Vic Govt Reviews NFP Regulations & Reporting Requirements

The Victorian Government has begun a review of the impact of regulation and other reporting requirements on the Not for Profit Sector.

The review will be carried out by the State Services Authority and a final report with detailed findings and recommendations is due by 30 September 2007.

The Review of NFP Regulation is being overseen by the Authority’s Commissioner for Regulatory Reform, Susan Pascoe.

Pascoe says many NFPs share a view that the weight of regulation in Victoria is becoming burdensome. The review will advise the Government on ways it can ease the administrative and compliance burden on the state’s 30,000 NFPs while continuing to achieve the goals of regulations.

The Review is seeking feedback on the nature and size of the administrative and compliance costs associated with Victorian NFP regulation and Government management systems and processes.
Of primary concern is whether the Victorian regulatory framework serves the NFP sector well.
Initial informal meetings with peak bodies and experts in the NFP sector have revealed some common areas of concern with NFP regulation, including:

• service and grant agreement processes;
• the structures for legal establishment of NFPs; and
• accounting practices and taxation arrangements.

The Review is seeking comment on:

• what Victorian Government regulation affects your organisation? Which requirements are the most onerous?
• what are the administrative and compliance costs arising from NFP regulation? For example, how many people in your organisation are employed to manage administration and compliance matters relating to regulation; how many hours are spent dealing with regulation?
• what practical improvements to Victorian regulatory arrangements for NFPs could be made without unduly reducing accountability and transparency? How could regulation be streamlined and simplified to reduce the administrative and compliance burdens?

In addition to formal regulation, there are a range of other Victorian Government systems and processes (such as data collection and reporting) with potential to create administrative and compliance costs for NFP organisations.

The sector is heavily reliant on government funding and public donations as sources of funding.

As a result, a significant source of interaction between the NFP sector and the Victorian Government relates to funding agreements and accountability processes. For example, NFP organisations with service agreements or grant agreements are affected by tendering processes and application forms. There may also be data collection and reporting obligations specified under these agreements.

What practical improvements to Victorian Government systems, requirements and
processes could be made to simplify arrangements, without reducing transparency and accountability?

The Review will involve consultation with NFP peak bodies and organisations, and experts in the field. Roundtable discussions will be held from mid-March to mid-May 2007.

Interested individuals and organisations are encouraged to make a submission to the Review. The closing date for submissions is 18 May 2007.

Download the terms of reference and submission information here.