Transcript ConNEXTions 2013 - Missions Interlink

Introduction of Governance Standards
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Refer ACNC Act
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Regulations passed in June 2013
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Apply from 1 July 2013
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5 Standards
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A ‘base-line’ not best practice
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Apply from 1 July 2013
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2 Exceptions
◦ If Constitution / Rules prevents compliance you
have until 1 July 2017 to make changes to address,
◦ If an incorporated association will be taken to meet
the governance standards until 1 July 2017 if
 Appropriate incorporated assoc. legislation (state) sets
out duties for responsible persons, and
 Your charity & responsible persons) comply with this
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Purposes and not-for-profit nature of a
registered entity
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Must be not-for-profit
Work towards charitable purpose
Able to demonstrate it
Provide information about their purpose to the
public
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What?
◦ Demonstrate your charity is established as a NFP
entity with a charitable purpose
◦ Actually run as a NFP entity & work towards your
charitable purpose
◦ Provide information about your charitable purpose
to the public
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How?
◦ Clauses in your governing documents setting out
your charitable purpose & not-for-profit nature
◦ Run your organisation as a charity
◦ Provide governing documents to ACNC for
uploading to the ACNC Register, make available on
your website
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Accountability to members
◦ If you have members, be accountable to them
◦ Provide adequate opportunity to raise concerns
abut governance of the organisation
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What?
◦ Take reasonable steps to be accountable to your
members,
◦ Allow members adequate opportunities to raise
concerns about how your charity is run.
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Only applies if you have members,
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How?
◦ Meetings at least annually with opportunities to ask
questions & vote on resolutions,
◦ Give information to members,
◦ Have clear processes for appointing responsible
persons (board members, committee members).
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Compliance with Australian Laws
◦ Must not commit a serious offence (i.e. fraud) under
Australian Law
◦ No breach of laws where penalty 60 penalty units or
more ($10,200)
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What?
◦ Must not act in a way that under commonwealth or
state / territory law could be dealt with as,
 An indictable offence (serious crime),
 Breach of a law with a civil penalty of 60 penalty units
◦ Applies to the Charity not generally to individuals
but may apply to governing body members acting
on behalf of the charity
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Not a new obligation, you should be doing
this now!,
Some obligations for charities regulated by
state & territory legislation,
Be aware of major regulatory issues relating
to your charity,
Some basic financial controls,
Process to ensure you meet legal obligations
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Suitability of responsible persons
◦ Must check that responsible persons are;
 not disqualified from managing a corporation
(Corporations Act), or
 Disqualified from being a responsible person of a
registered charity by the ACNC Commissioner
◦ Charities must take reasonable steps to remove
responsible persons that do not meet these
requirements
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What?
◦ Take reasonable steps to be satisfied that each
responsible person if not disqualified from:
 Managing a corporation under Corporations Act
 Being a responsible person by the ACNC Commissioner
within the previous 12 months
◦ If not satisfied, do not appoint, if already
appointed, take steps to remove
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How?
◦ Search ASIC Disqualified persons register,
◦ Search ACNC register of disqualified persons (none
as yet!)
◦ Require all responsible persons to sign declaration
relating to disqualifying offences (ACNC has a
suggested format
◦ Take these steps for existing responsible persons
◦ May be other state requirements i.e. Working with
Children checks
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Duties of Responsible persons
◦ Charities must take reasonable steps to ensure
responsible persons:
 Understand, and
 Carry out
The duties set out in this standard
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What?
Act with reasonable care and diligence,
Act honestly in the best interests of the charity,
Not misuse their position as a responsible person
Not to misuse information gained in the role as a
responsible person,
◦ Disclose conflicts of interest,
◦ Ensure the financial affairs of the charity are
managed responsibly
◦ Not to allow the charity to operate while insolvent
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How?
◦ Bring these to attention of responsible persons
 Outline in latters of appointment
 Provide information to responsible persons on duties
to refresh their knowledge,
 Encourage responsible persons to attend, prepare for
& participate at meetings
 Have processes in place to manage conflicts of
interest,
 Take reasonable action if a responsible person is not
carrying out their duties
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Common-sense
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Minimum standards
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Good practice not best practice
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Detailed booklet at www.acnc.gov.au
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