Developing A Compliance Management System For Charity Care Nonprofit Organization Essay.

1.Consider the scenario above in relation to the organisation in which you work. If you do not have an appropriate workplace upon which to base this assessment task, you can use the Charity-Care case study provided.
2.Meet with relevant personnel in your organisation to receive information on:

a.the overall budget for the compliance management system
b.organisational requirements and criteria for the compliance management system.

Note: If you are basing your assessment on the Charity-Care case study, you will need to meet with your assessor to receive this information.

3.Develop a research plan which outlines:
a.research tasks to be undertaken
b.proposed research methods; including survey tools to gather qualitative and quantitative information on, for example, organisational compliance performance figures, compliance culture, etc.
4.Develop survey tools to capture organisational data.
5.Collect organisational data on compliance performance.

Note: If you are basing your assessment on the Charity-Care case study, you will need to meet with your assessor to receive this information.

6.Research and identify the compliance requirements that are applicable to the organisation, including:
a.internal compliance requirements as described by organisational policy and procedure documents
b.external compliance requirements as described by state/territory regulatory bodies and statutory requirements, and the Australian standards for compliance, records management and risk management
c.industry-specific compliance requirements.
7.For each identified compliance requirement, research the:
a.areas of the organisation most affected by the compliance requirements
b.organisational compliance data, including, for example, financial fraud, accident figures, training numbers, customer complaints, etc.
c.risks involved for non-compliance with requirements
d.penalties for breaching compliance requirements
e.ways of ensuring ongoing compliance with the requirements.

8.Review the established criteria for the compliance management system, and use these to:

a.identify available options for a compliance management system for all of the identified compliance requirements
b.compare the identified compliance management options against each other and the established criteria
c.make a recommendation on system components.

9.Using the information you have gathered from steps 6–8 above, develop a summary report in line with the headings required in the scenario.

10.Write a reflection on the process you undertook to research and prepare the report. Include description of:

a.the type of research undertaken
b.the development of the research plan
c.the development of survey tools to collect required data to select compliance
d.analysis of qualitative and quantitative data.

Compliance requirements

In the business environment, organizations are required by the state or government to comply with particular requirements in their operations in their struggle to play a critical role in consumer protection. To achieve this goal each organization has to develop an integrated compliance management system that will help in ensuring that all the compliance requirements have been met (Anderson, Wipfel & Westerfield, 2015). Compliance management system refers to an integrated developed by an organization and comprises of various written documents functions as well as processes controls and tools. The system helps an organization to comply with legal requirements and minimize any possible damage or harm to consumers that are likely to result due to a violation of laws (Rosid, Evans & Tran-Nam, 2018). This study is focused on the development of a report on compliance requirements for Charity Care Nonprofit organization based in Brisbane Australia in a move to develop an effective compliance management system. The core activities or services of the organization are to offer community care as well as computer care services. The study will also develop an implementation planning for the developed compliance management system as well as generate a report aimed at monitoring and reviewing the implementation plan.

Charity Care Compliance Management Systems

Assessment Task 1

Compliance management is a process that ensures that organization human resources and personnel can follow a particular given set of rules and regulations (Nunan et al., 2018). In any case, the compliance or regulatory requirements are very tedious but necessary without which an organization cannot be authorized to conduct its activities. For Charity Care organization to offer its community services and computer care services, it is a requirement that the organization must meet these standards or compliance requirements.

Internal compliance requirement refers to the demands made by a state government for particular business operations or corporate entities. However, they are formed and enforced internally by the organization or company top management (Jain, Dani, Nutheti & Pattar, 2018). The primary purpose is to ensure that a corporation or organization is being managed and run with integrity as well as ensure that it is free from corruption and corrupting business elements.

The first internal compliance requirement for the charity organization is to develop an organizational structure lead by a board of directors. The board of directors is responsible for the majority of decision making in the organization. The board of directors will appoint the organization CEO to be the link between the boards of directors with the company management team.

Charity Care Internal Compliance Requirements

Secondly, the organization should establish its sources of fiancés or funding. This is to ensure that the organization does not engage in illegal activities to acquire their operating capital. In this case, Charity care organization, since it’s a non-profit organization offering community care and computer care services is required by the state to establish its sources of finances or funding for its community service activities and computer care services.

The organization is also required to establish policy regulations regarding employee protection within the organization. These policies include employee health and safety policies, policies protecting them from sexual harassment, financial handling and expenses policies as well as risk management policies.

  These are the requirements imposed and enforced by a state or federal authorities in Australia. The organization is required to adhere to these regulations and mostly they are aimed at protecting the consumers. The organization is directly involved with consumers who are the community members served by a charity organization, as well as the employees who work in the organization (Bradford, Hohl, Jackson & MacQueen, 2015). The primary external compliance standards include; occupational health and safety standards, privacy standards, corporation act as well as adherence to the fair work act. It is the responsibility of the management to establish a compliance culture in the organization.

These are the areas which require attention and through which the compliance systems would be able to focus on in solving everyday problems identified through the organization audit report. The major areas affected include organizational accounting practices, organization human resource practices, customer service management practices as well as ethical business practices.  The audit report has been able to establish various issues and malpractices by the organization that requires attention through the establishment of organization compliance systems.

From the above-identified areas affected, the organization is exposed to various risks which may affect the overall performance of the organization activities. The most critical risks include the financial risks resulting from accounting malpractices and lack of proper record management. This may lead to increased operational costs, increased expenses for personal gain and not for activities of the organization, organization financial crisis, conflicts with employees over finances as well as penalties from the government (Sadiq & Governatori, 2015). The organization also faces risks of employee retention due to reduced employee management and lack of a functional human resource may result in increased employee turnover. Lack of quality customer services may render the activities of the organization ineffective since its primary focus is to offers services to the community.

Charity Care External Compliance requirements

The organization is at risk of increasing penalties resulting from business malpractices due to lack of proper compliance systems. The significant deaths the organization is likely to suffer are tax penalties and penalties associated with lack of compliance to statutory compliance requirements including license withdrawals.

There is, therefore, a need for the organization to develop a risk minimization strategy that will help the organization reduce its exposure to risk. To achieve this organization is required to create a plan that will help in risk identification through research, risk evaluation, and analysis as well as developing the necessary strategies to mitigate the risk.

Different compliance systems have been developed to serve the interests of various businesses and organizations. Some of the systems have been customized to meet specific needs or compliance requirements while others provide integrative user functions. Some of the available compliance systems that the organization can adopt include; Corporate Compliance and Integrum Compliance systems. Other methods include the Audit Board, V Comply, Rizepoint, as well as Policy Tech among others. This report will focus on the comparison of Corporater and the Integrum compliance systems and provide a recommendation on the most appropriate regarding cost, effectiveness, efficiency, feasibility and also its ability to match to the organization culture.

This is an integrated cloud-based solution compliance system that provides an oversight and visibility role of organization compliance activities. The system has been developed to offer control services, compliance reporting, audit, workflow management as well as supporting the various organization processes (Hashmi, Governatori, & Wynn, 2016). The primary features of the compliance system include; performance management, organization risk management, and project portfolio management. The solution offers its users with an opportunity to automate the management processes, approvals, reporting as well as data collection processes. The system also provides a publishing framework that connects the users to the existing business systems, and therefore it’s compatible with various existing systems.

It is also a cloud-based risk and compliance management solutions for different sizes or organizations from small to the middle to large organizations and corporations.  The solution provides the organization management for establishing healthy, safety, risk and compliance as well as environment standards within the organizations. The primary features of the compliance system include; incident management, audit management, contractor management, reporting and analysis, investigation management as well as risk and compliance management (Kagan, Thornton & Cunningham, 2017). The system provides an open platform that allows its users to integrate various organization compliance activities with the existing applications as well as software’s

Compliance Effects

In a comparison of these two compliance systems, Integrum provides the user with more risk management functions. It can be used for various risk management functions in the organization as compared to the Corporater Compliance system which offers a limited number of risk management functions (Ly, Maggi, Montali, Rinderle-Ma & van der Aalst, 2015). It is, therefore, more efficient regarding helping the organization meet its compliance goals.  The cost of acquiring the system or solution is relatively higher than that of obtaining a Corporater compliance system, but its benefits outweigh the cost of acquisitions. The system is also able to be integrated into various organization management activities, and therefore it is more compatible with the organization culture. It will, therefore, be critical in enhancing the organization risk management through audit management to reduce the risks associated with accounting practices of the charitable organization (Elgammal, Turetken, van den Heuvel & Papazoglou, 2016). Through investigation management, the system will be able to help the organization in risk identification, evaluation, and analysis and save the organization from increased auditing costs. Action management solutions will help the organization track the different employee actions and be able to guide them to avoid increased cases of employee and staff malpractices which would help in risk mitigation strategies since most of the irregularities identified have resulted as a result of employee negligence and ignorance and especially in recording accounts.

Based on the above report of the critical risk areas of Charity Care organization and the associated risks penalties that the organization is likely to suffer, it is essential that the organization should adopt a compliance system that will enable it to improve its performance through increased risk management. The adoption and implementation of Integrum compliance system will help the organization improve its adherence to various compliance requirements.  

Management Information Systems Requirements for implementation of Integrum System

The application of Integrum compliance system of software to improve business over a more extended period, the organization is required to establish various management information systems to support the operational activities of the compliance system (Hopkin, 2018).  The particular MIS requirement for the implementation of the system includes; an Integrum server, Integrum App Server as well as Integrum web, communication system as well as browser. The Integrum server will be responsible for enhancing connectivity and communication with the control panels which will be installed on the Charity Care organization (Patankar & Taylor, 2017). The development of Integrum App server will ensure that data for management and risk control is transmitted effectively to the Integrum server. It will be the central managing element of the compliance system with a storage module for the charity care management data and will be able to reflect the current state of the organization and its operational activities.

The Integrum web will allow the different users of the compliance system to inspect the state of the organization and be able to manage the user activities from a point and anywhere (Sadiq, Governatori & Namiri, 2017). For efficiency in communication, the compliance system will require a communication system that will be able to communicate every action of the management as well activities of the employees that may impact the organization in one way or the other. However, the development of a browser will be critical in helping the users the compliance system to efficiently manage the system from any location through various devices, in this case, the office desktops. The implementation of the compliance system is influenced by the structure of the organization as well as the nature of the complexity of its activities and increased diversity of organization processes (Lou, Lin, Ding, Fu, Zhang & Xie, 2017). The organization offers both community care services as well as computer care services. The success of these operations is dependent on the effectiveness of the compliance system to reduce the increased possibilities or manage risks.

The Integrum Compliance system has been able to develop various elements or features that enable it to be the ideal compliance system for the organization.

Compliance management; this component allows the users of the stem to manage the legal registers, operation or business permits as well as licenses. It, therefore, ensures that the business complies with external business regulations or compliance requirements (Kalaiprasath, Elankavi & Udayakumar, 2017). Employees and HR management tools; the system will provide the organization with an ability to manage its employee's records such as performance reviews, claims management, training, and qualification as well as injury management among employees.

Asset Management/Maintenance; Integrum system contains equipment and plan registers which have been calibrated with schedules for maintenance. These registers provide the organization with an ability to track assets and develop corrective measures or actions (Steffens, Lichter & Moscher, 2018). Business intelligence Reporting system; this component will provide the organization and users with a wide range of reporting templates that will enable them to create and generate real-time reports as well as enhance the presentations of reports through graphs, tables, and dashboards.

Meeting Management; this component of Integrum system provides the organization with an ability to track the agendas of organization meetings, the attendees as well as the ability to raise actions from the conference. Contractor and supplies Management; this is very critical for the Charity care organization which has faced concerns over the management of its computer care activities (Nicolas & May 2017). The component has a portal that provides an opportunity to the company contractors and suppliers to upload their documents and insurances and also manage their assigned actions of responsibilities.

Other critical components of the Integrum system that will help in risk management include; controlled document management, inspection and audit system, risk assessment and control as well as incident management functions. These features allow the organization to effectively manage a range of activities for risk management and control.

Effective integration of risk management compliance system and organizational strategies requires the development of essential personal skills for the charity organization (Koekemoer & Von Solms, 2018). The personnel requirements for risk compliance and management for the charity care organization include; leadership skills, communication skills, training skills, conflict management skills as well as evaluation skills (Eva, Prajogo & Cooper, 2017). These requirements will help in developing the staffing needs of the organization. An effective manager for the compliance system should possess leadership skills to lead the other staff into compliance objectives. He or she is also required to develop communication skills to enable him, or she communicates the purposes of risk and compliance management to the organization as well as training skills to train the other staff on compliance requirements (Burrows, Patel, Simpao, & McMahon, 2017). Risk management possesses a great challenge which results in conflicts within the organization; it is, therefore, appropriate for the personnel to have conflict management skills to help in solving any conflict within the organization.

Suitable personnel from Charity Care study

• Overall Accounts Manager – John Tomlin
• Global customer service manager – Judith Moore
• Computer Care Manager – Mary Taylor
• Community Care Manager – Peggy White
• Charity Care CEO- Joan Murphy

The overall accounts manager will be responsible for compliance management to all accounting activities in the organization and risk mitigation. He will provide regulations measures and ensure transparency in accounting practices in the organization. The overall customer service manager will be responsible for ensuring external compliance with consumer protection by ensuring that all the activities carried out by the organization meet the interest of their consumers.

The computer care manager will be responsible for ensuring risk management compliance for all the operational activities for the organization division offering computer care services while the community care manager will oversee the risk compliance management for overall functions of the community care services provided (Goldberg, Asok & Lee, 2017). However, there is a need to have a global manager who will guide the risk compliance activities for the organization and act as a link between all the departments and their businesses. In this case, the Charity care CEO will be responsible for these functions.

Successful implementation of the proposed compliance system will require training to the users. The basic requirements for the training are information technology and computer skills as well as extensive knowledge on the various compliance activities such as auditing, legal skills, accounting skills as well as management skills (Hu et al., 2018). The training provides the users with different options for training in which one can be trained on data protection, code of conducts, anti-bribery, and corruption, Information security, fraud awareness as well as business ethics among other compliance management skills.

The first process of implementation is the adoption of the Integrum compliance system. Once the system has been adopted by the organization, the focus will then be on developing a compliance culture within the organization and calls for a collective effort of every individual through training and adherence to the compliance requirements. All the activities of the charity care organization will be recorded and the data stored in the system (Jajja, Asif, Montabon, & Chatha, 2018). Once the information is recorded and verified by the appointed managers for various activities. The system will be able to detect the multiple risk incidences and link to the cause of the risk. It will, therefore, identify the breaches to the organization activities by comparing them the existing regulations and policies for appropriate action.

All the activities of the organization will then be analyzed and reported under the reporting and compliance management feature of the system to determine whether the processes and procedures have met the compliance reporting requirement. The internal and external liaison will be conducted by integrating external stakeholders and experts in various compliance aspects with the internal staff and management (Kanse, Parkes, Hodkiewicz, Hu, & Griffin, 2018). The primary performance indicators to be evaluated will include individual compliance and non-compliance with the best achieved scoring a percentage higher than 80 while the non-compliance measured by any score less than 20 percent.  The system will also be able to analyze the number of complaints from the customer management tool, the overall number of breaches as well as the ratio of accounting errors.

Effective implementation of the compliance system will require both capital resources as well as human resources who will be responsible for the development, implementation, continuous reviewing as well as maintaining the proposed compliance management system (Bacorro et al., 2018). The proposed budget for the system implementation includes; $ 20000 initial cost for acquisition for the compliance system, $ 5000 for training the personnel required in the management of the system, $ 10000 as the cost of hiring the necessary staff as well as an annual $ 5000 for maintaining Integrum compliance system. Therefore the total cost for implementation and maintenance of the compliance system is approximately $ 40000. This cost if useful as compared to the increased charges the organization has incurred over the last one year for auditing due to lack of risk management compliance in various organization activities as well as the likely costs from external compliance authorities in Australia.

Executive Summary

The development and implementation of Integrum compliance system for Charity care organization will play a critical role in risk management and mitigation for the long-term benefits of the organization. The system is designed in a manner that will ensure that the primary activities of the organization which is community care and computer care will be managed appropriately and ensures that they comply with both internal and external regulatory requirements. The monitoring results of the system present the findings that the system will be able to enhance efficiency in incident management, audit operations management, the reporting and analysis processes, contract management for computer care services as well as the investigation management. These compliance activities will help in cleaning up the issues raised by the organization audit report regarding accounts management, customer management, inventory management and record keeping, employee management among other internal and external compliance issues.

Step 1: acquisition of the compliance system and customizing it to the organizational compliance requirements

Step 2: training various or regulatory staff on the personnel requirements for implementing the compliance system and how to manage the system

Step 3: evaluation the existing organization compliance processes and procedures and integrate them with the new system requirements

Step 4: identifying the various affected areas and developing a method of compliance and evaluation

Step 5: from the organization staffing personnel recognize the different staff that will be responsible for managing the various aspects of the compliance system.

Step 6: developing a monitoring and evaluation program for assessing the effectiveness and efficiency of the system in meeting the organization Compliance goals and objectives.

The monitoring of the system implementation and its effectiveness will be conducted through three main approaches. The performance of the compliance system will be measured regarding the established performance standards for the organization employees (Venkata, Maheshwari, Abdul & Kandasamy, 2017). The employees will be required to ensure a high degree of compliance with the established code of ethics and business practices to minimize individual risks. The performance will also be measured by the use of Graphic rating scales which will rate the most efficient operations in risk management, departments as well as employees (Peros, Elayouty, Hooker & Currie, 2018). Lastly, the organization management objectives will also be used as a measurement tool for the effectiveness of compliance the in meeting the desired compliance outcomes.

The Integrum Compliance System was found to increased organization efficiency in meeting both internal and external compliance requirements by 80% efficiency level compared to the existing system which was 35 percent effective. Employee performance regarding adherence to compliance requirements improved from 40% to 85% while the audit cost reduced significantly compared to the previous charges. The organization risk or incident investigation and analysis also enhanced helping the charity care organization to identify potential risks in advance and develop appropriate strategies to solve them. Lastly, the system was able to improve the reporting and analysis efficiency of the organization and the overall performance of the organization regarding compliance with various regulatory requirements.

Conclusion

The implementation of this system from the above analysis will be critical in the development of organizational effectiveness in compliance. The primary success areas include; risk and identity management, audit compliance, contractor, suppliers and inventory management, reporting and analysis of compliance results as well as increased integration capacity with the existing compliance frameworks and systems. However, there is a need to develop a strategy on how the various features of the compliance system can be linked together to provide an automatic comparison of the efficiency of the multiple elements to help the organization in the determination of which features are critical to their success.

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