Related party transactions register
In the context of a non-government school, a related party transaction includes any transaction through which a responsible person for the school acting on behalf of the school provides a financial or other tangible benefit to a related party (such as themselves or another responsible person for the school or their spouse, other relatives or close associates and other related organisations). As related party transactions involve conflicts of interest or material personal interests, a non-government school must have policies and procedures for financial management including a register of all related party transactions which is validated by an external independent auditor.
Evidence of compliance
The responsible persons for a registered non-government school must have in place and implement policies and procedures related to related party transactions:
- requiring each responsible person for the school to disclose any related party transactions made on behalf of the school’s proprietor or governing body
- maintaining a register of all related party transactions on and from 1 September 2014 and retaining such records for a period of seven (7) years before archiving or disposing. The degree of materiality of the transaction will determine the degree of detail required to be included in the register
- arranging for an external audit of the school’s register of all related party transactions on an annual basis
- retaining a record of each external audit report of the register of all related party transactions on and from 1 September 2014 and retaining such records for a period of seven (7) years before archiving
- notifying NESA if the contract or arrangement with the school’s external auditor is terminated by the school or external auditor prior to the expiry of the term of the contract or arrangement and the reason(s) for that termination.