corporate governance vnq 7 october 2008
TRANSCRIPT
Department of Primary Industries & Fisheries
Corporate Governance
Gerard Byrne B Comm FCPA FAIM
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
Corporate Governance
Organisation:
What is the organisation
Business Plan
Financial Plan
Corporate Governance
Business Plan:
Clear purpose
Expenditure/Income
Budget
Corporate Governance
Financial Plan:
Budget
Accounting Policies
Taxation eg GST
Fundraising
Corporate Governance
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)
Corporate Governance
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)
Corporate Governance
Guide for Community Treasurers
www.ourcommunity.com.au Consider adopting by Board Check for updates Attend training Australian Tax Office Guides
Corporate Governance
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.
Corporate Governance
What does a treasurer do?
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.
Corporate Governance
What does a treasurer do?
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
Corporate Governance
Cash Flow?
Budget Monthly monitoring Reporting variances to the Board Managing expenditure Purchasing Policies Fundraising
Corporate Governance
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)
Corporate Governance
Insurance?
Undertake a review Seek professional advice Risk Management Strategy Review annually What are others doing
Corporate Governance
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