Administration Seminar ASC Coffs Harbour

Administration SeminarASC

Coffs Harbour

Mr John BoyleBusiness Services Manager

The Price of Liberty is Eternal Vigilance

Presentation Overview 1. ATO Deed of Agreement2. Compliance review3. Donations4. Mortality Payments5. Budgets6. Australian Charities and Not for Profit

Commission7. Questions

How will the Deed of Agreement effect sub-Branches

• All RSL sub-Branches and their subsidiaries will need to be compliant with the Constitution of RSL NSW & both Federal and State Acts.

• An RSL Audit team consisting of CFO, Miss Annette Mulliner OAM, Julian Waetford and myself will be conducting audits of RSL sub-Branch’s and their subsidiaries.

• These audits will cover not only financial information but all activities of the RSL sub-Branch or subsidiary.

• It is planned that the audit team will visit at least 50 RSL sub-Branches per year not counting call backs.

Where can RSL sub-Branches Donate

• All Donations must meet the ATO’s requirement that it be for the PREDOMINANT PURPOSE that the League holds its Charity Status.

• The Aims and Objects of The Returned and Services League of Australia (New South Wales Branch)

Where can RSL sub-Branches Donate

• New By Law 21 of the RSL NSW Constitution sets out general considerations for sub-Branches and subsidiaries as to Donation Policy.

• State Branch and sub-Branches are required to administer RSL affairs and preserve and protect RSL funds and property in compliance with the terms of the Constitution. (ATO Deed)

Where can RSL sub-Branches Donate (cont.)

• Sub-Branch Trustees and Management Committees have an obligation to ensure proper accountability of all members’ funds. The application of those funds must be made in accordance with the Constitution, By-Laws and Regulations in furthering the objects of the League.

(ATO Deed and the reason why RSL NSW & its sub-Branches have Charitable status)

‘Bona fide’ donation

The words “bona fide” means “in good faith”. When referring to distributions or donations and interpreted in accordance with the Constitution, a reference to “bona fide” means that any distributions and donations in respect of Trust funds made pursuant to the Constitution need to be made in good faith.

Donation Tiers

Due to the ATO Deed’s requirement that Donations must meet the Predominant Purpose for which RSL NSW and its sub-Branches are a charity, RSL NSW State Council has determined the approved donations and the percentage maximum and minimum sub-Branches are allowed to donate to each tier.

Donation Tier 1TIER % ORGANISATION/CHARITY COMMENT

1 50% Min

Recognised RSL Charities, as per Annex C Chapter 5 Property and Finance Regulation

RSL Family

    Other RSL Bona fide Charities, as per the Annex C Chapter 5 Property and Finance Regulation

Predominant Purpose

    RSL Youth Clubs      RSL Day Clubs      RSL Women’s Auxiliaries      Other RSL sub-Branches      Other RSL subsidiaries         

Donation Tier 2TIER % ORGANISATION

/CHARITYCOMMENT

2 25% Max Memorials: new, repairs, restoration

    Schools: Scholarships, educational material, books, visitation to sites military history

    Cadet Units  

    Defence Reserve Units

    ADF  

    War Museums/Kokoda Track

Donation Tier 3TIER % ORGANISATION/

CHARITYCOMMENT

3 20% Max Support provided to Commemorative Services e.g. St Johns Ambulance, Red Cross

    Local Community Charities that meet the aims & objects of the League

Donation Tier 4TIER % ORGANISATION/

CHARITYCOMMENT

4 5% Max Other ESOs  

    Everyman  

    War Widows  

Donation Tiers (cont.)• To enable sub-Branches clarity for

example: Whereby a sub-Branch donates as per the By-Law a total of $10,000.00 in donations, a minimum of $5,000.00 must be donated to Tier 1 charities with the remainder being divided into the other tiers as per the maximums allowed.

• The above percentages apply to all RSL sub-Branches.

Percentage of Income to be Donated

 • The term income for these purposes means the net income after reasonable expenses have been deducted from the sub-Branch’s gross income.

• In determining the percentage of income a sub-Branch may donate as per the By-Law the following table below applies.

Percentage of Income to be Donated

Income under $5,000 No restrictions on donations

Over $5,000 but under $50,000 30% of income to be donated

Over $50,000 40% of income to be donated

Mortality Payments

• The Constitution provides that one of the objects of the League and RSL NSW is “to provide for the sick and wounded and needy among those who have served, and their dependants, including pensions, welfare & benevolent fund, medical attention, homes and suitable employment”.

• Mortality Payments fall into this category.

Mortality Payments (cont)

• All recipients of these payments must be ‘bona fide’ recipients.

• All payments must be for necessitous circumstances.

• No Cash payments are to be made.• No payments direct to estates, all

payments are to be made to providers. i.e. Funeral Directors etc.

Mortality Payments (cont.)

The conditions described in the previous slide on Mortality Payments meet the requirements of the ATO and Australian Charities and Not-for-Profit Commission (ACNC).

Budgets

• It is condition of the ATO Deed and the ACNC that all charitable organisations prepare an annual budget for their overall activities.

• RSL NSW requires that all RSL sub-Branches to submit a budget to RSL NSW State Council.

Why do a Budget• Informed decisions can be made on the viability of

the organisation and the extent to which it can afford to implement and maintain certain programs and activities.

• The financial reports prepared by the treasurer during the course of the year can incorporate a comparative column to show how the organisation is travelling in relation to its budget with actual income and expenditure. Comparisons of actual income and expenditure for previous years can also form part of the report. (Good Governance)

Why do a Budget (cont.)• Adjustments can be made to programs

during the course of the year where there is a shortfall in estimated income, or estimates of anticipated income have been exceeded.

• The same applies to actual expenditure, which could exceed levels allocated in the budget (need to be curtailed or financed from another part of the budget) or conversely, Expenditure in certain areas might be running well within budget and decisions made on what to do with any surplus

Why do a Budget (cont.)

• Budgets can serve as important performance indicators

• A cash flow budget will allow the organisation to plan financial commitments it must meet at a given point in time and plan to maximise investment opportunities for funds surplus to needs.

Budget Template

• RSL NSW provides a sample Budget Template to all RSL sub-Branches.

• Three ways of getting this template:• Download from RSL NSW web site• Ask the Business Services Department of

RSL NSW• Copy in the Property & Finance Regulation

Chapter 3 Annex E

Australian Charities and Not-for-Profit Commission

ACNC legislation was passed by the Australian Parliament late 2012. Its role will be to:

* Register charities; * Establish and maintain an up to date, public searchable register

of charities;* Establish a one stop shop for charities;* Provide a ‘report once, use often’ service for charities;* Provide information and guidance for the sector; * Promote public trust and confidence in the sector; and * Monitor compliance and investigate regulatory breaches.

THANK YOU

The Price of Liberty is Eternal Vigilance