This audit assessed whether the Office of the Registrar of Indigenous Corporations (ORIC) supports good governance in Indigenous corporations consistent with the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI).

To form a conclusion on the audit objective, the ANAO adopted the following high-level audit criteria:

• Does ORIC maintain registers in accordance with relevant requirements?
• Does ORIC effectively monitor and enforce compliance with the CATSI Act?
• Does ORIC provide effective information, advice and education?

Conclusion

ORIC supports good governance in Indigenous corporations by maintaining public registers, monitoring and enforcing compliance, and providing information, advice and education, consistent with the CATSI Act.

In accordance with the CATSI Act, ORIC maintains registers on its website that provide information to stakeholders on the status and operation of Indigenous corporations and officers who are disqualified from managing an Indigenous corporation. The ANAO found: minor data quality issues with the Register of Indigenous Corporations; and procedural issues with the registration of new corporations and the Register of Disqualified Officers. ORIC recently instituted a quality assurance framework that is intended to address data quality issues with its corporations register database. ORIC currently exchanges data with the Australian Charities and Not-for-profit Commission. There is scope for ORIC to explore data exchange arrangements with other corporate regulators.

ORIC’s ongoing focus on Indigenous corporations’ compliance with annual reporting requirements has led to a significant improvement in reporting response rates for Indigenous corporations over the past decade. It has also undertaken successful civil and criminal proceedings against officers of Indigenous corporations. ORIC’s other regulatory interventions include conducting examinations and special administrations. While internal data suggest these interventions are relatively successful, ORIC could employ a more structured approach to risk profiling corporations so as to better target its examinations. ORIC publishes data on its regulatory activities in an annual yearbook, but in recent years it has not committed to, or reported against, regulatory performance targets.

ORIC produces a range of useful guidance materials and templates, provides well-received training courses and has established other free services to support good governance in Indigenous corporations. While ORIC’s provision of information and advice to stakeholders meets internal timeliness benchmarks, it could improve its performance measures and commit to external performance targets. ORIC has introduced a quality assurance program and has some internal processes to ensure the consistency and accuracy of its information and advice. It no longer seeks structured feedback from stakeholders on its support services to promote continuous improvement.