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Annual Report 2007–2008 » Chapter 5: Outcome 1 » Output Group 1.3

Performance Reporting

Part two

Output Group 1.3: Incorporation, regulation and capacity building of Indigenous corporations

Departmental items:

ORIC In focus—Mark Bin Bakar

Mark Bin Bakar as Mary GMark Bin Bakar was the 2007 National NAIDOC Person of the Year and Western Australia’s Australian of the Year 2008. He is also known as Mary G—a well-known radio presenter, musician and advocate for Indigenous Australians. As ambassador for the Office of the Registrar of Indigenous Coordination (ORIC), Mary G promotes good governance and the work of ORIC through the media and direct work with Indigenous corporations.


Service delivery

Price
Estimate $6.390m
Actual $6.255m
Quality—assurance indicator: Operations consistent with Service Charter
Estimate 100% The actual result was the same as the estimate indicated in the 2007–08 FaHCSIA Portfolio Budget Statements.
The Office of the Registrar of Indigenous Corporations (ORIC) performed to a high level in accordance with the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) and ORIC’s service charter, and provided its services in a manner that was efficient, effective and relevant to the needs of its clients.
ORIC’s commitment to its clients included: treating people with courtesy and respect; respecting culture and traditions; providing accurate and relevant information; acting fairly and professionally; and providing services in a timely and accountable way. This commitment continues to be reflected in the CATSI Act, which takes into account the particular needs and circumstances of Indigenous corporations, while requiring modern standards of governance and accountability.
Actual 100%
Quality—assurance indicator: Percentage of corporations compliant with reporting requirements under the Corporations (Aboriginal and Torres Strait Islander) Act 2006
Estimate 55% (target being increased progressively) The variance is +4 per cent.
The results reflect ORIC’s follow‑up program, which has assisted more corporations to meet compliance targets.
Under the CATSI Act, for the 2007–08 reporting year, all corporations were required to submit certain documents to ORIC that were placed on the public register, including a list of members and financial reports, unless the Registrar exempted the corporation from doing so.
Actual 59%
Quality—assurance indicator: Percentage of large corporations compliant with reporting requirements under the Corporations (Aboriginal and Torres Strait Islander) Act 2006
Estimate 100% No corporation was classified as large during 2007–08. Corporation sizes will be re‑classified in July 2008 based on 2006–07 annual returns information.
Actual N/A
Quantity indicator: Number of days of corporate compliance training and information sessions
Estimate 200 The variance is +4.
Training was delivered through the nationally-accredited Certificate IV in Business (Governance) and introductory corporate governance workshops. These were delivered in key areas, including East Kimberley, Palm Island and Central Australia.
Training was delivered to individual corporations to provide information on the CATSI Act and to assist them to transition to that Act.
Other training assisted corporations to understand changes to reporting requirements and to become, and remain, compliant.
ORIC also partnered with the state of Victoria to trial the pilot Diploma of Business (Governance) and delivered introductory and accredited training through the new South Australian partnership.
Actual 204
Quantity indicator: Number of examinations or reviews conducted
Estimate 60 The actual result was the same as the estimate indicated in the 2007–08 FaHCSIA Portfolio Budget Statements.
Corporations were selected for examination in response to evidenced problems, or as part of a program of rolling examinations responding to risk analysis involving criteria such as size, purpose, time since last examination, compliance status and history of member or other complaints. Of the 60 examinations, the outcomes at June 2008 were as follows:
  • 11 (18 per cent) were operating well and required no further action
  • 36 (60 per cent) required rectification of less serious matters, which were settled via the issue of a compliance notice under section 439-20 of the Act
  • 4 (7 per cent) had serious findings and were issued with notices under section 487-10 of the CATSI Act which invited them to show cause why the corporation should not be placed under special administration. Of these four, one corporation was placed under special administration and two are pending as at 30 June 2008
  • 5 (8 per cent) were found to be non‑operational and proceedings to deregister each corporation were initiated
  • 3 (5 per cent) required action for wind‑up of the corporation (i.e. the appointment of a liquidator)
    1 (3 per cent) was pending on a decision for next action
  • 20 special administrations continued from previous years, 3 new special administrations commenced and 17 ended during 2007–08, leaving 6 special administrations in progress at 30 June 2008.
Actual 60

Examinations initiated, administrations appointed and deregistrations completed are shown in Table 2.2 below. The trend for high numbers of regulatory actions compared to the total number of corporations shows ORIC continued to be a very active regulator.

Table 2.2  Number of examinations initiated, administrations appointed and deregistrations completed 2003–04 to 2007–08
Regulatory actions 2003–04 2004–05 2005–06 2006–07 2007–08
Examinations initiated 54 61 49 50 60
New administrations appointed 7 7 14 7 3
Deregistrations completed 282 269 180 87 32
Reinstatements 0 0 12 2 0

Figure 2.4  Registered and new corporations by year 1989–90 to 2007–08

Description of Figure 2.4

Figure 2.4 Registered and new corporations by year 1989-90 to 2007-08

Note: The number of registered corporations is the total number of corporations registered less the total number deregistered.

Figure 2.5  Number of corporations by income and assets reported at 30 June 2008

Description of Figure 2.5

Figure 2.5 Number of corporations by income and assets reported at 30 June 2008

Table 2.3  Number of corporations by income and assets reported at 30 June 2008
  less than $25k assets $25–50k assets $50–100k assets $100–500k assets more than $500k assets Total
less than $100k income 33 17 13 16 20 99
$100–500k income 7 5 22 90 47 171
more than $500k income 1 0 3 51 259 314
Total 41 22 38 157 326 584

Notes: Income = total grant plus other income
Assets = total of current plus non‑current assets
Income and assets are for corporations that filed annual returns for the 2006–07 financial year, since financial annual returns for 2007–08 are not due until 31 December 2008.

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