1. Serious about Success ® The new Australian Charities & Not-for-Profits Commission – Implications for HACC Services Presented by: Katrina (Kate) Daly Partner Moore Stephens Sydney West www.moorestephens.com.au

2. Disclaimer Our comments and information contained in this presentation are generic in nature and are not purported to represent advice that can be relied upon. You should seek your own advice for your own circumstances. The author or any other persons involved in the preparation or distribution of this presentation expressly disclaim all and any contractual, tortious or other form of liability to any person in respect of this presentation and any consequences arising from its use by any person in reliance in whole or any part of the contents of this presentation. The comments contains in the presentation shall not in any way constitute a recommendation as to whether you should invest in any product discussed in the presentation.

3. Reform Agenda

4. ACNC Commencement date – est December 2012 (pushed back from 1 July 2012 & 1 October 2012) Independent Commission reporting to Parliament (back office ATO) First phase will regulate all existing Charities and register all new Charities Bill currently before Parliament next sitting date 29 October Registration will occur automatically utilising the entity’s ABN. Separate registration for each ABN. Will regulate the Charity on a range of matters including financial reporting, governance and in the future fundraising activities.

5. ACNC Scope of ACNC’s role –Determine legal status of entities seeking charitable status –Implement “report-once, use often reporting framework for Charities – annual reporting from 1 July 2014 (for prior year) –One stop shop public information portal by 1 July 2013 –Education and promotion of the Sector –Promotion of sound governance to maintain the public’s confidence in NFPs. –Reducing red tape for the sector

6. ACNC Regime Not For Profits Charities Basic Religious Charities Not regulated yet Full adoption of ACNC regime Exemption for financial reporting and governance Sporting Clubs etc Schools, Community welfare organisations Churches (including communities)

7. Registration Issues Entity level registration – current ABN Multiple registrations and endorsements Sub-entities and branches Is voluntary registration really an option? Alignment of introduction of Statutory Definition of Charity (1 July 2013) and commencement of ACNC (1 October 2012) Application of Basic Religious Charities.

8. Annual Information Statement Applies to all registered entities AIS will be different depending on classification (eg small) BRCs will have to complete an AIS Recognised assessment activities Applies from 1 July 2013 (for 30 June 2013 year) By 31 December each year What will it contain?

9. ACNC Financial reporting requirements Reporting and auditing (proportional approach) TierThresholdRequirements SmallAnnual revenue less than $250,000. Annual information statement (e.g. entity’s purpose, activities, governance, short-form financial information) MediumAnnual revenue less than $1 million and not ‘small’ Annual information statement (more detailed) Financial report that has been reviewed LargeAnnual revenue of $1 million or more (includes DGRs) Annual information statement (more detailed) Audited financial report

10. Financial reporting Annual financial reporting requirements will be contained in the Regulations Regulations must be first subject to consultation with Sector Special v General Reporting?? Transitional Provisions allow for existing reporting by schools to DEEWR and ACARA to meet obligations for 3 year period Commissioner has discretion to accept other Government lodged reports. Additional reporting can be requested by the ACNC (by entity or class of entity)

11. Governance Governance standards will be contained in the Regulations Regulations must be first subject to consultation with Sector BRCs carve out – on specific standards Governance obligations rest with the Responsible Entities Standards can’t prohibit political advocacy Registered entities need to be transparent, efficiently utilise resources, minimise risk of mismanagement & misappropriation Pursue their purposes

12. Monitoring and Enforcement

13. Implications for HACC services Identification of your entity’s status. Will it be regulated by the ACNC? Previous reporting regime to be altered Annual Information Statements Financial Reporting – potential changes to annual reports and deadlines One Stop Shop ACNC Register – Portal Grant Acquittals- Changes to Commonwealth Grant Guidelines

14. Next Steps….

15. Contact details Katrina (Kate) Daly Partner Moore Stephens Sydney West Level 6, 460 Church Street Parramatta Tel: (02) 9890 1111 kdaly@moorestephens.com.au