Bsbcom 603 assesment task 1,2,3 PDF

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BSBCOM603 Part 1,2,3

Part 1 – Research plan

Charity-Care is based in Brisbane and is a public company that is limited by guarantee under the Corporations Act 2001. It is registered as a charity under the Collections Act 1966. The organization has grown quickly to its current size from its single center opening just two years ago. Then, this report is conducting research into and proposing an appropriate compliance management system for the company. The followings outline the tasks need to be undertaken: 

Research internal and external compliance requirements



Information security and risk management Analyze qualitative and quantitative information to evaluate compliance management options



Prepare a report for senior management identifying an appropriate compliance system for the organization. Research methods: 

Literally, compliance might be defined as certification or confirmation that the doer of an action or the manufacturer or suppliers of a production, meets the requirements of accepted practices, legislation, prescribed rules and regulations, specified standards, or the terms of a contracts. Compliance cannot be viewed as a separate department or activity, but should be aligned with all of the strategies, objectives and activities of an organization. Good compliance is necessary and must be reflected in every aspect of the organization’s culture. Following are some proposed research methods: 

Assess the Board, Management and Staff of understanding the relevance and application of obligations and responsibilities, in terms of awareness, communication and training program,



Assess risk assessments and risk treatment plans, Identifying and mitigating areas of risk exposure that could arise from noncompliance, such as the gap analysis, Assess organizational compliance framework performance, Review reports related of compliance systems, legislative changes and compliance breaches,

  

Review results of training programs have developed. A plan and budget for conducting the research: 

Plan

Description

Timeframe

Information collection

Internal compliance information collection,

Immediate execution

External compliance requirements collection.

Budget

Information security Doing it while staying in and risk compliance with all applicable laws and regulations is another. management

During weeks

2 Following expenses policy

Information analysis

Within weeks

3

Within weeks

3 Following expenses policy

Analyze qualitative quantitavite information,

and

Evaluate the compliance management measurements. Reporting

Identify a feasible compliance system for the company.

Part 2 – Written report 1. Introduction 

Introduction of Charity-Care

Charity-Care is based in Brisbane and is a public company that is limited by guarantee under the Corporations Act 2001. It is registered as a charity under the Collections Act 1966. The organization has grown quickly to its current size from its single center opening just two years ago. Charity-Care employs about 50 employees who are assisted in various charity tasks by community volunteers. Charity-Care operates two major front line community services: Community-Care - two 100sqm first floor drop-in office centres operating in Spring Hill on Brisbane’s Northside and Wooloongabba on Brisbane’s Southside and provides counselling services, short term ‘rent loans’ and $20 supermarket gift food vouchers for people in need. Each centre has a manager, receptionist, office clerk and four counselling staff, and is fitted out with a reception/waiting room, two counselling offices and a staff general office area that includes a kitchenette. Private information is collected on people seeking the counselling services and recorded in a central database that can be accessed from all centre computers. Volunteer staff operates the call centre and visits seeking donations from local businesses and households.  Computer-Care - a retail business on the CBD fringe that specialises in selling reconditioned second-hand ex-government computers to needy families for children’s educational purposes. The small 70sqm shop is supported by a 1,000sqm warehouse and repair centre in Fairfield, a Brisbane suburb. 50% of the computers are picked up from the shop and 50% are delivered from the warehouse. Computers for repair are dropped off and picked up from the warehouse. Repair costs are paid by the customers to the service centre staff. There is a manager of the Computer-Care initiative who manages both the shop with its 15 employees as well as the warehouse (eight employees) and service centre (four employees). Head office for Charity-Care is based in Fortitude Valley. This is where the CEO and you as the business manager have offices. There is a board room, reception/waiting area and an open 

office area where the accounts payable, accounts receivable, payroll clerk and bookkeeper each have a workstation. 

Purpose of this report

Compliance is a comprehensive program that helps institutions and their employees conduct operations and activities ethically. With the highest level of integrity, and in compliance with legal and regulatory requirements. Thus, complying the internal and external compliance requirements of Charity-Care, we will propose clear and suitable option and compliance system for this organization by identify and analysis its qualitative and quantitative information. 2. Compliance requirements 

Internal compliance requirements

The CEO has explained to you that the organisation has grown quickly and the management and compliance systems have not had a chance to catch up. Issues were found with the last audit and there has been some disquiet from the association’s stakeholders about the way the association has been managed – particularly with the cash handling processes and keeping of transaction records. The business manager is totally focused on providing the best possible outcomes for the clients. He is very passionate about making sure they are looked after but does not really worry too much about issues of control or compliance. The culture of the business is focussed on having a good time while helping the community. The CEO went on to say that many policies are documented; however, there still remains some training and motivational issues in relation to implementing them appropriately. Some of the policies include: Policies

Purposes

Requirements

Work health and safety policy

Providing a safe and healthy incident date work environment for its name of person submitted report employees, contractors and visitors. time of incident/hazard Charity- Care’s first priority location of incident/hazard must always be the wellincident/hazard type being of its employees. No task is so important that a description of incident or hazard person’s safety is put at risk. persons involved witnesses injuries sustained description of injuries actions taken to minimise hazard or

reduce risk post incident. Equal employment opportunity policy

Equal employment opportunity means that merit and equity will form the basis of all employment, training, and promotion decisions that affect employees at the workplace.

Expenses policy

The purpose of this policy is Meals and entertainment. to ensure you are properly Reimbursement of small reimbursed for out of pocket expenses/temporary cash advance. expenses related to direct expenses for work-related activities, and that CharityCare is able to claim on taxable expenses.

Financial handling policy

To spell out procedures that All cheques must contain two eligible must be followed in the signatures signing of cheques on Eligible signatories are board members or behalf of Charity-Care. staff members who have been previously nominated and endorsed by the board

Charity-Care accepts that as an employer it has a responsibility to eliminate and ensure the continued absence from within its structure any source of direct or indirect discrimination on the basis of any factors not related to work performance including race, colour, national or ethnic origin, nationality, sex, marital status, pregnancy, age, status as a parent or carer, political conviction, social origin or impairment.

Any two of the above have the authority to sign cheques. Signatories cannot sign a cheque made payable to themselves. Expense reimbursement

To spell out procedures that must be followed in the reimbursement of expenses incurred on behalf of Charity-Care.

Credit policy

Ensure that organisational transactions are carried out as efficiently as possible

card

Charity-Care will reimburse its staff (including volunteers) any reasonable and authorised expenses incurred by them on behalf of Charity-Care or in the course of Charity-Care business.

through the use of credit cards and transaction cards as appropriate. Guard against any possible abuse of organisational credit cards. Sexual harassment policy

Charity-Care recognises that sexual harassment is a serious issue and is committed to providing a workplace free from sexual harassment.

dirty jokes, derogatory comments, offensive written messages (email/sms), or offensive telephone calls leering, patting, pinching, touching or unnecessary familiarity persistent demands for sexual favours or outings displays of offensive posters, pictures or graffiti.

Risk management policy

Risk is inherent in all business activities. The aim of this policy is not to eliminate risk, but rather to manage the risks involved in all Charity-Care activities to maximise opportunities and minimise adversity.

a strategic focus forward thinking and active approaches to management balance between the cost of managing risk and the anticipated benefits contingency planning in the event that mission critical threats are realised.

External compliance requirements According to the privacy policy, Charity-Care is committed to protecting the privacy and confidentiality of our clients and supporters. The Charity-Care supports and is bound by the Privacy Amendment (Private Sector) Act 2000 and the National Privacy Principles. A copy of the National Privacy Principles can be found at . Protecting the privacy and confidentiality of the people we help is essential in preserving dignity and providing respectful assistance. Personal client information is collected and used by Charity-Care, only with client consent, in order to provide the best possible assistance and:  



to assess if clients meet eligibility criteria for specific assistance



for internal reporting purposes to continuously develop and improve our assistance programs

  

to assess the effectiveness of our assistance programs to assess the nature of need in the community

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to plan our future programs.

Consent is always sought in using personal and sensitive information for research purposes. This information, however, is always de-identified prior to analysis and individual clients cannot be identified from any research analysis or report. The Charity-Care also actively seeks to ensure that all personal information we collect is protected from misuse, unauthorised access, modification or disclosure. We have internal data protection and electronic data transmission procedures and all donations and communications made on-line via our web-site are secure. 

Industry specific compliance requirements

Compliance is an important element of corporate governance in Australia. Legislators are initiating the inclusion of comprehensive compliance obligations in laws. Courts have indicated that the cost of the absence of a compliance program can and should be significant. 3 Therefore, it is recognised that a compliance program provides an opportunity to not only improve an organisation’s performance, but also reduce the cost of failing to meet legal and other obligations. In terms of accounts receivable policy, its purpose is to define the accounting policies and procedures in respect of the recording, collection and reporting of moneys owed to Charity-Care. The intent of all interactions between Charity-Care staff and customers or clients of Charity-Care is that all inquires are to be handled in a tactful and diplomatic manner. Under a company structure, charitable or not-for-profit organisations will generally be registered as public companies that are limited by guarantee. Limited by guarantee means the liability of the company's members is limited to the amount the members undertake to contribute to the property of the company if it is wound up. 

Registration of a company creates a legal entity separate from its members. The company can hold property and can sue and be sued. Companies are registered under the Corporations Act 2001, which is Commonwealth legislation administered by ASIC. A company's registration is recognised Australia wide. Also, in terms of not-for profit policy, at a very least Charity-Care must:      

Have at least three directors and one secretary. Have at least one member. Have a registered office address and principal place of business located in Australia. Have its registered office open and accessible to the public. Be internally managed by a constitution or replaceable rules. Maintain a register of its members.

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Keep a record of all directors' and members' meeting minutes and resolutions. Appoint a registered company auditor within one month of its registration.

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Keep proper financial records.

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Prepare, have audited and lodge financial statements and reports at the end of every financial year.

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 

Send to its members a copy of its financial statements and reports, unless the member has a standing arrangement with the company not to receive them. Hold an annual general meeting once every calendar year within five months of the end of its financial year.

3. Compliance effects 

Area affected

From the document of charity-care case study, the areas that affected by compliance system can be listed below:         

risk management policy Sexual harassment policy Credit card policy Expense reimbursement Financial handling policy Expenses policy Equal employment opportunity policy Work health and safety policy Audit report

There are many policies are documented, but there still remains some training and motivational issues in relation to implementing them appropriately. The compliance system that established will help these policies to improve. In the audit report, there are many issues that should be included in the audit report, in facts, those issues have not been addressed in the audit report. In a word, the issue are presented in the following areas: 

Warehouse



Retail store



Counselling centres Head office



These areas have been found many misconducts, some operations those areas have done are not following the organisation principles. 

Risks

Compliance risk is defined as the risk of legal sanctions, material financial loss, or loss to reputation the Bank may suffer as a result of its failure to comply with laws, its own regulations, code of conduct, and standards of best/good practice. Compliance risk is sometimes also referred to as integrity risk, because a Bank’s reputation is closely connected with its adherence to principles of integrity and fair dealing. In this case, there is financial issues that caused by misconducts. Compliance risk management is part of the collective governance, risk management and compliance (GRC) discipline. The three fields frequently overlap in the areas of incident management, internal auditing, operational risk assessment, and compliance with regulations such as the Sarbanes-Oxley Act. Penalties

for compliance violations include payments for damages, fines and voided contracts, which can lead to the organization's loss of reputation and business opportunities, as well as the devaluation of its franchises. 

Penalties

A breach occurs when the law is not upheld; when:   

an action is taken that places a person at risk of injury, illness or death steps are not taken to avoid a risky situation from occurring there is a failure to comply with regulatory requirements.

There are three categories of offences for failing to comply with a health and safety duty under the WHS Act or an electrical safety duty under the ES Act, depending on the degree of seriousness or liability involved. Category 1: the highest penalty under either the WHS Act or the ES Act is for a category 1 offence, These are the most serious breaches where a duty holder who recklessly endangers a person to risk of death or serious injury. Offences involving reckless conduct, will be prosecuted in the District Court. Corporation: up to $3 million Individual as a person conducting a business or undertaking (PCBU) or an officer: up to $600 000 / 5 years jail Individual e.g. worker: up to $300 000/ 5 years jail. Category 2: failure to comply with a health and safety duty or electrical safety duty that exposes a person to risk of death, serious injury or illness. Offences will be prosecuted in the Magistrates Court. Corporation: up to $1.5 million Individual as a PCBU or an officer: up to $300 000 Individual e.g. worker: up to $150 000. Category 3: failure to comply with a health and safety duty or electrical safety duty. Offences will be prosecuted in the Magistrates Court. Corporation: up to $500 000 Individual as a PCBU or an officer: up to $100 000 Individual e.g. worker: up to $50 000. 

Risk minimisation

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Proof of regular meetings: minutes, agendas, notes, presentation slides, etc. Regular scenario test runs: test plans, test results, and so on

 

Evidence of recent change management (such as logs showing ongoing changes) and reviews to the BCP plan (for example, version history of the BCP plan and associated documents)

 

Obtaining a sanction for authority to fundraise Conducting a door-to-door appeal or street collection

4. Compliance systems       



1.

2.

3.

The compliance system is how a management system that: Learns about its compliance responsibilities Ensures that employees understand these responsibilities Ensures that requirements are incorporated into business processes Reviews operations to ensure responsibilities are carried out and requirements are met Takes corrective action and updates materials as necessary The reason of its importance could be concluded as it helps manage risk. A compliance system helps manage risks associated with changing product and service offerings and enacting new legislation to address developments in the marketplace. Otherwise, noncompliance with consumer protection laws may result in the litigation, monetary penalties, and other formal enforcement actions. An effective compliance system is comprised of three interdependent elements: Board and management oversight

The Board of Directors is ultimately responsible for developing and administering a CMS that ensures compliance with federal consumer protection laws and regulations.

compliance officer

Compli...