Information sessions and workshops

November 2019: Hobart workshop

The final workshop for 2019 was held on Tuesday 19 November at Rydges Hotel in North Hobart. Thirty five attendees, including representatives from unions and employer associations and registered auditors engaged with staff of the ROC, including members of the education, compliance and finance teams.

Topics discussed included financial reporting, officer and related party disclosures, elections, annual returns and notifications of change, and whistleblower disclosures. The ROC also showcased some of the tools, products and assistance available to help registered organisations to meet their obligations under the Fair Work (Registered Organisations) Act 2009.

Feedback about the workshop was overwhelmingly positive. All attendees who completed an evaluation said they would attend another ROC workshop in future.

Copies of the presentations can be accessed at the following links:

Financial reporting

Financial reporting update (PDF 284.3KB)
Financial reporting workshop (PDF 547KB)

Compliance

Elections workshop (PDF 229.3KB)
Officer and related party disclosures workshop (PDF 360.9KB)
Handling whistleblower matters (PDF 52.2MB)
Officer financial training (PDF 296KB)

The ROC has now delivered a workshop in every state and territory of Australia.

We will be refreshing the content and format of workshop in 2020. The next interactive workshop is scheduled for New South Wales in March 2020. More information will be available closer to the event.


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On 5 September 2019 the ROC delivered an interactive workshop at Hotel Realm in Canberra. Topics discussed included financial reporting, elections, annual returns and notifications of change, officer and related party disclosures and handling whistleblower matters.

Feedback from participants was again very positive. Participants indicated that they appreciated the access to ROC staff, and the interactive format of the workshop sessions.

Copies of the presentations can be accessed at the following links:

Financial reporting
Financial reporting update (PDF 284.3KB)
Financial reporting workshop  (PDF 547KB)

Compliance
Elections workshop (PDF 229.4KB)
Officer and related party disclosures workshop (PDF 297.3KB)
Handling whistleblower matters (PDF 52.2MB)
Officer financial training (PDF 248.5KB)

On 2 July 2019 the ROC delivered an interactive workshop at the Adelaide Convention Centre.

Topics discussed included financial reporting, elections, annual returns and notifications of change, officer and related party disclosures and handling whistleblower matters. ROC staff also showcased some of the tools, products and assistance available to help registered organisations to meet their obligations under the Fair Work (Registered Organisations) Act 2009.

Copies of the presentations can be accessed at the following links: 

Financial reporting
An update to financial reporting (PDF 277.9KB)
Financial reporting workshop (PDF 545.7KB)

Compliance
Elections workshop (PDF 227.8KB)
Officer and related party disclosures workshop (PDF 295.8KB)
Whistleblower workshop (PDF 52.2MB)
Officer financial training and the ROC's compliance audit (PDF 247KB)

The second ROC workshop for 2019 was held on Tuesday 7 May 2019 at Leo Cussen Centre for Law in Melbourne.

The workshop included recent developments around the governance of registered organisations and provided attendees with the opportunity to engage with staff of the Commission representing the education, compliance and finance teams.

Copies of the presentations can be accessed at the following links: 

Financial Reporting

Financial Reporting Workshop (PDF 364.1KB)

Financial Reporting update (PDF 364.1KB)

Officer and Related Party Disclosures Workshop (PDF 364.1KB)

Compliance

Elections Workshop (PDF 364.1KB)

Whistleblower Workshop (PDF 364.1KB)

Financial Training Audit (PDF 364.1KB)

Compliance and Litigation Workshop (PDF 364.1KB)

The first ROC workshop for 2019 was held on Tuesday 26 March 2019 at Karstens Conference Centre in Sydney.

The workshop included recent developments around the governance of registered organisations and provided attendees with the opportunity to engage with the Commissioner and staff of the Commission representing the education, compliance and finance teams.

In response to the feedback received at our previous information sessions, a new program of material was presented and participants had the opportunity to be part of smaller interactive workshops on specific issues. 

Copies of the presentations can be accessed at the following links: 

Financial Reporting

Financial reporting obligations - what's new (PDF 364.1KB)

Financial reporting workshop (PDF 149KB)

Officer and related party disclosures (PDF 232.4KB)

Compliance

Compliance audit - Financial training for officers (PDF 209.3KB)

Overview and update on the protected disclosures (whistleblower) scheme (PDF 776.1KB)

Whistleblower scheme workshop and new resources (PDF 51.6MB)

Compliance and litigation update (PDF 197.6KB)

A half-day Brisbane information session was held on Tuesday 20 November 2018 at the Christie Conference Space in Brisbane, Queensland.

Brisbane info program 2.png

Agenda

  • Induction for new office holders
  • Corrupting benefits and officer and related party overview
  • Round table discussion on corrupting benefits hypothetical
  • Q&A session regarding corrupting benefits and officer and related party disclosures
  • Compliance with financial reporting
  • ROC tools, templates and compliance calculator
  • Inquiries and investigations case studies

Presentation slides

  • Officer and Related Party Disclosures and 'Corrupting Benefits' Amendments
  • Financial reporting - obligations and requirements
  • Ten speed case studies on assessments, inquiries and investigations

Panel members - Q&A session on corrupting benefits and officer and related party disclosure

  • Patrick Coyle - Principal Lawyer - Litigation - Registered Organisations Commission
  • Catherine Bebbington - Senior Adviser - Education and Reporting - Registered Organisations Commission
  • Declan Clifford - Executive Officer - Registered Organisations Commission

A half-day Perth information session was held on Wednesday 19 September 2018 at the Rendezvous Hotel in Perth, Western Australia.

 DSCN1069

Agenda

  •    Induction for new office holders
  •    Corrupting benefits and officer and related party disclosures overview 
  •    Q&A session regarding corrupting benefits and officer and related party disclosures
  •    Compliance with financial reporting requirements
  •    ROC tools, templates and compliance calculator 
  •    Inquiries and investigations: case studies on how to navigate them towards positive outcomes

Presentation slides

  •    Officer and Related Party Disclosures and 'Corrupting Benefits' Amendments
  •    Financial reporting - obligations and requirements
  •    Ten speed case studies on assessments, inquiries and investigations

Panel members - Q&A session on corrupting benefits and officer and related party disclosures

  •    Bill Steenson - Principal Lawyer - Compliance and Investigations - Registered Organisations Commission
  •    Eve Anderson - Principal Adviser - Education and Reporting - Registered Organisations Commission
  •    Declan Clifford - Executive Assistant - Registered Organisations Commission

A half-day Darwin information session was held on Tuesday 24 July 2018 at the Darwin Innovation Hub in Darwin, Northern Territory.

Darwin

Agenda

  •    Induction for new office holders
  •    Corrupting benefits and officer and related party disclosures overview 
  •    Q&A session regarding corrupting benefits and officer and related party disclosures
  •    Compliance with financial reporting - common errors, tips and tools
  •    ROC tools, templates and compliance calculator 
  •    Case studies on assessment, inquiries and investigations
  •    Networking and engaging with ROC staff

Presentation slides

  •    Corrupting benefits and officer and related party disclosures
  •    Compliance with financial reporting - common errors, tips and tools
  •    Case studies on assessment, inquiries and investigations

Panel members - Q&A session on corrupting benefits and officer and related party disclosures

  •    Bill Steenson - Principal Lawyer - Compliance and Investigations - Registered Organisations Commission
  •    Patrick Coyle - Principal Lawyer - Litigation - Registered Organisations Commission
  •    Catherine Bebbington - Senior Adviser - Education and Reporting - Registered Organisations Commission

A half-day Melbourne information session was held on Friday 4 May 2018 at the William Angliss Institute in Melbourne, Victoria.

Melbourne Panel_4 May 2018

Agenda

  •    Induction for new office holders
  •    Corrupting benefits and officer and related party disclosure issues
  •    Panel discussion and Q&A session regarding corrupting benefits and officer and related party disclosures
  •    Compliance with financial reporting - common errors, tips and tools
  •    ROC tools, templates and compliance calculator
  •    Case studies on assessment, inquiries and investigations

Presentation slides

Panel members - Q&A session on corrupting benefits and officer and related party disclosures

A full-day Parramatta information session was held on Tuesday 6 March 2018 at the Parramatta RSL Club in New South Wales.

Parramatta Information Session-registration desks_6 March 2018

Agenda

  •    Launch of the ROC's Officer Induction Kit
  •    Corrupting benefits and officer and related party disclosures
  •    Panel discussion and Q&A session regarding corrupting benefits and officer and related party issues
  •    Financial reporting tips
  •    ROC templates and the launch of the ROC Flower and compliance calculator
  •    Inquiries and investigations, with case studies
  •    Whistleblowers and protected disclosures - ROC's approach and what organisations need to know

Presentation slides

Panel members - Q&A session on corrupting benefits and officer and related party disclosures

  • Barrister, Jamie Darams
  • Barrister, Lucy Saunders
  • Barrister, Oshie Fagir

Information session Q&As

Many questions have been asked at the information sessions and workshops about specific circumstances, particularly in relation to corrupting benefits and disclosure obligations for bargaining representatives. The ROC cannot provide legal advice about how the law applies to individual specific circumstances, however our guidance notes and other resources on a range of topics might assist organisations and their branches to identify issues they need to think about.  

General

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Annual Returns

Organisations are required to keep a record for each election that must be held during each year commencing 1 January for any offices in the organisation and branches of the organisation (refer to s 230(1)(d) and reg 147). A copy of this record forms part of the Annual return which is lodged with the ROC every year by 31 March (refer s 233(1)(b)).

An election that is scheduled to commence in a calendar year which is not declared until the following calendar year should be listed in the Annual Return of the year in which the election was scheduled to commence. Therefore a scheduled election which commenced in 2018 which was declared on a day in 2019 should be listed in the organisation’s 2018 Annual Return.

Officer and related party statements 

The ORP statement can be with the GPFR but it must be a separate statement. NOTE: it cannot be a note or included in another statement. A template statement is available on the ROC’s website.

The time frames for providing the ORP statement to members and lodging it with the ROC are different to the time frames for the GPFR, so they may need to be lodged separately. More detail on the timeframes regarding financial reporting is on our financial reporting page, as are details about timeframes for ORP statements. You should also check your rulebook. Your rulebook might provide additional obligations.

Remember that a branch that is not required to prepare a financial report is still required to provide and lodge an ORP statement.

Yes

Where there are no disclosures to be made, organisations and branches should complete an ORP statement and make it clear in that statement that there are no disclosures. The organisation or branch can provide a statement that there are ‘nil’ disclosures to be made. Where there are some disclosures, but fewer than the legislative disclosure requirements (for example, where only 3 officers received relevant remuneration or non-cash benefits), the word ‘nil’ can be used in the applicable fields to indicate that there are no further disclosures to be made.

Ultimately it should be clear on the face of the statement that the organisation or branch have considered their full disclosure requirements and completed the ORP statement accordingly.

Refer to the meaning of office in s 9 of the RO Act. You should also examine the organisation’s rules to determine whether the functions of the position meet the statutory definition of an officer.

Remuneration is defined in s 6 of the RO Act to include pay, wages salary, fees, allowances, leave, benefits or other entitlements (but it does not include a non-cash benefit).

‘Relevant remuneration’ also includes remuneration from Board positions or related parties disclosed by an officer (refer to s 293B(1), (2) and 293BC(4)).

Relevant remuneration received by an officer from a board position ought to be disclosed in the ORP statement even where it is passed on to or ultimately received, in part or in full, by the organisation or branch.

In circumstances where there are two or more officers who have received an equivalent amount of relevant remuneration, the officers will be given the same rank within the top five ranking of officers by relevant remuneration. Therefore you may need to disclose the identity, relevant remuneration and non-cash benefits of more than give officers in the ORP statement.

Section 293BC requires the disclosure of the top five ranked officers by relevant remuneration.

Yes, if the officer is ranked in the top five of officers by relevant remuneration. An honorarium payment is captured by the definition of remuneration (refer to s 6 of the RO Act).

For a payment to be considered relevant remuneration it must be made to an officer of an organisation or branch.

If a payment is made after a person ceases to hold office, then the payment is not relevant remuneration. However, if the payment was made by the organisation or branch within six months of the person holding office it would likely be considered a payment to a related party. In this case it would need to be disclosed as a related party payment in the organisation's or branch's ORP statement.

For the disclosure of relevant remuneration of the top five ranked officers there is no minimum threshold. However, in relation to the disclosure of related party payments, if less than the prescribed amount (currently $5000) has been paid to a related party during the financial year, it is exempt from disclosure under s 293G(5B).

The RO Act does not prescribe how non-cash benefits should be valued.

In some cases, the value of the non-cash benefit may be simple to calculate based on the actual cost to the registered organisation of the non-cash benefit. In other circumstances, a market value estimate may be appropriate. The value of non-cash benefits should include the GST component, and any other fee or charges that are generally associated with the use and access of the benefit.

Organisations and branches should disclose the value of non-cash benefits as the grossed-up value and not the taxable value (as per the fringe benefit tax rules). Organisations and branches may disclose additional notes to explain their method of calculating the non-cash benefit.

The meaning of 'related party' can be found in s 9B of the RO Act.

A related party to an organisation includes:

  • An entity controlled by an organisation, other than:

  • a branch, sub-branch, division or subdivision of the organisation
  • Officers of an organisation, and spouses of officers (including de facto partners)
  • Relatives of officers (a parent, step-parent, child, stepchild, grandparent, grandchild, brother or sister of the officer)
  • Relatives of an officer's spouse
  • An entity controlled by any of the above related parties (unless the entity is also controlled by the organisation)
  • The entity was a related party of one of the above at any time within the previous six months
  • The entity believes, or has reasonable grounds to believe, that it is likely to become a related party of the organisation at any time in the future
  • If the entity acts in concert with another related party of the organisation, on the understanding that the related party will receive a financial benefit if the organisation gives the entity a financial benefit

Care should be taken to ensure that the organisation discloses related party payments in accordance with the RO Act. Note that this definition is not the same as the definition of a related party under the Australian Accounting Standards which applies to an organisation or branch's financial reports.

The remuneration and non-cash benefits paid to the top five ranked officers need to be disclosed in the ORP statement. As it is unlikely that a Christmas lunch provided to all officers would meet the definition of 'remuneration' or 'non-cash benefit', the provision of a Christmas lunch is not required to be disclosed in the ORP statement.

Yes. For the payments to be exempt from disclosure under s 293G(5B), the total amount of the payments made to the related party in the financial year must be no more than $5000.

Yes. The ROC publishes ORP statements online. ORP statements are a legislative requirement and the RO Act authorises its use and disclosure, including publication online.

Where there is information disclosed in the ORP statement that is not mandated by the RO Act, some information may be redacted prior to publication to protect the privacy of individuals.

Organisations are encouraged to establish governance structures and foster a culture of transparency and voluntary compliance. The ROC may be able to provide additional support and assistance to organisations where requested.

The rules of organisations may provide mechanisms for disciplinary action or the removal of officers from office if they have been found guilty under the rules of a substantial breach of the rules or of gross misbehaviour or gross neglect of duty. It is recommended that organisations refer to their rules in such circumstances.

Financial reporting

Yes, but the individual auditor should be registered under the RO Act.

No, and they should not be. Documents that can be signed prior to the first meeting are the Operating Report, the section 255(2A) report and the Officer’s Declaration Statement (if used). They could also be signed at the first meeting, but they must be signed before the audit.

The first meeting passes the resolution in the Committee of Management Statement. The Committee of Management Statement cannot be signed until after the resolution has been passed, but it must be signed before the audit. Then, between the first and second meetings, the auditor finalises the entire financial return and signs the Auditor’s Report.

At the second meeting the Committee of Management Statement, the Auditor’s Report (which includes the audit of the signed Committee of Management Statement), the Operating Report, the Officer’s Declaration Statement (if used) and the section 255(2A) report have all already been signed. The only document that is signed after the second meeting is the Designated Officer’s Certificate.

Yes – all loans which exceed $1000 must be disclosed.

Yes - all loans which exceed $1000 must be disclosed.

Yes. If the RO Act refers to the word ‘members’ without qualification, the ROC takes the view that this includes all members of the organisation, whether financial or unfinancial.

These methods are all sufficient, as long as all members can access it (for example, it should not be password protected unless all members are provided with the password) and it is free of charge.

If it is provided on a website, we recommend that you send an email or other notification (in a newsletter for instance) letting members know that the report is available and where.

Publication of the full report in a reporting unit’s journal (that is free of charge to all members) is another option.

The issue of State and Federal entities can be complex for organisations. The two entities are legally and financially separate (even if in practice they might be very similar with the same members, the same people holding office, and money commonly transferred between them).

It is the ROC’s strong recommendation that reporting units clearly distinguish which entity is the owner of what assets and debts and which should report them. If ownership is not identified then a reporting unit cannot keep proper financial records or produce an accurate financial report. The reporting unit cannot lodge the same financial report with the ROC and the relevant State regulator. Officers must be clear, when acting in relation to the finances of the reporting unit and conducting meetings, which entity they are currently representing.

If all of the assets and liabilities are in the State entity (and in the State system), the reporting unit may be able to apply for a section 269 or section 271 exemption from reporting with the ROC.

Yes, the Designated Officer’s Certificate can be signed on the same day as the second meeting but it must be after the meeting. The Designated Officer’s Certificate cannot be signed before the second meeting.

The format is not prescribed. Options could include presenting the information in diagrammatic form such as a pie-chart, for example, or in descriptive form such as in a table. The information only needs to be provided in one format of your choosing. The reporting unit and auditor should consider what information and format would be most useful for the members. 

The sub-section 255(2A) report only needs to be included once – it forms part of the general purpose financial report and because of this must be audited and must be included in the auditor’s scope. The sub-section 255(2A) report is a separate statement and should not be included in the Notes to the financial report.

Elections

The RO Act requires the Australian Electoral Commission (AEC) to use the rules of the organisation as in force on the day the nominations in the election opened, even if the rules have since changed.

There is no requirement for organisations to tell the ROC about rule alterations that will impact elections. However, if an organisation is trying to have rules certified that will change the election process, including this with the prescribed information will help the ROC work with the FWC and the organisation to achieve the best possible outcome for the organisation. The ROC has therefore put this on the template for prescribed information for an election because it might prevent expensive remedial actions that could arise if the rules are certified after the election has been arranged. If the information has not been provided in the prescribed information, the ROC will contact the organisation to ask whether rule alterations are pending.

There is no requirement for the ROC to inform the FWC about elections. The FWC informs the ROC about rule alterations after they have been certified. The organisation should also inform the AEC.

The ROC can liaise with the FWC to try to ensure that the rules are certified prior to issuing the decision for the election (and therefore prior to nominations opening). However, if the current rules contain a date on which nominations must open, the ROC will issue a decision before that date.

Also if the rules are unlikely to be certified by the FWC during a reasonable period of time, the ROC will issue a decision. The ROC must comply with the RO Act and the rules as they stand.

The Fair Work Commission (FWC) remains responsible for certifying alterations to the rules of organisations. If you have questions about the process the FWC has a Registered Organisations team which can assist.

Section 189 of the RO Act prescribes that an organisation or branch of an organisation must lodge prescribed information in relation to an election with the Commissioner. However, organisations and branches should also refer to their rules to determine whether there is an established procedure in place. If the national office lodges prescribed information on behalf of a branch, we recommend that this is clearly communicated to the branch.

If a vacancy has occurred (casual vacancy), registered organisations should check their rulebook to find out if that office must be filled or if it can remain vacant. If the rules are silent, it is the view of the ROC that the office must be filled as soon as practicable if it is vital to the functioning of the branch or organisation (for example, the National Secretary).

Disclosure obligations for bargaining representatives

We recommend providing the disclosure to employees as early as possible, to ensure employees have sufficient time to absorb the information and ask questions. In addition, employees should be kept informed of the progress of bargaining and terms of the agreement – this should avoid surprises prior to the vote. Another alternative where possible might be to remove the relevant term from the agreement so that there is no need to make the disclosure.

A bargaining representative includes employer bargaining representatives and employee bargaining representatives. In practical terms this will commonly be the employer (or employers) who will be covered by the proposed enterprise agreement, and the union (or unions) which represents the interests of the employees.

Officer financial training

The ROC encourages all organisations to participate in the financial training audit. The purpose of the audit is to increase compliance and educate organisations and officers about the obligation to complete financial training. Participation in the audit is voluntary.

The ROC will consult with the national office of registered organisations to determine the most appropriate method of communication for the organisation.

All officers who hold financial duties relating to the financial management of the organisation or branch are required to complete approved financial training under section 293K of the Fair Work (Registered Organisations) Act 2009 (RO Act), whether they are a volunteer or not and assuming an exemption does not apply.

It is the responsibility of the organisation or branch to ensure that the officer completes the training. The organisation/branch is liable for civil penalties of up to $105 000 (2018/2019) for breaching its obligation to ensure that the training has been done.

Where an officer refuses to undertake the training, the organisation or branch might wish to look at its rules to see what actions, if any, could be taken. For example, some organisations’ rules permit the removal of a person from office for gross misbehaviour or gross neglect of duty (following due process). The organisation might also wish to consider whether it has the power to prevent the officer from exercising duties that relate to the financial management of the organisation or branch (for example, participating in financial decisions made by the Committee of Management) until the officer completes the training.

In addition, it is possible that an officer who refuses to undertake required training has not exercised their powers, or discharged their duties, in good faith for the best interests of the organisation, and thus exposes themselves to penalties (section 286 RO Act).

It is the ROC's view that if an officer is re-elected to the same office they are currently holding and they have already undertaken approved financial training, then the officer does not need to undertake financial training again. However, ROC’s recommended best practice is that an officer who has been re-elected to the same office should undertake training again where the previous training was completed prior to May 2017 (given the legislative amendments that came into force at that time).

Where an officer is elected to a different office after undertaking approved financial training, the Fair Work (Registered Organisations) Act 2009 requires the officer to undertake the training again, or seek an exemption.

Yes. Section 293K requires the officer to re-complete approved financial training unless an exemption is granted.

Yes. Section 293K requires all officers who exercise financial duties to complete approved training within six months after they begin to hold office, unless an exemption is granted.

Yes, the responsibility to approve a budget is a financial duty. All officers who undertake financial duties that relate to the financial management of the organisation or branch must undertake approved financial training within 6 months after commencing their office, unless they are granted an exemption. Financial training protects the organisation, branch and officers; empowering them to better understand the details of the budget and make an informed decision on financial matters.

In response to the request for additional guidance about how exemption applications are assessed, the ROC has published a number of exemption decisions online.

Section 293K is a civil penalty provision. Organisations and branches expose themselves to a civil penalty if an officer does not comply with s 293K.

It should also be noted that rules of organisations may provide mechanisms for disciplinary action or the removal of officers from office if they have been found guilty under the rules of a substantial breach of the rules or of gross misbehaviour or gross neglect of duty.

Whistleblowers

Each matter will be assessed on a case by case basis.

Regulation 176G(1)(c) of the RO Regulations provides that where the discloser has informed the investigator that they do not wish to pursue the matter, and the investigator is reasonably satisfied that there are no matters concerning the disclosure that warrants an investigation, they may exercise a discretion not to investigate the disclosure.

The ROC takes an evidence-based approach to investigating disclosures.

Where the investigator of the disclosure considers a disclosure to be frivolous or vexatious, the investigator has a discretion under Regulation 176G(1)(b) not to investigate.

The meaning of 'transaction' is not defined in the RO Act. It is the ROC's view that the transaction has to be more than a mere interaction. For example, if two parties (such as a union and a company) were signatories to an enterprise agreement and no payment or other exchange of value was involved, it is unlikely to be a transaction. However, if the two parties have a financial dealing such as a loan, donation or other payment, it is likely to satisfy 'transaction' under ss 337A(1)(iv) and (v). While the Courts are yet to deal with this particular section of the RO Act itself, transaction is a term used in several pieces of legislation, and the court's interpretation of 'transaction' in those matters may provide guidance. You should seek independent legal advice in relation to this issue. The ROC is unable to provide legal advice.

Other

A registered organisation generally cannot prevent somebody from joining the organisation if the person is eligible under the organisation's eligibility rules. However, s 166(1) places two conditions on becoming or remaining a member. Firstly, the ability to refuse if the person is of 'general bad character' and secondly, subject to the payment of membership dues.

'General bad character' and whether a person may be denied membership has been considered by the Courts, for example by the Federal Court in Owens v Australian Building Construction Employees and Builders Labourers Federation (1978) 46 FLR 16, in which the Court had to determine whether particular conduct amounted to general bad character.

Section 171A of the RO Act also provides that a person's membership of the registered organisation will cease if they are no longer an employee, unless they remain qualified in that occupation and are seeking relevant employment (s 166(3)).