Introduction

Australian Marist Solidarity (AMS) is the international development arm of the Marist Brothers Star of the Sea

Province and the Marist Association of St Marcellin Champagnat. It has a particular focus on empowering young

people to transform their lives and community. Promoting the dignity of the human person, as safeguarded by

internationally recognised human rights conventions, is a core value of AMS.

AMS is aware that related party transactions can give rise to potential conflicts of interest, meaning there is a risk

that a related party transaction may not be in the best interests of the organisation. AMS is committed to ensuring

all related party transactions are entered into in a transparent manner, are approved appropriately and that any

potential conflicts of interest are considered.

Purpose

This purpose of this policy is to ensure that related party transactions are managed appropriately, transparently

and in the best interests of AMS.

Scope

This policy applies to AMS company members, Board members, committee members, staff, contractors, external

consultants, agencies, volunteers and project partners of or who work with AMS.

Definitions

Related Party Transaction: A related party transaction is a transfer of resources, services, or obligations between

related parties. It does not have to include financial payment.

Related Parties: A related party is defined in AASB 124 Related Party Disclosures, as follows:

• a person that is connected to the charity, such as a Responsible Person or a close member of their family,

that has control or joint control of the charity

• an organisation that is connected to the charity and has control or significant influence over the charity,

such as a parent entity of the charity

• an organisation that the charity has control or significant influence over, such as a subsidiary entity

• any organisation and the charity that are members of the same group (for example, fellow subsidiaries)

• a member of the charity’s key management personnel (people with authority and responsibility for

planning, directing and controlling the activities of the charity directly or indirectly) or a close member of

their family

• an associate (an entity over which the charity has significant influence) or joint venturer (an entity that

shares control of an arrangement with the charity and has rights to the net assets of the arrangement).

Material: Information in a financial report is considered ‘material’ if omitting, misstating or obscuring it could

reasonably be expected to influence someone using that information to make a decision (ACNC)

Policy

“Related party transactions can give rise to a perceived, potential, or actual conflict of interest. Conflicts of interest

(whether actual or perceived) may arise when a related party has an interest that may conflict with the best

interests of the charity.” (ACNC).

AMS will maintain a register of related party transactions to ensure accurate annual reporting. The register will

include information on the nature of the relationship, details of the transaction, amount and date of the

transaction, as well as who approved the transaction.

Board members and committee members are required to declare any conflicts of interest at the beginning of each

Board and committee meeting. Staff members are made aware of the Conflict of Interest Policy and are required to

declare any potential conflicts of interest that may arise. AMS maintains a register of all conflicts of interest. When

decisions are made, anyone with a conflict (whether actual or perceived) should not be involved in the decision-making process. Refer also to the AMS Conflict of Interest Policy on the AMS website.

Reporting on Related Party Transactions

AMS is required to report on material related party transactions in the ACNC Annual Information Statement and

financial reports.

AASB 124 and AASB 1060 requires disclosure of the following details of related party transactions in the financial

report:

• the nature of the relationships with related parties

• the amount of the related party transactions

• the amount of outstanding balances, including commitments, and:

o their terms and conditions, including whether they are secured, and the nature of the

consideration to be provided in settlement; and

o details of any guarantees given or received

• provisions for doubtful debts related to the amount of outstanding balances

• the expense recognised during the period in respect of bad or doubtful debts due from related parties

Implementation

The implementation of this policy will be guided by the AMS Operations Manual.

Monitoring and Review of Policy

AMS will undertake a review of this policy in accordance with the AMS Policy Review Process, or sooner if

required. This review will be undertaken by the Chief Executive Officer, with oversight by the Finance, Audit and

Risk Committee and authorisation by the AMS Board of Directors.

Related Resources

• AMS Conflict of Interest Policy

• AMS Transparency Policy

• AMS Financial Wrongdoing Policy

• AMS Operations Manual

• https://www.acnc.gov.au/for-charities/manage-your-charity/obligations-acnc/reporting-annuallyacnc/related-party-transactions