For Impact is HLB Mann Judd’s regular newsletter for the not for profit community.

In Issue 37 we address NFP governance updates, cyber security, ACNC activity, financial reporting and NDIS-related activity.  

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A summary of the key points:

NFP governance updates

  • Governance principles updated
    The Australian Institute of Company Directors has released the third edition of its Not-for-Profit Governance Principles. The updated guidance reflects the demands of a changing governance environment since the 2019 edition.
  • New resources on AI
    As more organisations adopt artificial-intelligence technologies and policymakers focus increasingly on regulating AI risks, the need for directors and boards to understand governance requirements of ethical and informed AI use is rapidly becoming an imperative.
  • Directors convicted for failing to have DINs
    Two Western Australian directors have been convicted and fined $5000 each for failing to comply with director-identification requirements.
  • Productivity Commission reports on philanthropic giving
    The Federal government has released the Productivity Commission’s once in a generation review of philanthropic giving. The review aims to boost donations to charities to help achieve a government target of doubling philanthropic giving by 2030.

Cyber security

  • SMEs and NFPs get help on cyber security
    The AICD and the Australian Information Security Association have released new guidance for small business and NFP directors to help them to strengthen their organisations’ cyber resilience.

Compliance

  • Minimum wages increase
    The Fair Work Commission has announced a 3.75 per cent increase to the National Minimum Wage and minimum award wages.
  • Changes in ATO reporting for NFPs
    If a not-for-profit has an active Australian business number, it will need to lodge an NFP self-review return to access income tax exemption. Lodgements must be made from the 2023–24 income year onward.
  • World Vision Australia back-pays staff $6m
    World Vision Australia Pty Ltd has back-paid staff more than $6 million, including interest and superannuation, and has signed an enforceable undertaking with the Fair Work Ombudsman.
  • Open Minds back-pays $4.2m
    Disability-support charity Open Minds Australia Ltd has back-paid staff about $4.2 million after breaching its own collective agreement and has signed an enforceable undertaking with the FWO.
  • Right to Disconnect
    There’s a reason for out-of-office notices, but in some workplaces, disconnecting from work is a real difficulty. Recognising the evolving nature of work and the importance of work-life balance, the Right to Disconnect empowers employees to disengage from work-related communications outside of working hours.

Financial reporting

  • ASIC’s financial-reporting focus
    The Australian Securities & Investments Commission targets its surveillance of auditing and reporting in two tranches.
  • ASIC’s crucial reminder
    ASIC has reminded directors that they are primarily responsible for the quality of financial reports.
  • Material policy information required
    Under amendments to AASB 101 Presentation of Financial Statements disclosure is now required for material accounting-policy information – superseding disclosure of significant accounting policies.
  • Changes to profit-loss details required
    The Australian Accounting Standards Board has issued AASB 18 Presentation and Disclosure in Financial Statements to improve how entities reveal their details, a particular focus being on information about performance in profit or loss.
  • New ‘Consolidated Entity Disclosure
    Among annual financial-reporting obligations under chapter 2M of the Corporations Act, Australian public companies (which can include NFPs but not those registered with the ACNC) must include from 1 July last year a ‘consolidated entity disclosure statement’.

ACNC activities

  • Latest insights on charity sector
    The Australian Charities and Not-for-profits Commission has released the 10th edition of its Australian Charities Report, which details how cost-of-living pressures have affected charities.
  • Review of 2022 charities financial information
    Aiming to improve the quality of data on the charity register, and compliance with reporting obligations, the commission reviews each year 250 annual information statements and financial reports.
  • New charity registration tool
    The ACNC has launched an online, interactive tool to help organisations in assessing their eligibility to be registered as a charity and help those already registered to check their ongoing entitlement.
  • Adhering to ACNC’s governance standards
    The ACNC’s governance standards is a set of core principles dealing with how a charity should be run.

NDIS

  • Disability provider fined almost $2 million
    Disability support provider LiveBetter Services Ltd has been fined almost $2 million over the death of a National Disability Insurance Scheme participant.
  • NDIS acts against Oak Tasmania
    The NDIS Commission has begun civil penalty proceedings against Oak Tasmania for contraventions of the National Disability Insurance Scheme Act.
  • NDIS fraudsters found guilty 
    There has been a significant increase in the number of fraud tip-offs to the National Disability Insurance Agency since the set up of the Fraud Fusion Taskforce in November 2022.