Post on 25-Sep-2020
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Missions Interlink
External Conduct Standards
Rebecca Lambert-Smith, Team Leader Jacob Wood, Lawyer
6 February 2020
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What we will cover today
• Quick refresh of External Conduct Standards (ECS)
• How to comply:• Reviewing your operations
• Assessing risk
• Determining “reasonable steps”
• Drafting a compliance plan
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Missions Interlink External Conduct Standards project
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SummaryExternal Conduct Standards
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An opportunity for Missions Interlink members to review and improve governance of overseas operations, preserving the integrity and sustainability of overseas Christian mission.
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Activities and control of resources
Annual Review and Record Keeping
Anti-Fraud and Anti-Corruption
Protecting Vulnerable Individuals
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Do the ECS apply?
Do you conduct or fund any activities outside of
Australia?
Do you conduct or fund any activities outside of
Australia?
Does the funding or activities benefit
people or purposes outside of Australia?
Does the funding or activities benefit
people or purposes outside of Australia?
Do you collaborate with any non-ACNC third parties to conduct activities outside
Australia?
Do you collaborate with any non-ACNC third parties to conduct activities outside
Australia?
Are the overseas
activities incidental to
activities in
Australia?
Are the overseas
activities incidental to
activities in
Australia?
External Conduct Standards ApplyExternal Conduct Standards Apply
ECS don’t applyECS don’t apply
ECS don’t apply
ECS don’t apply
ECS don’t
apply
ECS don’t
apply
Are you a charity registered with the
Australian Charities and Not-for profits
Commission (ACNC)?
Are you a charity registered with the
Australian Charities and Not-for profits
Commission (ACNC)?
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How to complyExternal Conduct Standards
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ECS 2 – Annual review and record keeping
Obtain and keep records on a country by country basis including:
• Activities
• Expenditure
• Processes and procedures
• Partners
• Complaints, risks, liabilities and breaches of law
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ECS 2 - Record Keeping Checklist
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Principles-based standards:
ECS 1, 3 and 4
Review your organisation's overseas operations and partners
Assess the risk of overseas operations
Determine what are “reasonable steps” to mitigate those risks
Draft and implement a compliance plan
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Review your operations and partnersExternal Conduct Standards
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Information gathering
You Countries Activities Partners Controls
Experience in delivering similar programs
Employees
Capacity
Countries you operate in
Social, cultural, political and religious context
Scale and nature of activities
Who delivers programs?
Who benefits from programs?
Resources
Who you work with
Who they work with
What agreements are in place?
Relationship
Policies and procedures
Financial controls
Agreements
Relationship
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Identifying existing controls helps determine if you are already addressing some or all of the ECS
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Assess riskExternal Conduct Standards
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The purpose of risk management is to identifypotential events that may impact on an entity, quantify the impact and likelihood of the occurrence and then manage the risk in accordance with the organisation’s risk appetite
- Australian Compliance Institute Sydney, 2010, Quick Guide to Compliance, Ethics, Governance, Risk and Corporate Social Responsibility, 3rd Edn
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Activities/resources used in way
inconsistent with purpose and
character
Failing to comply with extraterritorial
laws
Financial impropriety Unknown or undocumented
conflict of interest
Harm to vulnerable persons
What risks?
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Likelihood and consequence
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Risk Assessment
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Determine “reasonable steps” External Conduct Standards
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Reasonable steps
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Reasonable steps must be tailored to your organisation's operations and context
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Draft and implement a compliance planExternal Conduct Standards
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• Collate “reasonable steps” into a trackable document• Include:
• Priority• Budget• Timeline• Responsibility• Reporting to the Board
• Review
Compliance plan
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Stick to your compliance plan and you can demonstrate that you have taken reasonable steps to address ECS related risks.
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What we will cover next webinar
Tools to help with “reasonable steps”
Working with third parties (including template MOU)
Template Policies
Q&A