The Australian Charities and Not-for-profits Commission (ACNC) has formalised an agreement with the Australian Federation of Islamic Councils (also known as Muslims Australia) to appoint an independent auditor to examine the charity’s governance and record keeping practices.
AFIC voluntarily entered into an enforceable undertaking with the ACNC. ACNC Assistant commissioner David Locke explained that an enforceable undertaking specifies a series of actions that a charity agrees to take, in order to comply with its obligations under the ACNC Act and Regulation.
“The enforceable undertaking is a formal mechanism the ACNC can use to ensure a charity takes certain steps to satisfy their obligations as a registered charity,” Locke said.
“It is enforceable through the Court.
“Where appropriate the ACNC works with charities to address concerns and to ensure charities understand and comply with their obligations. However, we will act swiftly and firmly where vulnerable people or significant charity assets are at risk, where there is evidence of serious mismanagement or misappropriation, or if there is a serious or deliberate breach of the ACNC Act.”
Locke said the ACNC has a range of formal powers it can use, including warnings, directions, removing responsible persons, enforceable undertakings and revocation.
The newly elected AFIC President, Keysar Trad, and his committee confirmed AFIC’s commitment to working with the ACNC to address these concerns.
Trad said that the enforceable undertaking would ‘ensure that the organisation would continue to meet its obligations as a registered charity’.
“We at AFIC aim for the highest level of transparency, accountability and integrity in our dealings. We welcome the independent audit and the opportunity to work with the ACNC,” said Trad.
“AFIC has already taken some steps to address the ACNC’s concerns.
“Specifically AFIC is in the process of separating itself from the schools which it previously held responsibility for managing.”