Workplace Relations Act 1996 Determination of reporting guidelines for the purposes of section 270 of RAO Schedule (12/10/2004) (Cth)
Workplace Relations Act 1996
Schedule 1B
Australian Industrial Registry
Principal Registry
Nauru House
80 Collins Street
Melbourne Vic 3000
(Postal Address:
GPO Box 1994S
Melbourne Vic 3001)
Determination of reporting guidelines for the
purposes of section 270 of RAO Schedule
Application
1. These reporting guidelines are made under section 255 of Schedule 1B (the RAO Schedule) of the Workplace Relations Act 1996 (the Act).
2. These reporting guidelines apply to all financial reports that are held out to be general purpose financial reports as required to be prepared under subsection 270(4) of the RAO Schedule by a reporting unit as defined in section 242.
Operative Date
3. These reporting guidelines apply to each financial year of an organisation that starts on or after 1 November 2004.
Purpose of Reporting Guidelines
4. These reporting guidelines apply for purposes of section 270 of the RAO Schedule.
5. Under subsection 270(4) of the RAO Schedule a reporting unit to which a certificate has been issued under subsection 270(1) in relation to a financial year is required to have a general purpose financial report prepared in accordance with these reporting guidelines.
6. These reporting guidelines prescribe certain disclosure requirements having in mind the nature of organisations registered under the RAO Schedule.
7. The disclosure requirements prescribed by these reporting guidelines are directed towards providing members of a reporting unit with information to enable them to guage the performance of the committee of management and other holders of office in relation to the financial management of the reporting unit.
General Purpose Financial Report
8. The general purpose financial report (GPFR) required to be prepared under subsection 270(4) of the RAO Schedule must consist of:
(a) financial statements containing:
(i)a profit and loss statement or statement of financial performance; and
(ii)a balance sheet or statement of financial position;
(b) notes to the financial statements containing information required by these reporting guidelines;
(c) the operating report required to be prepared in relation to the financial year under section 254 of the RAO Schedule;
(d) in relation to recovery of wages activity, a financial report disclosing information required by these reporting guidelines; and
(e) a committee of management statement containing declarations by the committee of management required by these reporting guidelines.
General Requirements for Presentation and Disclosures in GPFR
If a GPFR of a reporting unit presents information for current or prior annual financial years that are not equal to twelve months, the reporting unit must disclose, in addition to the period covered by the GPFR:
(a) the reason for a period other than twelve months being used; and
(b) the fact that comparative amounts disclosed in the GPFR and related notes are not comparable where the lengths of the financial years differ.
10. Each component of the GPFR must be clearly identified. In addition, the following information must be prominently displayed and repeated when it is necessary for a proper understanding of the information presented:
(a) the name of the reporting unit and any change in name from the preceding reporting date;
(b) the reporting date or the period covered by each financial statement, as is appropriate; and
(c) the rounding used in the presentation of amounts in the GPFR.
11. The notes to the financial statements must be presented in a systematic manner. Each item on the face of a financial statement must be cross-referenced to any directly related information in the notes.
12. The notes to the financial statements are normally presented in the following order which assists users in understanding the financial statements and comparing them with those of other reporting units:
(a) summary of accounting policies;
(b) supporting information for items presented on the face of financial statements in the order in which each financial statement and each line item is presented; and
(c) other disclosures, including:
(i)contingencies, commitments and other financial disclosures; and
(ii)non-financial disclosures.
13. The notes to the financial statements must disclose:
(a) additional information that is not presented in the financial statements and that is necessary to enable an assessment of the reporting unit’s financial performance and financial position to be made;
(b) any contingent liabilities specifying separately that for unsecured contingent liabilities and that for contingent liabilities secured upon the assets of the reporting unit; and
(c) the notice required by subsection 272(5) of the RAO Schedule drawing attention to subsections (1), (2) and (3) of section 272 and setting out those subsections.
14. The presentation and classification of items in the GPFR must be retained from one financial year to the next unless:
(a) a significant change in the nature of the operations of the reporting unit requires a more relevant presentation or classification of transactions or other events; or
(b) a review of the presentation of the reporting unit’s GPFR concludes that the change will result in a more relevant presentation or classification of transactions or other events.
15. Where the reporting unit is dependent on another entity for a significant volume of revenue or financial support and that dependency is not clearly discernible from a separate line item in the profit and loss statement or the balance sheet, the notes to the financial statements must disclose:
(a) the name of the entity on which there is an economic dependency; and
(b) the amount of revenue or financial support derived from the other entity.
16. Comparatives for the preceding financial year which correspond to the disclosures specified for the current financial year must be disclosed, except where, in respect of the financial year to which these reporting guidelines are first applied, comparatives were not required under the Act or Regulations or a superseded version of these reporting guidelines.
17. Where a reporting unit acquires during the financial year an asset or a liability as a result of an amalgamation under Chapter 3, Part 2 of the RAO Schedule in which the reporting unit was the amalgamated organisation, the reporting unit must disclosure on the face of the financial statements or in the notes to the financial statements as appropriate in respect of each such asset or class of assets or each such liability or class of liabilities:
(a) date acquired;
(b) description; and
(c) name of the organisation from which it was acquired.
Profit and Loss Statement
18. Balances for the following items of revenue must be disclosed by the reporting unit so far as applicable in its profit and loss statement, or statement of financial performance, on the face of the statement or separately in the notes to the financial statements:
(a) entrance fees or periodic subscriptions (in these guidelines referred to as "membership subscriptions") in respect of membership of the organisation;
(b) compulsory levies raised from the members or as appeals for voluntary contributions for the furtherance of particular purposes - the amount and a brief description of the purpose of each such levy or appeal; and
(c) grants or donations (other than voluntary contributions referred to in subparagraph (b)).
19. Balances for the following items of expense must be disclosed by the reporting unit so far as applicable in its profit and loss statement, or statement of financial performance, on the face of the statement or separately in the notes to the financial statements:
(a) expenses incurred as consideration for employers making payroll deductions of membership subscriptions;
(b) fees and periodic subscriptions in respect of its affiliation to any political party, any federation, congress, council or group of organisations, or any international body having an interest in industrial matters;
(c) compulsory levies imposed on the reporting unit - for each such levy, the amount, a brief description of purpose and the name of the entity imposing the levy;
(d) grants or donations;
(e) employee benefits to holders of offices in the reporting unit with separate disclosure of each of the following components:
(i)wages and salaries (including non monetary benefits); and
(ii)annual leave and sick leave; and
(iii)long service leave; and
(iv)superannuation; and
(f) employee benefits to employees (other than holders of offices) of the reporting unit with separate disclosure of each of the following components:
(i)wages and salaries (including non monetary benefits); and
(ii)annual leave and sick leave; and
(iii)long service leave; and
(iv)superannuation; and
(g) fees or allowances (other than any amount included in an amount referred to in subparagraphs (e) or (f)) to persons in respect of their attendances as representatives of the reporting unit at conferences or other meetings;
(h) remuneration of the auditor of the reporting unit for:
(i)an audit or a review of the financial reports of the reporting unit; and
(ii)other services in relation to the reporting unit;
expenses (other than expenses included in an amount referred to elsewhere in this paragraph) incurred in connection with meetings of members of the reporting unit and any conferences or meetings of councils, committees, panels or other bodies for the holding of which the reporting unit was wholly or partly responsible;
(j) general administrative expenses other than any such expenses included in an amount referred to elsewhere in this paragraph;
(k) interest on loans and any other expenses incurred in connection with the control or management of the assets of the reporting unit;
(l) provision for depreciation or amortisation on investments and fixed assets; and
(m) penalties imposed on the reporting unit under the Act or Regulations.
20. Balances for the following items must be disclosed by the reporting unit so far as applicable in its profit and loss statement, or statement of financial performance, on the face of the statement:
(a) whether there is an excess of total revenues over total expenses or an excess of total expenses over total revenues and, in either case, that excess;
(b) where any assets of the reporting unit have been sold for, or revalued at, an amount exceeding $1,000 - the amount of profit or loss (as the case may be) arising from the sale or revaluation of those assets;
(c) where any amount (other than an amount included in an amount referred to elsewhere in these reporting guidelines) has been transferred to a fund or account kept for a specific purpose by the reporting unit or any such amount has been withdrawn from such a fund or account - the amount transferred to, or withdrawn from, that fund or account, as the case may be, and the name of the fund or account; and
(d) the net surplus or net deficit of the reporting unit that has been transferred to the general fund.
Balance Sheet
21. Balances for the following items must be disclosed by the reporting unit so far as applicable in its balance sheet or statement of financial position on the face of the statement or separately in the notes to the financial statements:
Assets
(a) cash on hand;
(b) prepayments;
(c) receivables;
(d) loans receivable;
(e) the aggregate amount of all loans in existence at the reporting date that have been made, guaranteed or secured by the reporting unit to an officer of the reporting unit or a spouse, relative or any other entity under the joint or several control or significant influence of such officers, spouses or relatives;
(f) investments in Government, municipal and other public debentures, stocks or bonds;
(g) investments other than those specified in subparagraph (f);
(h) fixed assets, specifying separately any real property included in those assets and the other assets;
accumulated depreciation presented as a deduction from the asset or class of assets to which it relates;
(j) For each class of depreciable asset:
(i)the depreciation methods used; and
(ii)the useful lives or the depreciation rates used; and
(iii)the gross amount of depreciable assets and the related accumulated depreciation;
Liabilities
(k) payables;
(l) payables to employers as consideration for the employers making payroll deductions of membership subscriptions;
(m) interest-bearing liabilities;
(n) provision for employee benefits to holders of office and employees with separate disclosure for each of the following components:
(i)wages and salaries (including non monetary benefits); and
(ii)annual leave and sick leave; and
(iii)long service leave; and
(iv)superannuation;
Equity
(o) name and balance of each fund or account operated in respect of compulsory levies raised by the reporting unit or voluntary contributions collected from members of the reporting unit;
(p) where moneys, or the balance of moneys, standing to the credit of a fund or account referred to in subparagraph (o) have been invested in any assets - the name of the fund or account and the value of those assets;
(q) name and balance of each fund or account operated (other than the general fund or a fund referred to in subparagraph (o)) the operation of which is required by the rules of the organisation including the rules of a branch of the organisation; and
(r) the balance of the general fund.
Recovery of wages activity financial report
22. Where the reporting unit has undertaken recovery of wages activity (and has derived revenues for the financial year in respect of such activity) the reporting unit must cause to be prepared for purposes of paragraph 8(d) of these reporting guidelines a financial report in which is disclosed financial information associated with such activity.
23. The financial report required under paragraph 22 may be prepared under the cash basis of accounting or the accrual basis of accounting, at the option of the organisation. The Appendix to these reporting guidelines provides for purposes of illustration only the format of this financial report prepared under the cash basis of accounting.
24. Balances including nil amounts for the following items of revenue must be disclosed in the financial report required under paragraph 22:
(a) amounts in aggregate recovered from employers in respect of recovery of wages activity; and
(b) interest received on recovered moneys.
25. Balances including nil amounts for the following items of outgoings from recovered moneys must be disclosed in the financial report required under paragraph 22:
(a) deductions of amounts payable in aggregate in respect of membership of the organisation where at the time of deduction the amounts had become payable:
(i)12 months before or earlier; or
(ii)greater than 12 months before; and
(b) deductions of donations or other contributions made to a fund or account of the reporting unit showing the name and amount in aggregate in respect of each such fund or account; and
(c) deductions of donations or other contributions made to a fund or account of another entity showing the name of the other entity and the name and amount in aggregate in respect of each such fund or account; and
(d) deductions of fees charged or reimbursements in aggregate of expenses incurred by the reporting unit in respect of recovery of wages activity; and
(e) amounts in aggregate distributed to workers as recovered moneys.
26. Balances including nil amounts for cash assets attributable to recovered moneys must be disclosed in the financial report required under paragraph 22 as at the:
(a) beginning of the financial year; and
(b) end of the financial year.
27. The notes to the financial statements must contain the following information in relation to recovery of wages unless already disclosed in the financial report required under paragraph 22:
(a) the number of workers to which the moneys recovered mentioned in subparagraph 24(a) relate; and
(b) aggregate payables to workers attributable to recovered moneys but not yet distributed; and
(c) the number of workers to which the payables mentioned in subparagraph (b) relate; and
(d) name and balance of each fund or account operated for recovery of wages activity; and
(e) where moneys, or the balance of moneys, standing to the credit of a fund or account referred to in subparagraph (d) have been invested in any assets - the name of the fund or account and the value of those assets.
Committee of Management Statement
28. For purposes of subparagraph 8(e) of these guidelines the reporting unit must cause to be prepared a committee of management statement containing declarations by the committee of management in relation to the GPFR.
29. The committee of management statement must include declarations by the committee of management as to whether in the opinion of the committee of management that:
(a) the financial statements and notes comply with the reporting guidelines of the Industrial Registrar for purposes of section 270 of the RAO Schedule;
(b) the financial statements and notes give a true and fair view of the financial performance and financial position of the reporting unit for the financial year to which they relate;
(c) there are reasonable grounds to believe that the reporting unit will be able to pay its debts as and when they become due and payable; and
(d) during the financial year to which the GPFR relates and since the end of that year:
(i)meetings of the committee of management were held in accordance with the rules of the organisation including the rules of a branch concerned; and
(ii)the financial affairs of the reporting unit have been managed in accordance with the rules of the organisation including the rules of a branch concerned; and
(iii)the financial records of the reporting unit have been kept and maintained in accordance with the RAO Schedule and the RAO Regulations; and
(iv)the information sought in any request of a member of the reporting unit or a Registrar duly made under section 272 of the RAO Schedule has been furnished to the member or Registrar; and
(v)there has been compliance with any order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.
(e) in relation to recovery of wages activity:
(i)the financial report on recovery of wages activity has been fairly and accurately prepared in accordance with the requirements of the reporting guidelines of the Industrial Registrar; and
(ii)the committee of management caused the auditor to include in the scope of the audit required under subsection 257(1) of the RAO Schedule all recovery of wages activity by the reporting unit in which revenues had been derived for the financial year in respect of such activity; and
(iii)no fees or reimbursements of expenses in relation to recovery of wages activity or donations or other contributions were deducted from moneys recovered from employers on behalf of workers other than reported in the financial report on recovery of wages activity and the notes to the financial statements; and
(iv)that prior to engaging in any recovery of wages activity, the organisation has disclosed to members by way of a written policy all fees to be charged or reimbursement of expenses required for recovery of wages activity, and any likely request for donations or other contributions in acting for a worker in recovery of wages activity; and
(v)no fees or reimbursements of expenses in relation to recovery of wages activity or donations or other contributions were deducted from moneys recovered from employers on behalf of workers until distributions of recovered money were made to the workers.
30. The committee of management statement must:
(a) be made in accordance with such resolution as is passed by the committee of management of the reporting unit in relation to the matters requiring declaration;
(b) specify the date of passage of the resolution;
(c) be signed by a designated officer within the meaning of section 243 of the RAO Schedule; and
(d) be dated as at the date the designated officer signs the statement.
Auditor’s Statement
31. The auditor’s statement required under section 257(5) of the RAO Schedule must include a declaration as to whether in the auditor’s opinion the general purpose financial report is presented fairly in accordance with any of the following that apply in relation to the reporting unit:
(a) the Australian Accounting Standards;
(b) in relation to recovery of wages activity;
(i)that the scope of the audit encompassed recovery of wages activity;
(ii)that the financial statements and notes and recovery of wages activity financial report properly and fairly report all information required by the reporting guidelines of the Industrial Registrar, including;
1. any fees charged to or reimbursements of expenses claimed from members and others for recovery of wages activity; and
2. any donations or other contributions deducted from recovered money; and
(c) any other requirements imposed by these Reporting Guidelines or Part 3 of Chapter 8 of the RAO Schedule.
Glossary of Terms
32. The following terms are used in these reporting guidelines:
amalgamated organisation has the meaning provided in section 35 of the RAO Schedule.
assets are future economic benefits controlled by the reporting unit as a result of past transactions or other past events.
cash assets means cash on hand and cash-equivalent assets.
cash-equivalent assets means highly liquid investments with short periods to maturity which are readily convertible to cash on hand at the investor’s option and are subject to an insignificant risk of changes in value.
cash on hand means notes and coins held, and deposits held at call with a financial institution.
comparatives mean the corresponding amounts and other disclosures for the preceding financial year presented for comparative purposes as part of the current year's financial report.
contingent liability means:
(a) a possible liability that arises from past events the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the reporting unit; or
(b) a liability that is not recognised because:
(i) it is not probable that a future sacrifice of economic benefits will be required; or
(ii) the amount of the liability cannot be measured reliably.
designated officer is an officer of the reporting unit within the meaning of section 243 of the RAO Schedule.
employee benefits means all forms of consideration given by the reporting unit in exchange for services rendered by holders of office or employees.
entity means any legal, administrative, or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives.
equity means the residual interest in the assets of the reporting unit after deduction of its liabilities.
financial records to the extent that they relate to finances or financial administration includes a register, any other record of information, financial reports or financial records, however compiled, recorded or stored, a document (section 6 of the RAO Schedule).
financial statements comprise a profit and loss statement or statement of financial performance and a balance sheet or statement of financial position (see subparagraph 8(a) of these guidelines).
financial year in relation to an organisation means the period of 12 months commencing on 1 July in any year or another period of 12 months as is provided in the rules of the organisation (section 6 of RAO Schedule) or a different period in the special circumstances set out in section 240 of the RAO Schedule.
general administrative expenses includes expenses in respect of the office of the reporting unit, and other expenses that arise at the reporting unit level and relate to the reporting unit as a whole.
general fund means the equity of the reporting unit other than in relation to any fund or account operated by the reporting unit for a specific purpose.
general purpose financial report required to be prepared under subsection 270(4) of the RAO Schedule comprises those documents specified at paragraph 8 of these guidelines.
grant or donation is taken to have the same meaning as used in section 149 or section 237 of the RAO Schedule though is not limited by amount.
liabilities are the future sacrifices of economic benefits that the reporting unit is presently obliged to make to other entities as a result of past transactions or other past events.
membership subscriptions means periodic subscriptions in respect of membership of the organisation.
notes to the financial statements comprise notes containing information required by these guidelines.
organisation means an organisation registered under the RAO Schedule.
payables are amounts owed by the reporting unit to other entities for goods or services delivered.
prepayments are payments made by the reporting unit in advance of the financial year to which they pertain.
RAO Schedule means Schedule 1B to the Workplace Relations Act 1996.
RAO Regulations means the Workplace Relations (Registration and Accountability of Organisations) Regulations 2003.
receivables are amounts owed to the reporting unit by other entities (including members of the reporting unit) for goods or services delivered (including membership subscriptions).
recovery of wages activity means work by the organisation to recover from employers money due and payable to workers under awards, certified agreements or Australian Workplace Agreements and contracts of employment.
reporting unit has the meaning set out in section 242 of the RAO Schedule.
revenues are inflows or other enhancements, or savings in outflows, of future economic benefits in the form of increases in assets or reductions in liabilities of the reporting unit that result in an increase in equity during the financial year.
rules of an organisation are the rules that an organisation must have under Chapter 5, Part 2 of the RAO Schedule.
significant influence means the capacity of an entity to affect substantially (but not control) either, or both, of the financial and operating policies of another entity.
workers means, in the context of recovery of wages activity, an employee of an employer who may or may not be a member of the organisation engaging in the recovery of wages activity.
Dated: 12 October 2004
Nicholas Wilson
Industrial Registrar
[full name of reporting unit]
Statement of receipts and payments for recovery of wages activity
- Cash Basis - for year ended 30 June 2004
Note 2004 2003
$ $
Cash assets in respect of recovered money at beginning of year X X
Receipts
Amounts recovered from employers in respect of wages etc X X
Interest received on recovered money X X
Total receipts X X
Payments
Deductions of amounts due in respect of membership for:
- 12 months or less (X) (X)
- greater than 12 months (X) (X)
Deductions of donations or other contributions to accounts or funds of:
- the reporting unit -
Ø[name of account] (X) (X)
Ø[name of fund] (X) (X)
Ø[name of fund] (X) (X)
- [name of other entity] -
Ø[name of account] (X) (X)
Ø[name of fund] (X) (X)
Ø[name of fund] (X) (X)
Deductions of fees or reimbursements of expenses (X) (X)
Payments to workers in respect of recovered money (X) (X)
Total payments (X) (X)
Cash assets in respect of recovered money at end of year X X
0
0
0