Reference no: EM132585127

BSBCOM603 Plan and establish compliance management systems

Read the case scenario (charity care) Provided.

You are an external consultant hired to conduct research into an appropriate compliance management system for the organisation. Once you have found one fit for purpose you will present your findings. You must:
• research internal and external compliance requirements
• analyse qualitative and quantitative information to evaluate compliance management options
• prepare a report for senior management identifying an appropriate compliance system for the organisation.
Below are the headings for your report. For the activity to be considered complete you will need to have addressed each of the topics that comprise these headings.
1. Research internal and external compliance requirements
i. Preparing a research plan: (in this section, discuss the research tasks you are going to undertake. After that, please mention the proposed research methods; including survey tools to gather qualitative and quantitative information on, for example, organizational compliance performance figures, compliance culture, etc.)
2. Developing survey tools to capture organizational data: (in this sections, please mention and discussed what are the tools you are going to use to collect required data to select compliance system components appropriate to organization. For example: Questionnaire based on Case study, Audit report, feedback, internet.)
3. Collecting organizational data on compliance performance
i. the overall budget for the compliance management system: (In this section, discuss required budgets for the compliance management system)
ii. organizational requirements and criteria for the compliance management system: (in this section, please discuss about internal and external compliance requirements and criteria for the compliance management, including information management and recordkeeping requirements
Internal compliance requirements include: -
• Risk management policy
• Sexual harassment policy
• Credit card policy
• Expense reimbursement policy
• Financial handling policy
• Expenses policy
• Equal employment opportunity policy
• Work health and safety policy
external compliance requirementsinclude: -
• ASIC requirements
• GST act and BAS regulations
• Income tax act
• Competition and consumer act
• Privacy law.
b. industry compliance requirements.
• Collection act
4. For each identified compliance requirement, researching the:
a. areas of the organisation most affected by the compliance requirements (In this section, please look at the case scenario given and identify the most affected areas by the compliance requirements. For example; recordkeeping, HR policies etc.)
b. organisational compliance data, including, for example, financial fraud, accident figures, training numbers, customer complaints, etc.
c. risks involved for non-compliance with requirements
d. penalties for breaching compliance requirements
e. ways of ensuring ongoing compliance with the requirements.
5. Reviewing the established criteria for the compliance management system, and using these to:
a. identify available options for a compliance management system for all of the identified compliance requirements
b. compare the identified compliance management options against each other and the established criteria
c. make a recommendation on system components
2. Using the information you have gathered from steps iv-vi above, prepare a summary report in line with the headings listed below: -
1. COMPLIANCE REQUIREMENTS
a) internal compliance requirements, including information management and recordkeeping requirements
• Risk management policy
• Sexual harassment policy
• Credit card policy
• Expense reimbursement policy
• Financial handling policy
• Expenses policy
• Equal employment opportunity policy
• Work health and safety policy
b. external compliance requirements
• ASIC requirements
• GST act and BAS regulations
• Income tax act
• Competition and consumer act
• Privacy law.
C. industry compliance requirements.
• Collection act
2. COMPLIANCE EFFECTS: (Describe the effects of each requirement in terms of :)
Areas affected, Such as
a. TAX
b. Financial reporting
c. WHS
d. Asset management and security
e. Cash handling-misappropriation of funds
f. Recordkeeping
g. Fraud
h. Ethics

Risks
a. Legal
b. Loss of assets
c. Penalties

Please use above mentioned points to fill this table based on the information given in the case scenario (Charity care). For example
S.N Areas affected Risks Risk Minimisation
1. Record keeping Legal risk Continuous monitor record keeping activities
2. Financial fraud Penalties under Tax law Report up to date GST. Keep record of all the transactions with receipt.

3. COMPLIANCE SYSTEMS:
a. discuss available systems, options or components, including discussion of relevant standards for each option; e.g. risk management and implementation of a risk management system
• Risk management
• Records management
• Guidelines for complaints handling
b. compare systems or components in terms of:
i. cost
ii. effectiveness
iii. efficiency
iv. feasibility
v. match to organisational culture
c. recommend system or components.

3.The CEO of Charity-Care has now asked you to prepare an implementation plan for your compliance management system. Your plan will need to include:
b. specifications
c. action schedule
d. budget, with a breakdown of costs for each component of the system.
A. COMPLIANCE MANAGEMENT SYSTEM
For the proposed compliance management system:
a. describe the management information system requirements
b. identify all components of the compliance management system, including any documentation required to be developed
c. document the specifications of each component.
B. PERSONNEL
For the proposed compliance management system:
a. determine personnel requirements for staffing
b. select suitable personnel from those available within the case study
c. assign key responsibilities to each position.
C. TRAINING
Identify and describe:
a. the results of the training needs analysis to determine the level of required learning for the company's employees
b. the training requirements for implementing the proposed compliance management system
c. suitable training options for staff.
D. PROCESSES
Identify and describe:
a. a complaints management system
b. a strategy for developing a compliance management culture
c. processes and procedures for identifying and managing compliance breaches, including integration with existing policies and procedures
d. processes and procedures for meeting compliance reporting requirements
e. processes and procedures for internal and external liaison processes
f. performance indicators to be measured by the system so that it can be objectively evaluated, for example:
i. individual compliance/non-compliance
ii. training numbers
iii. numbers of complaints iv.numbers of breaches
v.ratio of payroll errors/breaches to number of transactions.
E. ADMINISTRATION
Include:
a. the budget required to resource implementation (including human resources for developing, implementing, reviewing and maintaining the proposed compliance management system)
b. an action schedule outlining target milestones for all aspects of implementation, including training, review and maintenance.

4. As you have prepared the implementation plan of your compliance management system, you are now to meet with your assessor (representing the relevant internal approval authority) to present and defend your implementation plan, receive approval and agree on a relevant standard to be audited against for external approval particularly on the basis of:
a. adherence to budget
b. the ability of the plan to contribute to a culture of compliance in the organisation.
Review the observation checklist I to ensure you will present, defend, discuss and get approval of your implementation plan as per what your assessor will be looking into.

5. The CEO of Charity-Care, based on the recommendation of your assessor, has now approved your implementation plan for your compliance management system.

In order to build credibility for the organisation among clients, customers, and suppliers, as well as government and regulatory authorities, you have been asked to meet with an external auditor - representing an accredited certification body (your assessor). S/he will help you take the first steps towards certifying the organisation with respect to, for example, AS/NZS 3806:2006 Compliance programmes, AS ISO 10002:2006 Guidelines for complaints handling, AS/NZS ISO 31000:2009 Risk Management - Principles and guidelines or AS ISO 15489:2004 Records management.

You will need to satisfy the auditor that the planned implementation will be compliant with the principles set out in the relevant standards. Example questions that an auditor could ask with respect to AS/NZS 3806:2006 Compliance programmes, for instance, could include:

How does the planned implementation of the compliance management system:
a. Ensure commitment by top management to effective compliance throughout the organisation?
b. Ensure the compliance policy aligns with business goals?
c. Ensure appropriate resources are allocated to the compliance program?
d. Ensure endorsement by top management?
e. Ensure compliance obligations are identified and assessed?
f. Ensure responsibilities for compliance are set?
g. Ensure training needs are met?
h. Ensure appropriate behaviours are encouraged?
i. Ensure controls are put in place to achieve desired behaviours and outcomes?
j. Ensure performance of the compliance program is monitored, measured and reported?
k. Ensure that the organisation can demonstrate compliance through documentation?
l. Ensure the program is continuously reviewed and improved?
You will need to answer the auditor's questions with specific reference to the implementation plan for the compliance management system as you have developed it. Make sure you have reviewed the observation checklist II before you meet the external auditor.
6. As you are an external consultant hired to research, plan, implement and monitor a compliance management system for Charity-Care, you will need to follow your plan to train/induct personnel in their specific duties in relation to your implementation plan.
You will then need to monitor your plan by meeting with those personnel (at least two of your classmates) at a later date to gather information on performance in accordance with your plan.
7. Finally, the CEO has asked you to provide an evaluation of the implementation of your plan. To meet organisational requirements, you will need to prepare a report for the Charity-Care senior management with the recommended headings below

Report headings:
1. EXECUTIVE SUMMARY
Summarise content, results of monitoring.
2. ESTABLISHMENT OF SYSTEM
Describe steps taken to implement the system.

3. MONITORING METHODOLOGY

Describe the methods and approaches used to monitor performance of the system.
4. RESULTS AND ANALYSIS
Describe and analyse results of your monitoring activities.
5. CONCLUSION
Discuss overall compliance, including specific problem components of the system and success areas. Make specific recommendations for improvement with reference to relevant standards.

Attachment:- Compliance management systems.rar