10 September 2018
On 27 August 2018, the Registered Organisations Commission (ROC) concluded an inquiry into Clubs Victoria Inc. (CVI).
The inquiry commenced on 11 May 2018 and related to compliance by CVI with its obligations in respect of financial reporting and particularly the requirement for an auditor’s report to be prepared or lodged with the financial report, as well as the requirement for the auditor to have been appointed in a timeframe consistent with the legislation, and registered, as required by the Fair Work (Registered Organisations) Act 2009 (RO Act).
The inquiry was conducted under s330 of the RO Act in conjunction with the ROC Compliance Policy.
The inquiry identified it likely that subsection 256(4A) of the RO Act was contravened by the auditor, because when it accepted appointment as auditor of a reporting unit, the auditing company did not have at least one director, officer or employee who was a registered auditor. However, the inquiry also established that the contravention was caused by a delay in an auditor becoming registered in accordance with statutory requirements introduced for the first time on 2 May 2017. In light of the willingness of the auditor to co-operate with the inquiry and promptly remediate the issue, the ROC has determined there are not sufficient grounds to warrant further action against the auditor.
However, a range of compliance issues emerged during the inquiry with respect to CVI’s general compliance with its reporting obligations, including in relation to the preparation and lodgement of its general purpose financial reports. The ROC has determined that these issues require further investigation. On that basis, the ROC will close the inquiry under s330 with no further action against the auditor and commence an investigation under s331 of the RO Act into CVI’s compliance with its financial and other reporting obligations.
The inquiry serves as a timely reminder for registered organisations to be across their regulatory obligations with respect to financial reporting and in particular the registration with the ROC of their auditor. Meeting these obligations helps to deliver high standards of financial accountability and transparency in the interests of their members.
Background: Since the amendment of the RO Act effective 2 May 2017, reporting units have been required to prepare a financial report audited by an auditor registered by the Registered Organisations Commissioner. Since that time, 446 (99.33%) of the 449 financial reports lodged with the ROC have been audited by registered auditors. This means that only three (3) financial reports lodged with the ROC since 2 May 2017 were audited by persons who were not registered under the RO Act.
Having conducted an extensive education and awareness campaign about the requirement for auditors to become registered, since 2 May 2017, the ROC has registered 268 auditors.
The ROC has extensive information available to assist registered organisations and their auditors to understand and comply with their regulatory obligations on its website via this direct link: Registration of auditors
ROC media contact: Greg Russo - (03) 9603 0767 or firstname.lastname@example.org