warmwelcome Blayney Shire Council Community Forum Taking your

#warmwelcome @Blayney. Shire. Council Community Forum ‘Taking your Committee to the Next level’ Wednesday 23 September 2015 6: 00 pm – 8: 30 pm

Rachel Roberts, Solicitor Kenny Spring

Taking Your Committee To The Next Level Rachel Roberts Solicitor

Types of community organisations • Unincorporated groups • Incorporated associations - Associated Incorporations Act 2009 (NSW) • Co-operatives - Co-operatives National Law • Companies limited by guarantee - Corporations Act 2001 (Cth) • Indigenous corporations - Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth)

Should you incorporate?

Should you incorporate? • Advantage • Simplifies and Clarifies • Legal and Financial Protection • Formalises objectives • Regulates • Tax concessions • Public and Private Funding • • • Disadvantages Cost Insurance Record keeping Scrutiny

Governance

Governance Committee members have legal duties even though they are volunteers Duties arise under common law and legislation The relationship between a Committee member and the organisation is one of trust – a “fiduciary relationship Does not matter how small or informal your organisation is, or how many members it has, or how many days or years of experience you have as a Committee member If you do not comply with your duties you could be legally responsible and penalties can apply

Four Main Duties

Duty to act in good faith and for a proper purpose “Good faith”: You should act honestly, fairly and loyally when making decisions for your organisation “Proper purpose”: You should have regard to the purpose of the organisation and its membership as a whole, as well as its finances and operations Tips: 1. 2. Know and understand your organisations objectives Remember that your duty to act in the best interests of the organisation overrides any duties you may have to other organisations or people

Duty to act with reasonable care, diligence and skill • Take your role as a Committee member seriously • Make use of any skills and experience you have for the benefit of the organisation • Give sufficient time, thought and energy to any tasks you have undertaken and to decisions you are required to make • Monitor the affairs, activities and strategic direction of the organisation • Understand your organisation’s current financial position at all times • Prevent your organisation from continuing to incur debts if you know or suspect that your organisation cannot meet its current debts when they fall due (duty to avoid insolvent trading)

Duty not to misuse information or position As a current or former Committee member, you must not make improper use of: • your position as a Committee member, or • information you obtain through your position as a Committee member to either: • gain advantage for yourself or any other person or organisation, or • cause detriment to the organisation Tip: Make sure all Committee members understand your expectations about use of information and position

Duty to disclose and manage conflicts of interest You MUST disclose any conflict of interest. Best practice after disclosure: 1. Committee member should not be present during discussion of matter 2. Committee member must not be present for or vote on the matter 3. Ensure that the minutes record the fact that a conflict was declared and the fact that Committee member was not involved in the decision

Consequences of breaching duties

• Maximum penalty 60 penalty units ($6, 600) Nondisclosure of conflict of interest Dishonest use of positions Providing pecuniary gain for members Dishonest use of information • Maximum penalty 240 penalty units ($26, 400) or imprisonment for 2 years, or both

Offences by Committee members • • • (1) If an association contravenes, whether by act or omission, any provision of this Act or the regulations, each committee member of the association is taken to have contravened the same provision if he or she knowingly authorised or permitted the contravention. (2) A person may be proceeded against and convicted under a provision pursuant to subsection (1) whether or not the association has been proceeded against or convicted under that provision. (3) In the case of a contravention of section 40, each person who, pursuant to subsection (1), is taken to have contravened that section is, together with the association, jointly and severally liable for all debts incurred by the association as a consequence of that contravention. (4) Nothing in this section affects any liability imposed on an association for an offence committed by the association under this Act. (5) For the purposes of this section, an association’s public officer (not otherwise being a committee member) is taken to be a committee member.

Questions to keep in mind when thinking about your committee duties Do I have all the information needed to make an informed decision? Is this decision in line with the organisation's Mission? Do I have a conflict of interest? Is this decision in the best interests of the organisation? Can the organisation actually afford this?

John O’Malley, Director Intentus

Internal Controls for Not-for-Profits

What are we going to discuss? How risks and controls interact with your organisation’s objectives Risks arising through weak internal controls Strategies for managing risk 5 Basic internal control principles Q&A

How do Risks and Controls interact with your objectives? What are you trying to achieve? Objectives What might hinder your efforts? Risks Controls How can you manage risk?

Risks of Weak Internal Controls • • • 22 Financial misstatements Business loss Loss of funds or materials Staff or volunteer frustration and loss Incorrect or untimely management information Fraud or collusion Tarnished reputation with the public Business Sustainability compromised Missed goals

Risk Strategies Avoid Mitigate Transfer Accept Create • The risk is unacceptable so the activity will not proceed whilst the condition exists • Implement controls to reduce likelihood/impact • Shift responsibility to a 3 rd party (e. g. contractor or insurer) • Acknowledge and accept that the risk is there but likelihood/impact are tolerable • Strategically identify risks activities that maximise opportunities

Five Basic Internal Control Principles 1. Management Integrity - set the “tone at the top” • Policies on spending, recording and safeguarding money have been adopted by the board and made known to relevant staff and volunteers. • The organisation operates within an annual budget adopted by the Board. • Budget limits are known to Board members, staff and volunteers if necessary. • Income, expenditure and cash balances are reviewed monthly, or quarterly, against the budget. • Procedures and practices are monitored by the Board on a regular basis; this includes asking questions about financial transactions or reports.

Five Basic Internal Control Principles 2. Assign responsibilities to competent personnel • Form a finance committee of fit & proper individuals. • Hired staff are selected on the basis of known skills in financial management. • Staff reference / credit / police checks have been made and recorded. • Volunteers who handle money, including canvassers and ticket sellers, are aware of procedures for safeguarding cash and cheques. • Ongoing training needs are addressed, such as when a new accounting procedure is put in place or when software is updated.

Five Basic Internal Control Principles 3. Segregate Duties • Authorisation of expenditure has been separated from spending procedures; i. e. done by different people. • The tasks of recording expenditure and reporting expenditure are done by separate people (or at least checked by separate people). • Reconciliation of records, such as bank statements, is done by separate people (at least on a ‘spot’ basis). • Wherever possible, avoid having one person responsible for a process from start to finish.

Five Basic Internal Control Principles 4. Authorisation & Records Maintenance • A policy exists on cheque-signing or EFT payment authority. • Cheque signing / EFT authority is reviewed annually and updated at the bank. • An accounting process has been adopted (whether manual or computerised) with the capacity to produce reports on a timely basis. • Accounting procedures are written in a manual known to board and staff, and available for review, such as by a funder or auditors.

Five Basic Internal Control Principles 5. Apply Safeguards • Financial records, including for petty cash, are reconciled on a regular basis. • Physical security methods such as locked cabinets for cheques, and computer passwords for financial software, have been established and are used. • The board / committee understands its regulatory obligations, including when an external audit may be required. • Board members are comfortable questioning any activity, procedures or reports that seems suspicious or incomplete.

QUESTIONS

Rebecca Ryan, General Manager Blayney Shire Council

Community Financial Assistance Program - Round 1 • Round 1 now open • Applications are encouraged from all community-based groups for local projects • Closes Friday 9 October 2015 • Guidelines and Application forms are available for download on Council website

ourcommunity. com. au

Remplan

Lawrance Ryan, Grants and Executive Projects Cowra Council

Grant Funding Tips and Tricks “To give money away is an easy thing and in any man’s power, but to decide to whom to give it, and how large, and when and for what purpose and how, is neither in every man’s power nor an easy matter”. Aristotle: 384 -322 BC. 35

Purpose Grants are given to make a difference. Grant givers and makers are in the business of enablement. They must; § be flexible and responsive, § be able to manage risk, § be in a position to deliver community service, § be willing to enhance community development, § value heritage; and § be supportive of advancing participation in community life. State and Federal government funding is provided to meet community needs and expectations. Current policy is aimed at achieving consistency in programs, eliminating overlaps and simplifying procedures. § All funding bodies are increasingly interested in programs that are “shovel ready”. 36

The grant application process § § § Receive notification of grant Determine if the grant suits your needs – If unsure check the appropriate website or contact the funding agency for information Gather the required information Complete the grant application Submit the application The application is assessed by an independent panel who will followup with you if additional information or clarification is required Recommendations of the assessors passed to the funding agency Consideration by the funding agency Funding decision made (by the Minister in the case of government grants) Approvals announced Applicants notified 37

What do I (or my group) need before I seek funding? The answer to five basic questions: 1. 2. 3. 4. 5. Who am I? What do I want? When do I want it? Where will it go? Why is it needed? 38

What background documents (ideally) do I need? § § Project Plan Business Plan Strategic Plan Marketing Plan The number and complexity of documents required will usually depend on the size of the grant. 39

What do I need to be able to prove? § § § Will the project add to community capacity (liveability)? Will the project produce a sustainable result? Do I have community support? Do I have support from other government agencies and business? Does the project fit in with current planning – i. e. NSW State Plan, Cowra Council Strategic Plan 40

The grant writing process § § § Build a relationship with the funding body. Remember that your words are your power – Don’t waffle. Be short, succinct and to the point. (Many applications now are computer generated and only allow you a limited number of words. ) Information – Only provide data that is useful to the grant giver. 41

The grant writing process § § § There are no small questions only small answers – Never assume that the grant assessor has prior knowledge. Include outputs – Show the number of people participating, number of people trained or employed and dollars spent per participant Concentrate on outcomes – the overall result of the project, financial benefit (to you, the organisation and the community), the number of new participants. 42

The top 5 relationship killers with a grant funding body 1. Not listening 2. Communicating only when you are asking for $ 3. No personal connection 4. Having the wrong person seek the funding – community groups should consider appointing a grants officer 5. Not saying thank you (in an official way acquittal) 43

The payoffs of good relationships with grant funding staff § § § § Gain a better understanding of the funding process Get help with your proposal Receive invitations to apply for new grants Obtain operational support during the term of your project Gain access to the funding agency Influence the direction of future funding rounds Get non-funding help 44

Top 10 grant writing mistakes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Too generic Too showy Slipshod – insufficient preparation Too wordy No budget No ask – what are you asking for? No evaluation – why are we asking for it? No context - prove that you or your group has the capacity to complete the project. No vision No business plan 45

The response to rejection 46

The response to rejection § § § Say thank you Ask for feedback Keep cultivating the relationship 47

Writing the Grant Application § § Read the forms, highlight the relevant passages and make notes Contact the funding body and ask questions if you need clarification before you begin 48

Writing the Grant Application The number 1 question – Is the project eligible for the grant? § § No Maybe. Yes - Search for more relevant funding Think again before moving to Q 2 Definitely- go to Q 2 Remember that 20% of grant applications submitted do not meet the basic criteria of the grant. 49

Writing the Grant Application The number 2 question – Is the project able to be commenced and completed in time? No - Maybe - Yes - Put some more time into planning and preparation of the project. Note the timeframe of the next funding round. Think again before moving to Q 3 Go to Q 3 50

Writing the Grant Application The number 3 question - Have I/we got the time, skills and energy to carry this through? No Maybe Yes - See if anyone else has the necessary expertise or get some help Same as above DO IT! 51

Writing the Grant Application Plan the project – Write a list Date – Action – Who – Priority – Timeframe Deadline § Delegate Prioritise - § Schedule - § Don’t try to do it all yourself Decide what is most important and do that first Don’t leave things to the last minute 52

Writing the Grant Application Get letters of support from everyone relevant § § § The Mayor and Councillors Local State and Federal MPs Residents associations School groups Local businesses 53

Writing the Grant Application Keep it short, sharp and succinct § § § Keep it simple and concise Answer the questions correctly Prove your point 54

Writing the Grant Application Figures & Statistics § § § § Break it down – make it easy to understand. If something is unclear to you how can you expect someone else to understand? Provide specific costings Justify costs Obtain detailed written quotes Add value Include all in-kind support Value your own contributions realistically 55

Writing the Grant Application Deadlines You (and everyone else applying for the grant) know the date the application is due. It should be no surprise. Work with it! 56

Writing the Grant Application Start gathering information early: § § § § Read guidelines and ask questions Assess the eligibility of the project Delegate roles through group and partners Obtain detailed quotes and added value Write concisely and back up with evidence Leave time to get your application proofed and edited Result: A successful stress free application! 57

Writing the Grant Application Don’t leave things to the last minute: § Quotes Letters of support Consultation with Traditional Owners Leave time to review the application § Result: § § § Incomplete answers Lack of evidence and substance Not likely to be funded 58

Writing the Grant Application Language § § § Ensure the title makes a positive statement and is not a neutral descriptor. Check the language- is it specific, accurate, concise, and clear? Is the proposal written in active voice, with positive language and in the first person? Does the proposal avoid bureaucrat-style language, jargon and clichés or weasel words? Is the proposal written mainly in short simple declarative subject-verb-object sentences? Has it been checked for typos and bad grammar? 59

Writing the Grant Application Layout § § § § Are the pages numbered? Does the proposal follow the grant giver's guidelinesmargins, spacing, type size, paper size, proposal lengthto the letter? Does it look professional? Has the layout got plenty of white space, and is it broken up by charts, tables, headings, bullet points, etc. Are charts easy to understand clear? If there are forms to be filled out, have all the blanks been filled in? Are statistics and statements documented and properly referenced? Are any acronyms spelled out in full, at least at first use? 60

Writing the Grant Application Content § § § Do you address all items in the grant giver's guidelines? Does the proposal assume too much knowledge of the area or too little? Does it have a clear one-page executive summary? Is there a cover letter describing how your project would further the grant maker's mission? Does the submission have a project schedule, information on methodology, any project partners and their roles- as well as the roles of those in your group? Is there a proper conclusion at the end? 61

Writing the Grant Application Budget § § § Does the proposal contain a detailed budget that is accurate and adds up? A budget that does not balance is the most common error in grant applications. Does it explain the sustainability of the project? Does the budget factor in administrative overheads, and are you prepared to defend any budget estimates for salaries, goods and services? 62

Writing the Grant Application Message - 1 § § § Does the budget contain a contribution from your own organisation, to demonstrate your belief and commitment? Do you in your submission adequately demonstrate the existence (and significance) of the issue you wish to address through your project? Does the proposal specify realistic and measurable project objectives? Does it contain a rundown of benefits to beneficiaries and the grant maker? 63

Writing the Grant Application Message - 2 § § § Do you explain project reporting procedures in your submission? Do you show that your group can deliver the project, and why it is the best group to do so? Does the proposal show why this project is unique, innovative, and different from (and an improvement over) existing programs? 64

Writing the Grant Application And finally § Has the final version of the submission been reviewed by an objective third party? Know matter how many tmes you check your own work you will never pick up all the mistakes. 65

Grant Submission Checklist § § Is your grant submission up to the mark? Does it cover everything it needs to? Is it well written, clear and easy-tounderstand? Before you send your submission away, work through the points on this list. Get someone else to proof read the application. 66

Grants Websites www. grantslink. gov. au – Federal Government grants page www. community. gov. au- Australian Government Community Portal www. ato. gov. au/nonprofit- Australian Taxation Office www. bus. qut. edu. au/research/cpns - The Australian Centre for Philanthropy and Non-profit Studies www. aph. gov. au - Inquiry into the Disclosure regimes for charities and not-for-profit organisations www. fia. org. au- Fundraising Institute of Australia www. socialventures. com. au- Social Ventures Australia www. communitybuilders. nsw. gov. au Community Builders NSW 67

ourcommunity. com. au 68

Grants Literature A Grants Seeker's Guide: Program for Non- Profit Corporations, Philanthropy Australia, Inc. Board Builder Newsletter Easy Grants Newsletter Ethical Solutions : the essential guide to implementing an ethics program in your community group - www. communitv. com. au Finding the Best People: the essential steps to recruiting a Great Chief Executive I Coordinator for your community group www. ourcommunity. com. au Finding the Simple Secrets of Successful Community Groups: Over 400 tips on running a more effective community group and schoolwww. ourcommunity. com. au Fundraising & Philanthropy Australasia : insight, analysis and inspiration for fundraising professionals and not-for-profit leaders Guidebook for Getting a Grant- Barossa Riverland Mid North Area Consultative Committee How to Find Money Fast: 5 O Great Ideas to raise Up to $5 OOOwww. ourcommunity. com. au 69

Randell Edwards, Treasurer Millthorpe Village Committee

Millthorpe Village Committee

The Millthorpe Village Committee (MVC) is the legal registered entity (Incorporated Association) under which four delegated sub-committees operate with a combined membership of 131. Sub-committees : Ø Millthorpe Business Committee (MBC) – 70 members Ø Millthorpe Garden Ramble Committee (MGRC) – 10 members Ø Millthorpe Garden Club (MGC) – 32 members Ø Redmond Oval Committee (ROC) – 7 members

Millthorpe Village Committee President John Mason Vice President Alvaro Marques Treasurer Randall Edwards Secretary Ian Rogan Public Relations Laurie Williams Ordinary Member Lesley Morris (MBC) Ordinary Member Neil Thomas (MGC) Ordinary Member Lyndall Harrison (MGRC) Ordinary Member Michael Truloff (ROC) Public Officer John Mason Blayney Shire Council Millthorpe Business (sub) Committee (MBC) President Randall Edwards Secretary Ian Rogan Millthorpe Garden Club (sub committee - MGC) Co-ordinator Ann Thomas Co-ordinator Neil Thomas Co-ordinator Kerrie Nicholls Millthorpe Garden Ramble (sub) Committee (MGRC) President Lyndall Harrison Treasurer Lois Willing Secretary Jennifer Collins Publicity Beth Mullins Redmond Oval (sub) Committee (ROC) President Michael Truloff Vice President Charlie Harris Secretary Derek Robinson

MVC Mission Ø The Millthorpe Village Committee is a not for profit organisation and is the peak body representing the Millthorpe community. Ø We work in partnership with Blayney Shire Council to deliver projects for the community and to ensure local issues and concerns are brought before Council. Ø When appropriate we liaise with other local, state and federal government bodies. Ø The Committee works to enhance amenities in the village, organises community events and provides a forum for the community.

Sub-committee Missions Ø The mission of the MBC is to develop, strengthen and coordinate the activities of businesses in the community to promote the village as a destination for potential visitors and prospective businesses alike. Ø The MGRC project manages and delivers the annual Millthorpe Garden Ramble event which is held in November each year. Ø The primary interest of the MGC is to co-ordinate garden visits and garden related outings. Ø The ROC promote, develop, consult and action matters relating to the improvement of Redmond Oval as a community asset.

Membership Ø Membership of the MVC is open to all Millthorpe and District residents. The membership year is 1 July through to 30 June and the current annual fee is $10. 00 inclusive of GST. Ø Membership of the MBC is open to enterprises and individuals of the commercial community or enterprises who have a commercial association with the Millthorpe community who subscribe and agree to the Charter of the MBC. An annual membership fee is due on 1 July each year and is currently $65. 00 a year inclusive of GST. Ø There is no formal membership or fee required to be a member of the MGRC, MGC or ROC however all sub-committee members must be financial members of the MVC.

Positions & Roles The executive committee of the MVC is comprised of: § President § Vice President § Treasurer § Secretary § Public Relations § Public Officer § 4 Ordinary Members being a member of each sub-committee. Each sub-committee determines its own structure and elects office bearers as required.

Financials The Millthorpe Village Committee files an annual financial statement for each financial year with Fair Trading NSW. This statement also incorporates all financials associated with its sub-committees. All sub-committees operate out of the MVC bank account and separate ledgers are maintained for each of those sub-committees which reconcile to the MVC bank account. The MVC is registered for GST and files an annual GST return. One annual GST return is submitted for all MVC and sub-committee transactions. Tax Invoices are required for all financial transactions.

Strategic Plan & Significant Achievements Ø The MVC has a Community Strategic Plan which informs the committee and council of community projects and deliverables and priorities. Ø Projects delivered for the community in recent years include upgrade of roadside signage, installation of directional signage, annual visitor guide, village website, television commercial, co-operative promotions, historic Millthorpe DVD and upgrade of tennis courts. Ø The ROC were recently successful in obtaining a $500, 000 grant for the upgrade of Redmond Oval including an upgrade of the playing surface (earthworks, drainage, irrigation, turf), new picket fence and potentially upgraded lighting, cricket pitch and footpaths.

How has this happened? (continued) ü Committed & dedicated management team ü Working with community, business and government – accessing incentives and grants and developing productive relationships ü Capability to make decisions & accountability in particular with regard to governance e. g. management of public funds ü Seek out the positive contributors & stakeholders in your community & build relationships with community, businesses, industry and government

How has this happened? ü ü ü ü ü Vision Leadership – negotiation and mediation, rewards & pressures Passion Focus Communication Credibility Transparency Personal motivation & determination Affinity with and understanding of the community

The ‘C’ words. . . ü Community ü Consultation ü Capability ü Capacity ü Credibility ü Commitment ü Collaboration ü Conviction ü Co-operative ü Communicate ü Committee

Millthorpe, Heritage with Style - you'll just love it!

Thank you for your participation Join us @Blayney. Shire. Council @Blayney. Shire