Slavic Gospel Association, charity review

This is a charity review, a review for those with an interest in the Australian charity Slavic Gospel Association (SGA).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about SGA.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

Prior to publishing this review, I sent my observations to the charity, on 19 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included. This also applies to the information in the Financial Report.)
  • There is then a more detailed comment on the Financial Report.
  • Lastly, there is a section Membership of accountability organisations

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • SGA website.
  • Facebook
  • Not on LinkedIn.
  • State government fundraising licence registers.
  • No reviews yet on Glassdoor.

REGISTRATION DETAILS

Entity Subtype

  • A subtype consistent with sharing the Gospel.
  • Is the message under the subtype an ACNC mistake?
  • Spreading the gospel is prime in the objects:
    • To promote the advancement of Christianity based upon an international charter with defined objectives.

The Charter states: Slavic Gospel Association Inc. is an interdenominational, evangelical missionary organisation, formed in 1934 to engage in spreading the gospel of Jesus Christ and in the building up of His church through….

CHARITY DETAILS

Legal Name

  • The name that the ACNC has registered is incorrect: SGA is a Victorian incorporated association (No. A0027142A), and therefore has ‘Inc’ or ‘Incorporated’ at the end of its name.

Other Name(s)

  • In not always using its full name (see, for instance, on its website and Facebook page), SGA appears to be in contravention of its enabling legislation (section 23, Associations Incorporation Reform Act 2012).
  • SGA has a lapsed trademark.

Charity ABN

  • The name on the Australian Business Register is incorrect – see Legal Name, above.
    • So is the Entity type: it is not an ‘Other Unincorporated Entity’.
  • You are not entitled to a tax deduction for a donation to SGA.

Charity Street Address

  • Postal address, from the website: PO Box 396 Noble Park Vic. 3174.

Phone

  • From the website: (03) 9562- 3434.

Website

ANNUAL REPORTING

  • AIS 2014
    • This is SGA’s compulsory Annual Information Statement 2014 (AIS 2014).
    • It gives basic financial information. If you think that this might be sufficient for you
      • ‘Donations and bequests’ is overstated by $5K
      • Interest of $5K is missing from ‘All other revenue’.
  • Financial Report 2014
    • None of the reports in the Financial Report are signed, and the date they were authorised for issue is missing from Note 1.
    • However they were lodged five months after year end, a month before the deadline.
    • The coverage of finances in this review is left until the financial report proper (see Latest financial report – detail, below).

ABOUT THE CHARITY

  • Statement of Faith
    • There doesn’t appear to be one on the website. (No search function.)
    • But there is ‘doctrinal statement’ in the constitution [clause 5].

Date Established

  • The history of SGA is included in the history on the website (under ‘Future’).
  • It was established in 1965, not 1993.

Who the Charity Benefits

  • Vision and Mission
    • None found
  • Activities (What did SGA do?)
    • From the Description of charity’s activities and outcomes in the AIS 2014:
      • Provided financial support to Christian ministries in the Commonwealth of Independent States.
        • Not particularly about 2014.
    • See under ‘Projects’ on the website.
  • Outcomes (What did SGA deliver?)
    • SGA did not respond to the request in the AIS 2014 for a description of its outcomes.
    • Nothing systematic found on the website.
    • You will find some anecdotal evidence under News.
  • Impact (How were people’s lives improved?)
    • Nothing systematic found.
    • You will find some anecdotal evidence under News.

Size of Charity

  • With a revenue of $396K, SGA is well under the threshold for the next size up, ‘Large’, a size that would require SGA to have an audit rather than a review.

Financial Year End

  • This means that the next financial report is due by 30 June 2016. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • Is it fundraising in these states? It doesn’t have a fundraising licence in any of them. (Or in the ACT, the other one that has a licensing regime.)
  • SGA calls for donations on its website. Have they considered whether this gives rise to the need for a fundraising licence?
  • If SGA has understood the ACNC’s definition of ‘operating’, then, as a registrable Australian body, there is a strong argument that it requires an ARBN. It doesn’t have one.

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • Nor on the website.

 RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Douglas Brown          This function was not working at the time of publication

Harry Caudasko

Peter Dubyna

Ralph Hewes

Larissa Porublev

Nickolai Porublev

Bruce Ronalds

Alexander Shevchuk

  • This listing matches the one on the website.
  • The Register is missing, under ‘Position’, a Chairman, Vice-Chairman, and an Executive Director.
  • What is the distinction between ‘Other’ and ‘Committee member’?

(End of review of the ACNC Register information)

Latest financial report – detail

  • There is no audit report. (There are audit fees, so presumably there was an audit.)
  • These are the kind of financial statements that do not comply with all the Australian Accounting Standards.

Board members’ report (the first page of the Financial Report)

  • Sections on objectives and the strategy to achieve those objectives are missing.
  • The wrong content is under ‘Performance measures’.
  • The report is unsigned (and therefore undated).

What was earned, what was consumed during the year – the Statement of profit or loss and other comprehensive income (the third page of the Financial Report)

  • The amounts for interest revenue (Note 4) are the same as those for interest received. Accrual accounting not used?
  • No travel and accommodation expense? Or is that ‘deputation’ (Note 8).
  • The following expenses are not disclosed:
    • Finance costs
      • ‘Interest and other finance costs paid’ in the Statement of cash flows. But there is an identical amount in the Statement of profit or loss… for ‘Bank fees’, so is this misnamed?
    • And two that are generally expected for charities:
      • Fundraising
      • Administration

Essential information to go with the figures – the Notes to the financial statements (the seventh page of the Financial Report)

  • Note 1. General information
    • The date the statements were authorised for issue is missing.
  • Note 2. Significant accounting policies
    • Basis of preparation
      • Surely amongst all the donors who together donated $391K over the year, and all the prospective donors who will be touched by SGA’s fundraising efforts over the next year, there are some who are dependent on general purpose financial statements? Do the directors realise that they are saying that anybody who has an interest in SGA can request a financial report tailored to their specific needs?
      • The Act cited was superseded in 2012.
      • Historical cost convention: this does not match SGA’s situation.
    • Revenue recognition: the policy for each major type of revenue should be disclosed.
    • Property, plant and equipment:
      • Fair value here is contradicted in Note 13 (cost).
      • The use of a rate certificate is not normally thought of as valuation by ‘external independent valuers’.
        • Plus wouldn’t that only allow valuation of the land?
      • With valuations due at least every three years, isn’t one overdue?
      • There are, contrary to the note, neither leasehold improvements nor plant and equipment under lease.
    • Less significant:
      • Investments and other financial assets: this is a bit long and complicated for some short-term term deposits.
      • Finance costs: the borrowings are interest-free.
      • Goods and Services Tax (‘GST’) and other similar taxes: the policy on receivables and payables, cash flows, and commitments and contingencies is missing.
    • Note 3. Critical accounting judgements, estimates and assumptions
      • There are no receivables for which provision for impairment has been made.
    • Missing Notes
      • Remuneration of auditors
      • Contingent liabilities
      • Commitments
        • For these two, the industry norm is, if there aren’t any, to state that.

Other reports

  • The Board members’ declaration, the report where the directors put their name to the Financial Report, is unsigned (and therefore undated).
  • Is it correct that there are no non-current employee benefits? (Statement of financial position)

Membership of accountability organisations claimed

  • Membership of Missions Interlink claimed, here. Confirmed.
  • SGA also say that ‘financial accountability to our partners and donors’ is ensured by their annual audit and the submission of their accounts to the State associations regulator.  It is wise to understand the level of comfort that it is legitimate to draw from these two processes:
    • see here and here, for what a ‘clean’ audit opinion means.  (SGA have not lodged their audit on the Register.)
    • the State regulator does minimal compliance work.
  • The US organisation is a charter member of the ECFA.

 

(End of review)

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Malyon College, charity review

This is a charity review, a review for those with an interest in the Australian charity Malyon College (MC).

Although MC is a charity, it is not a charity registered with the ACNC[i]. Instead it achieves its tax concessions via its ‘parent’, The Baptist Union of Queensland (BUC). (MC is a ministry of BUC.)

This review is structured according to the BUC’s entry on the Register, and its purpose is to supply some information on MC extra to what is there, information that may be helpful in your decision about MC.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 13 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to those headings in BU’s entry in the Register that are relevant to MC.
  • There is then a more detailed comment on the Financial Report. (Go straight there.)
  • Lastly, there is a section Membership of accountability organisations

Sources

  • ACNC Register for BU (including links)
  • Google search on the charity’s name.
  • MC website.
  • FaceBook – but in the name ‘Malyon’.  Instagram, Twitter (but nothing since early 2014), and YouTube.
  • Not on LinkedIn.
  • State government fundraising licence registers.
  • No reviews yet on Glassdoor.

REGISTRATION DETAILS

Entity Subtype

  • As MC is a college that provides only two things, theological education and training in practical ministry, it fits with BU’s subtype. However, MA also qualifies for ‘Advancing education’.
  • MC doesn’t have a constitution to check for objects or purposes, but BU’s By-Laws (see Charity’s Document, below), tell us that a ‘Purpose Statement’ for MC should have been developed. However, it appears that this is not in the public domain.

CHARITY DETAILS

Legal Name

  • BUC is incorporated by Letters Patent under The Religious Educational and Charitable Institution Act of 1861 (Qld). MC has no separate legal identity.
  • MC’s legal name is Malyon College – The Queensland Baptist College of Minstries. Neither Malyon College or Malyon are registered business names, meaning that MC should not be operating under any other name than its legal name.

Other Name(s)

  • BU’s business names should be listed here. They include MC’s name, Malyon College – The Queensland Baptist College of Minstries.
  • Although BU has 27 other business names (all of which should be listed here), it has not registered any of the three entities operated by MC, the Malyon Centres. All three have their own website and staff, and at least one, The Malyon Centre for Christian Leadership, has a physical site.

Charity ABN

  • MC is operating under BU’s ABN.
  • You wouldn’t know it from any of the information about BU, but you can get a tax deduction for a donation to MC: MC is the trustee for a foundation, The Malyon Foundation, and the trustee is endorsed as a deductible gift recipient.

Charity Address for Service

  • Something for MC would probably get to them from this address, but their direct email, from the website, is info@malyon.edu.au.
  • I have no reason to believe that this doesn’t work.

Charity Street Address

  • The MC campus is also at this address.
  • Postal address of MC, from the website: PO BOX 6166, Mitchelton QLD, Australia 4053

Email

  • See Charity Address for Service,
  • I have no reason to believe that this doesn’t work.

Phone

  • From the MC website: 07 3354 5656.

Website

ANNUAL REPORTING

  • AIS 2015
    • BU’s compulsory Annual Information Statement 2014 (AIS 2014) contains nothing specific to MC.
  • Financial Report 2015
    • This Report includes information about MC.
    • The report was signed five months after the year end.
    • It was then lodged over four months after that, well over two months late.
    • The coverage of finances in this review is left until the financial report proper (see Latest financial report – detail, below).

ABOUT THE CHARITY

  • Statement of Faith
    • None found on the website.
      • There are, however, ‘core values’.
      • MC doesn’t have a constitution to check for a statement of faith, but it does, if BU’s constitution has been followed, have a Charter. However, this has not been made public.

Date Established

  • There’s a history on the MC website.

Who the Charity Benefits

  • Vision and Mission
  • Activities (What did MC do?)
    • Courses.
    • News, here and here.No annual report/review. Nor one for BU (to check for a section on MC).
  • Outcomes (What did MC deliver?)
    • Nothing systematic found.
  • Impact (How were people’s lives improved?)
    • Nothing systematic found.

Size of Charity

  • MC on its own would also be ‘Large’.

Financial Year End

  • This means that the next financial report is due by 31 December 2016. (or 31 January 2017 if the ACNC repeats its previous generosity.)
  • Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • MC does not have a fundraising licence in this state.
  • MC calls for donations on its website.  It does not have a licence in any of the other six states that have a licensing regime.
    • Apart from exemptions, the need for a licence depends on whether these states think that an internet call for donations amounts to ‘fundraising’.

CHARITY’S DOCUMENT (SIC)

  • This document tells us that the governing document for MC is a ‘Charter’. It does not appear to be publicly available.

RESPONSIBLE PERSONS

  • BU’s By-Laws – see just above – say that MC has a governing body (‘Council (or another agreed name’). However, who is on this body is not on either website, nor elsewhere on the internet.

(End of review of the ACNC Register information)

Latest financial report – detail

  • In the usual document where the directors put their name to the financial report, the Statement by Members of the Board – a statement that doesn’t comply with the ACNC’s requirements – the directors of BU say that the ‘financial statements and notes…present a true and fair view.’ As MC’s financial position and performance are included in BU’s statements, the usefulness of the information on MC also rests on the directors’ claim.
  • Unfortunately, there is considerable evidence against their claim[iii]:
    • A reporting entity is one where the users of the financial statements are dependent on general purpose financial statements for their information. In other words, they do not have the capacity to request the entity to give them a financial report tailored to their specific needs.
    • Despite BU being the peak body for hundreds of churches and 35000 Baptists, and an organisation with multiple diverse ministries and a turnover of $92 million, the directors claim that BU ‘is not a reporting entity’. And then give no reason.
      • Did the directors realise that they were saying that all these ‘stakeholders’ could get a report tailored to their situation?
    • BU did not comply with the Accounting Standards required by the Act under which they are reporting, the ACNC Act.
    • Two of the four required financial statements are missing.
    • The Income Statement has significant errors:
      • No ‘Other comprehensive income’
      • Includes the revaluation of assets in the surplus
      • Without explanation, includes the income and expenses of some ministries partly as a net result in a separate section – ‘Surplus/ (deficit) from Other Income Generating Ministries’ – and partly without deduction under Income.
        • MC has $150K income in the Note for ‘Specified Gifts & Donations’
        • $150K ‘expenditure’ in the Note for ‘Other Ministries’, and
        • $113K in the separate section.
    • The Notes to the Financial Statements are totally inadequate as an explanation of the figures:
      • There are only two accounting policy Notes, far short of the pages of information that would normally be required to explain the choices for an organisation of BU’s complexity.
        • And one of these two is incomplete.
      • The remaining Notes are insufficient to ensure a true and fair view.
    • Nowhere is MC’s fund mentioned. Is it consolidated in MC’s figures?

Membership of accountability organisations claimed

  • Membership of Missions Interlink is claimed (but without the logo). Confirmed.
    • As a member, MC is required to ‘have available for its members and supporters a clear and appropriate financial statement which has been approved by its auditor [Standards Statement, 4.1]. MC does not comply with this. Even if Missions Interlink interpret the requirement as applying to BU, not MC, its compliance is questionable.

(End of review)

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Interesting, given John Sweetman’s belief in the importance of transparency. (He’s the Principal of MC.)

Servants to Asia’s Urban Poor Inc, charity review

This is a charity review, a review for those with an interest in the Australian charity Servants to Asia’s Urban Poor Incorporated (SA).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about SA.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 13 April 2016, and invited them to comment. For publication, they submitted this comment:
    • Servants does not endorse this review and is disappointed with the review’s unreasonably pejorative interpretation of publicly available information about Servants.  Servants Australia is committed to good governance, financial transparency and accountability.  We are registered and compliant with Queensland Office of Fair Trading, ACNC and Missions Interlink.  We ask people seeking more information about Servants to contact our office, Missions Interlink or the ACNC website.
      • I asked them to identify where I had been unreasonable, but they did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included.)
  • Then there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • The website that SA shares with all the other offices in the network worldwide.
  • Social media, via buttons in the header of a webpage.
  • LinkedIn.
  • State government fundraising licence registers.
  • No reviews on Glassdoor

REGISTRATION DETAILS

Entity Subtype

  • Not a type that suggests that SA shares the Gospel.
  • This is not the case with the first object in the constitution though:
    • To enable Christian missionaries to initiate, assist and establish indigenous churches, fellowships and discipling movements particularly amongst Asia’s urban poor. This is an expression of Jesus’ own ministry to “preach the gospel to the poor” and “make disciples of all nations”
      • However, the organisation that they partner with for some of their work, Global Development Group (see Charity ABN, below) is not a Christian charity.

CHARITY DETAILS

Legal Name

  • SA is a Queensland incorporated association (No. IA31696).
  • Although an Australian association, another body, the ‘International Leadership Team (undefined), has the power to admit and the power to remove members.

Other Name(s)

  • SA has no business name registered.
  • In Australia, therefore, they are required to use their name (or the same but with Inc. on the end).
    • They go by the name Servants on the website and on Vimeo, ServantsAsia on Twitter, and Servants Australia on the website.

Charity ABN

  • Tax deductibility: No, you cannot claim a tax deduction for a donation to SA.
    • There is a different picture under the Donate button on the website:
      • …we partner with Global Development Group who provide tax receipts for the ‘Big Brothers and Big Sisters’ project in Cambodia, and ‘Lilok Organic Farm’ project in The Philippines. Other projects are currently in the process of obtaining tax deductibility status.
        • What does this facility cost SA?
        • Global Development Group is not a Christian organization, and would not be allowed to spread the Gospel via such projects anyway.         How then can such projects meet the objects of SA (see Entity Subtype, above)?

Charity Street Address

  • Postal address, from the website: PO Box 259 Red Hill, Brisbane Australia 4059.

Website

  • This is not SA’s website, but one that covers all the offices of the network worldwide. This is the page about Australia.

ANNUAL REPORTING

  • AIS 2015
    • This is SA’s compulsory Annual Information Statement 2015 (AIS 2015).
    • It was lodged seven months after year end, four days before the deadline (a deadline that had been generously extended for all charities).
    • It gives basic financial information:
      • 99% of the $103K income came from ‘Donations and bequests’.
      • Employees took 69% of the income (or 57% of expenses).
        • Elsewhere in the AIS, the number of employees is reported as five, all full-time. This equates to an average of merely $14K per employee – a mistake, surely.
      • The $34K ‘Grants and donations made…’ represents only 33% of income – they incurred a deficit in 2014 – or 27% of expenses.
      • It is not clear how this information relates to what prospective donors are told on the website:
        • There are several ways you can contribute financially to Servants’ vision to see the urban poor and their communities transformed by Christ.  Servants offices are fully staffed by volunteers and overheads are kept to a minimum in keeping with our commitment to simplicity. Donations can be made for specific Servants project funds or in support of individual missionaries.* No administration fee is taken out of donations to Servants projects and 100% of your gift will be sent to the field [emphasis in original].
      • None of the beneficiaries mentioned under Activities (below) have declared foreign donations to the Indian Government. Nor has Servants.
  • Unfortunately, this is the only financial information that you’ve got:
    • Because of its size SA doesn’t have to lodge a Financial Report.
    • Although SA is a member of Missions Interlink[ii], and one of their requirements is that members ‘have available for its members and supporters a clear and appropriate financial statement which has been approved by its auditor [Standards Statement, 4.1], they
      • did not choose to lodge one with the ACNC voluntarily, and
      • did not respond to my request for a copy of this ‘statement’.
    • I have therefore been unable to review the latest report.

ABOUT THE CHARITY

  • Statement of Faith
    • None specifically for SA on the website; presumably they subscribe to the network’s ‘what we believe’ statement.

 Date Established

  • No history of SA found.
  • Here’s how Servants started.

Who the Charity Benefits

  • Vision and Mission
    • None found for SA.
    • Nor for the network.
  • Activities (What did SA do?)
    • From the Description of charity’s activities and outcomes in the AIS 2015:
      • Servants to Asia’s Urban Poor pursued its charitable purposes in 2014-15 financial year by supporting Australian families and individuals who live and work in the slums of Asia, participating with the poor to bring hope and justice through Jesus Christ. To enable this an Australian Office was maintained to support these workers through receiving and processing worker support donations and general donations, and also to prepare interns, and assist with re-settlement needs of workers returning home. Together with networking conferences and training across Australia, Servants Annual Dinner (non-fundraising) was held in Brisbane on October 17, to raise awareness and celebrate what God was doing among the urban poor, and in recognition of ‘The International Day for the Eradication of Poverty’. In India the not for profit social enterprises ‘Ashadesh’ and ‘Kiran’ continued to develop. Ashadesh is in the business of carbon offsets, which was generated by enabling many families in the slums to access clean burning stoves, thereby also reducing carbon emissions. By buying carbon offsets carbon footprints were reduced as well as good health and social benefits for the poor. ‘Kiran’ jewellery vocational training centre continued to grow and employ local women. Also through advocacy work for a local NGO there are now English and Hindi manuals detailing government services for the poor, for all the most populous states of North India
        • Is this the Kiran NFP? If so, Servants is not mentioned.
        • Is this the Ashadesh NFP? Again, Servants is not mentioned.
        • Both are run by the Australians Steve and Jane Wilson.
  • Outcomes (What did SA deliver?)
    • See Activities, above.
    • Nothing systematic found.
  • Impact (How were people’s lives improved?)
    • Nothing systematic found.

Size of Charity

  • If there were a size smaller than ‘Small’, SA would may well qualify.

Financial Year End

  • The next AIS (including Financial Report if they choose to include it) is due by 31 December 2016. (or 31 January if the ACNC give their generous extension again.)
  • Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • No information found to explain why four states are listed here.
  • SA doesn’t have a fundraising licence in these states. Is it fundraising?
  • It doesn’t have a licence in any of the other three states that have a licensing regime.
  • SA invites donations on its website.
    • Apart from exemptions, whether it needs such a licence in a particular state depends on whether that state thinks that SA, by calling for donations publicly, is ‘fundraising’ in their territory.

Operates in (Countries)

  • This matches the information under Activities,

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • Nor on the website.

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Catherine Delaney       This function was not working at the time of publication

Jon Eastgate

Lisa Elliott

Nathan Elmes

  • There is no mention of the committee members on the website.
  • The composition is consistent with the constitution.

(End of review of the ACNC Register information)

Membership of accountability organisations claimed

  • The page for Australia on the website claims membership of Missions Interlink. Confirmed.

(End of review)

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in  their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Youth With A Mission Sydney Hills Incorporated, charity review

This is a charity review, a review for those with an interest in the Australian charity Youth With A Mission Sydney Hills Incorporated (YWAMSH).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about YWAMSH.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 14 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included.)
  • Then there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • No website.
  • Not on any social media, or LinkedIn.
  • NSW government fundraising licence register.
  • No reviews on Glassdoor

REGISTRATION DETAILS

Entity Subtype

  • A subtype that is consistent with sharing the Gospel.
  • As is the first object in the constitution:
    • To advance the Christian faith in all parts of Australia and the rest of the world by such means as the committee of the Association may determine in its opinion…[clause 2(1)].
  • Is the message from the ACNC under the subtype a mistake?

CHARITY DETAILS

Legal Name

  • YWAMSH is a NSW incorporated association (No. INC9878517).
  • Neither YWAMSH, nor the YWAM implied in their email address (see Charity Address for Service, below), are in the list of centres on the YWAM Australia
  • According to the Bookers in November last year, ‘YWAM Sydney Newtown’ have ‘taken over’ YWAMSH.
    • Despite their claim that ‘YWAM Sydney Newtown is now ‘government-official’, YWAMSH is still registered and ‘YWAM Sydney Newton’ is unincorporated.
  • Somebody lodged the YWAMSH AIS 2015 on 6 February 2016, well after the ‘takeover’.

Other Name(s)

  • YWAMSH has no business name registered.
    • They are therefore required to use their full name (or the same but with Inc. instead of Incorporated on the end).

Charity ABN

  • Tax deductibility: No, you cannot claim a tax deduction for a donation to YWAMSH.

Charity Address for Service

  • I have no reason to believe that this doesn’t work.

Charity Street Address

  • No website to check for a postal address.

Email

  • I have no reason to believe that this doesn’t work.

Website

  • None found.
  • The link from their name in the Missions Interlink membership list leads to a website in the name YWAM Sydney Island Breeze, but this is the website for Youth With A Mission Sydney Inc.  A bit confusing.

ANNUAL REPORTING

  • AIS 2015
    • This is YWAMSH’s compulsory Annual Information Statement 2015 (AIS 2015).
    • It was lodged seven months after year end, six days after the deadline (a deadline that had been generously extended for all charities).
    • It gives basic financial information:
      • 98% of the $20K income came from ‘Donations and bequests’.
      • There were no ‘Employee expenses…’, nor ‘Grants and donations made…’.
      • They made a surplus of $7K.
      • Liabilities exceed assets by $15K, i.e. they have negative equity.
    • Unfortunately, this is the only financial information that you’ve got:
      • Because of its size YWAMSH doesn’t have to lodge a Financial Report.
      • Although YWAMSH is a member of Missions Interlink[ii], and one of their requirements is that members ‘have available for its members and supporters a clear and appropriate financial statement which has been approved by its auditor [Standards Statement, 4.1], they
        • did not choose to lodge one with the ACNC voluntarily, and
        • did not respond to my request for a copy of this ‘statement’.
      • I have therefore been unable to review the latest report.

ABOUT THE CHARITY

  • Statement of Faith
    • No website to check; presumably they subscribe to the YWAM network’s ‘what we believe’ statement.

 Date Established

  • No history of YWAMSH found.

Who the Charity Benefits

  • Vision and Mission
    • None found.
  • Activities (What did YWAMSH do?)
    • From the Description of charity’s activities and outcomes in the AIS 2015:
      • With our new Management Committee (please see change in Responsible Persons) following a close down over the Christmas period, we are still in the process of planning new activities. Past activities will remain the same.
        • But what were these activities?
        • Responsible Persons is blank on the Register.
  • Outcomes (What did YWAMSH deliver?)
    • YWAMSH did not respond to the request in the AIS for its outcomes.
    • Nothing found.
  • Impact (How were people’s lives improved?)
    • Nothing found.

Size of Charity

  • If there were a size smaller than ‘Small’, YWAMSH would no doubt qualify.

Financial Year End

  • The next AIS (including Financial Report if they choose to include it) is due by 31 December 2016 (or 31 January if the ACNC give their generous extension again).
  • Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • Presumably NSW should be here.
  • YWAMSH does not hold a fundraising licence in NSW.

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • No website to check.

RESPONSIBLE PERSONS

  • Despite the reference in the AIS 2015 – see Activites, above – YWAMSH has still to disclose the names of those on the committee.
  • The constitution requires a minimum of a Director/President, Deputy Director, and a Treasurer.

(End of review of the ACNC Register information)

Membership of accountability organisations claimed

  • No website, so nothing claimed.
  • YWAMSH is a member of Missions Interlink.

(End of review)

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in  their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

World Team Australia Incorporated, charity review

This is a charity review, a review for those with an interest in the Australian charity World Team Australia Incorporated (WT).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about WT.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 9 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included. This also applies to the information in the Financial Report.)
  • There is then a more detailed comment on the Financial Report.
  • Lastly, there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • WT website.
  • Facebook. (But last post was 12 August 2015)
  • Not on LinkedIn.
  • State government fundraising licence registers.
  • No reviews on Glassdoor yet.

REGISTRATION DETAILS

Entity Subtype

  • A subtype consistent with sharing the Gospel.
    • Is the message under the type an ACNC mistake?
  • And the prime purpose in the constitution is all about sharing the Gospel:
    • To become a global missionary fellowship that partners with others to establish vital communities of believers within reach of every person…

CHARITY DETAILS

Legal Name

  • WT is a Victorian incorporated association (No. A0030511U).

Other Name(s)

  • This is a trading name, and therefore not sufficient to allow WT to do business under this name.
  • On the website, and probably elsewhere, WT uses the names World Team and World Team Australia. This would seem to contravene section 23 of its enabling legislation (the Associations Incorporation Reform Act 2012), a section that requires the full name to be used ‘in all its notices, advertisements and other official publications’. (The WT constitution cites this section under ‘Name’, but omits this part of the requirement.)

Charity ABN

  • No tax deduction is claimable for a donation to WT.

Charity Address for Service

  • I have no reason to suspect that this does not work.

Charity Street Address

  • Postal address, from the website: P O Box 516 Box Hill Victoria 3128

Email

  • I have no reason to suspect that this does not work.

Phone

  • From the website: 03 9899 6303

Website

ANNUAL REPORTING

  • AIS 2015
    • This is WT’s compulsory Annual Information Statement 2015 (AIS 2015).
    • It gives basic financial information. If you think that this might be sufficient for you
    • The type of financial statements are not ‘general purpose’, as it says in the AIS, but the ones that require a lower standard of disclosure, special purpose statements.
      • ‘Donations and bequests’ includes, from the financial statements, ‘Home office levy’, and ‘Mobilisation income’ (whatever they are), ‘Projects’, and ‘Other income’
      • ‘Grants and donations made…’ are ‘Field expenses’ in the statements.
  • Financial Report 2015
    • The report was signed five months after the year end.
    • It was then lodged one month after that, on the last day allowed.
    • The coverage of finances in this review is left until the financial report proper (see Latest financial report – detail, below). (Go straight there.)

ABOUT THE CHARITY

Date Established

  • On the website, including a book you can buy. (See the two submenu items for more detail.)

Who the Charity Benefits

  • Vision
    • Innovative teams multiplying disciples and communities of believers, bringing the Gospel within reach of lost people everywhere we go.
  • Mission
    • World Team exists to glorify God by working together to establish reproducing churches focusing on the unreached peoples of the world.
  • Activities (What did WT do?)
    • From the Description of charity’s activities and outcomes in the AIS 2015:
      • World Team exists to spread the gospel (sic) of Jesus Christ by releasing and supporting missionaries to work in areas of the world, yet (sic) to be reached by the Gospel. World Team missionaries: plant churches, teach English, provide medical and health services, teach high school, teach computers (sic), lecture in a bible college
        • This is not about WT, but WT combined with the other countries that have a World Team organisation.
        • Nothing particularly about 2015.
  • Outcomes (What did WT deliver?)
    • WT did not respond to the request in the AIS 2015 for a description of its outcomes.
    • The last post in the Blog was on 23 March 2015.
  • Impact (How were people’s lives improved?)
    • Nothing found.

Size of Charity

  • WT easily exceed the $250K qualification.

Financial Year End

  • This means that the next financial report is due by 31 March 2017. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • If WT has followed the ACNC’s definition of ‘operating’, then, as a registrable Australian body, it needs an ARBN. It doesn’t have one.
  • It does not have a licence to fundraise in either of these states. Is it fundraising there?
  • WT calls for donations on its home page.
    • It doesn’t have a licence in the other five states that have a licensing regime.
      • Apart from exemptions, whether it needs one depends on whether those states think that WT, by calling for donations publicly, is ‘fundraising’ in their territory.

Operates in (Countries)

  • WT also had ‘field expenses’ in Irian Jaya.

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • Nor on the website.

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Timothy Cranna           This function was not working at the time of publication

  • This list is incomplete.  According to the Committee members’ report, these names should also be here:
  • But even, according to the constitution, the list would be three short.
  • Under ‘Position’, there should be Chairman, Vice-Chairman, Secretary, Treasurer and an Executive Director.
  • On the website, rather than show the Australian board, the website shows the International Director and the three country directors.
  • Timothy Cranna is the Executive Director. Presumably, then, Brian Billing’s statement that he is the CEO is out-of-date. 

(End of review of the ACNC Register information)

Latest financial report – detail

  • The directors’ belief that WT is not a ‘reporting entity’, a choice that allows them to make less than a full disclosure about WT’s finances and operations, is implicitly a statement that any user is able to command the preparation of a financial report tailored to their needs. Do the directors realise they are saying this?

Committee members’ report (first page of the Financial Report)

  • It is unsigned.
  • Missing sections:
    • Objectives (short-term and long-term)
    • Strategy for achieving the objectives
  • ‘Performance measures’: the wrong information is included.

What was earned, what was consumed during the year – the Statement of profit or loss and other comprehensive income (page 3 of the Financial Report)

  • Revenue $362K, including Note 4:
    • All the items except for the top two are, according to the AIS 2015, ‘Donations and bequests’.
    • They make up 97% of income.  (Last year: 96%.)
    • Non-standard items, ‘Mobilisation income’ and ‘Home office levy’ are not explained.
    • ‘Profits/loss on sale of motor vehicles’ is a gain, not revenue.
  • Employment expenses $103K
    • This represents 35% of expenses, 28% of revenue.  (Last year:  36%/54%.)
    • They are for one (full-time) employee (AIS 2015)
  • ‘Field expenses’ $106K
    • According to the AIS 2015, all bar $500 of this was for overseas grants.
      • We are not told to how or to whom this money was sent.  (No law requires this.)
    • This represents 37% of expenses, 29% of revenue. (Last year:  48%/71%.)
  • Expense classification is partly functional, mostly by nature.
  • Missing expenses, expected for a charity:
    • Fundraising
    • Administration
  • Note 14: Neither depreciation or amortisation is applicable to inventory (stock).
  • ‘Provisions’ are not an expense.
  • Non-standard items, ‘Field expenses’, ‘Mobilisation expense’, and ‘World Team International’ are not explained.
  • Why such a high percentage on ‘Professional fees and subscriptions’?

What’s left at the end of the year – the Statement of financial position (page 4 of the Financial Report)

  • Note 7: which of the three kinds of investments are these?
  • Note 6: from who and why are reimbursements receivable?
  • Note 8: what is the term of the deposit?
  • Note 9: reconciliations to written down value are missing.  (This is an industry standard.)
  • Note 11: Do these qualify as provisions? They sound more like reserves. (There is no policy Note on provisions.)
  • No non-current employee benefits (or other provisions)?

Where the cash came from and where it went – the Statement of Cash Flows (page 6 of the Financial Report)

  • No interest received?
  • When the accrual basis is used, why is the revenue the same as the receipts?
  • A reconciliation to the surplus is missing.

Essential information to go with the figures – the Notes to and forming part of the Financial Statements (page 7 of the Financial Report)

  • Note 2   Significant accounting policies
    • ‘Revenue recognition’: This policy covers only one of the many items of revenue and only 35% of the total.
    • ‘Property, plant and equipment’: the policy on the review of the depreciation factors is missing.
  • Missing Notes:
    • Impairment of non-financial assets
    • Employee benefits
    • Fair value measurement
    • Contingent liabilities
    • Commitments
      • It is standard industry practice to have a note on these last two, even if it is only to say that there weren’t any.

Where the committee members put their name to the Report – the Committee members’ declaration (page 13 of the Financial Report)

  • This is unsigned.

An independent opinion on the financial statements – the Independent Auditor’s Review Report… (the second last page of the Financial Report)

  • Note that this is not an audit, but a review.
  • It is a ‘clean’ opinion – or, more correctly, ‘conclusion’

Membership of accountability organisations claimed

 

(End of review)

 

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ WT their application guide: ‘You need to give details about where WT Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Riverview Children’s Foundation Inc, charity review

This is a charity review, a review for those with an interest in the Australian charity Riverview Children’s Foundation Inc (RCF).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about RCF.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 8 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included.)
  • Then there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • RCF website.
  • Facebook, and another Facebook, a page for Относно Riverview Children’s Foundation.
  • Instagram, and LinkedIn.
  • State government fundraising licence registers.
  • No reviews on Glassdoor yet.

REGISTRATION DETAILS

Entity Subtype

  • Not a type that suggests that RCF shares the Gospel.
  • Although RCF is controlled by Riverview Church, and is a member of Missions Interlink, there is nothing in its object (in its constitution) to suggest that it is a Christian charity, let alone one that shares the Gospel.
  • The organisation that they use to do their work, Global Development Group (see Charity ABN, below) is not a Christian charity.

CHARITY DETAILS

Legal Name

  • RCF is a Western Australian incorporated association (No. A1010951A).

Charity ABN

  • Tax deductibility: No, you cannot claim a tax deduction for a donation to RCF.
    • This is contradicted by the website, particularly this form. How can they invite cheques to made out to them at the same time as offering a tax deduction? What exactly does a ‘partnership’ with this Global Development Group entail?
      • How much of your donation is lost to them?
      • The controlling church, Riverview, also implies that RCF accepts tax-deductible donations via Riverview Trust.

Charity Address for Service

  • I have no reason to believe that this doesn’t work.

Charity Street Address

  • Postal address, from the website: PO Box 524, Victoria Park, Western Australia 6979.

Email

  • I have no reason to believe that this doesn’t work.

Phone

  • From the website: 08 9416 0000.

Website

  • From the Google search: www.riverviewchildrensfoundation.org.au.

ANNUAL REPORTING

  • AIS 2014
    • This is RCF’s compulsory Annual Information Statement 2014 (AIS 2014).
    • It was lodged six months after year end, seven days before the last day.
    • It gives basic financial information:
      • ‘Donations’ only make up 3% of the income. (See Operating State(s), below).
      • The other 97% is under ‘Other Income/Receipts’.
      • The ‘Employee expenses/payments’ $59K are for the one employee (disclosed elsewhere in the AIS).
      • The $6K ‘Grants and donations made…’ represents only 3% of income.
      • Even deducting ‘Other expenses/payments’ from income, the figure is still only 10%.
    • Unfortunately, this is the only financial information that you’ve got:
      • Because of its size RCF doesn’t have to lodge a Financial Report.
      • Although RCF is a member of Missions Interlink[ii], and one of their requirements is that members ‘have available for its members and supporters a clear and appropriate financial statement which has been approved by its auditor [Standards Statement, 4.1], they
        • did not choose to lodge one with the ACNC voluntarily, and
        • did not respond to my request for a copy of this ‘statement’.
      • I have therefore been unable to review the latest report.

ABOUT THE CHARITY

  • Statement of Faith
    • None on the website.
    • Nor in the constitution.

Date Established

  • No history found.

Who the Charity Benefits

  • Vision
    • None found.
  • Mission
  • Activities (What did RCF do?)
    • From the Description of charity’s activities and outcomes in the AIS 2014:
      • Our mission is to reduce suffering by providing options for children once forgotten. Our aim is to support the work of these (sic) organisations and to continue to find projects that rescue, protect and empower children’s lives.
        • Not particular to 2014.
    • From Riverview Church’s website:
      • RCF is partnering with projects in five countries that are dedicated to rescue, protect and empower the most vulnerable children and youth in their societies.
  • Outcomes (What did RCF deliver?)
    • RCF did not respond to the request in the AIS 2014 for a description of its outcomes.
    • Nothing found on the website.
  • Impact (How were people’s lives improved?)
    • Nothing found.

Size of Charity

  • RCF is $52K under the threshold for the next size up, Medium.

Financial Year End

  • The next AIS (including Financial Report if they choose to include it) is due by 30 June 2016. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • RCF doesn’t have a fundraising licence in this state. Does it fundraise in WA?
  • It doesn’t have a licence in any of the other six states that have a licensing regime.
  • RCF invites donations on its website.
    • Apart from exemptions, whether it needs such a licence in a particular state depends on whether that state thinks that RCF, by calling for donations publicly, is ‘fundraising’ in their territory.

Operates in (Countries)

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • Nor on the website.

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Aaron Gregory      This function was not working at the time of publication

Ken Lee

John Sharpe

Dorcas White

Haydn, Nelson

Brian Harris

Steve Fraser 

  • There is no mention of the directors on the website.
  • These same seven people are directors of Riverview Church.

(End of review of the ACNC Register information)

Membership of accountability organisations claimed

(End of review)

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Youth With A Mission Darwin Inc, charity review

This is a charity review, a review for those with an interest in the Australian charity Youth With A Mission Darwin Inc (YWAMD).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about YWAMD.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent YWAMD observations to the charity, on 7 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included.)
  • Then there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • YWAMD website.
  • Three FaceBook pages: (1) a Places page for YWAM Outback, with a last post on 22 June 2015, (2) an official page in the same name, with a last post on 10 June 2014, and (3) a DTS Outback page, with a last post on 15 December 2015.
  • YouTube. Twitter (last tweet was in 2011). Blog (last post was in 2010).
  • Not on LinkedIn.
  • State government fundraising licence registers.
  • No reviews on Glassdoor yet.

REGISTRATION DETAILS

Entity Subtype

  • A type consistent with sharing the Gospel.
  • As is the prime object in the constitution:
    • To advance the Christian Faith (sic) in all parts of Australia and the rest of the world: by such means as the committee of the Association may determine in its opinion in accordance with the statements, values and principles embodied in the following seven declaration of principal documents. (sic)

Youth With A Mission Statement of Purpose International

The Foundational Values of Youth With A Mission

The Christian Magna Carta

Founding Principals (sic) of the University of the Nations

The Manila Covenant 1988

The Lausanne Covenant 1974

CHARITY DETAILS

Legal Name

  • YWAMD is a Northern Territory incorporated association (No. 01556C).

Other Name(s)

  • The trading name Youth With A Mission Darwin is missing here; however, YWAMD needs a business name in order to continue to operate under any name other than the full name.
  • The name it uses on the website and elsewhere, YWAM Outback, is not so registered.

Charity ABN

  • Tax deductibility: No, you cannot claim a tax deduction for a donation to YWAMD.
    • But you can if you donate to the Youth With A Mission Darwin Inc School Building Fund.

Charity Address for Service

  • I have no reason to believe that this doesn’t work.

Charity Street Address

  • Postal address, from the website: PO Box 290 Darwin NT 0801.

Email

  • I have no reason to believe that this doesn’t work.

Phone

  • From the website: 08 8981 2424.

Website

ANNUAL REPORTING

  • AIS 2014
    • This is YWAMD’s compulsory Annual Information Statement 2014 (AIS 2014).
    • It was lodged nine months after year end, three months late.
    • It gives basic financial information:
      • The zero for ‘Employee expenses/payments’ matches the report of no employees elsewhere in the AIS.
      • ‘Donations’ only make up 6% of the income. (See Operating State(s), below).
      • Does the zero for ‘Grants and donations made…’ mean that, contrary to the information under ‘Activities’ in the AIS (see Activities, below), nothing was sent to Timor Leste this year?
    • Unfortunately, this is the only financial information that you’ve got:
      • Because of its size YWAMD doesn’t have to lodge a Financial Report.
      • Although YWAMD is a member of Missions Interlink[ii], and one of their requirements is that members ‘have available for its members and supporters a clear and appropriate financial statement which has been approved by its auditor [Standards Statement, 4.1], they
        • did not choose to lodge one with the ACNC voluntarily, and
        • did not respond to my request for a copy of this ‘statement’.
      • I have therefore been unable to review the latest report.

ABOUT THE CHARITY

  • Statement of Faith
    • None on the website.
    • Nor in the constitution. (But see Entity Subtype, above.)
    • YWAMD, like other YWAMs, promotes the The Seven Spheres of Influence (or Seven Mountains of Culture). Dominionism is the theology.

Date Established 

Who the Charity Benefits

  • Vision and Mission
    • None found.
  • Activities (What did YWAMD do?)
    • From the Description of charity’s activities and outcomes in the AIS 2014:
      • Our charity engages in partnership with the local community and also with more remote communities or overseas communities with volunteers who provide positive interaction and various support in response to expressed felt needs. We have volunteers join us for 1 – 3 month placements from overseas to participate in our programs. Our charity has regularly sent various donations of educational supplies to schools in Timor Leste, and to a lesser extent other overseas ophanages or projects.
        • Not particular to 2014.
  • Outcomes (What did YWAMD deliver?)
    • YWAMD did not respond to the request in the AIS 2014 for a description of its outcomes.
    • Nothing found on the website.
  • Impact (How were people’s lives improved?)
    • Nothing found.

Size of Charity

  • YWAMD is $90K under the threshold for the next size up, Medium.

Financial Year End

  • The next AIS (including Financial Report if they choose to include it) is due by 30 June 2016. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • YWMD doesn’t have a fundraising licence in any of the seven states that have a licensing regime. (No licence is necessary in their home state.)
    • Apart from exemptions, whether it needs such a licence in a particular state depends on whether that state thinks that YWAMD, by calling for donations publicly, is ‘fundraising’ in their territory.

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • Nor on the website.

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Jennifer Keatch            This function was not working at the time of publication

  • There is meant to be, according to the constitution, at least another three names here.
  • There is no mention of the directors on the website.
  • Australian Mercy says that David Skeat is a director.

(End of review of the ACNC Register information)

Membership of accountability organisations claimed

(End of review)

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Deaf Ministries International Ltd, charity review

This is a charity review, a review for those with an interest in the Australian charity Deaf Ministries International Ltd (DMI).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about DMI.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 9 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included. This also applies to the information in the Financial Report.)
  • There is then a more detailed comment on the Financial Report.
  • Lastly, there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • DMI website.
  • FaceBook. YouTube. Not on LinkedIn.
  • State government fundraising licence registers.
  • No reviews yet on Glassdoor.

REGISTRATION DETAILS

Entity Subtype

  • A subtype consistent with sharing the Gospel.
  • The first object shows that the extension of the Kingdom is very much what they are about:
    • The promotion of Christianity amongst deaf and hearing-impaired children and adults worldwide through evangelism, church planting, leadership training, Christian education and humanitarian assistance.

CHARITY DETAILS

Legal Name

  • DMI is a company limited by guarantee.
    • As it has the necessary provisions in its constitution, it is entitled to omit ‘Limited/Ltd’ when it uses its company name.  As it does on FaceBook.
  • For the year covered by the latest AIS (see below), DMI was an incorporated association. (In fact it is, according to ASIC, still registered as one.)
    • DMI changed from an association to a company in February 2016.
  • There is also a DMI organisation called DMI International (see the early pages in the 14th AGM held 2nd May 2015 document from here.). Not Australian though – even though the office and International Director appear to be in Australia. Nowhere is the relationship to DMI explained.
  • There are also organisations that seem to belong to DMI in Norway, Japan and Korea (bottom right here.) This connection is also not explained.

Charity ABN

  • You are not entitled to a tax deduction for a donation to DMI.
    • This is contradicted by the second section on the home page of the website.
    • Following the link there is the only way that you will find out that the organisation described on the website is not just DMI, but actually a combination of DMI and The Trustee For Deaf Action Fund. (DMI is the trustee.) There is nothing on the Register to indicate this.
      • The ‘DMI Finance Manager’, who is also on the board of both organisations, confirms this in the Deaf Ministries International 2013 Finance Report (in the last item on the home page):
        • There are several parts to the financial reports that follow. Because DMI and Deaf Action are separate legal entities, we have included the audited financial reports for each as provided by our auditor [a misunderstanding of the reporting process]. However, because DMI and Deaf Action essentially operate as one organisation, I have also included a set of financial reports that show the combined figures and give a better overview of DMI’s financial position [emphasis mine].
          • You might ask them therefore, why they have not provided consolidated financial statements for the Register.

Charity Address for Service

  • I have no reason to believe that this doesn’t work.

Charity Street Address

  • Postal address, from the website: PO Box 395 | Beaconsfield Victoria 3807.

Email

  • I have no reason to believe that this doesn’t work.

ANNUAL REPORTING

  • AIS 2014
    • This is DMI’s compulsory Annual Information Statement 2014 (AIS 2014).
    • It gives basic financial information. If you think that this might be sufficient for you, note that these figures come from financial statements that do not comply with all the Australian Accounting Standards – see below – and are for the legal entity DMI only.
  • Financial Report 2014
    • Because nothing is signed in the report, we don’t know when it was finished.
    • It was lodged four and a half months after year end.
      • The coverage of finances in this review is left until the financial report proper (see Latest financial report – detail, below)

ABOUT THE CHARITY

  • Statement of Faith
    • None found on the website.
    • But there is one in the constitution.

Date Established

  • There’s a brief history on the website.

Who the Charity Benefits

  • Vision
    • OUR VISION’ here goes to a YouTube video with much more than that.
  • Mission
    • None found – but see the above video.
  • Activities (What did DMI do?)
    • From the Description of charity’s activities and outcomes in the AIS 2014:
      • Deaf Ministries International raises funds in Australia to support Christian ministry to the deaf in developing countries throughout Asia. DMI also runs primary and secondary schools for deaf children, and provides training and employment opportunities for deaf adults in those communities.
        • Not particularly about 2014.
    • See ‘Missionaries’ and ‘Countries’ in the main menu on the website.
  • Outcomes (What did DMI deliver?)
    • DMI did not respond to the request in the AIS 2014 for a description of its outcomes.
    • Nothing systematic found on the website.
    • You will find some anecdotal evidence under Newsletters, and in the 14th AGM held 2nd May 2015 document from here.
  • Impact (How were people’s lives improved?)

Size of Charity

  • With a revenue of $892K, DMI is $108K under the $1 m threshold for ‘Large’.
    • However, when their tax deductible operation, Deaf Action Trust, is included, their revenue is over $1 m.

Financial Year End

  • This means that the next financial report is due by 30 June 2016. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • In what sense does DMI operate in these four states rather than the other four?
  • DMI doesn’t have a fundraising licence in any of the seven states that have a licensing regime.
  • DMI calls for donations on its website (the right hand side, plus Sponsorship, Projects, and Donate in the main menu.)
    • Have they considered whether this gives rise to the need for a fundraising licence?

Operates in (Countries)

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • The reports presented to the AGM for the 2014 year are towards the bottom here.

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Rodney Chapman        This function was not working at the time of publication

Lynne Graham

Susan Shannon

Neville Muir

Matthew Farmilo

Geoffrey Brooke

  • The website is silent on the Board.
  • No directors are mentioned in the Financial Report.

(End of review of the ACNC Register information)

Latest financial report – detail

  • These accounts did not rate a ‘clean’ opinion from the auditor. He says that he had to qualify his opinion because
    • It was found that there are not appropriate controls over income received prior to entry into the accounting records.
      • Even if restricted to donation income, which I think the auditor meant to do, that’s 95% of income.
      • So for 95% of income, DMI has no assurance that all the money that it was given has ended up in the company’s bank account.
      • Why is it not practicable for the company to control this cash? Most other companies can. Directors please read this.
    • Apart from this, please first read the sections Charity ABN and Legal Name (both above), and consider how these unknowns might affect the information below.

What was earned, what was consumed during the year – the Statement of Profit or Loss and Other Comprehensive Income (page 1 of the Financial Report)

  • Note 2: ‘Conference income’ less ‘Conference expense’ = $3K surplus.
  • The expenses are, contrary to the Accounting Standards, a mixture of the two classification methods.
  • ‘Employee benefits expense’ $193K: Allowing 50% for part-timers, and 25% for casuals, this figure represents $86K per employee.
  • ‘Administration expense’ $71K: This is 8% of revenue.
  • The following expenses are not disclosed:
    • Superannuation
    • Fundraising
  • Note 3:
    • With the Financial Report having been prepared by the same person who subsequently reviewed it, you will have to rely on the (unsigned) Auditor’s Independence Declaration… for an assurance that this obvious threat to independence was handled appropriately.
    • There is no policy Note on leases.

What’s left at the end of the period – the Statement of Financial Position (page 2 of the Financial Report)

  • ‘Total non-current assets’ should read ‘Total current assets’.
  • Why no non-current employee benefits?
  • ‘Trade and other receivables’: there is no mention of collectability.
  • ‘Property, plant and equipment’: the usual reconciliations of written down values is absent.

Essential information to go with the figures – the Notes to the Financial Statements (page 5 of the Financial Report)

  • Note 1 Summary of Significant Accounting Policies
    • The directors say that DMI is not a reporting entity because ‘there are no users dependent on its general purpose financial statements’. Do they realise that they are saying that anybody who has an interest in DMI can request a financial report tailored to their specific needs?
    • The directors do not say which Accounting Standards they complied with.
    • Relatively minor omissions/mistakes:
    • (a) General Information: missing are DMI’s functional and presentation currency, and the date that the accounts were authorised for issue.
    • (c)  Income taxes: the exemption comes from the registration with the ACNC.
    • (d) Property, Plant and Equipment: missing is the policy on derecognition.
    • (g) Employee Benefits: no disclosure of the policy on superannuation expense, and no discussion of short-term versus long-term benefits.
    • (k) Revenue: no policy on ‘Interest income’ or ‘Conference income’.
    • (l)  Why is such a significant expense recognised only on payment when the accounts use the accrual basis
    • Missing policy Notes:
      • New, revised or amending Accounting Standards and Interpretations adopted
      • Current and non-current assets
      • Fair value measurement
      • New Accounting Standards and Interpretations not yet mandatory or early adopted
  • Note 11 Related Parties: but what is DMI’s relationship to all these entities?
  • Missing Notes:
    • Critical accounting judgements, estimates and assumptions
    • Contingent liabilities
    • Commitments
    • Events after the reporting period

An independent opinion on the financial statements – the Independent Review Report to the Members (page 15 of the Financial Report)

  • Not a ‘clean’ opinion – see Latest financial report – detail, above.
  • This report is unsigned (and therefore undated).
  • Minor mistakes in the report:
    • The company’s name is repeated in the title.
    • Third paragraph: ‘is not satisfy’.

The other statements

  • Page 3: Both surplus and other comprehensive income should be shown.
  • Page 4: Why is interest revenue the same as interest received if the accrual basis is being used?
  • Page 12: This important statement is unsigned (and therefore undated).
  • Page 13: This declaration is not required by the ACNC; it is unsigned (and therefore undated).

Membership of accountability organisations claimed

(End of review)

 

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Global Interaction Inc, charity review

This is a charity review, a review for those with an interest in the Australian charity Global Interaction Inc (GI).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about GI.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

Prior to publishing this review, I sent my observations to the charity, on 6 April 2016, and invited them to comment. The Partnerships and Communications Manager replied the next day to say that ‘We would appreciate the chance to formally respond to your review prior to publishing this content as we feel assumptions have been made in your findings. The next board meeting is in a couple of months.’ On being told that I was not prepared to wait that long, but was keen to learn of these ‘assumptions’, she replied that she had ‘spoken with the board chair and they will be willing to discuss it in their next meeting and provide a response in June.

If you are using this review after June, and I haven’t incorporated their comments, please email me.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    • For each heading in the register entry, first read the information under that heading.
    • Then check if that heading is included below. (Headings for which there is no comment are not included. This also applies to the information in the Financial Report.)
  • There is then a more detailed comment on the Financial Report.
  • Lastly, there is a section Membership of accountability organisations claimed.

Sources

  • ACNC Register (including links)
  • Google search on the charity’s name.
  • GI website.
  • Not on FaceBook or LinkedIn.
  • State government fundraising licence registers.
  • No reviews yet on Glassdoor.

REGISTRATION DETAILS

Entity Subtype

  • A subtype consistent with sharing the Gospel.
  • The prime object in the constitution is all about evangelism:
    • To fulfil the commission of the Lord Jesus Christ to preach the Gospel to all people by all available means so as to establish among peoples churches which will evangelise their own and other people from their own resources in Jesus Christ.

CHARITY DETAILS

Legal Name

Charity ABN

  • You are not entitled to a tax deduction for a donation to GI.
    • This does not match the information in the Giving FAQ section of the website:
      • IS MY DONATION TAX-DEDUCTIBLE?

This depends on which cross-cultural worker or project you support. Contact the cross-cultural worker or Global Interaction for more detailed information.

Charity Street Address

  • Postal address, from the website: PO Box 3085, Auburn VIC 3123

Phone

  • From the website: 03 9819 4944.

Website

ANNUAL REPORTING

  • AIS 2014
    • This is GI’s compulsory Annual Information Statement 2014 (AIS 2014).
    • It gives basic financial information. If you think that this might be sufficient for you
      • 7K has been omitted from ‘Other Income’.
      • ‘Employee expenses’ are not zero, but $2.2m.
      • This is, according to elsewhere in the AIS, for 75 full-time and 9 part-time employees.
      • Should the $728K ‘Cross-cultural support’ and the $2.38 m ‘Cross-cultural missions’ be included instead of the zero for ‘Grants and donations made…’?
    • These figures come from financial statements that do not comply with all the Australian Accounting Standards – see below.
  • Financial Report 2014
    • The report was signed three months after the year end.
    • It was then lodged three months after that, on the last day allowed.
    • The coverage of finances in this review is left until the financial report proper (see Latest financial report – detail, below).

ABOUT THE CHARITY

  • Statement of Faith
    • None found on the website.
    • There isn’t a statement of faith in the constitution.

Date Established

  • There’s a history on the website.
  • You can go deeper here (or at least up to 2012)
  • Here’s the historical resources up to 2012.

Who the Charity Benefits

  • Vision and Mission
  • Activities (What did GI do?)
    • From the Description of charity’s activities and outcomes in the AIS 2014:
      • Activities have supported the sending of Cross Cultural Workers Overseas (sic).
        • Not particularly about 2014.
    • There is a Global Interaction Guide 2016, but you have to ask for it.
    • The 2014 (or later) Annual Report is not on the website.
  • Outcomes (What did GI deliver?)
    • GI did not respond to the request in the AIS 2014 for a description of its outcomes.
    • Nothing systematic found on the website.
    • You will find some anecdotal evidence under Resources.
    • The 2014 (or later) Annual Report is not on the website.
  • Impact (How were people’s lives improved?)
    • Nothing systematic found.
    • You will find some anecdotal evidence under Resources.
    • The 2014 (or later) Annual Report is not on the website.

Size of Charity

  • With a revenue of $4.69 m, GI easily exceeds the $1 m threshold for ‘Large’.

Financial Year End

  • This means that the next financial report is due by 30 June 2016. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • Given that it operates interstate, GI, as a registrable Australian body, needs an ARBN. It doesn’t have one.
  • Why is the ACT missing from this list? All eight states are included under ‘Our Teams’.
  • Should ‘operating states’ be restricted to the five that have a State Director?
  • Whatever the answer, GI doesn’t have a fundraising licence in any of the seven states that have a licensing regime.
  • GI calls for donations on its website.  Have they considered whether this gives rise to the need for a fundraising licence?

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • There is a section for annual reports on the website, but the last one is 2013.
    • However, on opening this report, one finds only two pages, one the cover page for Global Interaction Guide 2015, the other a report by the Treasurer for the 2013 year (showing $8.51 m ‘expenditure’).

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Andrew Streets      This function was not working at the time of publication

  • The Board should be listed, not the Director of Corporate Services.
    • ‘Position’ will need to show who is the Treasurer, Chairperson, and Vice Chairperson.
  • The Board has more than the number, seven, allowed by the constitution [clause 4.2].  Amended 16.11.16
  • It appears that, compared to the situation at 27 March 2015 (the Financial Report), Looi, Hickey, and Saunders have been replaced by Murray Crabb, Beth Jackson, and David Moyes.

(End of review of the ACNC Register information)

Latest financial report – detail

Board Report (page 2 of the Financial Report)

  • No such report is required by the ACNC.
  • All bar one of the required sections are missing.
  • Five sections are included that are not required.

What was earned, what was consumed during the year – the Statement of Profit or Loss and Other Comprehensive Income (page 4 of the Financial Report)

  • ‘Management fee’, $927K, as revenue: what are they managing?
  • ‘Income from bequests’, $222K:
    • Some interest – a separate item under revenue – and some dividends?
    • Incoming bequests are included in ‘Donations’?
  • ‘Governance & administration’ expense, $1.23 m: How does this differ, if it does, from the item expected for charities, ‘Administration expense’?
  • Why no explanation for the $563K write-off, especially as the loan was to a related party?
    • The loan was only $155K. Where is the other $408K?
  • The direction to Note 2 is missing.
    • Why are the benefits to ‘outback Australia missionaries’ excluded?
    • Where are they included?
  • The following expenses are not disclosed:
    • Superannuation
    • Fundraising
    • Depreciation
  • Missing policy Notes:
    • New, revised or amending Accounting Standards and Interpretations adopted
    • Current and non-current assets
    • Trade and other receivables
    • Trade and other payables.
    • Fair value measurement
    • New Accounting Standards and Interpretations not yet mandatory or early adopted

What’s left at the end of the period – the Statement of Financial Position (page 5 of the Financial Report)

  • ‘Other long term provisions’ $532K, including Note 10: these are all employee benefits, not ‘other’.
  • Property, Plant & Equipment $7.21 m, including Note 7:
    • How old are the valuations? When was the last professional valuation?
    • The reconciliations of written down value are missing.
  • Short term borrowings $558K last year, including Note 9: there is no explanation of this ‘Lend & Send Fund’, and how it went from this balance to zero.

Movements in the net wealth of the charity – the Statement of Changes in Equity and Funds (page 6 of the Financial Report)

  • Other than the line ‘Transfers to/from reserves’, the descriptions should match those in the Statement of Profit or Loss and Other Comprehensive Income.

Where the cash came from and went to – the Statement of Cashflows (page 7 of the Financial Report)

  • The policy Note for revenue says that donations are recognised on receipt. Why then is there a different amount here than in the Statement of Profit or Loss and Other Comprehensive Income?
  • The ‘Loan repaid/(advanced)’ $135K should be under financing activities.
  • Note 13: why is the movement in the ‘Lend and Send (sic) Fund’ under operating activities?

Essential information to go with the figures – the Notes to the Financial Statements (page 8 of the Financial Report)

  • 1. Statement of significant accounting policies
    • The directors do not explain why they think that GI is not a reporting entity.
      • This decision means that a multi-million-dollar receiver of donations from the public, with offices in five states, multiple missionaries all over the world, and representing the missional interests of the Baptist denomination, can produce financial statements that are less than fully compliant with the Australian Accounting Standards.
      • Do the directors realise that they are saying that anybody who has an interest in GI can request a financial report tailored to their specific needs?
    • The directors do not say which Accounting Standards they complied with.
    • Relatively minor omissions/mistakes:
      • a. Income Tax: the exemption comes from the registration with the ACNC.
      • b. Property, Plant and Equipment: no depreciation rates or policies on (1) derecognition and (2) review of the depreciation factors.
      • c.   Employee Benefits: no disclosure of the policy on superannuation expense.
      • e. Revenue: no policy on the ‘Management fee’.
      • f. Leases: there are no leases
  • 15. Related Parties: but what is the relationship?
  • Missing Notes
    • Critical accounting judgements, estimates and assumptions
    • Contingent liabilities
    • Commitments
    • Events after the reporting period

An independent opinion on the financial statements – the Independent Audit Report to the Members (page 15 of the Financial Report)

  • This is a ‘clean’ opinion.  Read here and here to draw the right conclusions from this.

Membership of accountability organisations claimed

  • Two claimed, via logos, here.
    • ‘CMA Governance’ orange, the highest of four levels. Confirmed (but with a slight mistake in the name).
      • Judge for yourself their compliance in those areas covered by this review.
    • Missions Interlink ‘Accredited Member’. Confirmed.

(End of review)

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.

Kids Outreach International Limited, charity review

This is a charity review, a review for those with an interest in the Australian charity Kids Outreach International Limited (KO).

It is structured according to the charity’s entry on the ACNC[i]Register, and its purpose is to supply some information extra to what is there, information that may be helpful in your decision about KO.

It is up to you to decide whether any or all of the information presented here is what you need in order to make that decision, and whether you should seek any other information, either from the charity itself or from other sources.

Ministry response

  • Prior to publishing this review, I sent my observations to the charity, on 4 April 2016, and invited them to comment. They did not respond.

Organisation of this review

  • The first part of this review is organised according to the headings in the Register entry. This is how to use this section of the review:
    1. For each heading in the register entry, first read the information under that heading.
    2. Then check if that heading is included below. (Headings for which there is no comment are not included.)
  • There is then a more detailed comment on the Financial Report.
  • Lastly, there is a section Membership of accountability organisations claimed.

Sources

REGISTRATION DETAILS

Entity Subtype

  • Not a subtype suggestive of an objective of sharing the Gospel.
  • Nor is anything in the company’s objects (in the constitution).

CHARITY DETAILS

Legal Name

  • KO is a company limited by guarantee.
  • As it doesn’t have the necessary provisions in its constitution, it is not entitled to omit ‘Limited/Ltd’ when it uses its company name.

Other Name(s)

  • Step Up Against Slavery has a website that seeks donations, yet the name is not registered.
  • Love for Kids Russia is another name that’s being used; however, the business name is Love for Kids.

Charity ABN

  • No tax deduction is claimable for a donation to KO.

Charity Address for Service

  • I have no reason to believe that this doesn’t work.

Charity Street Address

  • It is different on the website: 26 Cartwright St. Charnwood ACT 2615,
  • Postal address, from the website: PO BOX 6887, Charnwood ACT 2615.

  Email

  • I have no reason to believe that this doesn’t work.

Phone

  • From the website: 02 6259 0760.

Website

ANNUAL REPORTING

  • AIS 2014
    • This is KO’s compulsory Annual Information Statement 2014 (AIS 2014).
    • It was lodged six months after year end, five days before the final date.
    • It gives basic financial information. If you think that this is all you might need
      • ‘Income/Receipts’, because ‘Other Income/Receipts’ have been omitted, don’t add up.
      • The accounts show $50K in the expenses for ‘Outreach Project’ that is not included under grants.
      • The ‘Employee expenses/payments’ $76K are, according to information elsewhere in the AIS, for two full-time employees.
  • Financial Report 2014
    • Because of its size KO doesn’t have to lodge a Financial Report.
    • However, KO is a member of Missions Interlink[ii], and one of their requirements is that members ‘have available for its members and supporters a clear and appropriate financial statement which has been approved by its auditor [Standards Statement, 4.1]. So maybe the lodgement is in response to that.
    • There is no Directors’ Declaration, and the Directors (sic) Report is unsigned, so we don’t know when the directors put their name to the Financial Report. The auditor signed on 27 March 2015, and this is the date that the directors signed the engagement letter – inappropriately included in the Report- so presumably the directors have signed another copy.
      • This means that the accounts were finished within three months of year end.
    • This is a report that is not of a particularly high quality – see Latest financial report – detail, below.

ABOUT THE CHARITY

  • Statement of Faith
    • Neither on the website nor in the constitution.
    • As a member of Missions Interlink (see below), however, they have to be able to demonstrate from [its] historical documents that its theological basis is not in conflict with the Statement of Faith of the Australian Evangelical Alliance.

Date Established 

  • No history found.

Who the Charity Benefits

  • Vision and Mission
    • None found.
  • Activities (What did KO do?)
    • From the Description of charity’s activities and outcomes in the AIS 2014:
      • 1. Facilitated teams of volunteers from Australia, New Zealand and USA to live in Russian summer camps to provide cultural exchange, life-skills education and broadening the horizons of the Russian children and their carers/camp counselors. 2. Assisted in the construction and refurbishment of family homes for orphans who might otherwise be homeless. This a joint project with local families in eastern Russia. 3. Organized, funded, and participated in a seminar on youth welfare for academics and post-graduate students from universities in the St Petersburg region. Focus was on youth engagement and the issue of sex-trafficking.
        • Not particular to 2014?
  • Outcomes (What did KO deliver?)
    • KO did not respond to the request in the AIS 2014 for a description of its outcomes.
    • Nothing systematic found.
    • Anecdotal evidence in the testimonies.
    • There is a newsletter, but you have to ask for it.
  • Impact (How were people’s lives improved?)
    • Nothing systematic found.
    • Anecdotal evidence in the testimonies?

Size of Charity

  • KO is $63K under the threshold for ‘Medium’.

Financial Year End

  • This means that the next financial report is due by 30 June 2016. Before that the financial information on the Register will be up to 18 months out-of-date.
    • You may therefore need to ask for more up-to-date information.

WHERE THE CHARITY OPERATES

Operating State(s)[ii]

  • KO doesn’t have a fundraising licence in any of these four states. No fundraising done, or do they think they are exempt?
  • KO calls for donations on its website (main menu).
  • KO also has two pleas on GiveNow, one it its name, and one for Love for Kids Russia.
    • It doesn’t have a fundraising licence in any of the other three states that have a licensing regime.
      • Apart from exemptions, whether it needs such a licence in these states depends on whether those states think that KO, by calling for donations publicly, is ‘fundraising’ in their territory.

CHARITY’S DOCUMENT (SIC)

  • There is no Annual Report/Review available on the ACNC Register.
  • Nor on the website.

RESPONSIBLE PERSONS

No. of Australian ‘responsible person’ positions[iii]

Antti Haavisto          This function was not working at the time of publication

Taru Kohonen

Kevin Mackay

Risto Rummukainen

Roger Nicoll

Kari Lehelma

Ross Kelly

John Donovan

  • Is Risto this one?
  • The website doesn’t mention the board.
  • Under ‘Position’, to comply with the constitution, there should be a President, Vice-President, a Honorary Treasurer, and Executive Director. And maybe a Secretary.

Latest financial report – detail

  • The statements are said to be general purpose financial statements, that is those that fully comply with the Australian Accounting Standards.
    • The company has not claimed to have taken advantage of the Reduced Disclosure Requirements available to all non-for-profit entities.
  • This Report is seriously deficient:
    • It does not contain a complete set of financial statements, there being no statement of changes in equity, and no statement of cash flows.
    • It is missing the statement where the directors put their name to the report (the directors’ declaration).
    • The Directors (sic) Report is missing most of the required sections, and is unsigned.
    • The Income Statement
      • is neither titled correctly nor complete.
      • Doesn’t disclosure all the expenses required to be disclosed.
      • Leaves unusual terms unexplained.
      • Provisions (employee benefits) are not shown separately.
    • The Notes to, and forming part of, the Financial Statements are missing much information in Note 1 (Statement of significant accounting policies), and at least eight of the usual other Notes.
      • One of those missing is a Note disclosing related parties. For instance, what is the relationship between KO and their Finnish ‘sister organisation’ (the President of KO lives in Finland), the two organisations at the Charity Street Address (see above), Life Unlimited Church, and Anytime Fitness, and the church, Canberra International Church, where two of the directors are part of its ‘ministry team’?
    • There is no mention of the ACNC Act.
    • The reviewer – ‘an assurance practitioner who is not the auditor of the entity’ [ASRE 2400, www.auasb.gov.au], and in this case a Fellow of CPA Australia – says that
      • nothing has come to our attention that causes us to believe that the annual financial report…does not present fairly in all material respects the financial position of the company and of its (sic) financial performance…in accordance with the Australian Accounting Standards.

(End of review of the ACNC Register information)

Membership of accountability organisations claimed

  • The Missions Interlink ‘Accredited Member’ logo is displayed here. Membership confirmed.

(End of review)

 

[i] Australian Charities and Not-for-profits Commission, Australia’s national regulator of charities.

[ii] This is how the ACNC explains ‘operating locations’ in their application guide: ‘You need to give details about where in Australia your organisation conducts (or plans to conduct) its activities.’

[iii] Because of the possibility of two (or more) directors having the same name on the register of responsible persons, it is not possible to be definitive about the number of directorships held.