Compliance assurance processes for the new legislation
- HELA Submission
46. Neither the Bill nor the Guidelines require Providers to certify annually in writing their compliance with all provisions of the legislation and the associated legislative instruments. External auditors of Providers are not required to certify annually that the compulsory fee has been spent only in accordance with uses permitted under the Guidelines.
47. The compliance assurance processes that the Department of Education, Employment and Workplace Relations (DEEWR) will adopt to ensure Providers are complying with the legislation are not clear.
48. There have been past cases in related areas where there have been shortcomings in the compliance assurance processes adopted by DEEWR to ensure timely and effective compliance by Providers with the provisions of the Act.
For example, not all of the VSU Transition Fund (VSUTF) grants (a total of $85.25 million in VSUTF grants were provided to the sector following introduction of VSU) would appear to us to have been spent for the purposes stated in the relevant grant applications and as agreed to in writing between the Department and the Provider. In the case of that programme, neither DEEWR nor th Australian National Audit Office (ANAO) appear to have had adequate compliance assurance processes in place.
49. It is obviously important the broader community maintain confidence that this new legislation, once passed, is being complied with fully by Providers. There are already interest groups in the context of the debate concerning the current Bill who are questioning the ability or inclination of the Commonwealth to monitor and enforce the provisions at the new section 19-38 of the Act which will prohibit use of the compulsory fee to support a political party.
50. In these circumstances we would suggest it would be useful if the Minister could provide greater clarity (perhaps via the Guidelines) on the compliance assurance processes that will be adopted to ensure the fee is not used for purposes not permitted under the Act or the related legislative instruments.
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