corporate governance vnq 7 october 2008

Department of Primary Industries & Fisheries

Corporate Governance

Gerard Byrne B Comm FCPA FAIM

[email protected]

Tuesday, 7 October 2008

Ourcommunity

Much of the material in this presentation

is based on the work of Ourcommunity.

For original documents and further

Information refer to the Ourcommunity

Website.

Setting the Scene

Who can help?

www.ourcommunity.com.au

www.communities.qld.gov.au

www.cpaaustralia.com.au

www.volunteeringnthqld.org.au

Setting the Scene

What is Corporate Governance:

Many different definitions

Doing what is fair and reasonable

Laws and regulations

Acting on behalf of members

Setting the Scene

Legal Framework:

Corporations Act

Incorporations Act

Professional Bodies eg Company Directors, Accounting Bodies

Setting the Scene

Financial Governance:

Financial Custodianship

Insurance / Risk Management

Managing resources


Organisation:

What is the organisation

Business Plan

Financial Plan


Business Plan:

Clear purpose

Expenditure/Income

Budget


Financial Plan:

Budget

Accounting Policies

Taxation eg GST

Fundraising


Budget I:

Looked at last year's income Looked at the timing of last year's

income Asked, 'What will happen this year?' Worked out this year's overall figures

(Source: www.ourcommunity.com.au)


Budget II:

Drew up the income side of the budget month by month

Followed the same steps for expenditure

Discussed the options Presented the budget for sign-off (Source: www.ourcommunity.com.au)


Guide for Community Treasurers

www.ourcommunity.com.au Consider adopting by Board Check for updates Attend training Australian Tax Office Guides


What does a treasurer do?

Keep up-to-date records as well as an audit trail for all transactions (consider setting up an audit committee and appointing an external auditor)

Protect the organisation against fraud and theft, ensuring safe custody of money, and prompt banking

Make sure the board understands its financial obligations Make sure the organisation complies with tax regulations,

such as GST, payroll tax and fringe benefits tax Review all internal processes and reporting methods at

least annually.



Review procedures and financial reporting

You will need policies and procedures to protect the organisation and its people.

Controls on expenditure, such as who can authorise spending, upper limits before board approval is needed, and who can sign cheques.

Controls on income generation, including appropriate and inappropriate ways of raising money.

Systems for ensuring cash and chequebooks are kept securely.



You need to track:

How much your organisation owns How much money you can easily access Your main sources of income What you are spending money on How much you owe


Cash Flow?

Budget Monthly monitoring Reporting variances to the Board Managing expenditure Purchasing Policies Fundraising


Risk Management?

Risk management is the process ofthinking systematically about all thepossible risks, problems or disastersbefore they happen and setting upprocedures that will avoid the risk, orminimise its impact, or cope with itsimpact. (Source: www.ourcommunity.com.au)


Insurance?

Undertake a review Seek professional advice Risk Management Strategy Review annually What are others doing


Auditors?

Who should be audited Good record keeping essential Annual Audit Grant Acquittal Government Audits

Conclusions

Corporate Governance is more than following rules - culture

Balance size of operations with governance policies and procedures

Seek help early / network

Continue to learn

Where to from here?

Who can help?

www.volunteeringnthqld.org.au

www.ourcommunity.com.au

www.communities.qld.gov.au

www.cpaaustralia.com.au

Where to from here?

Questions?

Gerard Byrne B Comm FCPA FAIM

07 47 22 2517 0417 770 340

[email protected]