This will be the default SRN/HIN when setting up investments in the Chart of Accounts. Current Client? Leave this checked. Portal Client? Untick this box. Portal is a web based client collaboration tool that is fully integrated with your Simple Fund. Portal automatically delivers documents direct to your client via the web, reminds your client to process the document, informs you when your client has processed the document and automatically updates your BGL software document tracking and management systems for all stages of document processing. 24

Task 2.2 - Input Fund Master Details Click Save document processing. End of Task 2.2. Proceed to Task 2.3. 25

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Task 2.3 - Input Fund Contact Details Task 2.3 - Input Fund Contact Details Objective In this task you will learn how to input fund contacts including the joint trustees and auditor's details. By the end of this task, you will be able to: create individuals, companies and joint entities attach a representative to companies and joint entities create addresses add the fund contacts to Fund Details screen Details There are two individual trustees, John and Mary Jones who are both members of the fund. They are also the Contact, Postal Address and Registered Office for the fund. Their details are below: Members John Jones Mary Jones Address 12 Market Street, South Melbourne Vic 3205 As for John Telephone 03 9696 0000 Date of birth 05/09/1947 17/08/1951 TFN 999 999 941 999 999 870 Auditor Sam King Level 12, 217 Collins Street, Melbourne VIC 3000 Tel: 03 9895 0001 Prof Bodies:ICAA, Number 123456 Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Click 27

Task 2.3 - Input Fund Contact Details Click the Contacts/Deed tab. Contact Click Search to list People and New to add a new person. 1. Add John Jones Person Type Surname First Name Individual Jones John Click the Address tab. Address Click Search to list Addresses or New to add a new address. Line 1: Input 12 Market Street Line 2: Click Search to list Suburbs and Postcodes. Input SOUTH ME at the search bar. The highlight bar will move to SOUTH MELBOURNE, VIC 3205. Click Select. The address will now contain this suburb, state and postcode. 28

Task 2.3 - Input Fund Contact Details Telephone Input 03. Press Enter and input 9111 2222 and press Enter. Click Save to save the address. Click Select to select the address. Click the Birth Details tab. Date of Birth Input 05/09/1947 Click the Other Details tab. 29

Task 2.3 - Input Fund Contact Details TFN Input 999999941 Click Save. 2. Add Mary Jones Repeat the steps above to add Mary Jones. Before adding Mary, check first to see if she is already on your People List. Her details are as follows: Surname First Name Jones Mary Address 12 Market Street, South Melbourne, Vic, 3205 Date of Birth 17/08/1951 TFN 999 999 870 3. Add the Joint Member "John and Mary Jones" To add John and Mary Jones as Individual Joint Trustee, set up the information on the People List as follows: Person Type: Select Other Surname/Entity: Input JOHN AND MARY JONES 30

Task 2.3 - Input Fund Contact Details Corporate Trustees For ATO and other reporting purposes Simple Fund distinguishes between individual trustees and corporate trustees by checking to see if an ACN is present in the Trustee details. Click the Address tab and select the address 12 Market St, South Melbourne. Click Save to return to the People list. 4. Attach the individual representatives to the Joint Member. Highlight John and Mary Jones on the People List. Click Representatives Person 1 - Click Search to list People. Highlight John Jones and click Select. Person 2 - Click Search to list People. Highlight Mary Jones and click Select. 31

Task 2.3 - Input Fund Contact Details Click Save Highlight John and Mary Jones and click Address of the fund. Select. They should now display as the Contact and Postal Registered Address Click Search to list People. Highlight John and Mary Jones and click Select. Trustee Click Search to list People. Highlight John and Mary Jones and click Select. 32

Task 2.3 - Input Fund Contact Details This completes the Contact and Address set up. Click Save to return to Fund Setup. End of Task 2.3. Proceed to Task 2.4. 33

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Task 2.4 - Input Fund Reporting Details Task 2.4 - Input Fund Reporting Details Objective In this task you will learn how to input reporting details of a fund. By the end of this task, you will be able to: determine the correct date to input for the financial year start date when setting up a fund understand the various reporting options and how it will effect your reports Details Financial Year 14/06/2002 to 30/06/2011 Current Period 01/07/2010 to 30/06/2011 Reporting Options Detail Member Balances Resident Fund Add Imputed Credits Add Foreign Credits Add TFN Credits Tax Rate 15% Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Click Click Financial Period Start the Reporting tab. Simple Fund will input 14/06/2002. This date is usually 1st July, but when first setting up a new Fund enter this date as the fund formation date. This will allow you to enter historical investment purchase transactions for CGT purposes. 35

Task 2.4 - Input Fund Reporting Details Financial Period End Input 30/06/2011 Current Period Start Input 01/07/2010 as the start date for the reporting period for the Financial Reports screen. Current Period End Input 30/06/2011. Click Detail member balances to list all members individual balances on the Balance Sheet Click Resident fund? as members are Australian residents. Click Add imputed credits? Add foreign credits? Add TFN credits? Checking these boxes will gross up income for franking credits, foreign tax credits and tax file number withholding when Create Entries is performed. The general ledger income accounts will gross up, and will be reflected on the Income Statement, but will not affect tax calculations. Fund Tax Rate Leave this as 15% including pension funds. 36

Task 2.4 - Input Fund Reporting Details Click Save to return to the Fund Setup screen. End of Task 2.4. Proceed to Task 2.5. 37

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Task 2.5 - Input Fund Members Task 2.5 - Input Fund Members Objective In this task you will learn how to input members details of a fund. By the end of this task, you will be able to: create an accumulation member in Simple Fund input details of a member including date joined fund and death benefit. Details The two members of the Fund are as follows: John Jones Mary Jones Date Jointed Fund 14/06/2002 14/06/2002 Death benefit $1,000,000 $1,000,000 Commenced service period 06/06/1980 14/06/1980 TFN 999 999 941 999 999 870 Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Step 5 - Member Details Click Click New to add a new member. Highlight John Jones and click Select. 39

Task 2.5 - Input Fund Members Date Joined Fund Input 14/06/2002. Date Commenced Service TFN TFN Date Input 06/06/1980 Simple Fund will automatically fill this with the TFN entered previously in the member details screen. This will default to Today's Date. You can overwrite this if the TFN was not provided at this date. Note: If you edit an existing member and input a TFN, this field will default to the Date Joined Fund. Again, this can be overwritten. Click Financial Death Benefit Input 1 000 000. 40

Task 2.5 - Input Fund Members Click Save. Repeat these steps to add Mary Jones as a fund member. Joined Fund 14/06/2002 Date commenced service 14/06/1980 Death Benefit 1 000 000 Click Exit to return to the Fund Setup screen. End of Lesson 2. Proceed to Lesson 3. 41

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Lesson 3 - Superannuation Fund Accounting Objective In this task you will learn: the basic accounting concepts that relate to self-managed superannuation funds various transaction types in Simple Fund. By the end of this task, you will be able to: correctly identify the accounts to use when posting transactions in Simple Fund recognise the differences between the transaction types identify when to select the appropriate transaction types Details There are four account groups, Income, Expense, Asset and Liability. Debit and Credit Rules Since Simple Fund is a double-entry accounting package, it is essential that you understand debit and credit rules. Debit Asset Expense Asset Expense Liability Income Debit Accounts Assets (A) Cash at Bank Accrued Income Credit Liability Income To increase an Asset, such as by purchasing shares, a Debit must be posted to that asset account. To increase an Expense, such as to record the payment of Accounting fees, a Debit must be posted to that expense account. To increase a Liability, such as to record the Fund's Tax Liability, a Credit must be posted to that liability account. To increase Income, such as by recording a Dividend received, a Credit must be posted to that income account. Credit Accounts Liability (L) Tax Payable Members Liabilities Investments Simple Fund Account Group 600's & 700's Simple Fund Account Group 500's & 800's 43

Lesson 3 - Superannuation Fund Accounting Expenses (E) Accounting Fees Transfers Out Pension Payments Income (I) Dividends Distributions Member Contributions Transfers In Simple Fund Account Group 300's & 400's Simple Fund Account Group 200's 44

Double Entry Accounting Double Entry Accounting The rules of double-entry accounting require that for every Debit entry, there be a corresponding Credit entry posted to the Ledger. The corresponding entry will automatically be posted to the Cash at Bank account when Bank Statements, Cash Receipt or Cash Payment journals are posted. Example 1 - Posting an Expense entry for Accounting Fees Since there has been a payment from the bank account, the Bank must be decreased. This is a credit to the Cash at Bank account. The corresponding debit will be an increase to Accounting Fees. a) Debit Accounting Fees - Increase to an Expense account. b) Credit Cash at Bank - Decrease to an Asset account. This entry could have been recorded using a Cash Payment or Bank Statement journal since the corresponding entry, or contra account, is Cash at Bank. Example 2 - Posting a Dividend Since there has been a receipt into the bank account, the Bank must be increased. This is a debit to the bank account. The corresponding credit will be an increase to the Dividend Income account. a) Credit Dividend Received - Increase to an Income account. b) Debit Bank - Increase to an Asset account. This entry could have been recorded using a Cash Receipt or a negative Bank Statement journal since the corresponding entry, or contra account, is Cash at Bank. Example 3 - Posting an Employer Contribution Since there has been a receipt into the bank account, the Bank must be increased. This is a debit to the bank account. The corresponding credit will be an increase to the income account Employer Contributions. a) Credit Employer Contributions - Increase to an Income account. b) Debit Bank - Increase to an Asset account. This entry could have been recorded using a Cash Receipt or a negative Bank Statement journal since the corresponding entry, or contra account, is Cash at Bank. Example 4 - Posting Accrued Distributions There has been a distribution which has been received in the current financial year for tax purposes. However the actual cash amount has not yet been received by the Fund. The distribution account is increased by recording a credit to the income account Distributions Received. The corresponding debit is recorded to the asset account for Accrued Income. 45

Double Entry Accounting a) Credit Distribution Received - Increase to an Income account. b) Debit Accrued Income - Increase to an Asset account. These two entries must be recorded as two single sided Journals. Bank Statements, Cash Receipts or Cash Payment journals do not apply since there is no adjustment to the Cash at Bank. 46

Transaction Type Transaction Type There are six transaction types in Simple Fund. These are Bank Statements Dividend Reinvestment Journal Cash Journal Non Cash Payments Receipts Bank Statements Transactions recorded through Bank Statements will post an automatic corresponding entry to the Cash at Bank account. If the entry is recorded as a positive amount, a Credit (decrease) will be posted to the bank. If the entry is recorded as a negative amount, a Debit (increase) will be posted to the bank. Therefore income amounts must be posted as a negative (Credit) which will then post a corresponding increase (Debit) to the bank account. Expenses must be recorded as a positive (Debit) which will then post a corresponding decrease (Credit) to the bank account. Dividend Reinvestment The Dividend Reinvestment transaction type is selected to input details of income received by a fund that have been reinvested pursuant to a dividend reinvestment plan. Input the date the dividend was received, a reference, select the asset account, input the amount received (as a debit), input the number of units allotted, imputed credits and the tax details of the transaction. Simple Fund will post a debit entry to the Investment account and a credit entry to the linked income account with all the relevant tax details. 47

Transaction Type Payments Transactions recorded through Cash Payments will post an automatic corresponding entry to the Cash at Bank account. Payments are recorded as a positive amount (Debit), and the automatic corresponding entry to bank will be recorded as a decrease (Credit). Receipts Transactions recorded through Cash Receipts will post an automatic corresponding entry to the Cash at Bank account. Receipts are recorded as a positive amount, but are posted as a Credit. The automatic corresponding entry to the bank will be recorded as an increase (debit). Journals Cash and Non Cash Transactions recorded through Journals can be posted as double sided entries. Journal cash entries will display on the cash flow statement and are generally used for opening balance transactions. Journal non cash entries will not display on the cash flow statement and can be used for accrued distributions, depreciation and asset revaluation. If the journal entry is recorded as a positive amount, a Credit (decrease) will be posted to the balancing account. If the entry is recorded as a negative amount, a Debit (increase) will be posted to the balancing account. 48

Transaction Type Journals can also be posted as a single sided entry. A debit and a credit will have to be posted separately. Further Information There are plenty of general accounting text books available, and there is usually a large selection at your local library. If you do not have a good understanding of the accounting concepts above, BGL recommends you to refer to these sources of information to complement your use and to assist your understanding of your Simple Fund software. 49

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Chart of Accounts Chart of Accounts Overview The Chart of Accounts is the key to the successful generation of reports by Simple Fund. The Master Chart of Accounts in Simple Fund covers all investment types reported for APRA and ATO Regulatory Return purposes. You will only need to add new investment sub accounts when a new investment is purchased. This lesson teaches you when to use the three different types of Other Accounts available - Normal, Control and Sub Accounts. BGL recommends that only experienced users add Other Accounts to the Chart of Accounts as BGL cannot guarantee that Simple Fund will produce the correct results if accounts are set up incorrectly. Account Types Simple Fund has four types of accounts: Bank, Investment, Member and Other. Bank Account - this is used to create Bank accounts within the 605-699 account range. Simple Fund will create the account as a Normal account. Simple Fund will pre-fill all the details except for the account name which needs to be typed in. The bank account will have linked sub-accounts for income. Investment Accounts are any investment account such as shares, managed funds, real estate and fixed interest. Investment accounts are created in the 700 group of accounts and have linked sub-accounts for income, expenses, capital gains and where applicable, depreciation and/or distributions receivable. Member Accounts are used by Simple Fund to allocate profits and record member transactions and balances. Each member has a control account and numerous system generated sub-accounts. Users must not change these accounts. Member accounts are also added when members are added to the Fund Details Fund Members Add/Edit screen. Other Accounts - this is the non specific general account group which can be used to customise each Fund's chart of accounts. Other Accounts provide you with flexibility to create additional Normal, Control and Sub Accounts. Other Account Types The first step in setting up an Other Account type is to determine what pre-defined account range the account should be added to. E.g. if you wish to add a new expense account, you must use an account number in the expense range 301 to 479. Account Group (P&L) Range Account Group (B/S) Range Income 200-299 Member Accounts 501-600 Expenses 301-479 Other Assets 601-700 51

Chart of Accounts Taxation/Allocations 480-499 Investments 700-799 Liabilities 800-899 Suspense 999 Accounts can be further customised into Normal, Control or Sub Accounts depending on how you want the account to display in the reports. Normal Account - Postable account used to set up a new expense, asset or liability accounts. Common uses are new expense or bank accounts. Bank Accounts cannot be sub-accounts. Control Account - Non Postable header accounts used to group and sub-total accounts. These are commonly used to set up new Investment Categories or Rental Property expense groups for your fund. Sub Account - Postable sub-account used mainly for Investment sub accounts. These are used where you require a total to appear on the Financial Statements but with further breakdown on the Simple Fund Trial Balance and General Ledger. To create a sub account, the control account must be set up first in your chart of accounts. End of Lesson 3. Proceed to Lesson 4. 52

Lesson 4 - Setting up Opening Balances Objective In this lesson you will learn how to transfer an existing fund's members opening balance and investment history into Simple Fund. By the end of this lesson, you will be able to: input a member's opening balance from a members statement create investment accounts balance the fund forward to the next financial year Details The 2011 Balance Sheet for the Jones Family Superannuation Fund is detailed in Appendix B. These balances must be entered as at 30/06/2011 before the fund is balanced forward to the 2011 financial year. Learning Tasks Task 4.1 - Input Members Balances Input the balance for John Jones using the Fund Setup wizard. John Jones? member statement is detailed in Appendix A and comprises: John Jones Preserved/Taxable $385,700.00 Preserved/Tax Free $42,000.00 Task 4.2 - Input remaining opening balances Input the remaining balance sheet items from Appendix B using the Fund Setup Wizard. Record the following transactions: 53

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Task 4.1 - Input Members Balances Task 4.1 - Input Members Balances Objective In this task you will learn how to you how to input the members opening balances for a fund. By the end of this task, you will be able to input the members balances from a members statement and post all relevant journals. Details When inputting members closing balances, you must select whether the balance is: 1. Preserved, 2. Restricted, or 3. Unrestricted You must also select the taxation component of this balance. Pre 1 July 2007 components can be: Pre July 1983 and Post June 1983 taxed Post June 1983 Untaxed Undeducted CGT Exempt Concessional, or Post 1994 Invalidity. Post 1 July 2007 components will be: Tax Free Taxable Check previous ETP forms, RBS forms or member statements for this information. It is important to record these components as it will affect the taxation on future withdrawals or commutations. Member components are only required when inputting opening balances. When recording current year transactions, the Member Component is not required, since the type of transaction will automatically determine this. When balancing your fund forward to 1 July 2007, these tax components will convert from the old components to the new components and a report will be generated to display the conversion. Input John Jones opening balance: Preserved/Tax Free $42,000.00 Preserved/Taxable $385,700.00 Total $427,700.00 55

Instructions Task 4.1 - Input Members Balances From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Step 6 - Members Balance Details Click Input the balances for John Jones. His member statement is in Appendix A. Transaction Date Input 30/06/2011 Member Click Search to list Members. Highlight John Jones and click Select. Tax Free - Preserved Input 42 000 Taxable - Preserved Input 385 700 and press Enter Total This should be 427 700. Click Preview. Click to close this report. Click Save. This button is inactive until you have previewed Member Opening Balance Report. 56

Task 4.1 - Input Members Balances Click Yes You are now ready to input the remaining Balance Sheet balances for this fund. End of Task 4.1. Proceed to Task 4.2. 57

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Task 4.2 - Input Remaining Opening Balances Task 4.2 - Input Remaining Opening Balances Objective In this task you will learn how to input the balance sheet opening balances for a fund. By the end of this task, you will be able to: create a new share account search for a security price understand how linked income accounts are created automatically record investment purchases and revaluation transactions efficiently use the time saving functions in the transaction screen prepare a balance sheet Details The process of entering the opening balances is only required for existing funds. Funds that have commenced in the current year will not have any opening balances to input. Investment History Investment purchases must be recorded at their original cost and actual date of purchase. Then you must adjust the investment up (or down) to the recorded market value. If your funds assets are recorded at cost and have never been revalued to their current market value, then simply enter the purchase history. Useful data entry conventions 1. To repeat a date, reference number or account code, press the Enter key. The Tab key will also move the cursor to the next field, but it will not auto fill the field. 2. To increment reference numbers, click the check box after the Reference field. 3. When entering cash payments or receipts Simple Fund automatically assumes all payments are debits and all receipts are credits. When entering statements or journals, Debit amounts are input without a sign whereas Credit amounts are input as negatives. 4. To add a new account, click the Chart button or Alt + C before the account number field. Instructions Input the remaining balance sheet items from Appendix B using the Fund Setup Wizard. Record the following transactions: 59

Task 4.2 - Input Remaining Opening Balances From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Step 7 - Fund Assets and Liabilities Click Warning: Ledger does not balance will appear: Press Enter to clear this message. 1. Record investment purchase history From the Transactions screen Click New Record the investment history for BHP Billiton. 1.1 Record the first BHP share purchase Type Select Journal - Cash or press J. Date Reference Input 02/07/2002 and press Enter Input 1 and press Enter Account Click Search or press ALT + C to list the Chart of Accounts. 60

Task 4.2 - Input Remaining Opening Balances Click to add a new Investment Account. Simple Fund will list investment control accounts in the Chart of Accounts for this fund. This list can be added to by adding a new Control Account in the Investment Account range 700 to 799. Leave this as Shares in Listed Companies (Australian) and click Select. Order Ensure you are in Code order. The arrow will appear in the Code column heading. Find Input BHP This should locate BHP Billiton Limited on the list. Click Select. The following settings will display from the Control Account settings: Tax Return Label This will display Not applicable Permanent Difference. The Tax Return Label determines how Simple Fund calculates tax payable for the period. Assets, Liabilities and Member Accounts are generally set to Not applicable - Permanent Difference and income and expense items are set to the relevant income or expense tax label 61

Task 4.2 - Input Remaining Opening Balances Regulatory Return This will display Assets Listed shares. The Regulatory Return label determines where this account balance will display in the Regulatory Return and Financial Reports. Investment Account This will be checked so this account displays on Investment Reports. Income Type This will display Dividends. A linked 239 Dividend sub-account will be automatically created upon saving this account. Click Save. Simple Fund will now create the share account, dividend account, expense and capital gains on disposal accounts for this asset. Click Select Units Amount Note Input 2 000 and press Enter. Input 11 200 and press Enter. Input Purchase 62

Task 4.2 - Input Remaining Opening Balances Press ALT + S or click Save to post this transaction. 1.2 Record the movement in market value for BHP. Investment accounts must be adjusted up (or down) to their market value. Simple Fund distinguishes between a purchase transaction and a market value transaction based on whether units have been entered, therefore units must NOT be input when recording market value increases or decreases. This step is not required if your funds investments are recorded at cost and have never been revalued to their current market value. Type Date Reference Leave this as Journal - Cash and press Enter. Input 30/06/2011 and press Enter Input 2 and press Enter four times. Account Leave this as 776 001 Amount Note Input 76 400 and press Enter Input Revaluation Press ALT + S or click Save to post this transaction. 63

Task 4.2 - Input Remaining Opening Balances Click OK to this warning. Warning: Ledger does not balance will appear: Press Enter to clear this message. Note: To record a negative revaluation, ensure the amount has a negative sign to indicate the reduction. 2. Record the remaining Assets and Liabilities Input the remaining Balance Sheet items at 30/06/2011 using Journal Cash: Date Account Name Code Debit/(Credit) 30/06/2011 Cash at Bank 604 362,720.00 30/06/2011 Tax Payable 850/001 (22,620.00) Tip: Since all dates are 30/06/2011, press Enter at the Date field to prefill with the financial year end date. Note: Refer to the Task 2.8 of the Simple Fund Introduction Training Manual for information on creating and recording other types of investments. Debits and Credits should now be $450,320.00 Click data entry errors. Edit or double-click the transaction to correct any After you have finished the input of these transactions, click Exit. Note: You can click on Step 8 - Profit and Loss Statement if you wish to input the 2011 profit and loss information. End of Task 4.2. Proceed to Task 4.3. 64

Task 4.3 - Balancing Forward Task 4.3 - Balancing Forward Objective In this task you will learn how to balance the fund ledger forward to the next accounting period. By the end of this task, you will be able to balance forward using the three screens in Simple Fund. The balance forward process can be completed from the: Fund Setup wizard screen Fund Details screen Financial Reports screen Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Setup Click Simple Fund will calculate that the next accounting period commences the day after the previous year-end and concludes 12 months later. Click each box to confirm each task has been completed. 65

Task 4.3 - Balancing Forward Click to balance the ledger forward to the next period. Note: You can also Balance Forward through the Fund Details screen from the Fund Data Input tab, in the Fund group, or through the Financial Reports Reports and Documents Fund Reporting. From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Details Click Balance Forward OR From the Ribbon Toolbar: On the Reports and Documents tab, in the Fund Reporting group, click Financial Reports Click End of Lesson 4. Proceed to Lesson 5. 66

Lesson 5 - Member Lump Sum Rollin Objective In this lesson you will learn how to add a new member to the fund, record Lump Sum Rollin, and segregate assets in a fund. By the end of this lesson, you will be able to: create a new member change the member from accumulation to pension record a Lump Sum Rollin Overview Simple Fund can handle a vast array of member transactions and provides a great deal of assistance in the calculation, posting and printing of various member transactions, forms and letters required during the life of a superannuation fund. The following is a list of common processes that can be recorded for a member of a self-managed superannuation Fund: For examples on these topics, refer to the Simple Fund Advanced Training Manual Process Make contributions Segregate Investments Leave a Fund Receive lump sums Join a Fund Roll over Lump Sum or benefits from other funds Start a superannuation income stream. Pay surcharge Explanation A member can contribute cash or assets (in-specie contributions) A member can own or choose to purchase specific allocated investments, income and expenses A member can leave a Fund during the year A member can receive, withdraw or rollover his/her account and receive a lump sum payment. A new member can join a fund and become a trustee during the year A member can roll in Eligible Termination Payments (pre 1 July 2007) or receive Rollover Benefits from other funds. A member can be in accumulation and/or pension mode A member may need to lodge Member Contribution Statements (MCS) and may be liable to pay Surcharge Tax for contributions made prior to 01/07/2005. From the 2006 financial year, the MCS must be prepared for each member to report the member's superannuation contributions within the financial year. Member Accounts Simple Fund creates a number of ledger accounts each time a new Fund member is added. These accounts record contributions, transfers in, transfers out, pensions paid, insurance policies and superannuation surcharge tax and are all included in the profit and loss area of the Chart of Accounts (i.e. between account 67

Lesson 5 - Member Lump Sum Rollin 200 and 499). Simple Fund also creates a member control account in the balance sheet area of the Chart (i.e. an account in the 500 account range and an unallocated contributions sub-account). The most commonly used accounts are: Income Employer/Concessional Contributions Employer/Non-Concessional Contributions Member/Personal Contributions -Concessional (self-employed) Member/Personal Contributions -Concessional (undeducted) Other Contributions - Non-Taxable (spouse contributions) Profit and Loss Account 242 243 260 261 263 Insurance Policy Proceeds 275-277 Transfers In 285-290 Expenses Life Insurance Premiums 390-392 Management Fees 400-402 Members Expenses 405-407 Pensions Paid - Tax Free and Taxable 412-417 Transfers Out 450-465 Benefits Paid (494-499 do not display in the Profit & Loss) 320-325 or 494-499 The Create Entries process allocates amounts input to members income accounts to the appropriate members account in the balance sheet. Amounts should not be posted directly to any of the 500 balance sheet member accounts. For example if you posted a $1000 receipt to account 242/001 for a Concessional Contribution and then Created Entries, Simple Fund will automatically calculate the required contributions tax and post the following journal: Example - Create Entries journals from posting $1000 Concessional Contribution to account 242. Account DR CR Note 485 Income Tax Expense $150 Contributions tax at 15% 68

Lesson 5 - Member Lump Sum Rollin 490 Profit and Loss Account $850 Contribution less tax. 501/011 Employer Contributions $1,000 Contribution allocated to member 501/051 Contributions Tax $150 Contributions tax allocated 850/001 Income tax payable $150 Income tax payable Preservation categories Member Accounts are required to be classified into the following Categories under the SIS Act. Preservation Explanation Preserved can only be withdrawn by a member from a Fund on retirement or after age 55 years. Unrestricted Restricted Learning Tasks Task 5.1 - Recording Lump Sum Rollin can be withdrawn by a member from a Fund at any time. can be withdrawn by a member in certain circumstances. Eg. on termination of employment with an employer sponsor who had contributed to the Fund and the member's account balance is less than $200. Record the following rollin for Mary Jones: The cash amount received must be recorded in Simple Fund through Transactions to account 492 - Member Payment Clearing Account and the member components recorded through the Lump Sum Rollin screen. Step 1 - Record the Cash Receipt Date 19/07/2011 Account 492 Member Payment Clearing Account Amount 180,945.04 Step 2 - Record the Rollin Date 19/07/2011 Preserved 180,945.04 Total 180,945.04 consisting of: Taxable 170,945.04 Tax Free 10,000.00 Total 180,945.04 69

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Task 5.1 - Recording Lump Sum Rollin Task 5.1 - Recording Lump Sum Rollin Objective In this task you will learn how to create a new member in Simple Fund and record a lump sum amount rolled into the Fund. By the end of this task, you will be able to: create a new member use the Lump Sum Rollins screen to post the relevant journals prepare supporting documents Details The Lump Sum Rollin screen has been designed to input the tax and preservation components from a members Rollover Statement or Payment Summary. Once the details are input, Simple Fund will automatically create the journal entries required to allocate the amounts input in the ledger. Simple Fund posts the total amount to Account 492. Post the Lump Sum cash receipt from the bank statement to this account 492 during data input. The various Lump Sum components (i.e. Concessional, CGT Exempt etc) input into the Lump Sum Rollin screen are posted to accounts 286 to 292: The following amounts were rolled into the Fund for Mary Jones: The cash amount received must be recorded in Simple Fund through Transactions to account 492 - Member Payment Clearing Account. Step 1 - Record the Cash Receipt Date 19/07/2011 Account 492 Member Payment Clearing Account Amount 180,945.04 Step 2 - Record the Rollin Date 19/07/2011 Preserved 180,945.04 Total 180,945.04 consisting of: Taxable 170,945.04 Tax Free 10,000.00 Total 180,945.04 71

Task 5.1 - Recording Lump Sum Rollin Instructions Step 1 - Record the Cash Receipt From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click New Type Date Reference Account Amount Select Receipts or press R Input 19/07/2011 and press Enter. Input 1 and press Enter. Input 492 and press Enter. This is the Member Payment Clearing Account. Input 180 945.04 and press Enter. Click Post or press ALT + S to save this transaction. Step 2 - Record the rollin components From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Lump Sum Rollin 72

Task 5.1 - Recording Lump Sum Rollin Rollin Date Click to list Member Payment Clearing Account Entries Highlight the journal on the 19/07/2011 and click Select. Member Click Search to list Members. Highlight Mary Jones and click Select. Preserved / Tax Free Preserved / Taxable Input 10 000 and press Enter Input 170 945.04 and press Enter Check the total, this should be $180,945.04. Click Preview. Close the report, then click the transactions to the Ledger. Post to save this rollin and post 73

Task 5.1 - Recording Lump Sum Rollin The following transactions will be posted to the General Ledger: Account 492 Member Payment Clearing Account will now have a NIL balance. This completes the steps required to record a Lump Sum Rollin. End of Lesson 5. Proceed to Lesson 6. 74

Lesson 6 - Processing Investment Transactions Objective In this lesson you will learn how to process investment transactions including share purchases, managed fund purchases, term deposits and investment instalment purchases or cost base adjustments. By the end of this lesson, you will be able to: create different types of investment accounts record investment purchases record cost base adjustments Learning Tasks Task 6.1 - Managed Investment Purchase Record the following Managed Fund Purchase Date 03/07/2011 Reference: 62 Account APIR Code New CFS MIF - Imputation FSF0013AU Amount $10,800 Units 3,000 Note: Purchase Colonial Managed Fund Task 6.2 - Term Deposit Purchase Record the following term deposit investment. Date 04/07/2011 Reference: 63 Account New ANZ Term Deposit Amount $40,000 Units 1 Note: Initial Investment Task 6.3 - Instalment Payments Record the following instalment payments for Telstra Shares. Initial Instalment 75

Initial Instalment Lesson 6 - Processing Investment Transactions Date: 31/07/2011 Reference: 64 Asset: New Account Telstra Corporation ASX Code: TLS Amount: $5,070 Units 2,600 Note: Initial Instalment Final Instalment Date: 19/12/2011 Reference: 64 Asset: Telstra Corporation Amount: $3,510 Units 2,600 Note: Final Instalment CGT Date: 31/07/2011 Task 6.4 - Investment Property Purchase Record the following Investment Property Purchase Date 04/01/2011 Reference: 65 Account New Unit 7, 270 Grange Road, Toorak Amount $179,000 Units 1 Note: Purchase 76

Task 6.1 - Managed Investment Purchase Task 6.1 - Managed Investment Purchase Objective In this task you will learn how to add a new purchase of units in a managed fund. By the end of this task, you will be able to create a new managed investment account and record a new purchase of units for the managed investment. Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click Type Bank Date New Leave this as Bank Statements and press Enter. Leave this as 604 - Cash at Bank Input 03/07/2011 and press Enter. Reference Input 62 and click the check box for Simple Fund to increment Reference numbers. Security Click Search to list the Chart of Accounts. Click to add new Investment Account. Simple Fund will highlight Shares in Listed Companies (Australia) as this is the most common investment type. Highlight Managed Investments (Australian) and click Select. 77

Task 6.1 - Managed Investment Purchase Simple Fund will then display the Securities List. Ensure the list is in ASX Code order. If the list is in Security Name order, click the column ASX Code. Find Input FSF0013. Simple Fund will highlight CFS MIF - Imputation. Click Select. 78

Task 6.1 - Managed Investment Purchase Click Save. Simple Fund will now create an asset account, income account, income receivable and profit and loss on sale accounts for this asset. Click Select. Units Amount Note Input 3 000 and press Enter. Input 10 800 and press Enter. Input Purchase Click Post or ALT + S This will post the following transactions to the Ledger. 79

Task 6.1 - Managed Investment Purchase End of Task 6.1. Proceed to Task 6.2. 80

Task 6.2 - Term Deposit Purchase Task 6.2 - Term Deposit Purchase Objective In this task you will learn how to record a term deposit purchase. By the end of this task, you will be able to: create a fixed security account record a deposit to that account Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click Type Bank New Leave this as Bank Statements and press Enter Leave this as 604 - Cash at Bank Date Input 04/07/2011 Reference Input 63 and click the check box for Simple Fund to increment Reference numbers. Security Click Search to list the Chart of Accounts. Click Select Account Name Subject to CGT? to create a new Investment Account.Simple Fund will list headings of the investment accounts in the Chart of Accounts for this Fund. Fixed Interest Securities (Australian) from the top of the list. Simple Fund will determine the next sub account code and provide default values for Cash Account, Tax Return Label, Regulatory Return Label, Investment Account and Income Type. Input ANZ Term Deposit. It is not necessary to attach this account to the securities list as this investment will never be revalued. Click this check box to remove the tick as this investment will never be subject to Capital Gains Tax. 81

Task 6.2 - Term Deposit Purchase Click Save. Simple Fund will now create an asset account, income account and profit and loss on sale accounts for this asset. Click Select. Simple Fund will put the control account and sub account numbers in the appropriate fields and move the cursor to the amount field. Units Amount Note Input 1 and press Enter Input 40 000 and press Enter Input Initial Deposit Click Post or ALT + S This will post the following transactions to the Ledger. End of Task 6.2. Proceed to Task 6.3. 82

Task 6.3 - Instalment Payments Task 6.3 - Instalment Payments Objective In this task you will learn how to input an adjustment to a cost base of an investment, By the end of this task, you will be able to record transactions using the CGT Date field to increase or reduce the cost of an investment without altering the units. Details Cost base adjustments are made for all subsequent payments for an investment where you wish to increase the cost base for the investment but have not purchased any additional units. A cost base adjustment may be required for transactions such as: instalment payments for shares; development costs or stamp duty payments for a property; cash back on shares; demergers. Simple Fund will increase (or reduce) the cost base of an original purchase by recording a CGT Date. The number of units of the original purchase must also be input for Simple Fund before a date can be saved in this field. Simple Fund uses this date for the purpose of CGT events. This CGT Date field must only be used when an additional instalment (or reduction) of the initial purchase price is made for an existing asset. When a CGT Date is input, Simple Fund ignores the number of units input in investment and other reports. The number of units is used to add or subtract the appropriate amount of the additional instalment or reduction to the cost base upon disposal. Instructions Record the following initial and final instalment payments for Telstra Shares. Initial Instalment Date: 31/07/2011 Reference: 64 Asset: ASX Code: New Account Telstra Corporation TLS Amount: $5,070 Units 2,600 83

Task 6.3 - Instalment Payments Note: Initial Instalment Final Instalment Date: 19/12/2011 Reference: 64 Asset: Telstra Corporation Amount: $3,510 Units 2,600 Note: Final Instalment CGT Date: 31/07/2011 From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click Type Bank New Leave this as Bank Statements Leave this as 604 - Cash at Bank Date Input 31/07/2011 Reference Input 64 Security Click Search to list the Chart of Accounts. Click Select to create a new Investment Account.Simple Fund will list headings of the investment accounts in the Chart of Accounts for this Fund. Shares in Listed Companies (Australian) from the top of the list. Simple Fund will determine the next sub account code and provide default values for Cash Account, Tax Return Label, Regulatory Return Label, Investment Account and Income Type. Simple Fund will then display the Securities List. Select Security Code order. Find Input TLS. This will highlight Telstra Corporation. 84

Task 6.3 - Instalment Payments Click Select. Click Save. Simple Fund will now create an asset account, income account and profit and loss on sale accounts for this asset. Click Select. Units Amount Note Input 2 600 and press Enter. Input 5 070 and press Enter. Input Initial Instalment. Click Post or ALT + S This will post the following transactions to the Ledger on 31/07/2011. 85

Task 6.3 - Instalment Payments Final Instalment Now record the final instalment, ensuring you record the CGT date to add this payment to the cost base of Telstra shares. Date Reference Account Units Amount Note Input 19/12/2011 and press Enter. Input 64 and press Enter. Press Enter three times to repeat 776 002 from the previous posting. Input 2 600 and press Enter. Input 3 510 and press Enter. Input Final Instalment and press Enter. CGT Date Click to view a of list all previous transaction for this investment account with units and no CGT dates Highlight 31/07/2011 Purchase of Colonial First State Click Post or ALT + S 86

Task 6.3 - Instalment Payments The following warning will appear: Click OK This will post the following transactions to the Ledger on 19/12/2011: The cost base for Telstra has now been increased to $8,580. Change the Transaction screen to the Summarised list to view a quick total of all account balances. End of Task 6.3. Proceed to Task 6.4. 87

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Task 6.4 - Investment Property Purchase Task 6.4 - Investment Property Purchase Objective In this task you will learn to input an investment property purchase. By the end of the task, you will be able to: create a Real Estate Property account select a depreciation method and set a depreciation rate for an account record post the transaction for a property purchase Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click New Type Leave this as Bank Statements and press Enter. Bank Leave this as 604 - Cash at Bank Date Input 04/01/2012 Reference Input 65 Security Click Search to list the Chart of Accounts. Click Investment Account. Select Click Real Estate Properties (Australian). Simple Fund will then display the Securities List. New. Any investment that is revalued must be added to this securities list. This includes unlisted securities and property. 89

Task 6.4 - Investment Property Purchase You should be under the Security Details tab. Security Code Input IP-001 and press Enter. Codes can be up to 10 characters. Security Input UNIT 7,270 GRANGE ROAD, TOORAK and press Enter twice. Security Date Click into the field and input 30/06/2012 as the date at which the price is the market value for the investment property Price Investment properties are usually revalued every three years, so when the market value of the property changes, input the new market value here and Simple Fund will revalue this property to this amount during the create entries process. Click Save and then Select. Depreciation Method Select Prime Cost. By selecting a depreciation method, Simple Fund will create a linked 334 Depreciation sub-account for this investment. Depreciation Rate Input 2.5 Rental property account? Check this box to allow preparation of a rental property income statement. 90

Task 6.4 - Investment Property Purchase Click Save then click Select Units Input 1 and press Enter Amount Input 179 000 and press Enter Press ALT + S or click Save to post this transaction. End of Lesson 6. Proceed to Lesson 7. 91

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Lesson 7 - Recording Income, Expenses and Tax Payments Objective In this lesson you will learn how to to process income and expense transactions, including contributions. By the end of the task, you will be able to: record dividends and accrued distributions process a dividend revinvestment record employer and member contributions identify which account to use to record income tax payments process an under/over provision of tax record the payment of the current year tax instalment Learning Tasks Task 7.1 - Recording Dividends Record the following Dividend for the Jones Family Superannuation Fund. Date 29/04/2012 Reference 71 Account 239 002 - Telstra Corporation Amount $286.00 Imputed Credit: $122.57 Task 7.2 - Recording Accrued Distributions Record the following journals to accrue income for accounting and taxation purposes. This distribution will not be received in cash until the following financial year. 30/06/2012 618/001 Distributions Receivable (new) Debit $5,000 30/06/2012 238/001 Colonial Distribution Credit $5,000 The Distributions Components for Colonial First State Imputation Fund are as follows: Date: 30/06/2012 Reference 72 Account: 238/001 Colonial Imputation Fund Amount $5,000 Imputed Credit $428.57 93

Lesson 7 - Recording Income, Expenses and Tax Payments Tax free amount $600 Tax deferred amount $500 Foreign Income $200 Foreign Tax Credits $50 CGT Indexed $420 CGT Discount $900 (gross amount before discount is applied) Task 7.3 - Dividend Reinvestments Record the following Dividend Reinvestment for the Jones Family Superannuation Fund. Date: 19/05/2012 Reference 73 Account: 776 001 - BHP Billiton Limited Amount: $190.00 New Units 19 Imputed Credit: $81.43 Task 7.4 - Recording Contributions Record the following Employer and Member Contributions for the Jones Family Superannuation Fund. Date: 08/07/2011 Reference 74 Account: 242 001 Employer/Concessional Contribution - John Jones Amount: $8,000 Date: 09/07/2011 Reference 74 Account: 261 002 Personal Contribution / Non-concessional (undeducted) - Mary Jones Amount: $10,000 Task 7.5 - Recording Tax Payments Record the following tax instalment for the 2011 year: Date 12/10/2011 Reference 81 Account 850/004 Tax Instalments Paid Amount $600 Note 2011 Tax Instalment (Sept IAS) 94

Task 7.1 - Recording Dividends Task 7.1 - Recording Dividends Objective In this task you will learn how to record dividends received in cash. By the end of this task, you will be able to: identify which account should be used to record dividends received record the amount of franked dividend and imputed credits Instructions To complete this task you need to record the following dividends received. Date 29/04/2012 Reference 71 Account 239 002 - Telstra Corporation Amount $286.00 Franked $286.00 Imputed Credit: $122.57 From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click New Type Bank Date Reference Account Input R to select Receipts. Leave this as 604 - Cash at Bank Input 29/04/2012 and press Enter. Input 71 and press Enter. Input 239 and hit spacebar on your keyboard. This will display a list of subaccounts for the control account for dividends (Shares in Listed Companies) in the fund. Select Telstra. 95

Task 7.1 - Recording Dividends Amount: Input 286 and press Enter twice. Franked Div Input 286 and press Enter. The Imputed Credit will display 122.57. Click Post or ALT + S Click Exit or press ALT + X to exit the data input screen. End of Task 7.1. Proceed to Task 7.2. 96

Task 7.2 - Recording Accrued Distributions Task 7.2 - Recording Accrued Distributions Objective In this task you will learn how to record income that has accrued but not yet received for an investment. By the end of this task, you will be able to: record accrued distribution enter distribution components into the correct tax fields in the transaction screen reverse the accrued income when the cash amount for the distribution is received in the next financial year Details To complete this task, you need to record the following distribution details. However there is no bank entry for this transaction. The journals for this accrued income will be recorded as follows. 30/06/2012 618/001 Contributions Receivable (new) Debit $5,000 30/06/2012 238/001 Colonial Distribution Credit $5,000 Below is the distribution statement received from Colonial First State. This statement can also be viewed from?:sfund\datain 97

The following information from the above Distribution Statement would be posted into Simple Fund: Date 30 June 2012 Security Colonial First State Imputation Fund Reference 72 Amount $, 00 Imputed Credit $428.57 Tax free amount $600 98

Task 7.2 - Recording Accrued Distributions Tax deferred amount $500 Foreign Income $200 Foreign Tax Credits $50 CGT Indexed $420 CGT Discount $900 Simple Fund requires users to input the full grossed up discounted capital gain (i.e. Taxable and Non Taxable). Simple Fund requires the grossed up discounted amount to be input for two reasons. Firstly it allows for all possible types of distribution statements to be entered. Terminology for reporting capital gains vary between investment managers and statements often display the eligible discount from an individual taxpayers perspective rather than a superannuation Fund. Secondly it enables the Create Entries process to calculate the tax deferred effect of the discounted capital gain so that when the unit trust investment is eventually disposed of, the tax deferred component (i.e. 1/3 of Gross Discounted Gain) will reduce the cost base of the investment. Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click New Type Select Journals - Non Cash. Input 618 001 and press Enter 99

Task 7.2 - Recording Accrued Distributions Balancing Account Input 618 001 and press Enter Date Input 30/06/2012 or press Enter Reference Input 72 and press Enter Account Input 238 001 or click the Chart of Accounts to find the distribution account for Colonial First State and click Select. Amount Input - 00 and press Enter. This figure is negative as it is a CREDIT entry. Note Input ACCRUED DISTRIBUTION and press Enter three times. Imputed Credits Input 428.57 and press Enter. Tax Free Input 600 and press Enter twice Tax Deferred Input 500 and press Enter three times. Foreign Income Input 200 and press Enter Foreign Tax Credits Input 50 and press Enter twice. Indexed Gains Input 420 and press Enter Discounted Gains Input 900 and press Enter 100

Before saving the transaction, we can attach the Distribution statement that was received to this transaction. To attach the document: Click File within the transaction screen Browse to?:sfund\datain Select Annual tax summary Click The document will now be attached to this transaction. To preview the supporting document click on Preview within the transaction screen or after you have saved the transaction, click on the reference number which will have a hyperlink. Clicking on the hyperlink will automatically open the document. 101

Task 7.2 - Recording Accrued Distributions Click Post or press ALT + S to save this transaction. Reversing the accrued Income when it is received. When the cash amount for the distribution is received during the 2012 year, the Distributions Receivable must be reversed as follows: Debit 604 - Cash at Bank Credit 618/001 - Distributions Receivable - Colonial Imputation Fund This would normally be recorded as a Cash Receipt or Bank Statement journal to 618/001 as follows: 102

Task 7.2 - Recording Accrued Distributions End of Task 7.2. Proceed to Task 7.3. 103

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Task 7.3 - Dividend Reinvestment Task 7.3 - Dividend Reinvestment Objective In this task you will learn how to record units issued under a dividend reinvestment plan. By the end of this task, you will be able to: record a distribution reinvestment identify the various components of a dividend reinvestment plan statement Details John and Mary Jones applied to participate in the BHP Billiton Limited dividend reinvestment plan. The dividend reinvestment statement paid on the 19/05/2012 must be recorded for the Jones Family Superannuation Fund for the year-ended 30 June 2012. Date: 19/05/2012 Reference 73 Account: 776 001 - BHP Billiton Limited Amount: $190.00 New Number of Units 45 Imputed Credit: $81.43 Jones Family Superannuation Fund 12 Market Street, South Melbourne, Vic 3205 SRN: X005550006663 Date Paid: 16/04/2012 Record Date: 11/04/2012 DIVIDEND REINVESTMENT PLAN (DRP) STATEMENT Fully Franked Final Dividend for the year-ended 30 June 2012 Class C imputed Credit at 30% Tax Rate Dividend Rate No. of Shares participating in the DRP at record date Unfranked Franked Imputed Credit 105

Task 7.3 - Dividend Reinvestment Dividend Rate No. of Shares participating in the DRP at record date Unfranked Franked Imputed Credit $0.50 2000 $190.00 $81.43 Dividend amount available for reinvestment $190.00 The dividend amount shown above has been applied to the issue of 45* shares at a price of $4.23 each. * Where the calculation of your entitlement resulted in a fraction of a share, your allocation has been rounded up to the next whole share. Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click New Type Input D to select Dividend Reinvestment Date Input 19/05/2012 and press Enter. Reference Input 73 and press Enter. Account Input 776 001 or click the Chart of Accounts to find BHP Billiton Limited and click Select. Units Input 45 and press Enter. Amount Input 190 Franked Div Input 190 and press Enter. The imputed credit will display as 81.43. 106

Task 7.3 - Dividend Reinvestment Click Postor ALT + S to save this transaction. Click Exit or press ALT + X to exit the data input screen Simple Fund has recorded the following non-cash Journals on 19/05/2012. Refer to Article 381 for more information about recording dividend residuals. End of Task 7.3. Proceed to Task 7.4. 107

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Task 7.4 - Recording Contributions Task 7.4 - Recording Contributions Objective In this task you will learn how to record contributions made to a fund by employers and members. By the end of this task, you will be able to: record concession employer contributions record non-concessional (undeducted) member/personal contributions Details To complete this task you need to add these receipt transactions for the following contributions: Date: 08/07/2011 Reference 74 Account: 242 001 Employer/Concessional Contribution - John Jones Amount: $8,000 Date: 09/07/2011 Reference 74 Account: 261 002 Personal Contribution / Non-concessional (undeducted) - Mary Jones Amount: $10,000 Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Transaction 1 Click New Type Input R to select Receipts. 109

Task 7.4 - Recording Contributions Date Reference Input 08/07/2011 and press Enter. Input 74 and press Enter. Account Input 242 001 Amount: Note Input 8000 and press Enter. Input Contribution. Click Post or press ALT + S to save this transaction Simple Fund will then automatically post the debit for the receipt transactions to the bank account Transaction 2 Type Leave this as Receipts. Date Press Enter to pre-fill 09/07/2011. Reference Press Enter to pre-fill 74. Account Input 261 002 Amount: Input 10000 and press Enter. 110

Task 7.4 - Recording Contributions Click Post or press ALT + S to save this transaction. Simple Fund will then automatically post the debit for the receipt transactions to the bank account. Click Exit twice or press ALT + X to exit the data input screen. End of Task 7.4. Proceed to Task 7.5. 111

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Task 7.5 - Tax Instalments Paid Task 7.5 - Tax Instalments Paid Objective In this task you will learn how to record income tax payments. By the end of this task, you will be able to: identify which accounts to use when recording payments and instalments of tax record current year instalments record prior year tax adjustments if there is an under/over provision of tax Overview Simple Fund has an Income Tax Payable Account 850. This account is used when recording tax payments to the ATO. The two accounts you will use are: 850/001 - Income Tax Payable 850/004 - Tax Instalments Paid These tax accounts should be used with care, as incorrect postings can cause errors on your Financial Statements. The profit and loss account 485 - Income Tax Expense should not be posted to as this is used by the Create Entries process only. Recording Payments of Current Tax Liability 850/001 Income Tax Payable is used to record payments of tax which are an existing liability of the Fund. This would be used when recording payments of the prior year tax. Recording Current Year Instalments 850/004 Tax Instalments Paid is used when paying current year instalments, such as on the Instalment Activity Statement each quarter. The balance of the Tax Instalments Paid account at year end is transferred to the tax return screen at Label G - PAYG Instalments raised when the Create Entries process is performed. Prior Year Tax Adjustments The ATO's calculation of Tax Payable may not be exactly the same as what was calculated when the financial statements were prepared. Any difference can be adjusted against the 486 Prior Years Under/Over Provision for Income Tax account. Example The Tax Payable for 2011 was calculated by the Accountant as $5290. The ATO have sent the Tax Assessment to the Trustee's and the amount payable is $5200. The following journals would need to be recorded to adjust the Tax Payable by $90 before the 2012 financial reports are prepared. 113

Task 7.5 - Tax Instalments Paid 30/06/2012 850/001 Tax Payable Debit $90 30/06/2012 486 Prior Year Under/Over Credit $90 Refer to Task 5.2 of the Simple Fund Advanced Training Manual for more information. Details Record the following tax instalment for the 2011 year: Date 12 October 2011 Reference 75 Account 850/004 Tax Instalments Paid Amount $600 Note 2011 Instalment (Sept IAS) Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Click Type Date Reference New Input P to select Payments. Input 12/10/2011 and press Enter. Input 75 and press Enter. Account Input 850 004 Amount Note Input 600 and press Enter. Input 2011 INSTALMENT (SEPT IAS). 114

Task 7.5 - Tax Instalments Paid Click Post or ALT + S to save this transaction. The following transactions have been posted to the ledger: The 850/004 Tax Instalments Paid Account is used to record current year tax payments. The balance of this account at year end is transferred to the SMSF Annual Return at Label G - PAYG Instalments raised when the Create Entries process is performed. End of Lesson 7. Proceed to Lesson 8. 115

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Lesson 8 - Recording Disposals Objective In this lesson you will learn how to process investment disposals. By the end of this lesson you will be able to identify the different disposal methods that Simple Fund uses process a disposal of an investment through the disposal screen generate and review disposal reports Details Capital Gains Tax Calculation Methods The Disposals report will calculate the capital gain or loss under: Indexation Method 1/3 Discount Method Other Method (held less than 12 months, fully taxable) Simple Fund will automatically select the disposal method that creates the smaller taxable capital gain or larger capital loss. Indexation Method This method is only available for investments purchased prior to 19 September 1999. Simple Fund will calculate a CGT Cost base, which adjusts the actual cost base for movements in the CPI since it was purchased, until 30/06/1999. Discounted Method For taxation purposes, a 1/3 discount is given on the actual capital gain. This method is used where investments are held for more than twelve months, and purchased after 19 September 1999. Assets purchased prior to 19 September 1999 can also apply this 1/3 discount method. Changing Methods after Posting A disposal posted to the ledger is allocated a particular disposal method. If you wish to change the method of disposal after it has been posted, you can delete the disposal and re-post it, using the correct method. Alternatively, when creating year-end entries, you can use the CGT Optimiser to adjust your disposal methods to get the optimum (least) capital gains result for taxation purposes. GST Registered Funds Before processing the disposal you need to ensure you have made the necessary GST brokerage adjustments. Please read the latest White Papers: GST and Brokerage on the Purchase and GST and Brokerage on the Disposal for further Information. 117

Lesson 8 - Recording Disposals Proceeds of Disposals Clearing Account 491 When posting disposals to the General Ledger, Simple Fund will record the consideration received to the 491 Clearing Account. Therefore when posting Bank Statements or Receipts of disposal proceeds, these must be recorded to the 491 Clearing Account and not to the Investment Account. Learning Tasks Task 8.1 - Recording Disposals Record the following disposal of Telstra Shares. Date 26/06/2012 Consideration $3,900 Account 776/002 Telstra Corporation Units Sold 1000 118

Task 8.1 - Investment Disposal Task 8.1 - Investment Disposal Objective In this task you will learn how to process an investment disposal. By the end of this task, you will be able to: use the disposal screen to process a disposal with cgt dates generate a disposal report view previous disposal reports Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Transactions Step 1 - Record the Proceeds Received into the Bank Click New Type Date Reference Account Amount Note Input R to select Receipts. Input 26/06/2012 and press Enter. Input 81 and press Enter. Input 491 and press Enter. Input 3 900 and press Enter. Input SOLD 1000 TELSTRA. 119

Task 8.1 - Investment Disposal Click Post or press ALT + S to save this transaction Simple Fund will then automatically post the debit for the receipt transactions to the bank account Step 2- Processing the disposal From the Ribbon Toolbar: On the Fund Data Input tab, in the Processing group, click Disposals Date Sold Click Search or press ALT + O, to select the Date Sold and Consideration from entries posted to the 491 Disposal of Investments Proceeds Account Click Select Asset Sold Input 776 002 for Telstra Corporation and press Enter. Click the Sold field on the first instalment. Input 1000 Repeat this for the second instalment. 120

Task 8.1 - Investment Disposal Click Preview to prepare a Profit/Loss on Disposal Report. This report details the profit/loss on disposal of the investment, including the taxable and non taxable portions and the disposal method used. It shows the journals that Simple Fund will post to record this disposal as follows: Account Units Debit Credit Disposal Proceeds Account 491 $ 3900 Telstra Corporation 776/002-1000 $ 3300 Capital Gains (Taxable) 235/004 $ 600 Click Close to close this preview screen. Click Print to print the disposal report. Simple Fund will save a PDF copy of the disposal report. Click Post Simple Fund will display the following message: 121

Task 8.1 - Investment Disposal Click Yes to this warning. To Review the Disposal Report From the Disposals screen: Click Disposal Reports From here you can preview or print past disposals reports through Adobe Acrobat Reader. Click Exit. End of Lesson 8. Proceed to Lesson 9. 122

Lesson 9 - Year End Processing Objective In this lesson you will learn more about the create entries process. By the end of this lesson, you will be able to: update your security prices understand the calculations the create entries process performs prepare and generate year end financial and investment reports generate the year end trial balance Details Simple Fund creates all the year end entries for your superannuation funds. Simple Fund provides a number of settings on the Fund Details screen. These settings determine things such as whether the Fund will adopt tax effect accounting, whether imputed, foreign and Tax File Number credits are added to income accounts or treated as tax only entries. The Create Entries Process The Create Entries process will complete the following tasks for the Create Entries period: 1. Add Imputed Credits, Foreign Credits and TFN Credits to income accounts 2. Revaluation of Assets to market value 3. Calculate and post GST related credits * 4. Write back excess foreign credits and refund imputed credits 5. Calculate and post tax entries and pre fill the Income Tax Return and Schedules 6. Calculate Net Capital Gain and any capital losses adjustment 7. Calculate Capital Losses and Tax Losses to be recouped 8. Calculate the income tax payable and deferred tax 9. Allocate specific income and expenses directly attributable to members 10. Calculate the members share of profit/(loss) and allocate this remaining income/loss to members 11. Calculate the amounts and transfer details to the APRA or Regulatory Return depending on the Fund Type Selected 12. Record contributed amounts into the Member Contribution Statements 13. Compile all GST related figures for GST Transaction report and BAS Form * the GST registered option must be selected in Fund Details screen for Simple Fund to print this additional information. 123

Lesson 9 - Year End Processing The Create Entries Report Simple Fund will also prepare the Create Entries Report which details each of the above transactions posted by the Create entries process. This report is a must for the fund auditors as the Create Entries Report details: Asset revaluation amounts Calculations of permanent differences on revaluation Calculations of timing differences Calculations of permanent differences Calculations of Exempt Pension Income Reconciliation of Capital Gains/Losses Adjustments A summary of tax entries Asset income allocation to members Calculation of the crediting rate for income allocated to members accounts Calculate and Post GST related credits * The Create Entries process calculates the fund rate of return. This is calculated by taking the fund profit after income tax for the period, and dividing this by the weighted average fund balance during the period. This rate is shown as a percentage. The items included in the Rate of Return can be selected from Fund Details Rates of Return. *the GST registered option must be selected in Fund Details screen for Simple Fund to print these additional details. The Create Entries calculations 1. Add Imputed Credits, Foreign Credits, TFN Credits & GST Credits to the relevant accounts Imputed Credits The imputed credits received on dividends (If "Add imputed credits" is Selected in Fund Details) are added (credited) to the appropriate Dividends Received account for each investment. The total imputed credits received are then offset against Income Tax Payable by being debited to account 850/002. Foreign Credits The foreign credits received by the fund (If "Add foreign credits" is Selected in Fund Details) are added (credited) to the appropriate income account for each investment. The total foreign credits received are then offset against Income Tax Payable by being debited to account 850/003. Excess foreign credits will be carried forward for five years. TFN Credits The Tax File Number credits received by the fund (If "Add TFN credits" is Selected in Fund Details) are added (credited) to the appropriate income account for each investment. The total TFN credits received are then offset against Income Tax Payable by being debited to account 850/005. 2. Revalue investments to market values Simple Fund will calculate the market value of each investment which is attached to a security on the Securities List. Simple Fund will debit or credit account 247 in the Profit and Loss Statement and the investment account with the difference between the carrying value of the investment and the market value. 124

Lesson 9 - Year End Processing Simple Fund will also calculate the part of the revaluation that creates a permanent difference for taxation purposes. This permanent difference results from indexation or a non taxable capital profit included in the revaluation amount for an asset. Prior to 30 September 1999, Simple Fund calculated a permanent difference where the market value of an investment is greater than the indexed value of the investment. The amount included was the difference between the indexed value of the asset and the cost of the asset. Note:On the 30th September 1999, as a result of the changes to Capital Gains Tax Legislation, the calculation method changed. If an investment was purchased after this date, the permanent difference amount is now calculated using the lower of the frozen CGT Cost Base (indexed to September 1999) or the Discounted Method. 3. Calculate and post GST related amounts to the ledger For GST registered funds, Simple Fund will now process the transactions of the fund and calculate the amounts of GST charged by the fund or paid by the fund. The GST Amount is deducted from the appropriate income/expense or asset accounts. The total GST payable/refundable is then posted to account 840. When 100% of the GST cannot be claimed, Simple Fund calculates the appropriate amount and shows the full amount with the account description on the Create Entries Report. 4. Write back excess foreign credits and refund excess imputed credits Simple Fund will now calculate the amount of any excess imputed credits or foreign credits written back. The imputation credits will be offset against the total taxation liability of the fund and any excess imputation credits will show as a refund. A full franking credit is available in respect of the entire franked portion of the dividend regardless of the fact that portion of the dividend may be exempt from tax where a liability to pay pensions exists during the year. (s160aqu(2)(a)). Foreign Credits will be written back when the Foreign tax paid (i.e. Foreign tax Credit or foreign with-holding tax paid) exceeds the Australian tax payable on the dividend, interest and other income received from foreign sources. Excess foreign tax credits are recorded and will be carried forward to the next financial year. If a prior year carried forward amount does not automatically appear in the Create Entries screen, input the appropriate amount before processing the create entries. 5. Calculate and transfer details to the Income Tax Return Simple Fund will now process the transactions of the fund and calculate the amounts for the ATO Form F Return. This form is approved for lodgement to the ATO for both paper or electronic (ELS) format. Simple Fund pre-fills the return with the appropriate data during the Create Entries process. ATO Schedules Simple Fund will automatically calculate the necessary information from the ledger and prepare the required schedules as part of the Create Entries process. The schedules will automatically print when they meet the requirements set out by the ATO. To print the schedules even when the ATO requirements are not met, click the checkbox Schedules in the Financial Reports screen. You can then preview or print any schedules containing data, which make useful reconciliations and working papers. The schedules will only be lodged with the electronic tax return when they meet the requirements set out by the ATO. The data required for the new schedules can be accessed through the following buttons added to the top of the Tax Return screen: Capital Gains Schedule 125

Lesson 9 - Year End Processing Depreciation Schedule Losses Schedule Thin Capitalisation Schedule Schedule 25A These schedule screens allow you to change the data calculated by the Create Entries process. If any data is changed or additional data input into these schedules, upon saving, Simple Fund will update the main tax return data with the required changes and inform the user of what has been updated. You will find you are unable to input data in the Net Capital Gains, Depreciation, Tax Losses and Capital Losses carried forward and Depreciable assets fields on the main tax return data screen. These fields can only be updated by changing the data in the supporting schedule. 6. Adjust prior year and current year capital losses As part of the taxable income calculation, Simple Fund will calculate the amount of Net Capital Gains for the current year and Carried Forward Capital Losses. This calculation first allocates losses against Frozen CGT Gains and then against other 2/3 Method Gains. The calculation is in line with the ATO guidelines that can be found on their Internet site. The total Net Capital Gain is displayed on the Create entries report. 7. Calculate Capital Losses and Tax Losses to be recouped If the fund has carried forward tax losses, input the amount of Prior Year Tax Losses Carried Forward. If the previous years Income Tax Return was prepared with Simple Fund, the amount shown in this return will be shown automatically. Simple Fund will automatically recoup prior year tax losses and carry forward any excess losses as part of the Create Entries process. If the fund has carried forward capital losses, input the amount of Prior Year Capital Losses Carried Forward. If the previous years Income Tax Return was prepared with Simple Fund, the amount shown in this return will be shown automatically. Simple Fund will automatically recoup prior year capital losses and carry forward any excess capital losses as part of the Create Entries process. Note: The Simple Fund Create Entries process does not automatically calculate the tax effect on Income Tax Losses. If you would like to include an amount for tax losses in the Future Income Tax Benefit account, click the Include Tax Losses in Future Income Tax Benefit check box, both when originally recording the tax loss and also when recouping the tax loss. 8. Calculate the income tax payable and deferred tax amounts Simple Fund will calculate the taxable income of the fund taking into account taxable and non-taxable items and post the appropriate tax expense entries. Simple Fund provides the details for these tax expense journals posted as well as providing an overall tax summary in the Create Entries report. Account 485 will be debited with the Income Tax Expense, Account 870 with the amount of Deferred Income Tax and Account 850/001 with the amount of Income Tax Payable. The amounts posted to 850/001 Income Tax Payable and 850/002 Imputed Credits, 850/003 Foreign Credits and 850/005 TFN Credits are offset in the Financial Statements. The Statement of Taxable Income provides a reconciliation of current year tax liabilities, and the Deferred Tax Reconciliation Report provides a reconciliation of movements in deferred tax liabilities for the year. 126

Lesson 9 - Year End Processing Tax Effect Accounting: Simple Fund gives users the option (through Fund Details) to adjust the change in the Provision for Deferred Income Tax (PDIT) by the amount of Capital Gains Tax indexation that relates to asset revaluation. This amount is treated as a Permanent Difference. Simple Fund will only calculate this amount correctly if this option has always been selected when year end entries have been created and when the total indexed amount has previously been included in the opening balance of the 870 PDIT Account. That is, your previous system of reporting must have been capable of recording tax effect accounting journals. If this is not the case you can either turn tax effect accounting options off in the Fund Details screen or make an adjustment for this difference by manually calculating the Provision for Deferred Income Tax at time of the first Create Entries period in Simple Fund. Record the journal against account 486 - Prior Year Under/Over Provision for Tax and 870 Provision for Deferred Income Tax. The following over and/or under provisions for tax accounts can be used to make any manual adjustment to your provision for deferred income tax and or Income tax payable. 486 Prior Years Under/Over Provision for Income Tax 493 Write back of Provision for Deferred Income Tax/Future Income Tax Benefit Amounts posted to those accounts are also allocated to the members on the same basis as other tax entries. 9. Allocate specific amounts to members accounts including pension amounts Simple Fund will allocate amounts that can be directly attributed to an individual's members account. The amounts allocated are: Income from assets allocated to the member Income from allocated pension assets Employer and member Contributions Proceeds of Life Policies and life insurance premiums paid Transfers in and transfers out from/to other funds Benefits paid and pensions paid Unallocated Contributions Member Expenses and Management Fees Superannuation Surcharge Amounts paid The tax applicable to each of these items is also posted to the contributions tax or profits tax account. 10. Calculate and allocate the remaining member share of the results of operations After the allocation of specific amounts to members accounts, Simple Fund will then allocate the remaining balance of profit/(loss) and income tax to members accounts on a pro-rata basis based on the members daily account balance. Over and/or under provisions for tax are also allocated. Simple Fund uses the Profit/Loss Allocation Account (490) as a clearing account for the profit/loss for the period and the Income Tax Expense account (485) as a clearing account for the income tax expense (not to be confused with income tax payable). 11. Calculate the amounts for the Regulatory Return or APRA Return After all entries have been posted, Simple Fund calculates the amounts required for either the second part of the Income Tax and regulatory Return or the APRA (formerly ISC) Annual Return for the fund. Most 127

Lesson 9 - Year End Processing amounts are calculated by Simple Fund during the Create Entries process. Users can input any additional amounts in the appropriate field. For a full explanation of the data required for the regulatory return, click to review the ATO's Income Tax & Regulatory Return Instructions. 12. Record contributed amounts into the Member Contribution Statements Simple Fund generates the amounts to be included in these forms from your transaction recorded to the contribution and Transfer In/Out accounts in the general ledger. The forms prepared are: Supplier/Provider Data Member Contribution Statement (MCS) Form ES The surcharge is only payable on contributions made during the current financial year. Amounts transferred into funds should not be included unless the amount transferred in includes contributions made during the current financial year and only this part of the transfer in should be included. The same applies to transfers from funds. The amount included for transfers out should only include contributions made during the current financial year. Refer to Task 8.2 of the Simple Fund Advanced Training Manual for instructions on preparing Member Contribution Statements. 13. Calculate the amounts for the BAS Simple Fund generates the amounts to be included in the Business Activity Statement which is approved for ELS lodgement. Simple Fund will compile all GST related figures from the GST Transactions input in the report and BAS Form. The BAS/IAS can be edited by clicking BAS/IAS on the Create Entries Screen. Users can input any additional amounts including the DOC ID Number in the appropriate fields. You can access BAS and IAS Statement Instructions by clicking ATO Instructions. The GST charged by the fund or paid by the fund is also detailed in the GST transaction report located in the Ledger Reports screen. GST transaction report details the total amounts that appear on the BAS and shows the full details of GST amounts within each of the GST categories. CGT Optimiser The CGT Optimiser may be relevant to your fund where you have capital gains for assets purchased prior to September 1999 and capital losses that may be applied. Opimising may adjust any assets sold using the discounted method to the indexation method to better utilise capital losses. Click CGT Optimiser from the Create Entries screen to access this feature. Simple Fund can Create Entries for the entire reporting period (1st July to 30 June) or for a part of the period. Entries are created for a part period when a member leaves a fund during the year or if the fund prepares interim financial statements. The Create Entries period is determined by the dates input on the Create Entries data input screen. These date are drawn from the current period in the Fund Details, Reporting screen. Simple Fund retains create entries period end date to ensure that entries are not created more than once for a specific period. Simple Fund does not retain tax entries made by the create entries process during the year. At year end, all prior tax entries are deleted and new entries created based on the final years tax results. 128

Lesson 9 - Year End Processing Reversing Entries Simple Fund also provides a Reverse Entries option. The made by the create entries process. option deletes all entries and are found on the Financial Reports screen. Learning Tasks Task 9.1 - Updating Security Prices Prior to creating entries, you must update security prices for the period end market values. Task 9.2 - Creating Year End Entries Create year end entries for 1st July 2011 to 30th June 2012. Task 9.3 - Prepare Financial and Investment Reports Prepare year end financial and investment reports. Task 9.4 - Prepare a Year End Trial Balance Prepare a Trial Balance from the Ledger Reports screen. 129

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Task 9.1 - Updating Security Prices Task 9.1 - Updating Security Prices Objective In this task you will learn how to update security prices so investments can be correctly revalued during the Create Entries process. By end of this task, you will be able to update your security prices manually and be familiar with the various methods available to upload security pries in Simple Fund. Details The Simple Fund securities list is used by the Create Entries process to revalue investments and also by the Investment Reports to display current market values at particular reporting dates. Prices can be loaded automatically into this list from a data file purchased from BGL or can be entered manually. For details on loading prices from BGL Client Services ASX Data Feed, refer to Task 5.2 of the Simple Fund Introduction Training Manual. You can get a quote for the BGL ASX Data Feed from the BGL Client Centre. Select Your Subscriptions, Purchases and Upgrades and Subscribe to BGL Client Services ASX Data Feed. Update the securities list to record the 30 June 2012 market values for the investments held in the Jones Family Superannuation Fund as follows: Security Security Code Market Value BHP Billiton Limited BHP $30.00 CFS MIF Imputation FSF0013AU $2.7473 Unit 7, 270 Grange Road, Toorak IP-001 $400,000 Telstra Corporation TLS $3.69 Instructions From the Ribbon Toolbar: On the Global Listings tab, click Securities. Show Change All Securities to Fund Securities. Only the securities used in this Fund's Chart of Accounts will display. 131

Task 9.1 - Updating Security Prices Highlight BHP and click Edit. You should be in the Security Details tab. Check if you have the price for 30/06/2012 on the list. Click New to add the security price for 30/06/2012 if it is not on the list. Input the Security Date and Price. Click Save Repeat the above step until you have all the 30/06/2012 prices for this fund. Repeat these steps to record prices for the remaining investments in this fund. Refer to Article 279 for more information on how to upload security prices using the BGL ASX Data Feed. End of Task 9.1. Proceed to Task 9.2. 132

Task 9.2 - Create Year End Entries Task 9.2 - Create Year End Entries Objective In this task you will learn how to create year-end entries. By the of this task, you will be able to: create year end entries identify journals recorded by the create entries process understand how Simple Fund calculates and allocates profit, tax and members' balances Details Create Entries for the accounting period 1st July 2011 to 30th June 2012 and prepare the Create Entries Report. Instructions From the Ribbon Toolbar: On the Reports and Documents tab, in the Fund Reporting group, click Financial Reports Click Period: From Leave this as 01/07/2011 Period: To Leave this as 30/06/2012 Leave Allocate net income to Preserved Balances BGL automatically selects this box when creating entries for any period from 1st July 1999 onwards. Since 1 July 1999 all contribution and income amounts are required to be allocated to preserved balances. Leave Reduce members balance used for profit/loss allocations by allocated assets. This avoids negative profit allocations for Funds where assets are segregated between members. Leave Allocate Income Tax Expense to Pension Members. If selected, Simple Fund will allocate Income Tax Expense to pension members, otherwise, it will be allocated normally to accumulation members only Leave 133

Task 9.2 - Create Year End Entries Leave Display Member Allocation Worksheet. This will display a Member Allocation Worksheet during the create entries process where profit and tax allocations to members can be changed. Click Run Security Prices check to ensure Simple Fund does a check if a security attached to an investment has a zero price, or if the security price date is different from the Create Entries date. Click Prepare "Create Entries" report. Click Prepare PDF file of the "Create Entries" report. This will create an electronic PDF copy of the Create Entries report. Click Simple Fund will now check for obvious errors in your data processing that might affect the Create Entries process. Possible errors will display as follows. These errors should be investigated and amended before creating entries. This Create Entries Report shows details of permanent and timing differences used by Simple Fund to calculate tax entries and provisions. It also shows the basis of allocating profits/losses to members. This is an important audit trail for your Fund. Click Print on the Create Entries Report preview screen to print this report. End of Task 9.2. Proceed to Task 9.3 134

Task 9.3 - Preparing Financial and Investment Reports Objective Task 9.3 - Preparing Financial and Investment Reports To teach you how to change the reporting options for Financial Reports and Investment Reports. The reporting options can be altered for each Fund before printing the Financial Statements: Customise the financial statements for the Jones Family Superannuation Fund. Then print the required reports for this Fund. Instructions From the Ribbon Toolbar: On the Reports and Documents tab, in the Fund Reporting group, click on Financial Reports. Click Clear if you wish to clear the number of copies selected to print. The copies will now change from 1 to 0. Input 1 as the number of copies in the box to the right of the preview button for the documents you wish to print. Step 1 - View Reporting Options from the right hand side of the Financial Reports screen Select the following option by clicking the relevant check box on the top right of the Financial Reports screen Rounded Comparatives Period comp Date Docs Click this check box to prepare rounded (cents rounded up to nearest dollar) financial statements. Do not click this check box to show comparative amounts as this is the first year of the fund.. If preparing reports for a full financial year the comparative figures shown will be the last financial year. If preparing quarterly reports (i.e. March 2012 quarter) Simple Fund will display the same quarterly data for last year (i.e. March 2011 quarter). When selected, this period comparative check box enables quarterly and monthly comparative periods on the P&L, Balance Sheet, Notes and Cash Flow Statements. Click this check box if you wish Simple Fund to print the date on the Trustees' Declaration, Audit Report and Trustees' Meeting Minute/Resolution. If you choose not to date documents Simple Fund will print " / / " in date fields. Reporting Entity Do not click this check box as the fund is not considered a reporting entity and does not adopt accounting standard AAS25 - Financial Reporting by 135

Task 9.3 - Preparing Financial and Investment Reports Superannuation Plans. Unchecked, Simple Fund will assume the fund is a Non reporting Entity and will print a simplified Profit and Loss Statement and automatically select the non reporting entity notes from the standard text paragraphs. Reports Footer Click this box to print the "accompanying notes" footer on financial statements. APES315 Footer ASX Order Draft Copy Click this box to print "refer to compilation report" footer on financial statements. Click this box to sort Investment Reports by ASX code order. Click this box to print "Draft Copy" on financial reports. Step 2 - View Financial Reports options Click the Financial Reports tab. Select the documents you wish to print by inputting the number of copies you require. Step 3 - View Returns options Click the Returns tab. Select the documents you wish to print by inputting the number of copies you require. Click Electronic Lodgement if you wish to prepare an electronic Self Managed Superannuation Fund Annual Return (or Income Tax and Regulatory Return for financial years prior to 2008) before previewing or printing them. Simple Fund will perform a validation test of the data entered and list any errors found on the Annual Return/Tax Return before it allows the Annual Return/Tax Return to be printed. 136

Task 9.3 - Preparing Financial and Investment Reports Step 4 - View Member Reports Click the Member Reports tab. Select the Member Reports you wish to print by inputting the number of copies you require. Step 5 - View Investment Reports Click the Investment Reports tab. Select the Investment Reports you wish to print by inputting the number of copies you require. 137

Task 9.3 - Preparing Financial and Investment Reports Step 6 - View Signatories Click the Signatory(s) tab. Simple Fund requires the signatories for the Trustees Statement and Members Statement to be selected. Signatory 1 Position Signatory 2 Position Leave this as John Jones. Click Trustee Leave this as Mary Jones Click Trustee Step 7 - Prepare the Audit Report Click Assume that the auditor adopts the standard audit report with no qualifications. 138

Task 9.3 - Preparing Financial and Investment Reports Report Type Report Source Report Date Audit Firm Rep Leave this as ATO Non Reporting Entity. Click System Text to display the standard Audit report Leave this as Today's Date Leave this as Sam King. Click Save. Click on Financial Reports and preview the Audit Report to view the saved data. 139

Task 9.3 - Preparing Financial and Investment Reports The * besides the report name indicates a change has been added to the report or data has been prefilled. Step 8 - Prepare the Trustee Minute/Resolution Data Click Confirm the items to appear in the trustee's annual meeting minute or resolution. The top half of the screen contains details of where the annual trustee's meeting will be held and the date. The second half of the screen lets you determine which text paragraphs will be included. Click Resolution 140

Task 9.3 - Preparing Financial and Investment Reports You can add additional text paragraphs to Trustee Minutes by creating text paragraphs AUTO01-04 and AUTO05-09. Refer to the Simple Fund Advanced Training Manual for instructions on how to create text paragraphs. Click Save to return to the Financial Reports screen. Click on Member Reports and preview the Trustee Minute/Resolution to view the saved data. 141

Task 9.3 - Preparing Financial and Investment Reports The * besides the report name indicates a change has been added to the report or data has been prefilled. Step 9 - Review Pages/Notes Click Define individual page numbers and select which paragraphs to include or exclude from the notes to the financial statements. Click the Financial Statements Notes tab. Click Note 4 - Guaranteed benefits to deselect the checkbox as the fund does not have any guaranteed benefits. Click Note 6 - Funding Arrangements to deselect the checkbox as the fund does not have any funding arrangements. If a salary is recorded in the members screen, Simple Fund will calculate the funding arrangement as the percentage of the contribution based on their salary. Click Note 8 - Net Cash from Operations to deselect the checkbox as the trustees do not prepare Cash Flow Statements. Click Note 9 - Reconciliation of Cash to deselect the checkbox as the trustees do not prepare Cash Flow Statements. 142

Task 9.3 - Preparing Financial and Investment Reports You can add additional account notes by creating text paragraphs ANOT31-35. Refer to the Simple Fund Advanced Training Manual for instructions on how to create text paragraphs. To save these pages/notes settings as your default for all funds, click Click Save to return to the Financial Reports screen. Default at the top of the screen. Financial Reports Default: To save these current selections as your Simple Fund default for all Funds, click the Financial Reports screen. Default at the top of To preview reports: Once you have made your financial report selections, you can preview the reports by clicking the left of each report. Preview to To print/export all financial reports and documents: You can click on Print, PDF, Word or Excel from the top of the screen to print or export all selected reports from all tabs. To print/export reports from each tab 143

Task 9.3 - Preparing Financial and Investment Reports To print/export reports from each tab Click on Print, PDF, Word or Excel from each tab to export the reports. End of Task 9.3. Proceed to Task 9.4. 144

Task 9.4 - Preparing a Year-End Trial Balance Task 9.4 - Preparing a Year-End Trial Balance Objective In this task you will learn how to prepare reports in the Ledger Reports screen. By the end of this task, you will be able to: Prepare the year end trial balance Prepare a Bank Account Listing to reconcile your transactions with the 2012 Bank Statements Instructions From the Ribbon Toolbar: On the Reports and Documents tab, in the Fund Reporting group, click Ledger Reports Prepare a Trial Balance The Trial Balance is the default report. The report period will default to the period start and end dates shown in Fund Details screen. Click Preview or Print to prepare this report. Compare your Trial Balance with the Trial Balance contained in this Training Manual at Appendix C. Prepare a Bank Account Listing You may also wish to prepare a Bank Account Listing to show movements in the cash account. Click Bank Account Listing on the Report list Bank Account Input 604 145

Task 9.4 - Preparing a Year-End Trial Balance Click Preview to view this report. After you have finished preparing these reports, click Exit. End of Lesson 9. Proceed to Lesson 10. 146

Lesson 10 - Fund In/Out Objective In this lesson you will learn how to do a fund out in Simple Fund. By the end of this lesson, you will be able to export a fund for backup purposes. Details If you have Simple Fund Trustee Edition (up to five funds), then you should use the Fund Out process to back up each fund individually. A fund can be exported to a disk or to a backup location on your computer. Ensure your backups are kept in a safe place. This fund out file can then be used by any other Simple Fund system to import the data for this fund, such as for the purposes of an audit. Simple Fund has a full backup function in Administration Backup/Restore, however this will zip your entire database, and provides no flexibility with restoring individual Fund files should a particular part of a Fund become corrupt. Learning Tasks Task 10.1 - Fund In/Out Export the fund to create zipped copy of the fund. 147

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Task 10.1 - Fund In/Out Task 10.1 - Fund In/Out Instructions From the Ribbon Toolbar: On the Fund Data Input tab, in the Fund group, click Fund Selection Highlight the fund you wish to export and click Select. From the Ribbon Toolbar: On the Data In/Out tab, in the Data In/Out group, click Fund In/Out Click the Fund Out tab. Data Export Location Click Folder. Drives Select c:\ to export to your hard disk on your computer. You can choose a different drive if you wish. Folder Then double-click the sub-folder (if any) you wish to export to, e.g.my Documents. Click OK. Do not click Export database files only. When this is selected, Simple Fund will exclude the fund's reports, PDF, documents and ELS File in the exported file. 149

Task 10.1 - Fund In/Out Click You will now have a.zip file in your data export location which can be used for a Fund Import in the future. Click Exit. End of Lesson 10. 150

Appendix A - 2011 Member Statement JONES FAMILY SUPERANNUATION FUND MEMBER'S INFORMATION STATEMENT FOR THE YEAR ENDED 30 JUNE 2011 JOHN JONES Withdrawal benefit at beginning of year (01/07/2010) 377,528.00 Allocated earnings 48,056.33 Contributions from employer 15,000.00 Income tax expense (10,634.33) Amount of contributions tax deducted (2,250.00) Benefits paid during year 0.00 Withdrawal benefit at end of year (30/06/2011) $ 427,700.00 Preserved Tax Free $ 42,000.00 Taxable $ 385,700.00 Restricted non-preserved - Unrestricted non-preserved Death benefit at 30.06.2011 - $1,000,000.00 151

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Appendix B - 2011 Balance Sheet Shares in Listed Companies (Australian) JONES FAMILY SUPERANNUATION FUND STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2011 June 2011 BHP Billiton Limited $87,600.00 Other Assets Cash at Bank/Bank Overdraft $362,720.00 Total Assets $450,320.00 Less: Liabilities Income Tax Payable $22,620.00 Net Assets Available to Pay Benefits $427,700.00 Represented by: Liability for Accrued Benefits Jones, John $427,700.00 153

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Appendix C - 2012 Trial Balance JONES FAMILY SUPERANNUATION FUND Account Description Quantity Debits Credits 235 Capital Gains/(Losses) - Taxable 235/004 Telstra Corporation Limited 600.00 238 Distributions Received 238/001 Col First State Mgd Inv - Imputation Fund 5,478.57 239 Dividends Received 239/001 BHP Billion Limited 271.43 239/002 Telstra Corporation Limited 408.57 242 Employer Contributions - Concessional 242/001 Jones, John 8,000.00 247 Increase in Market Value of Investments 193,425.90 261 Member Contributions - Non Concessional (Undeducted) 261/002 Jones, Mary 10,000.00 285 Transfers In - Preserved/Taxable 285/002 Jones, Mary 170,945.04 286 Transfers In - Preserved/Tax Free 286/002 Jones, Mary 10,000.00 485 Income Tax Expense 31,092.73 490 Profit/Loss Allocation Account 368,036.78 501 Jones, John (Accumulation) 501/001 Opening Balance - Preserved/Taxable 501/002 Opening Balance - Preserved/Tax Free 501/013 Employer Contributions - Non Preserved 501/035 Share of Profit/(Loss) - Unrestricted Non Preserved/Taxable 385,700.00 42,000.00 8,000.00 141,231.84 501/061 Contributions Tax - Unrestricted Non Preserved 1,200.00 501/063 21,089.57 155