BSBCOM603 PLAN AND ESTABLISH COMPLIANCE MANAGEMENT SYSTEMS 1

BSBCOM603 PLAN AND ESTABLISH COMPLIANCE MANAGEMENT SYSTEMS

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BSBCOM603 PLAN AND ESTABLISH COMPLIANCE MANAGEMENT SYSTEMS 2

BSBCOM603 PLAN AND ESTABLISH COMPLIANCE MANAGEMENT SYSTEMS

COMPLIANCE REQUIREMENTS

A. Internal compliance requirements, including information management and

recordkeeping requirements

It is important for Charity-Care to have a robust compliance management system to improve its

organizational performance. Charity-Care has to fulfil various internal requirements to

incorporate a robust compliance management system. The primary requirement in this regard is

to have a dynamic and a vibrant information management system. The essence of an information

management system is that it would make it easy for the company to manage its internal data

including its staff data, monetary data of the organization, gifts data, and charity data. Another

significant requirement in this regard is recordkeeping system of the company. The study

suggests Charity-Care to use cloud-computing platform in this regard. It would enable the

company to store and organize the record of its stakeholders online. In the same manner, it is

significant for Charity-Care to have a strong risk-mitigation process along with quality

improvement processes to add value to its stakeholders.

B. External compliance requirements

The external compliance requirements refer to fulfil requirements imposed by the federal or state

authorities. Charity-Care operates from Brisbane. Therefore, it has to fulfil regulations of the

state along with federal regulations to become successful and the compliance management

system would help the company in this context. Therefore, it is important for the organization to

fulfil all requirements of Corporations Act 2001. Moreover, the company is registered under the

Queensland Collections Act 1966 and it has to comply with its requirements along with other
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such requirements defined by the Queensland authorities. In the same manner, Charity-Care is

registered company for GST having ABN: 21 745 368 027 and it has to fulfil taxation and legal

requirements of the state in this context.

C. Industry compliance requirements

The primary industry compliance requirements in this regard include taxation requirements, legal

requirements for the company, and various other such requirements such as compliance with

Corporations Act 2001 and Queensland Collections Act 1966. Charity-Care has to take good care

in this regard. In the same manner, some other industry compliance requirements in this regard

include having a robust risk management policy, credit card policy, sexual harassment policy,

and finance handling policy. Therefore, it is essential for Charity-Care to develop and implement

an efficient and an effective compliance management system to cover all these policies and

standards with perfection.

Compliance Effects

A. Ares Affected

The compliance has significant effects of various areas of Charity-Care. Some of the most

significant and the most prominent areas in this context include worker health and safety policy

of the company and compliance is reducing such risks and issues regarding worker health and

safety. In the same manner, compliance it effecting the internal as well external environments of

the company and it is making it easy for Charity-Care to improve its services. Another

significant thing in this regard is the credit card policy of the company. Compliance is adding

value to donors in this regard and making it easy for them to donate through its effective IT

infrastructure and recordkeeping system.

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B. Risks

The case study highlights various issues faced by Charity-Care and the audit report is making it

evident that the warehouse manager’s family is providing more than 40% computer spare parts to

the company and it is taking a significant amount each month without having a proper

transactional record. Likewise, the repair and banking payments are different from the receipts

issued by the company. Moreover, the company delivered a cheque to ‘Cheap Computers “R”

Us’ of $2,300 and there was no record of good received by the company. The issues make it

clear that the major risks associated with a compliance management system in this regard include

poor recordkeeping system, internal resistance by the staff of the company along with lack of

skills and abilities of the staff of Charity-Care to handle such systems.

C. Penalties

Charity-Care can face various legal penalties for not complying with Corporations Act 2001 and

Queensland Collections Act 1966. In the same manner, the company can face various monetary

penalties in this regard for not fulfilling taxation requirements under Corporations Act 2001 and

Queensland Collections Act 1966.

D. Risk Minimization

The primary advantage of a compliance management system is that it would help Charity-Care to

minimize its risks. It includes minimizing the internal and external risks of the company. It

would make it easy for the company to comply with internal and external legal and financial

requirements under Corporations Act 2001 and Queensland Collections Act 1966.
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Compliance Systems

A. Available Systems

Charity-Care has various available systems such as incident management system or worker

health and safety system. The essence of this system is that it helps the company in managing its

risks regarding worker injuries at workplace. Likewise, the company has strong HR system that

ensure equal employment opportunities to its staff. The system has two components one for job

applicants and the second for employees of the company.

B. Comparing Systems and Components

I. Cost

The cost of risk management system is low but the cost of HR system is high in the company.

II. Effectiveness

The effectiveness of employee health system is more than its HR system and the company offer

safe workplace to its staff.

III. Efficiency

The efficiency of employee health system is more than its HR system

IV. Feasibility

The feasibility of the system is high because it would help the organization to improve its

internal and external performance collectively.

V. Match to Organizational Culture

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The system has a perfect match with organizational culture of Charity-Care because it would

make it easy for it to improve its internal and external environments.

C. Recommended System

The study recommends Charity-Care a robust compliance management system that would help

the company to fulfil its internal and external compliance requirements and to meet Corporations

Act 2001 and Queensland Collections Act 1966 standards. The primary components of the

system include software, hardware, IT infrastructure, and employee training to understand

implementation of this system.

Research Plan

Personnel Activity Costs

HR manager Human resources for developing $40,000
Finance manager Implementing costs $60,000
Finance manager Reviewing costs $30,000
Compliance manager Cost of maintaining the $100,000

proposed compliance

management system

Written Reflection

The type of research undertaken in this study is qualitative research using secondary data. The

researches is conducted using company’s website and various journals along with Google search

engine. The survey tools used in this regard include TypeForms and Google Forms. The content

analysis method is used for data analysis