Presentation Transcript

1. - Union Governance Training -

   Session 2 Financial Disclosure
2. Key definitions Publish: Documents required to be published must be made accessible in full to the public on the organisation’s website or, if an organisation does not have a website, on the Queensland Industrial Relations Commission (QIRC) website (section 655A). Remuneration, of a person, includes: superannuation contributions made for the person; and an amount payable, or non-cash benefit made available, to the person under the terms and conditions of the person’s appointment or employment (section 551).
3. Financial disclosure statements Financial disclosure statements (Ch 12, Pt 12, Div 2B) For the first year, organisations are required to prepare three sets of financial disclosure statements reducing to two statements in subsequent years: Initial disclosure statement covering the period 1 July 2012 to 30 June 2013 (one-off statement); Annual financial disclosure statement covering the financial year period; and Mid-year financial disclosure statement covering the first six months of the financial year.
4. Mid-year financial disclosure statements An organisation must prepare a mid-year financial disclosure statement within 7 months after the start of the organisation’s financial year (section 557W). The mid-year financial disclosure statement must cover the first 6 months of the financial year and include the following information for each officer expected to be the highest paid officer for the year: The remuneration expected to be paid to the officer in the year; The remuneration paid to the officer in the first 6 months of the year; Any non-cash benefit including the value of the benefit expected to be given to the officer by the organisation, other than as remuneration, in the year;
5. Mid-year financial disclosure statements Any non-cash benefit including the value of the benefit given to the officer by the organisation, other than as remuneration, in the first 6 months of the year; and Any amount paid to the officer in the officer’s capacity as a board member officer in the year. Board member officer is a officer who is a member of a board, and the membership is a function of the officer’s office with the organisation, or the organisation nominated the officer to be a member of the board (section 557K).
6. Financial disclosure statements Highest paid officer is: all officers of the organisation if the organisation has less than 10 officers; if the organisation has 10 or more officers, the 10 most highly paid officers of the organisation for the year (section 557K).
7. Annual financial disclosure statements An organisation must also prepare an annual financial disclosure statement, containing: A copy of the organisation’s accounts for the financial year (section 557P) The particulars for remuneration and benefits (including non-cash benefits) paid to each highest paid officer of the organisation (section 557Q)
8. Annual financial disclosure statements The website address for each financial register required to be published (section 557R): Register of gifts, hospitality and other benefits given and received; Register of political spending; and Register of loans, grants and donations; Register of credit card and cab charge account spending (employee organisations only). The particulars for each political purpose on which the organisation spent money in the financial year (section 557S): The nature of the spending; The amount of the spending; The political object to which the spending relates; and If the spending or any part of it was authorised by an expenditure ballot – the date of the ballot.
9. Annual financial disclosure statements Details for each of the financial policies the organisation is required to develop and maintain under section 553A (section 557U): The name of the policy; A brief description of the policy; The date the policy was adopted by the organisation; and The date, if any, the policy was last reviewed by the organisation. Details pertaining to the officers financial management training as required under section 553B (section 557V): The officer’s name; A description of the officer’s role in the organisation; and The date the officer most recently completed the training required under section 553B(2).
10. Annual financial disclosure statements The mid-financial year disclosure statement must be published as soon as practicable but no later than 5 business days after the period for which the mid-financial year disclosure is supposed to be prepared by. Once published it continues to be published for 2 years (section 557X). The statements must be kept for 7 years (section 557Y); The statements may be inspected by persons, during business hours, free of charge (section 557Z); The financial disclosure statement and mid-year financial disclosure statement for the financial year are included in what must be covered by the annual audit report. To see the timeframes for mid-year and annual financial disclosure statements, click on the Adobe Document icon.
11. Initial financial disclosure statements Initial disclosure statement (section 557L) Organisations were required to prepare an initial disclosure statement for the remuneration paid to the ten highest officers or board members of the organisation. The initial disclosure covers the period 1 July 2012 – 30 June 2013 and must be published one month from the commencement of amendments to the Industrial Relations Act 1999 (1 July 2013)
12. Financial Registers Financial registers (Ch 12, Pt 12, Div 2A) Organisations are required to maintain financial registers which must be published on the organisation’s website for a period of 2 years: Register of gifts, hospitality and other benefits given and received; Register of political spending; Register of credit card and cab charge account spending  – employee organisations only; and Register of loans, grants and donations (section 557E). Register of gifts, hospitality and other benefits given and received (section 557A)
13. Financial Registers Register of gifts, hospitality and other benefits Organisations must keep a written register for each financial year detailing each benefit given or received with a combined or individual value over $500. Benefit includes gifts, hospitality and financial or non-financial benefits such as sponsored hospitality, travel and accommodation. The register must include the following information: The name of the recipient who received the benefit; The name of the entity who gave the benefit; A description of the benefit; The value of the benefit; The date the benefit was given. Officers or employees of the organisation who receive a gift(s) valued over $500 in their official capacity are required to notify the organisation within 30 days of receiving the gift(s).
14. Register of Credit Card and Cab Charge spending Register of credit card and cab charge account spending (section 557C & D) Employee organisations must keep a written register of credit card and cab charge account spending starting from 1 July 2012 and each subsequent financial year. This includes personal credit cards used by officers or employees of the organisation for transactions related to the organisation’s business. The register must include the following information that is due one month from commencement of Part 2 of amendments to the Industrial Relations Act 1999 (1 July 2013):
15. Register of Credit Card and Cab Charge spending For a credit card: The name of the financial institution with which the card is held A copy of each statement issued for the card by the financial institution in the year. This includes statements for personal credit cards used by officers or employees for a transaction related to the organisation’s business For a cab charge: The name of the taxi service with which the account is held A copy of each statement issued for the account or card by the taxi service in the year
16. Register of Credit Card and Cab Charge spending The register does not need to include the following information: The number of the credit card or cab charge account or cab charge card; The name or address of the person other than the organisation; To whom the credit card or cab charge card is issued or its authorised users; For personal credit cards, transaction details that are not related to the organisation’s business.
17. Register of loans, grants and donations Register of loans, grants and donations (section 557E) Organisations must keep a written register for each financial year setting out each occasion the organisation makes a loan, gives a grant or donation to an entity (i.e. payment) of more than $1,000 in the financial year. Where more than one payment is made to the same entity, if the combined value is over $1,000 that information must be recorded.
18. Register of loans, grants and donations The register must include the following information for each payment: The amount of the payment and the reason for making it If it was not a financial hardship payment – The name and address of the entity to whom it was made; and If it was a loan, the arrangements to repay the loan.
19. Register of political spending Register of political spending (section 557B) Organisations must keep a written register for each financial year outlining each occasion the organisation spends more than $10,000 in the year for the same political purposes for the same political object. The register must include the following information: The nature of the spending; The amount of the spending; The political object to which the spending relates; and The date of each expenditure ballot that authorised the spending or any part of it.
20. Register of political spending  553D When does an organisation spend money for a political purpose (1) An organisation spends money for a political purpose if itspends money for, or by the way of, any of the following— giving a gift to a political party; giving a gift to, or paying the costs or expenses of, a candidate for election, whether before, during or after the candidate’s candidature or election; publication or distribution in any way, including through advertising, of material about a political matter; conducting opinion polling, or otherwise ascertaining opinions, about a political matter; another activity related to a political matter prescribed under a regulation; giving an amount to a person on the understanding that the person or someone else will apply, either directly or indirectly, the whole or a part of the amount for an activity mentioned in paragraph (a) to (e).
21. Register of political spending (2) However, an organisation does not spend money for a political purpose if— the organisation spends money for an activity mentioned in subsection (1)(c), (d), (e) or (f); and the activity engages or involves only members of the organisation. Examples— • an organisation distributes brochures containing material about a political matter only to its members • an organisation conducts opinion polling about a political matter only of its members (3) In this section— publication, of material, does not include designing, printing or otherwise preparing the material. 
22. Register of political spending Other definitions (section 553E) Candidate for electionincludes a prospective candidate. Political matter means- a political party; or a candidate for election; or a matter that a reasonable person would associate with a political object. Political object means- A political object or other political organisation; or A political cause or belief.
23. Requirements for political spending Requirements for spending for political purposes (Ch 12, Pt 12, Div1B) Organisations will need to ballot members before undertaking certain expenditures for political purposes. If the planned political expenditure is over $10,000 and falls within the definition in section 553D, then members must authorise the expenditure via a ballot. The organisation may spend the authorised amount if more than 50% of the valid votes cast authorises the spending (section 553F).
24. Conducting a Expenditure Ballot Rules to conduct an expenditure ballot (section 553G) An expenditure ballot must be conducted in accordance with the rules prescribed under the regulation. These include: The organisation or another entity (whose normal functions include conducting ballots) may conduct the ballot; The ballot may seek authorisation for two or more political purposes provided the ballot provides details for each proposed spend and asks the questions separately; The roll of voters must be compiled within 28 days of the ballot being conducted and must include each person who is a member of the organisation on the day the roll is compiled;
25. Conducting a Expenditure Ballot The entity conducting the ballot may decide the method of voting which may include (but is not limited to) the following options: by post, by telephone using an automated interactive voice response system or by electronic means; and A ballot must be open for at least 5 business days with voting limited to eligible members only. Expenditure ballot result report (section 553H) The organisation must file a written expenditure ballot result report with the registrar within 14 days after the ballot result is declared, regardless of the result of the ballot. The regulations set out the contents of the report.
26. Publishing the expenditure ballot result Publishing the expenditure ballot result (section 553I) The organisation must publish a notice containing particulars about the expenditure ballot within 14 days after the declaration of the result of the expenditure ballot and continue its publishing for a period of 2 years after the receipt of the result report. The published notice must include the following information for each political purpose which is subject to a ballot: The nature of the spending; The amount of the spending; The political object to which the spending relates; The number of members on the roll of voters for the ballot;
27. Publishing the expenditure ballot result The number of members on the roll of voters for the ballot; The number of members on the roll of voters who voted in the ballot; The number of members on the roll of voters who voted to approve the spending; and The number of members on the roll of voters who voted not to approve the spending. Organisations must retain the records of the expenditure ballot for 1 year (section 553J). To view timeframes for Results of Expenditure Ballot on Spending for Political Purposes, click on Adobe Document icon.
28. Associated entities The provisions regarding political spending by an organisation also apply to an associated entity of the organisation: section 553FA. The organisation must take all reasonable steps to ensure the associated entity conducts an expenditure ballot before spending the amount for the political purpose. The associated entity must not use a document or information given to the associated entity under this section (such as a roll of voters) for any purpose other than conducting the expenditure ballot.
29. Associated entities  553DA When an entity is an associated entity of another entity (1) An entity is an associated entity of another entity (the principal) if— (a) the entity is, under the Corporations Act, an associated entity of the principal; or (b) the entity receives payment from another entity (the third party) for— (i) goods or services provided by the principal to the third party; or (ii) the third party’s membership of the principal. (2) Also, if— (a) an entity (the first entity) is an associated entity of another entity (also the principal); and (b) an entity (the second entity) is an associated entity of the first entity; the second entity is an associated entity of the principal. 
30. Maintaining Financial Registers Maintaining financial registers (section 557G) Organisations must keep financial registers up to date by immediately amending registers to include the particulars of new matters and update the published register as soon as practicable but no later than 5 business days after the amendment is made to the register. Financial registers must be kept for 7 years (section 557H) and may be inspected by a person free of charge, during the organisation’s To view timeframes for the registers click on Adobe Document icon.