The ACNC Taskforce provided an update to implementation of arrangements to establish the new regulator.
General update
Since the last meeting the taskforce has been very busy with consolidation of early work, building relationships and operationalising as much as possible.
The taskforce has moved to new premises in MTAA House, Barton. This will enable co-location with others such as ATO staff working on ACNC implementation.
We have attended meetings with some of the states, advancing the idea of a 'one stop shop'. The response has been largely welcoming and open.
The idea of using the term 'passport' as a reference to reporting once, use often was proposed. The members' agreed that is was an appropriate description.
Some secondees were staying with the taskforce for longer than the three months that was originally announced by Ms Pascoe.
Currently taskforce members are meeting with professional or peak bodies around twice a week, including Pilch Connect, CPA and Our Community. Some recurring themes are emerging:
- there is not a high level of awareness of ACNC
- people have only very basic understanding of what is happening
- primarily only simple questions are being asked
- informed people are concerned that there will be an increase of red tape
- there is also a recurring concern that the ACNC won't be independent.
On a positive note, the implementation of a regulator for the sector has been viewed as positive. We advised of our regulatory approach as:
- assuming honesty unless proved otherwise
- being a benign regulator except where there is deliberate wrongdoing
- operating for the community.
There have also been many questions about the impact of ACNC in relation to small not for profits. The taskforce plans to meet with small NFPs as well as church groups to address these concerns.
In reference to church groups issues like the ones below need to be addressed:
- what is the point of reporting?
- will consolidation be accepted - at what level - diocese or parish? etc.
- the differing structure within churches, as well as non christian churches.
Location
The ACNC head office has been announced as being in Melbourne, having secured a floor in 735 Collins Street. This will be a co-location with the ATO as the biggest tenant in the new building. The ACNC will have separate entrance and signage but many shared services and facilities.
We hope to move in on 1 May 2012. We have only til end of February 2012 in Barton so this may pose some problems.
The need for a presence in Canberra has been critically assessed. We are looking at keeping some people in Canberra - particularly liaison roles and the new commissioner, however it won't be a dedicated full time team. We have had discussions regarding renting space from another independent regulator.
Portal design
(Incorporating messages coming out of roundtables.)
- It is clear that a portal is an important vehicle to get messages out but also to receive messages and transact with people.
- We are keen to build a level of capability - one stop shop, passport etc.
- We are impressed with the New Zealand capability in this space particularly around the open search function which provides various categories to use as search parameters.
- The taskforce is taking a lead in working closely with the ATO to make this happen.
- A supplier who has worked with non-profits previously has been chosen to help build this.
- A big advantage of the system that has been chosen is its flexibility.
- Functionality and content of the portal need to be signed off.
Recruitment
- We have finalised a proposed organisational structure which sees two Assistant Commissioners sitting under the Commissioner. The structure is finalised subject to the sign-off from the Public Service Commissioner for the additional Assistant Commissioner role.
- A copy of the structure was provided.
- The communications team will be closely linked with the policy and education team.
- All registrations will be directed to website with a phone support team staffed by ACNC personnel.
- A recruitment agency has been employed to look after the recruitment needs with advertisements to appear by end of November, with interviews in January 2012.
- The Commissioner will be appointed before the Assistant Commissioners are, due to approval timelines.
A member asked what sort of information is required to operate the portal system and will it be able to send information electronically? The response was that these things are not yet finalised, but are being considered, confirming what fields and capability is needed. We want to ensure information is open and available because we need it not just because it is interesting.
A member added that the education system has gone through this and with information being easily accessed some parties have obtained it and presented it unfairly. This is an issue to look out for. How are you going to protect the data from this?
The response was - this situation is obviously present and needs to be considered but it will not stop our intention of being open and transparent. To mitigate this we need to educate everyone about how NFPs run, so it's transparent and there it is difficult to twist the data.
ACNC culture
ACNC has commissioned Val Braithwaite from the ANU to write a draft paper relating to the values and culture of the ACNC. Important values to be listed include independence, integrity, fairness, respect and accountability.
Relating to regulatory approach we will adopt:
- mainstreaming accepted practice, for example, expect reasonable fiduciary and governance standards
- use of the public as watchdogs and having open interactions with them
- a benign approach to the sector, unbiased, however firm but fair.
A member added that the culture of an organisation is very much about the people in it, so the recruitment process is paramount.
Response - Charities should be formed to make a difference in the community and we see them like that. Whilst saying that, we need to be firm with deliberate wrongdoers.
A question from a member was asked - Community housing is about to receive new regulations. What level of regulation will be in place?
Treasury response - Treasury will work with FaHCSIA in setting policy, work with ACNC around governance and reporting requirements and service delivery with housing regulators. There will be a memorandum of understanding (MOU) between ACNC and community housing regulator.
Treasury - the government has stated that it wants to implement the 'report once, use often' principle. We are working toward this. Treasury are also looking into duplication of regulation through the interdepartmental committee.
In response to the question 'Are private ancillary funds required to report publicly now', the answer no was given.
A member asked if there has been consultation about an entity's size and reporting requirements. Treasury replied that it would be proportionate basing size on turnover. Everyone would incur some level of reporting.
MOU
ACNC have been in discussion with the ATO in relation to recruitment and human resource issues. To address perceptions of independence, a recruitment agency has been employed.
As a side issue, we would like to add that the ATO have been fantastic with their support to us and specifically now in organising a delegation so the ACNC Taskforce Commissioner can sign off on recruitment.
Discussion paper
There will be a discussion paper out shortly outlining where we are at and what considerations have been made and still need to be made to further implementation.
Roundtable topics
The summaries of issues from the roundtables will feed into the discussion paper due soon. The discussion paper will also cover issues related to other aspects of ACNC implementation.
Portal timing
Functionality and content for the portal is still to be signed off. There is a large section about these topics in the discussion paper.
Consultation
A timeline of planned consultation was provided to the group. The consultation is to complement the discussion paper.
There will be two sessions in most capital cities around the country. Discussion will be centred on the proposals contained in the discussion paper.
The ACNC website contains more information. Content on here is updated on a weekly basis.
We are promoting the consultations through the normal communication channels plus local media.
We are also conscious of the fact that there is a lot of consultation and feedback sought presently so timing is very important.
More content is being added to YouTube all the time which includes providing list of sector representatives and visiting international speakers.
In response to a question about who is the target for consultation, it was stated that the whole sector, public and anyone with an interest is welcome. There will be an online forum and face to face consultation.
Sections within Agenda items
Last Modified: Wednesday, 8 February 2012