Document ID: chunk:federal_register_of_legislation:F2024C00838:reg:49
Version: federal_register_of_legislation:F2024C00838
Segment Type: reg
Provision Reference: reg 49
Character Range: 74262–76238

49  Requirement for governance system
 (1) An approved provider that holds one or more refundable deposit balances or accommodation bond balances must implement and maintain a governance system that ensures that those balances:
 (a) are used only for permitted uses; and
 (b) are refunded to care recipients in accordance with section 52P‑1 of the Act.
Note: See Division 52N of the Act and Part 6 of these principles in relation to permitted uses of refundable deposit balances and accommodation bond balances.
 (2) Without limiting the matters that an approved provider's governance system may deal with, the system must provide for the following:
 (a) allocating responsibilities to the key personnel of the approved provider in relation to the management of refundable deposit balances or accommodation bond balances held by the provider;
 (b) monitoring and controlling any delegation or outsourcing of the allocated responsibilities;
 (c) reporting mechanisms for the allocated responsibilities that ensure that the key personnel who are responsible for the executive decisions of the approved provider can effectively monitor and control the use of refundable deposit balances and accommodation bond balances;
 (d) ensuring that the key personnel who are allocated responsibilities, and persons to whom responsibilities are delegated or outsourced, are aware of the requirements of the Act and these principles in relation to refundable deposits and accommodation bonds;
 (e) detecting, recording and responding to any failure to comply with the requirements referred to in paragraph (d).
 (3) An approved provider must:
 (a) keep written documentation describing the provider's governance system; and
 (b) ensure that the written documentation of the provider's governance system is up‑to‑date; and
 (c) modify or replace its governance system if the provider becomes aware that the system no longer complies with the requirements set out in subsections (1) and (2).