NSW Audit Office - Financial Reports - 2004 - Volume 5 - Complaince Review of Aspects of the Charitable

The Audit Office Of New South Wales

Description

Compliance Review of Aspects of the Charitable Fundraising Act 1991 and Regulation 2003 Some agencies in the Health and Arts portfolios supplement their revenue streams by conducting fundraising appeals. The soliciting or receiving of money, property or other benefits constitutes a sing appeal. An appeal may be in the nature of a telethon, an art union, an auction at a dinner or simply having a donation box at a hospital or museum. CONCLUSION In the agencies we reviewed, the degree of compliance with the Act and Regulation was satisfactory. KEY FINDINGS We do not have access to the major arm of fundraising undertaken for the Western Sydney Area Health Service. Compliance with the Act and Regulation could not be determined. As a result of our review, several agencies made necessary disclosures in their financial report for the first time about their fundraising activities and an expanded audit opinion was issued. RECOMMENDATIONS We recommend that the Department of Health conducts a review of all fundraising within Area Health Services and establish whether any other Services have fundraising entities that are not consolidated into the relevant financial report of the Service. The Department should direct Area Health Services to consolidate all these activities into their financial report. DETAILED FINDINGS Art Gallery of New South Wales Trust The Art Gallery Trust, the Foundation, and VisAsia all conduct fundraising activities. None maintains a ...

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• Publié par: Onje
• Nombre de lectures: 66
• Langue: English

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Compliance Review of Aspects of theCharitable Fundraising Act 1991and Regulation 2003

Some agencies in the Health and Arts portfolios supplement their revenue streams by conducting fundraising appeals. The soliciting or receiving of money, property or other benefits constitutes a fundraising appeal.An appeal may be in the nature of a telethon, an art union, an auction at a dinner or simply having a donation box at a hospital or museum.

CONCLUSION In the agencies we reviewed, the degree of compliance with the Act and Regulation was satisfactory.

KEY FINDINGS We do not have access to the major arm of fundraising undertaken for the Western Sydney Area Health Service. Compliance with the Act and Regulation could not be determined. As a result of our review, several agencies made necessary disclosures in their financial report for the first time about their fundraising activities and an expanded audit opinion was issued.

RECOMMENDATIONS

We recommend that the Department of Health conducts a review of all fundraising within Area Health Services and establish whether any other Services have fundraising entities that are not consolidated into the relevant financial report of the Service. The Department should direct Area Health Services to consolidate all these activities into their financial report.

DETAILED FINDINGS

Art Gallery of New South Wales Trust

The Art Gallery Trust, the Foundation, and VisAsia all conduct fundraising activities. None maintains a register of participants involved in each appeal undertaken. Financial reports of the entities were expanded following our review to disclose details of fundraising activities undertaken. Our independent audit reports for the agencies were also expanded to include a separate opinion regarding fundraising.

Australian Museum Trust

Although the Trust is not involved in a high level of fundraising, it does not have a policies and procedures manual for this activity. The financial report of the Trust was expanded following our review to disclose details of fundraising activities undertaken. Our independent audit report for the Trust was also expanded to include a separate opinion regarding fundraising.

Centennial and Moore Park Trust

The Trust has not commenced active fundraising, but has established an entity (Centennial Parklands Foundation) through which this will be done. The Foundation officers have been advised of the need to comply with the Regulation.

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Compliance Review ofCharitable Fundraising Act 1991and Regulation 2003

Historic Houses Trust of New South Wales

The Foundation for the Historic Houses Trust of New South Wales, which is the fundraising arm of the Trust, does not have a manual of policies and procedures. The financial report of the Trust and the Foundation were expanded following this review to disclose details of fundraising activities undertaken. Our independent audit report for the trust was also expanded to include a separate opinion regarding fundraising.

Library Council of New South Wales

The State Library Foundation of New South Wales is the fundraising arm of the Council. The Foundation does not have a manual of policies and procedures for fundraising activities.

South Western Sydney Area Health Service

No issues of concern came to our attention during the review.

Trustees of the Museum of Applied Arts and Sciences

The Museum does not have a manual of policies and procedures for fundraising activities. The financial report of the Trustees was expanded following this review to disclose details of fundraising activities undertaken. Our independent audit report for the Trustees was also expanded to include a separate opinion regarding fundraising.

Western Sydney Area Health Service

The Service conducts the major portion of fundraising through an entity called theMillennium Foundation Ltd.The Service does not believe the Foundation is a controlled entity. We are not the auditors and therefore did not have access to the Foundation’s records to undertake this review. Further comment on this issue can be found in Volume Four of the Auditor-General’s Report to Parliament tabled last month.

We were therefore, as part of this review, limited to looking at the relatively insignificant fundraising of the Service itself. The Service breaches a significant number of the requirements of the Regulation, mainly regarding the maintenance of various records it must keep.

BACKGROUND Agencies conducting fundraising appeals must comply with the majority of the provisions of the Charitable Fundraising Act 1991and the Regulation 2003. However, if an agency is established under an Act and is subject to the control and direction of a Minister, it may conduct a fundraising appeal without the need to be an authorised fundraiser.

The proceeds are to be held in a separate bank, credit union accountor other prescribed institutions and must be used for the purposes represented by those conducting the appeal. Proper records of receipts and expenditure must be maintained and audited. The agency must periodically send the Minister details of gross amounts received and expenses deducted.

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Auditor-General’s Report to Parliament 2004 Volume Five

Compliance Review ofthe Charitable Fundraising Act 1991and Regulation 2003

We made inquiries in the following agencies whether they were engaged in fundraising activities. Those agencies actively involved are noted with an asterisk. Some agencies have established a controlled entity as their fundraising arm. The name of the controlled entity follows the name of the agency.

Art Gallery Foundation (*)

Art Gallery of New South Wales Trust (*) - The Australian Institute of Asian Culture and Visual Arts Limited (VisAsia)

Australian Museum Trust (*)

Centennial and Moore Park Trust - Centennial Parklands Foundation (not yet operating)

Historic Houses Trust of New South Wales (*) – Foundation for Historic Houses Trust of New South Wales

Auditor-General’s Report to Parliament 2004 Volume Five

Library Council of New South Wales (*) - State Library of New South Wales Foundation

Trustees of the Museum of Applied Arts and Sciences (*)

South Western Sydney Area Health Service (*)

Sydney Opera House Trust

Western Sydney Area Health Service (*) – Millennium Foundation Ltd

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