Halo Disability Services is a large not-for-profit organisation that provides support services to younger people with disability, which enables them to integrate and work in the general community. The organisation receives substantial government funding and also regularly receives large donations from generous community members largely because of its excellent reputation in the disability sector. Sally Rodgers is a new non-executive board member. At the conclusion of the meeting Sally attended the previous evening, she overheard a conversation between the finance director of the board and the CEO. When she joined in the discussion, she learnt that the salary sacrificing arrangements implemented in the organisation are being questioned. Sally is a qualified accountant and has an understanding of employment and taxation law.

Sally ascertains that management-level employees have been offered salary sacrificing arrangements, whereby the organisation does not deduct income tax from the employees' take-home salaries. The employees are not aware that this is a problem; they have been told that they are entitled to a higher gross salary due to beneficial tax concessions available to people who work in the disability sector. Sally also learnt that the volunteers (of which there are hundreds), who work for the organisation helping with transport and group home duties, receive reimbursement for expenses; they have been told they do not have to declare this as income for tax purposes.
Sally is immediately aware that these arrangements breach tax law and, in fact, are possibly criminal. When queried, the finance director and the CEO claim that the arrangements are lawful and that Sally has misinterpreted her role on the board. The following day, Sally asks Kate Fisher, the new HR manager, for access to the employment records and employment policies for the organisation. The organisation has a clear charter for ethical conduct and compliance with all employment and taxation laws. The salary sacrificing provisions offered to the employees are documented, but do not correspond with the arrangements as implemented.
Kate and Sally are aware that hundreds of people, including the vulnerable clients of the service, would be affected if service provision was disrupted.
DISCUSSION QUESTIONS 
Assume you are Kate Fisher. From an HR perspective:
1. What should you do now?
2. Why should you do it?
3. How would you do it?
4. What are the expected outcomes of the action you choose?