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Administration Seminar ASC Coffs Harbour Mr John Boyle Business Services Manager The Price of Liberty is Eternal Vigilance.

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Presentation on theme: "Administration Seminar ASC Coffs Harbour Mr John Boyle Business Services Manager The Price of Liberty is Eternal Vigilance."— Presentation transcript:

1 Administration Seminar ASC Coffs Harbour Mr John Boyle Business Services Manager The Price of Liberty is Eternal Vigilance

2 Presentation Overview 1.ATO Deed of Agreement 2.Compliance review 3.Donations 4.Mortality Payments 5.Budgets 6.Australian Charities and Not for Profit Commission 7.Questions

3 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.

4 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)

5 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)

6 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)

7 ‘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.

8 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.

9 Donation Tier 1 TIER%ORGANISATION/CHARITYCOMMENT 150% 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

10 Donation Tier 2 TIER%ORGANISATION/ CHARITY COMMENT 225% MaxMemorials: new, repairs, restoration Schools: Scholarships, educational material, books, visitation to sites military history Cadet Units Defence Reserve Units ADF War Museums/Kokoda Track

11 Donation Tier 3 TIER%ORGANISATION/ CHARITY COMMENT 320% MaxSupport provided to Commemorative Services e.g. St Johns Ambulance, Red Cross Local Community Charities that meet the aims & objects of the League

12 Donation Tier 4 TIER%ORGANISATION/ CHARITY COMMENT 45% MaxOther ESOs Everyman War Widows

13 Donation Tiers (cont.) To enable sub-Branches clarity for example: Whereby a sub-Branch donates as per the By-Law a total of $10, in donations, a minimum of $5, 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.

14 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.

15 Percentage of Income to be Donated Income under $5,000No restrictions on donations Over $5,000 but under $50,00030% of income to be donated Over $50,00040% of income to be donated

16 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.

17 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.

18 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).

19 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.

20 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)

21 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

22 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.

23 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

24 Australian Charities and Not-for- Profit Commission ACNC legislation was passed by the Australian Parliament late 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.

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26 THANK YOU The Price of Liberty is Eternal Vigilance


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