Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

asked the Minister representing the Minister forEmployment and Workplace Relations, upon notice, on 6 November 2012:

In relation to Fair Work Australia (FWA):

(1) With reference to the financial reporting requirements of registered organisations, can details be provided of the number of organisations that have failed to comply with the legislative target dates for each year since 2008, including:

(a) the names of each organisation; and

(b) to what the target dates related.

(2) For the 2009 10, 2010 11 and 2011 12 financial years, can details be provided of the number of registered organisations that failed to provide an auditor ' s report or statement referring specifically to the concise report as prescribed by section 265(3 ) ( c) of the Fair Work (Registered Organisations) Act 2009 (the Act), including:

(a) when the failure occurred;

(b) whether the registered organisation has been required to correct the record and provide such an auditor ' s statement; if not, why not; and

(c) the names of each organisation.

(3) For the 2009 10, 2010 11 and 2011 12 financial years, how many registered organisations have:

(a) failed to provide a full report to their membership within 6 months of the financial year, over the past three years; and

(b) failed to lodge with FWA the necessary documentation within 14 days of a general meeting.

(4) To the knowledge of FWA, how many registered organisations have failed to comply with subsection 254(2 ) ( d) of the Act.

(5) If this information has been withheld by organisations:

(a) why has FWA not demanded organisations provide completed records; and

(b) does FWA simply request that requirements be met in the future without requiring that historical data be provided to both FWA and to the membership of the registered organisation.

(6) Given that subsection 237(1) of the Act requires certain steps if an individual grant or donation exceeds $1 000, has FWA sought historical data of registered organisations that are known not to have complied, in particular, matters in relation to United Voice Tasmania.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The Minister for Employment and Workplace Relations has provided the following answer to the honourable senator's question:

The Fair Work Commission (FWC) has provided the following response:

(1) With reference to the financial reporting requirements of registered organisations, can details be provided of the number of organisations that have failed to comply with the legislative target dates for each year since 2008, including:

(a) the names of each organisation; and

(b) to what the target dates related.

A reporting unit is required to lodge its financial report under section 268 of the Fair Work (Registered Organsiations) Act 2009 (the RO Act) with FWC within a maximum of six months and 14 days of the end of its financial year. Prior to that event, obligations prescribed in sections 265 and 266 arise in relation to the provision of reports to members and the presentation of reports to a meeting, being either a general meeting of members or (where rules make appropriate provision) a meeting of the committee of management.

Attachment A sets out each reporting unit of a registered organisation that has failed to lodge its audited financial report with FWC (or its predecessor as relevant) within the maximum allowable period of six months and 14 days. Global statistics are provided on the front page. Information for 2012 is incomplete as some reporting units are not yet required to lodge this financial report, depending upon the end of financial year date.

All reporting units that have not lodged financial reports required by section 268 are being actioned in accordance with the FWC Regulatory Compliance Policy , including by commencing inquiries or investigations.

Whilst compliance with the timeframes required by sections 265 and 266 is assessed and addressed for each reporting unit once a lodged report is examined by FWC, it is not presently possible to generate a report on compliance with target dates for these obligations.

(2) For the 2009/10, 2010/11 and 2011/12 financial years, can details be provided of the number of registered organisations that failed to provide an auditor ' s report or statement referring specifically to the concise report as prescribed by section 265(3 ) ( c) of the Fair Work (Registered Organisations) Act 2009 (the Act), including:

(a) when the failure occurred;

(b) whether the registered organisation has been required to correct the record and provide such an auditor ' s statement; if not, why not; and

(c) the names of each organisation.

FWC does not accept lodgement of a financial report that does not contain an auditor ' s report as such a report would not constitute a " full report " as defined in subsection 265(1) of the RO Act.

On occasion, a small number of reporting units will elect to provide members with a concise financial report. Subsection 265(3) requires that a concise report be separately audited (in addition to the audit of the " full " financial report). The following reporting units failed to lodge an auditor ' s report with respect to the concise financial report:

(3) For the 2009/10, 2010/11 and 2011/12 financial years, how many registered organisations have:

(a) failed to provide a full report to their membership within 6 months of the financial year, over the past three years; and

(b) failed to lodge with FWA the necessary documentation within 14 days of a general meeting.

There is no legislative requirement that a reporting unit provide its financial report to members within 6 months of the end of financial year. The legislative scheme requires either that: 1

o For those reporting units with a 30 June end of financial year - 10 December of the same year; or

o For those reporting units with a 31 December end of financial year - 9 June of the following year.

Please see answer to question (1) above.

(4) To the knowledge of FWA, how many registered organisations have failed to comply with subsection 254(2 ) ( d) of the Act.

FWC is reliant upon self -disclosure by reporting units where officers or members meet the criterion set out in paragraph 254(2 ) ( d).

FWC would act upon any complaint received concerning a contravention of s254(2 ) ( d).

(5) If this information has been withheld by organisations:

(a) why has FWA not demanded organisations provide completed records; and

(b) does FWA simply request that requirements be met in the future without requiring that historical data be provided to both FWA and to the membership of the registered organisation.

Refer to the answer to question (4) above.

(6) Given that subsection 237(1) of the Act requires certain steps if an individual grant or donation exceeds $1 000, has FWA sought historical data of registered organisations that are known not to have complied, in particular, matters in relation to United Voice Tasmania.

Each reporting unit is required by paragraph 11(f) of the Registrar ' s Reporting Guidelines to disclose items of expense for " grants or donations " . Where grants or donations are disclosed in the financial report but a statement of loans, grants and donations has not previously been lodged by the reporting unit under section 237 of the RO Act, FWC advises the reporting unit of the requirement to lodge such a statement should any of the individual grants or donations exceed the $1,000 threshold.

The Regulatory Compliance Branch is currently drafting amendments to the Reporting Guidelines which will require disclosure in a financial report of all grants or donations that exceed the $1,000 threshold, thereby enabling FWC to determine whether the reporting unit has complied with section 237.

Lodgement by the Tasmanian Branch of the Liquor, Hospitality and Miscellaneous Union (as it then was) of a statement of loans, grants and donations for the financial years ended 30 June 2010 and 30 June 2011 is the subject of a current inquiry by the General Manager ' s delegate.

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1 For other financial year end dates, refer to sections 265(5) and 266 of the RO Act in order to determine the date by which the financial report must be circulated to members.

Attachment A

Lodgement of financial reports - summary statistics

This table concerns lodgement of financial reports by reporting units under section 268 of the Fair Work (Registered Organisations) Act 2009 (RO Act) from 2009 to 2012.

* Financial reports are to be lodged within 6 months and 14 days of the end of a reporting unit's financial year under sections 265, 266 and 268 of the RO Act. Some reporting units are not required to lodge within this time frame (such as reporting units that lodge under the separate financial reporting provisions under sections 269 and 270 and reporting units that are granted an exemption from lodging a financial report under section 271 of the RO Act).

** The total number of reporting units required to lodge a financial report for 2012 on or before 15 January 2013 was 221 (this includes, for example, reporting units that had a financial year ending on 31 March 2012 and 30 June 2012). The 6 month and 14 day time frame for 2012 has not yet expired for reporting units with a year ending date after 30 June 2012 (such as those reporting units whose financial year ended on 31 December 2012).

Breakdown of reporting Units which failed to lodge within 6 months and 14 days of the end of the reporting unit ' s financial year