Senator Ludwig: The Minister for Employment and Workplace Relations has provided the following answer to the honourable senator's question: The table below sets out, in respect of the investigation report into the Health Services Union Victoria No. 1 Branch, the contraventions that the AGS has been instructed to initiate proceedings in the Federal Court of Australia in respect of, and the contraventions for which no action is to be taken pursuant to section 336(2)(b) of the Fair Work (Registered Organisations) Act 2009. Adverse Finding Person Contravention General Manager's Conclusion Decision as to Action to be Taken 1 Ms Fegan Mr Jackson Mr Hudson Section 285(1) of the RAO Schedule - a reasonable person holding the office if Branch President, Branch Secretary or Branch Assistant Secretary would not have provided his or her PIN and password to the office manager, thus enabling her to execute electronic transactions without authorisation. Contravention Initiate civil penalty proceedings 2 Ms Fegan Mr Jackson Mr Hudson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch President, Branch Secretary, or Branch Assistant Secretary would have ensured that each cheque that he or she signed contained details of the payee and the amount to be paid, and that those details corresponded with a substantiated transaction. A reasonable person holding the office of Branch President, Branch Secretary or Branch Assistant Secretary would have signed cheques only after having viewed substantiating documentation (such as a purchase order and/or invoice). Contravention Initiate civil penalty proceedings 3 Mr Jackson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary would not have allowed cheques to be drawn on the Branch fund in contravention of the HSU rules. Contravention Initiate civil penalty proceedings 4 Mr Jackson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary would not have instructed Ms Wills to not present monthly paid invoices to meetings of the Branch Committee of Management. A reasonable person in such circumstances would have ensured that all documentation relevant to the expenditure by the Branch in the preceding month was presented to meetings of the Branch Committee of Management. Contravention Initiate civil penalty proceedings 5 Branch Section 252(1) of the RAO Schedule - failure to keep, or cause to be kept such records as correctly record and explain the authorisation of expenditure on Branch credit cards and failing to keep, or cause to be kept, the financial records of the Branch in such a manner as will enable the accounts of the Branch to be conveniently and properly audited. Contravention Initiate proceedings seeking declaratory relief 6 Mr Jackson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary would have ensured that the Branch had appropriate internal controls in place to ensure that all receipts or other supporting documentation necessary to substantiate expenditure on Branch credit cards were obtained and retained. Contravention Initiate civil penalty proceedings 7 Mr Hudson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Assistant Secretary would have ensured that he was the only person to use a Branch credit card which had been issued in his name to make purchases and would have ensured that all receipts or other supporting documentation necessary to substantiate expenditure on the card was obtained and provided to the Branch. Contravention Initiate civil penalty proceedings 8 Mr Jackson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary would not have instructed the office manager to make the three $5,000 payments in the absence of documented authorisation from the Branch Committee of Management and would have provided Ms Wills with documentary evidence of any authorisation of payment of additional salary. Contravention Initiate civil penalty proceedings 9 Mr Jackson Section 286(1) of the RAO Schedule - Mr Jackson was aware these payments were not authorised by the Branch Committee of Management and that Ms Wills was able to make such payments without reference to or authorisation from the Branch Committee of Management. Rather than discharging his duties in good faith in the best interests of the organisation and for a proper purpose, Mr Jackson acted in a manner designed to secure a private advantage outside the purpose of benefitting the Branch. Contravention not made out. Based on the evidence before the Delegate as disclosed in the Report. In particular, the disputed accounts of this event (and the generally poor quality of the minutes of the Branch Committee of Management) render it impossible, in the absence of any further information, to safely conclude an absence of good faith on the part of Mr Jackson. 10 Mr Jackson Section 287(1) of the RAO Schedule- Mr Jackson was aware these payments were not authorised by the Branch Committee of Management and that Ms Wills was able to make such payments without reference to or authorisation from the Branch Committee of Management. Contravention not made out. Based on the evidence before the Delegate as disclosed in the Report. In particular, the disputed accounts of this event (and the generally poor quality of the minutes of the Branch Committee of Management) render it impossible, in the absence of any further information, to conclude that Mr Jackson improperly used his position to gain an advantage for himself. 11 Mr Jackson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary would not have instructed the office manager to make the payment of $5,000 to Ms Hicks in the absence of documented authorisation from the Branch Committee of Management. Contravention Initiate civil penalty proceedings 12 Mr Jackson, Mr Hudson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary or Branch Assistant Secretary would not have allowed the Branch to pay invoices for the cost of travel to attend the wedding of Mr Morgan where those payments were not authorised by the Branch Committee of Management. Where the Branch had already paid for such travel expenses, a reasonable person holding the office of Branch Secretary or Branch Assistant Secretary would have taken steps to ensure that the cost of such travel was reimbursed to the Branch. Contravention Initiate civil penalty proceedings 13 Mr Jackson, Mr Hudson Section 286(1) of the RAO Schedule - by allowing the Branch to pay the invoices, knowing that the payment of those expenses had not been approved by the Branch Committee of Management, and by not subsequently reimbursing the Branch, Mr Jackson and Mr Hudson have failed to act in good faith in the best interests of the Branch and for a proper purpose. Contravention Initiate civil penalty proceedings 14 Mr Jackson, Mr Hudson Section 287(1) of the RAO Schedule - by allowing the branch to pay invoices for the cost of travel expenses, knowing that payment of those expenses had not been approved by the Branch Committee of Management and by not subsequently reimbursing the Branch, Mr Jackson and Mr Hudson have improperly used their positions to gain an advantage for themselves and have caused detriment to the Branch. Contravention Initiate civil penalty proceedings 15 Branch Section 252(1) of the RAO Schedule - failure to keep or cause to be kept such records as correctly record and explain the annual leave taken or cashed out by [the Branch] during the period 1 July 2007 to 13 November 2008, and failure to keep, or cause to be kept, leave records of the Branch in such a manner as will enable a general purpose financial report to be prepared, and failure to keep, or cause to be kept, leave records in such a manner as will enable the accounts of the Branch to be conveniently and properly audited. Contravention Initiate proceedings seeking declaratory relief 16 Mr Jackson Section 285(1) of the RAO Schedule - a reasonable person holding the office of Branch Secretary would have signed, and sought authorisation of, leave forms on each occasion on which he sought to take annual leave or have annual leave paid out to him. Contravention Initiate civil penalty proceedings 17 Branch Section 265(5) of the RAO Schedule - failure to provide, or cause to be provided, to members the full report of the Branch for the year ended 30 June 2008. Contravention Initiate civil penalty proceedings 18 Branch Section 266 of the RAO Schedule - failure to present, or cause to be presented, the full report of the Branch for the year ended 30 June 2008 to a meeting of either the Branch Committee of Management or a general meeting or members. Contravention Initiate civil penalty proceedings 19 Branch Section 268 of the RAO Schedule - failure to lodge, or cause to be lodged, the full report of the Branch for the year ended 30 June 2008 and certificate under section 268 within the timeframe set out in the legislative scheme. Contravention Initiate civil penalty proceedings 20 Branch Section 253(1) of the RAO Schedule - lodging with the AIR a financial report for the year ended 30 June 2007 that did not contain related party disclosures regarding transactions between the Branch and Urban Giftware in accordance with AASB124. Contravention Initiate civil penalty proceedings 21 Branch Section 253(1) of the RAO Schedule - lodging with the AIR a financial report for the year ended 30 June 2008 that was not prepared in accordance with the Australian Accounting Standards in a number of respects. Contravention Initiate civil penalty proceedings 22 Mr Jackson Rule 56(l) of the HSU Rules - failing to prepare, or cause to be prepared, a general purpose financial report for the year ended 30 June 2008 in accordance with the Australian Accounting Standards. Contravention Initiate proceedings seeking declaratory relief 23 Branch Section 237(1) of the RAO Schedule - failure to lodge a statement of loans, grants and donations for the year ended 30 June 2007 within 90 days of the end of the financial year. Contravention Initiate civil penalty proceedings 24 Mr Dick Section 257(8) of the RAO Schedule - audit report for the year ended 30 June 2007 not in accordance with Australian Auditing Standards in a number of respects. Contravention No Action 25 Mr Dick Section 257(8) of the RAO Schedule - audit report for the year ended 30 June 2008 not in accordance with Australian Auditing Standards in a number of respects. Contravention No Action