Compliance Management System Assessment 1

The primary objective of the report is to bring about an analysis of the compliance requirements of a selected organisation, Charity care organisation, which is a not-for-profit organisation.

Running head: COMPLIANCE MANAGEMENT SYSTEM ASSESSMENT 1
Compliance Management System Assessment 1
Name of the Student
ID of the Student
Name of the Trainer
Assessment Due Date
Actual Submission Date
Author’s note

1COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
Executive Summary
The primary objective of the report is to bring about an analysis of the compliance
requirements of a selected organisation. The organisation chosen for this report is Charity
care organisation, which is a not-for-profit organisation. The report structures around giving a
brief introduction at the beginning and then it is followed by the different compliance
requirements. These compliance requirements are internal, industry specific and external. The
next section talks about the risks required for being non-compliant and the penalties that are
imposed for breaching the compliance requirements. The last section of the report describes
about a research plan and focusses on the development of survey tools for the purpose of
collecting the data from the organisation. Finally, the extent up to which the organisation
meets its compliance requirements is analysed with the help of the compliance performance
data of the organisation.

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Table of Contents
Introduction................................................................................................................................3
Research and identification of compliance requirements..........................................................3
Internal Compliance Requirements............................................................................................3
External Compliance requirements............................................................................................4
Compliance requirements for the specific Industry...................................................................5
Areas of the organisation most affected by compliance requirements......................................6
Organisational compliance data.................................................................................................6
Risks involved for non-compliance with requirements.............................................................7
Penalties for breaching compliance requirements......................................................................7
Ways of ensuring ongoing compliance with the requirements..................................................8
Available options for a compliance management system..........................................................8
Comparison criteria of the compliance options adopted by the company and suitable
recommendations.......................................................................................................................9
Summary..................................................................................................................................10
Reflection on the Research Plan..............................................................................................11
Type of Research......................................................................................................................11
Research tasks..........................................................................................................................11
Development of research plan..................................................................................................12
Development of survey tools...................................................................................................12
Analysis of data........................................................................................................................13

3COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
Conclusion................................................................................................................................13
References................................................................................................................................14

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Introduction
The primary objective of the report is to bring about a brief review of the Charity-care
case study for the purpose of determining its compliance requirements that are significant.
For this particular assessment an analysis of particularly three segments are conducted, that is
compliance requirements, compliance effects and the available systems of compliance. The
qualitative and quantitative information extracted from the case-study are analysed for
achieving the above stated objective.
Research and identification of compliance requirements
Internal Compliance Requirements
The compliance system has not been formulated very accurately in the organisation.
Charity care had certain issues and these issues had been widely detected by the last audit
team. Some of these issues include cash handling process and the way of keeping transaction
records (Kulikova and Satdarova 2016). While responding to these issues the company has
formulated certain policies which have been described below.
1) Risk management policy – The different steps involved in risk management in
accordance with this policy would include establishing a context of strategic,
organisational and risk management, Identification of risks as well as analysis of
risks (Hopkin 2018). Other steps include treatment of risks through management
plans and finally reviewing and monitoring those risks.
2) Sexual harassment policy – Charity-care does not accept sexual behaviour inside
the organisation and ensures proper education of the employees on the issue of
sexual harassment (Johansson and Chinworth 2018).

5COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
3) Credit Card policy – This includes policies regarding card issue, cardholder
responsibilities, credit card expenditure and credit card misconduct (Featherstone
and Marshall 2018).
4) Expenses policy – This policy ensures that the cash is properly reimbursed for
expenses that are out-of-pocket and are related to the direct expenses of the work-
related activities.
5) Equal employment opportunity policy – Charity-care is committed to promote
equal opportunity for all the people of the internal organisation including women,
people of all racial and ethnic groups as well as people with disabilities.
6) Work health and safety policy - Charity-care ensures safe and healthy work
environment for the people involved internally with the organisation. For
workplace hazard or injury, a form should be filled with the details and submitted
to the workplace health and safety office.
External Compliance requirements
The external compliance requirements constitute of the principles and guidelines set up
by the Australian Standard.
1) The first principle refers to commitment, which means alignment of the
compliance policy with the organisation strategy. This step includes different parts
such as the commitment for designing, developing, implementing, maintaining
and improving the compliance program by the governing body, chief executive
and other levels of management (Callaghan and Ryan 2016). The resources are
allocated in such a way that the robust compliance culture can be properly
implemented.
2) The next principle refers to implementation that requires responsibility in
articulating the compliant outcomes (Callaghan and Ryan 2016). This compliance

6COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
policy ensures that the organisation’s strategy and objectives are in line with the
policy and endorsed by the governing body. It also sets out the level of
responsibility and performance required inside the organisation for the proper
assessment of actions.
3) The next step includes measurement and monitoring of the performance of the
conducted compliance program. It should be ensured by the top management that
the appropriate resources are managed and deployed effectively for the
improvement of the compliance program.
4) The final step includes the continuous improvement of the compliance program.
This program supports the view that the compliance program has been reviewed
and continually improved at a regular basis (Barcelo et al. 2014). The inputs
might include review of the efficiency of the program, the extent of meeting
objectives and targets, adequacy of resources and many others.
Compliance requirements for the specific Industry
According to the requirement specified by the regulatory body, 40% of the charities
are treated as incorporated associations and are considered as a separate legal identity.
Another regulation is the fundraising regulation through which the Australian charities are
required to comply with the red tape (Cham 2014). The regulatory body has secret provisions
that were based on those used by the Australian Taxation Office in order to protect the
privacy of the taxpayers. In some cases, the taxpayer information does not transfer well to the
regulation of the charity. The regulatory body responsible for carrying out the compliance
action for charities is Australian Charities and Not-for-profits Commission (ACNC) (Ivec and
Braithwaite 2015).

7COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
Areas of the organisation most affected by compliance requirements
There have been many issues that affected the compliance requirements of the
organisation. Some of these issues have been observed in the following areas.
1) “Compute IT”, a business that is fully owned by the family of the warehouse
manager.
2) The segment involved in the banking of the repair payments
3) Accuracy errors in the computer retail store
4) Inappropriate use of the assets of the organisation
5) Missing of laptops from the warehouse
6) Lack of prescribed levels on the limits of lending
7) Some of the assets in the asset register are not present in the location listed for
them
Organisational compliance data
The different kinds of compliance incidents recorded in the head office include the
following points.
1) The CEO only recruits people having the expertise in computer repairing. In such
a situation, it becomes difficult for him to distinguish the good experts from the
bad ones.
2) Monthly financial reports have been received irregularly from the satellite
operation department.
3) Records about the rent loan system has been kept separately by two different
departments which makes it harder for reconciliation.
4) The payroll clerk has not been given proper training on the payroll system and as
a result the payroll work is done completely manually.

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Risks involved for non-compliance with requirements
The risks that are involved due to non-compliance of the organisation with the
requirements could be stated as follows.
1) Fines – Companies could not be easily thrown into the jail, hence the most
common consequence that is faced by companies due to non-compliance could be
a fine (Lahsasna 2014).
2) Removal From Australian Securities Exchange – This means that the company
that have listings in the Australian securities exchange are removed from such
listings and their position goes down due to non-compliance (Lahsasna 2014).
3) Criminal consequences – Some of the regulatory bodies or legislations impose
significant financial penalties as well as personal criminal liability on the
companies who are non-complaint (Ghanavati and Hulstijn 2015).
4) Risk of tax liability – Additional obligations might occur due to non-compliance
with the requirements.
Penalties for breaching compliance requirements
The regulatory authority, that is, the Australian Authority for Not-for-Profit
organisations, can apply administrative penalties due to false or misleading statements
reflected by the company. For small charity organisations of annual revenue less than
$250,000 the minimum penalty can be $210 if the accurate information presented in the
annual report is less than 28 days over due and the maximum penalty rate in this case is
$1050 (Mohammed, Mariani and Mohammed 2015). For medium charity organisations of
annual revenue $250,000 or more the minimum penalty rate is $420 and the maximum
penalty rate is $2100 (Mohammed Mariani and Mohammed 2015). For large charity
organisation that has annual revenue of $1 million or more the minimum penalty is $1050
and the maximum $5250.

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Ways of ensuring ongoing compliance with the requirements
The important five ways to ensure the best compliance of the organisation could be stated
as follows.
1) There should be frequent meetings of the different divisions with their divisional
leaders in order to ensure the feasibility of the policies and procedures with the
individual departments (Williams 2014). There should be proper communication
between them to ensure the proper flow of information from the department to its
head.
2) The best format of policies should be prepared for addressing different kinds of
audiences.
3) The preparation of policies and procedures should be very simple so that they can
be easily accessible to all the employees (Williams 2014).
4) There should be pre-defined deadlines for the acknowledgement of each policy or
procedure.
5) The point of views of the employees must be taken in the formulation procedure
for each policy (Li et al. 2014). This would help in gaining knowledge about the
understanding of these employees about these policies or procedures.
Available options for a compliance management system
The Charity-Care company follows different methods for ensuring compliance within
their system of operation (Lahsasna 2014). The ways through which the company ensures
compliance are risk management techniques, record management techniques, process of
handling the complains, asset management and security.
The company has identified the risks embedded in its system and has suitably come
up with a risk management procedure. The company has analysed and treated the risks

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through specific risk management plans that include funding considerations. The company
has a strategic focus into this and has been thinking forward for developing the active
approaches to risk management (Lahsasna 2014). Along with the risk management policy,
the company has also come up with suitable record management procedures. In the debt
collection process, the accounts receivables are recorded in the files of the clients. The
contacts with the debtors are suitably recorded on the files which also includes copies of
invoices, correspondence and log of the different phone calls. Further the company keeps
records of meetings of the directors and other financials.
Clients have the opportunity to lodge a complaint regarding the handling of the their
personal information through the head office of Charity Care. Most of client compliant calls
were taken by the bookkeeper of the company (Barcelo et al. 2014). The company ensures
security of its online platform where all the communications take place. The data of the
clients are protected and electronic data transmission procedures are secured in the online
platform.
Comparison criteria of the compliance options adopted by the company and suitable
recommendations
Most of the options formulated by the company with regards to compliance
requirements can be efficient in developing compliance within the system. The risk
management steps can be effective in minimising the possible risks of the operations.
However, the company needs to find a method of detecting the risks as it might prove to be a
complicated process. The system of keeping records by the company is also effective.
However, for all the departments it has posed certain challenges which need to be mitigated
(Barcelo et al. 2014). The compliant handling process is carried out by a single employee,
which might make it a cumbersome process and consequently increase the workload of the

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employee. More employees should be hired in the department of customer care. The security
system might function pretty well in ensuring compliance of the business.
Summary
In the above report, the chosen organisation, that is, Charity care has been studied
thoroughly for proper analysis of its compliance requirements. The internal compliance
requirements are stated through the policies that have been extensively formulated by the
organisation. These policies include risk management policy, sexual harassment policy, credit
card policy, financial handling policy, work health and safety policy and many others. The
external compliance requirement includes certain steps such as commitment, implementation,
monitoring and review and continuous follow-up. After this the industry specific compliance
requirements are stated which include regulations set up by the Australian Charity and Not-
for-profit organisations. After this the different risks are defined which might occur due to
non-compliance of the organisation with the regulations. These risks might include fines,
criminal consequences, penalties and rising up of tax liabilities.
The penalties charged for not showing the annual report on time have been discussed
in details. The penalty range has been different for small-size, medium-size or large-size
organisations. The organisation size have been differentiated on the basis of their revenue.
Consequently the minimum penalty and maximum penalty varies differently for these
organisations. At the final section, the different kinds of recommendations that are advisable
for the companies to improve their compliance policies have been stated. The different
policies required would be excellent communication of the departments with their
departmental heads, simplicity in the preparation of policies and guidelines, pre-defined
guidelines for the acknowledgement of the policies and procedures and finally putting
emphasis on the point of view of the different employees.

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Reflection on the Research Plan
Type of Research
For the purpose of collection of suitable data of the organisation, there could be many
types of research that are required to be undertaken. One such research could be quantitative
research that would be purely numerical and based on facts and figures (Shekhar Singh
2014). The research is non-descriptive in nature and requires the process of collection of
quantitative data through the process of primary and secondary research methods.
Another research method could be qualitative research that would be purely based on
the description of the numerical figures (Shekhar Singh 2014). This research method will
apply reasoning for the purpose of giving proper explanation to the data collected from the
organisation through the quantitative research method. The method is exploratory in nature as
it tends to explore the meaning of the numbers.
Research tasks
The research tasks conducted for the research would require the following steps.
1) Creation of a research objective, that is, to analyse the extent of compliance that is
reflected in the organisation
2) Setting up of a research plan or a proposal that would be effective in gaining a
greater insight about the organisation’s compliance requirements (Hart 2018).
3) The next step to be conducted will be development of a research question, that is,
whether the organisation complies to the rules and regulations set up by the
authorities.
4) Collection of data, that is, conduction of different methods and procedures for
preparing a dataset for the organisation (Hart 2018).

13COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
5) Finally a summary will be prepared that would focus on the analysis of the
implementation plan of the research
Development of research plan
I will develop a research plan in such a way that it addresses the specific aims of the
paper. The aim of this research will be to find out the compliance figures of the organisation
that shows the extent up to which the organisation meets up its compliance requirements. The
next step in the research plan would be preparation of the strategy that would highlight the
concepts, methods, technologies for would be required for addressing the required questions.
In this research, I will collect and analyse suitable data for the purpose of looking into the
fulfilment of compliance requirements (Stecher and Hamilton 2014). I will also give a brief
method of my approach and also give a hint of the background of my research. I will provide
short explanation of the studies and surveys that are undertaken by different researchers
dealing with compliance requirements and also about their specific viewpoints. At the end
section of the research, I will draw upon a hypothesis that will either support the research
statement or it will be alternate in nature, going against the research statement (Stecher and
Hamilton 2014). This will be followed by a research methodology that will take into account
the different sources of information for the collection of data, such as primary and secondary
sources.
Development of survey tools
In this paper, I will develop many important survey instruments such as formulating
questionnaire that will allow both open-ended as well as closed-ended questions. This
questionnaire will be handed over to the different employees of the organisation for the
purpose of exploring more into the concept of organisational compliance (Ridley-Duff
2015). Another approach that will be helpful in gaining deeper insight into the organisation

14COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
will be by conduction of interviews. This will be useful for me in getting organisational
compliance data. The data can be based on financial frauds, accidental figures,
mismanagement as depicted by the audit team of the company and many more. Another
survey tool to be performed by me in this research will be market research survey (Ridley-
Duff 2015). In this survey, I will collect data that will be industry specific and market
specific in order to find out the pace at which the company meets its compliance needs with
respect to the market as well as its industry of operation.
Analysis of data
The data that I have collected from the different sources such as primary as well as
secondary, will be investigated thoroughly for the purpose of providing a proper judgement
of the company on the basis of compliance requirements (Van Bavel and Rijpma 2016). In
this research, most of the analysis will be based on primary sources that are collected from
the concerned authorities of the organisation and also from the different employees of the
organisation. The qualitative information as collected from the audit team will also be put
into focus for the purpose of analysis. The compliance performance of the organisation will
be analysed based on the performance data collected from the different sources (Van Bavel
and Rijpma 2016). The compliance culture of the organisation will be elaborated broadly.
From the analysis, I have found out that the compliance culture of the organisation is
embedded in the workflow performed daily and also will depend upon the behaviour of
individual employee across the organisation.
Conclusion
From the above report, the different compliance requirements of the organisation are
assessed with the help of a brief overview about the internal, external and industry specific
compliance requirements of the organisation. Along with this, a research methodology

15COMPLAINCE MANAGEMENT SYSTEM ASSESSMENT 1
highlighting the research implementation plan has been constructed to have a more detailed
idea about the research.
References
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Director, 34(3), p.45.

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