Detailed Report: Planning & Establishing Compliance Management Systems

This report focuses on establishing and managing a Compliance Management System (CMS) for Charity Care, an Australian charitable organization. The report begins by identifying various compliance requirements, including internal, external (ACNC legislation), and industry-specific regulations like occupational health and safety. It analyzes the effects of these regulations, potential risks (legal obligations, privacy), and penalties for non-compliance. The report then delves into risk minimization strategies, emphasizing the importance of a robust CMS with phases like commitment, implementation, monitoring, and continuous improvement. It identifies and compares available software systems (Logic gate, I-sight, Netwrix, Zenefits, GTS) in terms of cost, effectiveness, efficiency, and feasibility, recommending specific systems and procedures. The report outlines the components of a CMS, including policies, procedures, training, and monitoring, and defines personnel requirements and responsibilities. Finally, it presents an executive summary, the establishment of the system, and a monitoring methodology, along with conclusions and references.

Plan and establish
compliance management
systems

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
1. COMPLIANCE REQUIREMENT.............................................................................................4
A) Internal compliance requirement .........................................................................................4
B) External compliance requirements........................................................................................5
C) Industry compliance requirements.........................................................................................5
2. COMPLIANCE EFFECT ...........................................................................................................5
A) Area effected .........................................................................................................................5
B) Risks......................................................................................................................................5
C) Penalties.................................................................................................................................5
D) Risk Minimization ...............................................................................................................6
3. COMPLIANCE SYSTEM..........................................................................................................6
A) Identification of available system and options.......................................................................6
B) Comparing system in terms of :............................................................................................6
C) Recommending system or procedure....................................................................................7
TASK 2............................................................................................................................................7
Compliance Management System...............................................................................................7
a. Management information system:...........................................................................................7
b &c Component of the compliance management system and documents of each specification
.....................................................................................................................................................8
Personnel.....................................................................................................................................8
a. Personnel requirement.............................................................................................................8
b. suitable personnel....................................................................................................................8
c. key responsibility....................................................................................................................8
Training.......................................................................................................................................9
Process.........................................................................................................................................9
Administration...........................................................................................................................11
b. Target milestone....................................................................................................................11
TASK 3............................................................................................................................................1

EXECUTIVE SUMMARY.............................................................................................................1
ESTABLISHMENT OF SYSTEM .................................................................................................1
MONITORING METHODOLOGY ...............................................................................................3
Results and Analysis........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
A Compliance management system is basically an integrated system which consist of
written documents, functions, procedures, controls and tools which supports an enterprise in
complying with legal requirements. It also aids an organization in reducing the harm due to
violations of law. Compliance management system can also be considered to as formal system
which assist an enterprise in maintaining the compliance in all areas of operations. The
compliance system emphasizes on upholding policies as well as provisions which prevents the
firms as well as employees from breaking the legislation as well as regulations.
The report will have focus on identifying the compliance requirement by charitable
organization in Australia. Study also have focus on addressing the laws which are required to be
followed by charitable firm in context of charity care organization. It is basically a public sector
organization which is located in Brisbane. Study will also highlight the effect of the different
legislation on charity business.
TASK 1
1. COMPLIANCE REQUIREMENT
A) Internal compliance requirement
The charity care organization is required to develop the charity compliance program , as
it will assist them in reducing the risk of legal obligations.
There are different types of compliance required which are to be considered by management in
charity care firm. The different types of compliance requirement are internal as well as external,
accreditation guidelines, policies or procedures, legislation and codes of practices. The laws
which are required to be followed (Williamson, Luke and Furneaux, 2018. ).
According to the Australian Charities and Not-for-profits Commission Act 2012, It is
very much essential for charitable organization those who are registered with ACNC to keep
proper record of financial transaction. In addition to this, charity organization are also required to
keep the operational record for at least seven years. As per the privacy act, 1988 charity care
organization is required to take proper actions for destroying the information which is no longer
required.

B) External compliance requirements
The charity care organization is required to comply with the ACNC legislation passed in
2012. The charity care organization is required to comply with the Australian charity and Non-
profit commission act 2012.
C) Industry compliance requirements
Occupational health and safety act : According to this legislation ,Employees companies such as
care charity is required to provide healthy and safe working environment to workers.
Occupational health and safety legislation in Australia lays down the duties of employer as well
as employees related to maintaining the safe working environment (Cordery and Deguchi,
2018.).
2. COMPLIANCE EFFECT
A) Area effected
ACNC legislation mainly effect the way charity organization operates business in
Australia. It is the legislation which governs as well as regulates the way charities organizations
are formed as well as registered. ACNC act also provides the guidelines related to the financial
reporting requirements as well as governance standards. The area s which are effected by
changes in the legislation are finance and other business functions.
B) Risks
If in case charity care fails to comply with laws than in such case it might have to face
the legal obligations as well as high amount of penalties. The failure to comply with the
legislation can have adverse effect on the sustainability of organization. In addition to this there
is privacy risk which is associated with collection as well as distribution of donor information.
C) Penalties
The charity organization if fails to comply with the privacy law need to pay the fine of
224000 $.

D) Risk Minimization
The risk of legal obligation can be minimized by implementing a compliance system at
workplace. The different phases involved in the development of the compliance program are
commitment, implementation, monitoring as well as measuring and continuous improvement.
Commitment: At this phase, in order to ensure all the norms as well as regulations are formed, it
is required by management in an enterprise to implement reward system or strict policies.
Implementations: This is the phase where the management in the organization is required to
address those factors as well a people which can highly influence the implementation of
compliance system (Massingham, Massingham and Pomering, 2018). Management in an
organization should engage all employees in the implementation procedure, as it will assist them
in eliminating the barriers which might occur in employing the compliance management system.
In addition to this, it is required by manager in charity care firm to provide proper training to
employees, a sit will help them in ensuring that all the norms are followed.
Monitoring : Continuous monitoring is very much essential in order to ensure that all the rules as
well as norms are being followed. Establishing the specific standards can be helpful in
measuring the performance.
3. COMPLIANCE SYSTEM
A) Identification of available system and options
There are various software which can be implemented such as Logic gate, I-sight,
Netwrix, Zenefits etc. which can be utilized by charity care organization. All these software are
cost effective and helps in preventing the risk which is associated with failure to comply with
law.
B) Comparing system in terms of :
1. Costs: All the software are easy to installed and involves less costs.
2. Effectiveness : Netwrix, is a security solution that allows administrators to manage
server log files, security events and syslogs across the company network. The solution

alerts administrators in real time on critical events. In addition to this GTS system can be
implemented. The other important benefit of GTS system is that it enables management
to keep track record of all blocked document.
3. Efficiency; Both the system have high efficiency.
4. Feasibility :Netwrix, assists an individual in implementing as well as validating the
following NIST SP 800-53 security controls. It is highly feasible as compliance
solutions. The main benefit of using the GTS system is that it automatically updates the
value.
5. Matching to organization culture: As charity care has innovative culture, it can easily
implement both Zenefits and Netwrix, system at workplace.
C) Recommending system or procedure
The new process which can be implemented by the Charity organization for compliance
management are :
At the initial stage of process, the management in charity care organization are required
to create a business document in the feeder system. During the next phase, The GTS system will
start export or import control procedure automatically. It will also Check whether there is
requirement of import or export license. If in case system will be required then in such situation
the system assigns the appropriate license automatically to the business transaction. The GTS
system performs the check for particular business transactions.
TASK 2
Compliance Management System
Compliance Management system is a comprehensive compliance program that comprised
of documents, functions and process that help a firm to comply with all the legal requirement and
to minimize the harm ti customers because of violation of law.
a. Management information system:
This is favored by the growing organization, as it plays an important role for creating the
competitive company and increases the corporate value as well. Therefore, it Is a computer
system that consist hardware and software which help a firm in its operations and also aid in
management decision-making.

b &c Component of the compliance management system and documents of each specification
There are three element of the compliance management system such as:
Policies and procedures: It should be drafted in such a way that a new employee in
Charity Care can start a new job in a particular department in order to understand their own job
functions and responsibilities (Ciervo and et.al., 2019). Therefore, when the organization is
drafting a policies, it is quite necessary to be careful such that the written policies are not too
burdensome. The documents which required is keep adhering the laws o Australian government.
Training: It must be provided in proper and regular basis and even the training must be
updated with current and accurate operation on the product and services of a charity care. Further
, the training session should also be up to date with all the internal policies and procedures
Monitoring: The manager should keep monitor the process and verify whether it leads to
timely corrective actions and the monitoring should also addresses the deficiencies that are
identify in internal and external audits. Therefore, the monitoring procedure identify the
opportunities to improve the steps to strengthen CMS (Rickey, 2019).
Personnel
a. Personnel requirement
Charity-Care CEO
Chief Compliance officer
Line Manager
Employees
b. suitable personnel
Charity care CEO is one of the important personnel, the are the only person who make
policies and take important decision. Further they also monitor the entire system of the company
and assign different roles and responsibilities of their employees as well. Further, they also
provide training sessions to their employees for their better performance
c. key responsibility
Charity-Care CEO
 They are responsible for all the policies and procedure of a company.
 Support the Board and enabling good governance.
 Ensure that the firm is in good operational shape and includes the fund-raising
and finance.

 Build cultural framework.
Chief Compliance officer
 They make sure that the company is conducting a business in full compliance
 Also make sure that the international laws and regulations are pertain within an
industry (Kundu and et.al., 2019).
Line Manager:
 They are responsible for managing the employees and resources in move of
achieving the specific functional and organisational goals.
 They monitor individual and team metrics whether the employees are do work
with full efficiency.
Employees:
 They are only help the manager and Chief compliance officer to complete the
CMS.
Ciervo, J., Shen, and et.al., 2019
Training
A training should be designed for the Charity care in order to improve the compliance
management system that is core element of the management system. Therefore, the manager of
the company should not only monitor but to manage the compliance of the organization as well.
Hence, proper training for the Board, management and staff is quite essential in order to maintain
an effective compliance program (Zhang and et.al., 2019). Further, an effective compliance
training program in Charity Care should also be frequently updated with current and accurate
information regarding products and service and business operations. It also make sure that the
training is emerging issue in public domain as well and provide exact information with the
consumer protection laws and some internal policies.
Computer based and e-learning training are the best methods training method which is
suitable for the staff because it is easy to use and wide rage of employees can easily attend the
sessions.
Process
Complaints management system is a process that how the firm handles, manage and
respond the customer compliant such that the system are put into place to track and trend the data

which is captured by compliant management system. An effective communication will help for
developing a compliance management culture.
In order to determine the compliance breaches, the process is as mention below:
 Initial Identification and notification: Staff should notify the supervisor or line
manager about breaching any law so that they can take action further.
 Breach Containment: In this, the supervisor should take immediate action and they
should not destroy the evidence which may be valuable that help to determine the cause.
 Breach Assessment: In this evaluating the risk level with the appropriate laws and this
stage also involved all the relevant members as well to determine the effectively of the
laws (Perry, 2018).
 Implementation of corrective action: The action will be implemented in this stage by
the manager or chief compliance manager.
In order to meeting compliance reporting requirements, the process is as mention
below
 Meet with the divisional leaders in order to make sure the policies and procedures are
feasible
 next is to identify the best format of the policy.
 Then make the policy and procedure easily accessible to the employees.
 Set the deadlines for each policy and procedure to be acknowledge.
 Identify the best way to measure the understanding the employees have policies and
procedure.
Procedures for internal and external liaison processes:
 raising the employees and contractors awareness of the need to maintain the good
neighbour relations (Ferris, 2015).
 Inform the employees and other members about the consequences for a company for
failing any relation.
 Establish the system for gathering the perception of employees and knowledge
 then develop the communication plan for a company.
Performance Indicators:

Individual Compliance: It means that the every individual of the company should
compliance with the laws and regulation of the firm. Such that they keep adhering the laws
prescribe by the firm.
Training numbers: At least Charity Care should provide weekly training to their
employees for analysing the performance level.
Number of complaints: All the complain regarding employees and customers should be
reviewed in a day and address them properly (Ciervo, and et.al., 2019).
Administration
Budget
Particulars Amount ($)
Human Resource (Total) 75
Developing 25
Implementation 15
Reviewing and Maintaining 35
Financial resource 350
Total 425
b. Target milestone
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
Selection
of topic for
investigatio
n
aim and
objectives
Informatio
n
Gathering

Analysis
of
information
Budget
Drawing
conclusion