S e r i o u s a b o u t S u c c e s s ®

The new Australian Charities & Not-for-Profits

Commission – Implications for HACC ServicesPresented by:Katrina (Kate) DalyPartnerMoore Stephens Sydney West

www.moorestephens.com.au

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Reform Agenda

ACNC

• Commencement date – est December 2012 (pushed back from 1 July 2012 & 1 October 2012)

• Independent Commission reporting to Parliament (back office ATO)

• First phase will regulate all existing Charities and register all new Charities

• Bill currently before Parliament next sitting date 29 October• Registration will occur automatically utilising the entity’s

ABN. Separate registration for each ABN.• Will regulate the Charity on a range of matters including

financial reporting, governance and in the future fundraising activities.

ACNC

• Scope of ACNC’s role– Determine legal status of entities seeking charitable status– Implement “report-once, use often reporting framework for

Charities – annual reporting from 1 July 2014 (for prior year)– One stop shop public information portal by 1 July 2013– Education and promotion of the Sector– Promotion of sound governance to maintain the public’s

confidence in NFPs.– Reducing red tape for the sector

ACNC Regime

Not For Profits

Charities

Basic Religious Charities

Not regulated yet

Full adoption of ACNC regimeExemption for financial reporting and governance

Sporting Clubs etc

Schools, Community welfare organisationsChurches

(including communities)

Registration Issues

• Entity level registration – current ABN• Multiple registrations and endorsements• Sub-entities and branches• Is voluntary registration really an option?• Alignment of introduction of Statutory Definition of Charity

(1 July 2013) and commencement of ACNC (1 October 2012)

• Application of Basic Religious Charities.

Annual Information Statement

• Applies to all registered entities• AIS will be different depending on classification (eg small)• BRCs will have to complete an AIS• Recognised assessment activities• Applies from 1 July 2013 (for 30 June 2013 year)• By 31 December each year• What will it contain?

ACNC Financial reporting requirements

Reporting and auditing (proportional approach)Tier Threshold RequirementsSmall Annual revenue less than

$250,000.Annual information statement(e.g. entity’s purpose, activities, governance, short-form financial information)

Medium Annual revenue less than $1 million and not ‘small’

Annual information statement (more detailed)

Financial report that has been reviewed

Large Annual revenue of $1 million or more (includes DGRs)

Annual information statement (more detailed)

Audited financial report

Financial reporting

• Annual financial reporting requirements will be contained in the Regulations

• Regulations must be first subject to consultation with Sector• Special v General Reporting??• Transitional Provisions allow for existing reporting by

schools to DEEWR and ACARA to meet obligations for 3 year period

• Commissioner has discretion to accept other Government lodged reports.

• Additional reporting can be requested by the ACNC (by entity or class of entity)

Governance

• Governance standards will be contained in the Regulations • Regulations must be first subject to consultation with Sector• BRCs carve out – on specific standards• Governance obligations rest with the Responsible Entities• Standards can’t prohibit political advocacy• Registered entities need to be transparent, efficiently utilise

resources, minimise risk of mismanagement & misappropriation

• Pursue their purposes

Monitoring and Enforcement

Implications for HACC services

• Identification of your entity’s status. Will it be regulated by the ACNC?

• Previous reporting regime to be altered• Annual Information Statements• Financial Reporting – potential changes to annual reports

and deadlines• One Stop Shop• ACNC Register – Portal• Grant Acquittals- Changes to Commonwealth Grant

Guidelines

Next Steps….

Contact details

Katrina (Kate) Daly

Partner

Moore Stephens Sydney WestLevel 6, 460 Church StreetParramattaTel: (02) 9890 1111

kdaly@moorestephens.com.au