Transcript Document

PRESENTATION
BY
DIRECTORATE NONPROFIT:
MONITORING COMPLIENCE
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Structure
1. Monitoring and Compliance
2. De-registrations of NPOs
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Defining NPO
The NPO Act 1997 (Sec.1x) defines an NPO as:
a trust, company or other association of persons: established for a public purpose.
 the income and property of which are not
distributable to its members or office bearers
except as reasonable compensation for service
rendered
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Other Names for NPO
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Non-governmental organisations. (NGOs)
Community Based Organisations. (CBOs)
Faith Based Organisations. (FBOs)
Civil Society Organisations. (CSOs)
Public Benefit Organisations. (PBOs)
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NPO Act objectives (cont:)
• (S2) NPO Act are to:
encourage NPOs to maintain standards of
governance, transparency and accountability and
to improve those standards
create an environment in which the public may
have access to information concerning registered
organisations
promote the spirit of co-operation and shared
responsibility within government, law enforcement
agencies, donors and other interested
persons/institutions
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NPO Act Objectives
• (S2) To encourage and support NPOs in their
endeavor to meeting the diverse needs of the
population of the Republic, by:
– creating an enabling environment in which NPOs
can flourish;
– establishing an administrative and regulatory
frame work within which NPOs can conduct their
affairs;
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NPO Directorate mandate
(S5)
Facilitate the process for developing and implementing
policy;
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determining and implementing programs, to support NPOs in
their endeavor to register;
to ensure that the standard of governance within NPOS is
maintained and improved;
 liaising with other organs of state and interested parties;
 facilitating the development and implementation of multisectoral and multi-disciplinary programs
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Classification of NPOs in SA
United Nations Nonprofit sector classification, clustered according to sector,
objective, theme and description of activities.
Eleven (11) Clusters.
1. Culture and recreation
2. Education and research
3. Health
4. Social Services
5. Environment
6. Development and housing
7. Law, advocacy and politics
8. Philanthropic, intermediaries and volunteerism promotion
9. International
10. Religion
11. Business and professional associations and unions
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Responsibility of Registered NPOs
(3) Every registered NPO must preserve each of its
books of (in an original or reproduced form,
for the prescribed period):
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account,
supporting vouchers,
records of subscriptions or levies paid by its members,
income and expenditure statements,
balance sheets and accounting officer’s reports.
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Monitoring and Complience
• NPO Monitoring and Compliance
means:
1. Monitoring and compliance of NPOs
as prescribed in S18 & 20
2. Deregistration as prescribed in S21
3. Appeals Process as prescribed in
S22
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Compliance
S 17 & 18 prescribes that:
• NPO to submit the NPO Directorate
with annual report within 9 months of
the end of its financial year.
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Duty to provide Reports
1. Narrative:
•Office bearers
•Contact details
•Id numbers
•Telephone numbers
•Number of meetings
•Annual General
meetings
2. Financial:
•Assets and Liabilities –
balanced
•Closing balance correspond
with opening balance
•Income and expenditure
statement
3. Accounting Officer:
•Report
•Professional status
Department of Social Development
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Narrative Report:
Organization's activities over the previous twelve months,
and includes the following sections:
Section A: Basic details about the organisation on the
form provided.
Section B: The organization's major achievements over the
year, in response to the questions provided.
Section C: List of important meetings held during the
year, and details of any changes to constitution.
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Financial Reports
(s17) Prescribes that:
 organisations must keep accounting records to the
standard of Generally Accepted Accounting
Principles (GAAP):
 Income and Expenditure (statements)
 Assets and liabilities (balance sheet)
 Arrange written report compiled by an accounting
officer.
Department of Social Development
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Duties imposed on accounting officer
(sect 18(4 and 5))
• If the accounting officer becomes aware of any instance
in which the organisation has failed to comply with the
financial provisions of this Act or its constitution, the
accounting officer must notify the director of the
occurrence—
– (a) within one month after becoming aware of it; and
– (b) in writing with sufficient detail to describe the nature of the
noncompliance.
• The duty imposed on an accounting officer subsection
(4) supersedes the duty of confidentiality owed to the
organisation by the accounting officer.
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NPOs duty to provide
information
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(S18) provide to the Director in writing with
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any appointment or election of its office-bearers even if their
appointment (even in swapping of capacities);
the names and physical, business and residential addresses of
its office-bearers
a physical address in the Republic for the service of
documents.
of any change of address; and
any change of contact details (physical and postal) in the
Republic
such other information as may be prescribed.
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Noncompliance
• Non submission of reports in terms S18
• Deviation from the material provisions of own
constitution
– Acting contrary to the procedures of own constitution
– Non-adherence to the objectives
• Non-adherence to conditions or terms of any benefit
or allowance conferred in terms or reference to the
Act (S11)
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Ignorance of Obligations
• Reminder to comply
• Notice of non-compliance
• Cancelation of registration and notice of
cancellation
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Types of cancelation
• Cancellation due to noncompliance
• Voluntary deregistration (requests from
organisation for deregistration and reasons
thereof plus effective date)
• Closing down/wounding up
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NPO register…
• In January 2013 the status of
NPO Register was reflected
as follows:
– Registered NPOs: 29 286.
– Non-Compliant NPOs: 35 190
– Deregistered NPOs: 36 428
• The reflection of this status
on the register had major
implications for the NPO and
the sector and put a lot of
pressure on the Department.
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
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…NPO Register
• After the Minister met with the Ministerial Task Team
(MTT) on 31st January 2013 a determination that all
NPOs should be reflected as registered in the NPO
register.
• It was agreed that all NPOs will be given a period of
six months (1st Feb- 31st July) to file their reports.
• In this same meeting, it was also agreed that
– a reporting compliance drive (Road Shows)
should be design to reach-out to these affected
NPOs and the MTT should a meaningful role.
Comparison of the NPO Register
Before 31st Jan 2013
Current NPO Register
compliance status
increased by 4%
Submited
14%
29%
35%
Outstanding
86%
34%
Registered NPOs
Non-Compliant NPOs
Deregistered NPOs
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NPO Register Status per Province
Registered
NPOs
Submitted
Reports
Outstanding
Reports
Gauteng
Kwazulu
Natal
33 579
4 792
31 895
20 555
2 750
19 650
Free State
Western
Cape
Northern
Cape
5 327
815
4 955
10 590
1 856
9 758
2 178
269
2 065
North West
5 619
787
5 365
Province
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NPO Register Status per Province
Province
Registered
NPOs
Submitted
Reports
Outstanding
Reports
Eastern
Cape
9 090
959
8 703
Limpopo
11 426
2 243
10 855
6 531
1 065
6 120
105 069
15 536
99 366
Mpumalanga
Total
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Effects of cancelation of registration
• Cessation of all conditions or term of any
benefit or allowance in terms of sec11
• Cancellation of certificate
• Reflection on Register
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Offences (S 29)
• A person convicted of an offence in terms of this Act
is liable to a fine or to imprisonment or to both a fine
and imprisonment
– Being wound up or dissolved, to transfer its remaining assets
otherwise than to another NPO with similar objectives as
contemplated in section 12(2)(o).
– represent themselves as being validly registered;
– Use of a registration number, a registration certificate or any
information contained in the registration certificate if they
have not been registered
– Make material false representations in any document or a
narrative, financial or other report submitted to the director.
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I THANK YOU!!!
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