Presentation Transcript

1. - Union Governance Training -

   Session 1.1 Context and Legal Requirements Officers’ Duties
2. Why are we here? Changes to legislation to improve union governance Industrial Relations Act 1999, section 553B requires officers whose office includes performing functions or exercising powers relating to the organisation’s financial management to undertake approved financial management training Improving governance will enhance the practice and reputation of unions
3. Purpose of Unions Unions advance the interests of their members and all working people through collective organisation and action Commitment to shared values
4. Definition of values “the ideals that give significance to our lives, that are reflected through the prioritise that we choose, and that we act on consistently and repeatedly” _ Emeritus Professor Brian Hill National Forum on Values Education, Melbourne, April 2004
5. Which of these values are union values? Achievement Teamwork Commitment Persistence Resourcefulness Justice Honesty Excellence Freedom Loyalty Happiness Integrity Resilience Leadership Equality Motivation Passion Solidarity Courage Disciple Fairness Dignity
6. Are these action consistent with union values? Using union credit cards for personal, not union business Very high wages and other income without disclosure to union members Employment of relatives without advertising or interview processes
7. Governance The means by which the union is run to ensure that members’ funds and resources are used only to advance the interests of members and are protected from dishonesty, misapplication and wasteful or inefficient use.
8. How does governance work? The organisation’s rule book Elected officials, committees and other bodies accountable to members Values and culture Union policies for honest, efficient processes Written and accountable procedures to implement the policies Clear and transparent financial reports Accountability to members through information about all of the above
9. Key issues arising from amendments New reporting and disclosure requirements Ballot requirement to approve ‘political expenditure’ Officers’ duties, obligations and training requirements Policies to be developed Consequences for breaches of the Act
10. Finances and accountability Finances and Accountability (Ch 12, Pt 12) The Industrial Relations Act 1999 introduces several changes to the internal governance of organisations in order to make officers more accountable for their financial management decisions: Financial Policies Organisations must develop and maintain policies on the following, some of which have further particulars which must be included in the policy prescribed in the regulations (section 553A): decision-making about, and reporting of, the organisation’s financial matters;
11. Finances and accountability spending authorisations and delegations policy setting out the approvalsand authorisations processes to spend funds, make payments or make a purchase; credit cards policy to determine who is issued with a credit card, outlining the user’s responsibilities including the terms for using the credit card and cancelling a credit card; contracting activities policy setting out the tender and selection process, reviewing significant contracts and disclosing the identify of, and arrangements with key service providers;
12. Finances and accountability travel and accommodation policy to cover spending by the organisation and receipt of sponsored hospitality benefits by its officers or employees from other entities; entertainment and hospitality (given and received) to identify and limit potential conflicts of interest; gifts (given and received); complaints handling process dealing with financial matters; and employment or holding an office outside the organisation to assist decision-makers and provide consistency.
13. Finances and accountability Financial management training ‘Financial management officers’ are to undertake financial training approved by the registrar (section 553B). The training must be completed: Within 3 months after registrar approves the training; and At least once every two year period that the officer performs financial management functions. ‘Financial management officer’ means an officer who holds an office that includes performing functions or exercising powers relating to the organisation’s financial management.
14. Finances and accountability An organisation, peak council or another person or entity with the skills and expertise to provide training, such as a peak body for a particular industry or a recognised education provider, may provide training. The registrar can approve training of different formats, styles and length in recognition of the qualifications and range of financial management duties each officer is required to undertake in their organisation.
15. Organisation’s Rules Section 795 of the Industrial Relations Act 1999 requires that a organisation must take reasonable steps within 6 months from commencement to ensure that they can comply with the Act under their rules.
16. Duties of officers Meaning of ‘office’ (section 412): the office of president, vice president, secretary or assistant secretary of the industrial association; the office of a member of the management committee of the industrial association; the office of a voting member of any other collective body that has power to do any of the following— manage the affairs of the industrial association; decide the policy of the industrial association; make, amend or repeal the rules of the industrial association; enforce the rules of the industrial association;
17. Duties of officers an office for which the holder may under the rules of the industrial association manage the association’s affairs and enforce its rules, other than a holder only participating under directions of a collective body or other person to implement— (i) the association’s existing policy; or (ii) decisions concerning the association; an office for which the holder may under the industrial association’s rules decide the association’s policy and make, amend or repeal its rules; the office of a person holding, whether as trustee or otherwise, the property of the industrial association or property the association has a beneficial interest in.
18. Duties of officers An officer is a person who holds an office (section 409). Must act honestly, in good faith in the best interests of the organisation and for a proper purpose (section 527) Must exercise the degree of care and diligence that a reasonably person in the officer’s position would be reasonably expected to exercise (section 528).
19. Duties of officers Officers with material personal interests (section 529) If an officer has material personal interest in a matter involving the organisation’s financial management or procurement activities, the officer must: Declare the interest in writing to the management committee as soon as practicable after the relevant facts come to their knowledge Not vote on the matter or be present at an annual general meeting or management committee meeting where the matters is being discussed. Organisation must keep a register of material personal interest disclosures.
20. Duties of officers Non-compliance Breach of duty can lead to imposition of substantial penalties: maximum of 3901 penalty units (currently equal to $340,010) and/or five years’ imprisonment. The Industrial Registrar and Industrial Inspectorate also have powers to conduct investigations, including the power to require the provision of documents or information. Amendments to the Act include the creation of a mechanism for a person to make a written complaint to the chief executive responsible for administering the Act about an organisation, if the person believes the organisation has ceased to function effectively (section 636A). Can also refer to law enforcement agencies
21. Duties of officers Statement of interests Officers who hold a ‘management office’ must file a statement of interest held by the officer or the officer’s spouse within one month or being elected or appointed to the management office (section 530D). A ‘management office’ means an office of the organisation mentioned in section 412(a) or (b); that is, the office of president, vice president, secretary or assistant secretary of the industrial association; or the office of a member of the management committee of the industrial association.
22. Duties of officers The statement of interest is not required to include any of the following information: The number or monetary value of shares; The monetary value of an asset, investment or other interest; The full street address of land; and The account number of, or amount held in, an account held with a financial institution. The prescribed particulars required in a management officers’ statement of interest are set out in the Industrial Relations Regulation 2011, schedule 2A. Click on Adobe Document icon to view.
23. Duties of officers A person holds an interest if it is held alone, jointly or in common with another person. An officer must file updated particulars within one month after the officer becomes aware that statement of interest (including those of the officer’s spouse) is inaccurate (section 530E). Officers are exempt from sections 530D and 530E if the officer files with the Industrial Registry a written notice of the officer's obligation to provide information of their interests under another Act or law and that information is published to the public (section 530F). To view timeframes for the Statement of Interest of Officers Holding Management Offices click on Adobe Document icon: