For Impact is HLB Mann Judd’s regular newsletter for the not for profit community.
In Issue 27 we address NFP governance updates, compliance, ACNC activities, financial reporting insights, fundraising and deductible gift recipients & audits.
A summary of the key points:
NFP Governance Updates
- AICD governance study released
The Australian Institute of Company Directors has released its annual not-for-profit governance and performance study, which reveals that, while Covid’s effects on the sector were not so damaging as predicted, many organisations could take years to recover.
- Managing fraud risk
The Australian Charities and Not-for-profits Commission’s governance toolkit includes resources to help charities manage risks, including financial abuse, cybersecurity, and working with partners. Charities should be aware of partnership risks and
be confident that they have the right processes to manage one.
- Whistleblower policy mandates beginning 1 January 2022
The mandate applies to charities structured as public companies limited by guarantee with annual consolidated revenue of $1 million.
- Red Cross to back-pay $25 million
The Australian Red Cross Society has entered into enforceable undertakings with the Fair Work Ombudsman (FWO) that will back-pay employees.
- ROC begins proceedings against CFMMEU executive
The Registered Organisations Commissioner has begun civil proceedings in the Federal Court against the president of the Queensland branch of the Construction, Forestry, Maritime, Mining and Energy Union’s mining and energy division.
- Deadline extended for senate underpayment report
The Senate economics committee’s deadline to report on unlawful payments by employers has been extended to 10 February 2022. Terms of reference for an inquiry into underpayments and non-payments were detailed in November 2019. They included measures to be taken to address the issue.
- Charity directors need DINs
As part of a program to modernise business registers, directors of charities that are a company, a registered Australian body, or an Aboriginal and Torres Strait Islander corporation will need to apply for a director identification number (DIN).
- New search features connect donors to charities
The ACNC’s charity register has new search features connecting more effectively donors with charities. The register can be searched for charities based on type of programs they deliver, by beneficiary group, and program location.
Financial Reporting Insights
- ACNC urges charities to comply
The ACNC urges charity leaders and their accountants to ensure that they comply with amended reporting regulations. Amendments should be incorporated in 2022 annual information statements.
- ASIC highlights disclosures and assessments for 31 December
The Australian Securities & Investments Commission is highlighting asset values, provisions, solvency and going-concern assessments for reporting periods that ended 31 December
- Not for profit leaders survey - financial management
In 2021, not for profit leaders including the Exclusive Not for Profit Community were surveyed on Financial Management within their organisations. The report looks at various areas of financial management including resourcing, business models, payroll compliance, technology, risk & compliance and audit & assurance.
- Fundraising reform on national agenda
The Federal government has agreed with states and territories to develop a national fundraising framework that should reduce red tape while retaining safeguards to maintain public confidence. The Council on Federal Financial Relations concluded the agreement, which was endorsed by national cabinet.
Deductible Gift Recipients & Audits
- Revised agreed-upon procedures
The Auditing and Assurance Standards Board’s revised ASRS 4400 Agreed-Upon Procedures Engagements begins operating on 1 January.
- Legislative instrument registered
Assistant Treasurer Michael Sukkar has registered a legislative instrument that supports new amendments requiring non-government deductible-gift recipients to be registered as charities.