Red Tape in the Community

The cost of dealing with government red tape can limit valuable work not-for-profit organisations (NFPs) undertake in the community.

To help ensure each dollar reaches those in need, the State Government is working closely with the sector to remove burdensome regulations that hinder service delivery.

The reform program is taking place at two levels - nationally and within the State's own administration.

local reform

Every year in South Australia, the State Government distributes between $800 million and $1.1 billion for NFPs to deliver a range of social, health, environmental and community services.

To gain full value from this contribution the Government is taking action to:

• Streamline different application and reporting processes
• Ensure the regulatory framework keeps pace with sector growth
• Prevent paperwork becoming a detraction from service delivery
• Maximise the sector's capacity to help people in need

National reform

Red tape reduction in the not-for-profit sector is being tackled at a national level through the COAG Business Regulation and Competition Working Group.

This follows the release of the 2010 Productivity Commission report on the Contribution of the Not-for-Profit Sector which identified the need for wide-ranging reforms to remove unnecessary burdens and costs faced by the sector and to improve its accountability.

As a first step, two initial projects are being rolled out as a result of the Commonwealth and State Government efforts:

• A Standard Chart of Accounts to be implemented in SA from 1 July 2011
• Standardised grant agreements across State Government for grants below $100,000

STANDARD CHART OF ACCOUNTS IMPLEMENTATION

Use of the national SCOA will be mandatory for South Australian State Government departments and agencies for all new funding programs with Not-for-Profit Sector (NFP) organisations, effective 1 July 2011. 

Implementation of the national SCOA will not be mandatory for NFP organisations.  Organisations can continue to use their existing chart of accounts. However, by aligning their existing charts, NFP organisations stand to benefit more fully from the reduction in administrative burden the national SCOA offers.

To assist South Australian Government departments and NFP organisations with the adoption of the national SCOA, the following support is being provided:

• 16 workshops conducted in Adelaide during May-June 2011, tailored for:
  • Staff or volunteers of NFP organisations who receive government funding and are required to prepare acquittals for government grants (or their representative peak bodies); and
  • Personnel employed by state government departments who are directly responsible for preparing and reviewing acquittal templates.
  • For further workshop details, visit Not For Profit Accounting Specialists - www.nfpas.com.au
• Web-based Seminars ('Webinars') for personnel in regional areas;
• an Implementation Manual which will act as a guide for NFP organisations and funding departments and agencies; and
• a SCOA Help Desk (provided by Matrix on Board), to operate from 1 July 2011 to 30 June 2012. The Help Desk can be contacted via email: scoa@mob.com.au or telephone: 1800 628 749.