Record Keeping

Revised June 2018

Purpose

To outline Valley FM’s (Valley FM) approach to good record keeping practice that are a critical component of FM’s reporting and governance obligations as a cultural charity registrant of the Australian Charities and Not-for-profit Commission (ACNC).

Principles

A record is a piece of information that shows our organisation has operated or acted in a particular way, or spent or received money or other assets (made a transaction).

Organisations (and charities) have different obligations for record-keeping which depends on a charity’s size, complexity, activities, how it spends or receives money or other assets and whether it has extra obligations from state/territory-based regulators, such as consumer affairs agencies for incorporated associations. Therefore, Valley FM is required to keep records relating to its financial and operational management.

Keeping good records helps Valley FM:

• Show that it is managed as a not-for-profit and working towards its charitable purpose (essential for Valley FM to remain eligible to be registered as a charity)
• Understand that it is in good financial health
• Assess whether the right decisions are being made (operational and financial)
• Communicate about Valley FM’s activities and finances
• Prepare reports to meet its reporting obligations to the ACNC, other government regulators, donors/funders and members, and
• Otherwise show that Valley FM meets its obligations under tax and other relevant laws.

Keeping records also helps Valley FM meet required governance standards e.g. ACMA for broadcasting licence, ACNC for cultural charity status, CBF for broadcasting grants etc. It is also helpful in indicating its accountability to Valley FM members and that it takes all reasonable steps to ensure that responsible persons manage its financial affairs.

Policy

Valley FM must:

• Keep written financial and operational records in our chosen format that are easily located (including in electronic form)
• Develop our own record-keeping system and processes
• Keep the records, in English, for seven years, and
• Provide records, when requested, by Valley FM’s licencers and regulators.

Valley FM’s financial records must:

• Correctly record and explain how Valley FM spends or receives its money (transactions) and its financial position and performance, and
• Always allow for true and fair financial statements to be prepared and audited / reviewed, as required.

Financial records to be retained include:

• General account journal and ledgers
• Cash receipts and payments
• Banking records i.e. bank statements, deposit books, cheque butts and bank reconciliations
• Creditors’ and debtors’ records i.e. invoices and paid bills
• Details of any contracts i.e. service agreements, property leases agreements
• Details of any grant payments and acquittals
• Tax invoices and other relevant tax records
• Records of expenses
• Records of payments relating to members
• Assets register, and
• Emails, letters and other communication about finance – for example, an email about repaying unspent grant funds.

Valley FM records and retains basic operational records including:

• Governing documents i.e. Valley FM Constitution, risk register
• Operating policies and procedures
• Meeting minutes
• Reports e.g. performance, monitoring and evaluation of grants, projects or services
• Strategic and program plans
• Monitoring and evaluation reports
• Contracts and agreements i.e. funding and other agreements
• The Members register
• Newsletters
• Community Service Announcements (CSA) and other promotional releases e.g. pamphlets, and
• Any other operational record as determined by the Valley FM Board including electronic, written or multimedia records.

Valley FM’s records are kept in the Office in both hard copy and electronic form. Hard copy documents are filed in one filing cabinet using an alphabetical file system. Each file is maintained with the most recent documents filed first and continuing to the oldest document at the end.

The alphabetical system includes organisations that are filed under their acronyms e.g., ACMA (Australian Communications Media Authority), ACNC (Australian Charities and Not-for-profits Commission) etc. A list of all acronyms is located on the office noticeboard for quick reference.

Specifically, Valley FM’s official hard copy documents and electronic filing records are managed by:

Compliance
The Board is responsible for the development, implementation, operation and review of this policy. Compliance with the policy is also the responsibility of each Board Member and the Station Manager.

Legislative Framework
Associations Incorporation Act (ACT 1991)

Reference
Australian Charities and Not-for-profit Commission, Governance for Good and Record-keeping (2018)