Contents

Internal compliance requirements, including information management and recordkeeping

requirements....................................................................................................................................1
External compliance requirements..................................................................................................1
Industry compliance requirements...................................................................................................1
Compliance Effects..........................................................................................................................1
Ares Affected...............................................................................................................................1
Risks.............................................................................................................................................2
Penalties.......................................................................................................................................2
Risk Minimization........................................................................................................................2
Compliance Systems........................................................................................................................2
Available Systems........................................................................................................................2
Comparing Systems and Components.........................................................................................2
Recommended System.................................................................................................................3
Written Reflection...........................................................................................................................3
Research Plan...................................................................................................................................3
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.

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
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.

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

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.
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.
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.
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.

Compliance Systems

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.
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
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.
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.

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.

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