EOFY checklist for directors

From reporting deadlines to D&O insurance, this checklist has been designed to ensure directors don't miss a thing as the end of the financial year draws closer.

The EOFY questions every director should be asking

As we approach 30 June 2020 in the COVID-19 environment, the questions directors need to be asking of themselves and management are different to those of previous years. Here we provide guidance on the issues boards need to be discussing as the financial year draws to a close.

• Are we up to date with our creditor and tax office obligations?
• What challenges are we experiencing in preparing and auditing our annual accounts?
• Will any COVID-19-related balance sheet adjustments or post-balance sheet disclosures need to be made?
• Do we have reasonable grounds to believe the company is solvent to make the directors' declaration of solvency?
• Do we need to consider issuing a qualified statement of solvency and is that a suitable route to take given the practical, commercial and legal implications?
• Is there a risk the auditors could have concerns regarding the ability of our company to continue as a going concern, and may qualify the audit? Could this trigger a default under loan agreements or have other negative outcomes?
• Will we be able to meet our reporting deadlines or do we need to apply for on extended filing deadline?
• Are we meeting continuous disclosure obligations, if we have them?
• Have we carefully reviewed our insurance policies to assess whether there is adequate cover for the legal and financial risks that may arise from COVID-19? What exclusions exist in our policies – are we covered for business interruption and event cancellations?
• How will our D&O policy respond to events related to COVID-19? Where could coverage limitations be applied?
• Have we spoken to our insurance brokers about our COVID-19 D&O risk and advised them of any anticipated changes in our business circumstances?
• With the D&O market hardening significantly, what COVID-19 exclusions and other limitations could be imposed on us when we renew our policy?
• Have we taken advantage of all assistance packages available to us, including federal/state packages, financier, landlord and ATO concessions?
• Are we technologically prepared for holding a virtual or hybrid AGM?