Transcript How to be THAT agency!!!”

About Me!!
 ED of the Support, Advocacy
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& Resource Center (SARC)
for 18 years
SARC is in Tri Cities,
Benton/Franklin Counties
Volunteer Advocate before
being hired
BA in Business
Administration
MBA
Certified Senior Professional
in Human Resources (SPHR)
Not an attorney
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Identify the various risks agencies face.
Components of a comprehensive Risk Reduction Plan.
How to create a Crisis Plan.
How to create and complete a Sustainability Audit.
What a Nonprofit Compliance Checklist is.
How to develop a Document Destruction and Retention
Policy.
Elements of a good Succession Plan.
Various other strategies to reduce risk to your agency.
Identify Various Risks to
Agencies:
 Financial
 Negative press
 Law suits
 Natural disaster
 Work place violence
 Turn over
 Fire, theft, etc
Why You Need a Risk
Reduction Plan
 Reduce potential of litigation.
 Reduce liability.
 Increase agency stability.
 Create a stronger and healthier agency – fiscally and
personnel.
 Assists with a positive culture.
 Allows for less chaos which in turn assists direct
services.
 Ensures continuity of services.
Why You Need a Risk
Reduction Plan
Components of a Risk
Reduction Plan
Crisis Plan
Sustainability Audit
Nonprofit Compliance Checklist
Document Destruction and
Retention Policy
Succession Plan
Crisis Plan
 The purpose of this plan
is to provide guidance
when a crisis or
potential crisis strikes.
 It is the responsibility of
all staff to be familiar
with the plan.
 Need specific staff to
review on an annual
meeting and provide
training to staff.
Crisis Plan - Continued
 Determination of Crisis: In situations such as fire,
robbery, natural disaster, etc there is not a need to
determine whether a crisis has been presented. In these
situations the Crisis Response Plan is to be immediately
activated.
 In other circumstances, such as threat of a law suit;
allegations of inappropriate and/or criminal conduct of a
staff member, Board member, or volunteer advocate;
negative media coverage of agency; etc. it must be
determined if a crisis exists, and which portions of the
Crisis Response Plan are relevant and are to be activated.
Crisis Plan Cont.
Identify Existing Resources:
 Policies and guidance regarding immediate response to
crisis such as fire, robbery and theft, bomb threat,
workplace violence, etc.
 Policies pertaining to personnel management and client
interactions.
 Staff contact sheets.
 Employee Safety Manual
 First aid kits, fire extinguishers, exit signs, and emergency
evacuation routes
 Safety Committee
Crisis Plan Cont.
Crisis Plan Cont.
Point Person:
 Determine Point Person (PP)
 PP provides leadership to staff during crisis, be
the spokesperson for media and all other entities
requesting information, and to provide any
needed notifications to partner agencies, clients,
etc.
 What authority does the PP have? Can the PP
deviate from the Crisis Response Plan if
necessary.
 Who all does the PP have to communicate with
and when?
Crisis Plan Cont.
Point Person Deputy:
 Determine Point Person Deputy (PPD)
 PPD will provide direct assistance to the Point Person and step in as
leader if the Point Person is no longer able to fulfill her/his duties.
 What else do you want the PPD to be responsible for? Emotional
health of staff and PP? Monitoring behaviors of PP in case there is a
problem?
Have a list that delineates the Point Person and the Point Person
Deputy in order of priority/preference/availability. As the Point
Person is identified the next in order is the identified Point Person
Deputy:
 Executive Director
 Program Director
 Office Administrator
 Available staff person
Crisis Plan Cont.
Crisis Plan Cont.
Situation Assessment:
 What is the situation? What will happen next?
 Who on staff needs to be involved?
 What immediate steps need to be taken?
 Who will begin the staff and board communications?
 What is known and who already knows it?
 Is there potential public interest? Does the issue have traction?
(Does it have potential to become anything more than a quick story
on the evening news?)
 Who will be affected?
 What are people feeling?
 What information is needed and who beyond organizational staff
needs to get it? When will it be available?
 What should your agency do about it? Proactive vs reactive?
Contact or refer to another agency?
 What can and can’t be said?
 Is legal or public relations counsel needed?
Crisis Plan Cont.
Crisis Plan Cont.
Communication Strategy: Who implements strategy? Who can speak
on behalf of the agency?
Communication messages must:
 Establish a clear position or explanation of circumstance.
 Be honest
 Be concise
 Look forward to the solution
 Do not assign blame
Decide which methods of communication can be used, how and under
what circumstances.
 Email
 Press Release
 Face book
 Website
Crisis Plan Cont. Command
Center
Crisis Plan Cont.
Command Station:
 Where is Command Station if Agency can not be
occupied? Back up Command Station? How will staff
be notified?
 If it is possible to enter agency who is responsible for
picking up items such as: client database flash drives,
client log book, current fiscal year client files, etc?
Crisis Plan Cont. – After Crisis
Review
Crisis Plan Cont.
After Crisis Review:
 The Post Crisis Review Meeting signals the transition to normal operations and that the crisis
has ended. The review is an opportunity to see what was learned for the crisis and provide
update to risk management and crisis response planning.
The review may answer the following questions:
 If any, what were the early warning signs of the crisis?
 Could we have recognized it earlier?
 What were our weaknesses and vulnerable points?
 How effective were our communications?
 Did we have the right people as the Point Person and Point Person Deputy?
 How well did our leaders function?
 What could we have done differently?
 How can we better prepare for a similar situation in the future?
Sustainability Audit
Takes an inventory of all of the policies, procedures
and practices of an organization and compares these
to the best practices in their industry.
An audit is a gap analysis and a maturity analysis of the
sustainability practices of an organization.
It is meant to document ‘what you are doing’ and ‘to
what extent’ across a wide range of sustainability
categories.
Sustainability Audit
Sustainability Audit
Organizational Sustainability Audit/Screening
Date Conducted: _______________________________
Conducted By: _________________________________
Organizational Identity
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We have a vision that is the overarching dream for which our agency aims.
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We have a mission statement that tells others how the agency works towards realizing our vision.
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Our values tell the world how the agency operates, its philosophy and the core principles.
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We have identified our niche.
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Our agency is identifiable to the public through our logo and look of our publications.
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The leadership of the agency is well known and respected by community partners and leaders.
Accountability
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We check our compliance with all IRS 501c3 requirements at least annually.
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We have a checklist for all contract, grant, and program requirements and deliverables and ensure our compliance on at least quarterly.
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We can justify all expenditures and back them up with a receipt tied directly to a specific funding source.
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We have an outside audit once a year.
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The Board of Directors approves an annual budget.
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The Executive Director provides financial reports at the Board meetings.
Financial Security
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We know exactly how much money we need to sustain our work for the upcoming year.
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We know what it costs to run our organization of one month.
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We have operating funds on hand or available for the next 3 months.
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No one funding source makes up more than 30% of our budget.
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We have had more revenue than expenses in the last 7 out of 10 years.
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We actively seek to identify methods of leveraging our resources
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We have a financial investment strategy and policies.
Organizational Operations
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We have a current strategic plan and update it on a regular basis.
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As part of the strategic planning process we assess the external environment and analyze the internal strengths and weaknesses.
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Our mission, vision and niche are revisited on a regular basis to assess whether they are still relevant.
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We have long term goals and objectives aligned to help us reach our goals.
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Operating plans are developed each year in alignment with the strategic plan.
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We have the necessary staff or volunteers to accomplish our mission.
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We have the staff that was outlined in funded grant applications.
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We have written organizational policies and procedures that are updated annually.
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We have the necessary office space and equipment to accomplish our mission.
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We do an annual review of all organizational operations and strategize ways to strengthen the organization.
Sustainability Audit Cont.
Relationships
 We have the partners necessary to reach our mission and vision.
 We have an outreach plan to engage our target populations.
 We ensure the voice of underrepresented populations in all levels of our organizations planning, development,
and evaluation.
 Our organizational governance is comprised of the populations we serve.
 We do an annual survey of the perceptions of the populations and communities we serve, our partners, and
funders and make necessary adjustments to improve our capacity, outreach, and visibility.
Board of Directors
 A needs assessment is conducted annually.
 The Board conducts a self-evaluation each year.
 Board recruitment is an on-going process and is tasked to a sub-committee of the Board.
 All new board members are provided an orientation to the agency.
 Board members are nurtured and cultivated with the goal of creating strong team relationships.
Staff Development and Culture
 Needs assessment, evaluation and review, training, team building
 Management regularly communicates with staff to assess staff needs.
 Staff is provided with regular feedback regarding their performance.
 Staff receives the necessary training to be effective in their positions.
 Intentional team building efforts are built into the agency’s strategic/operating plan(s).
Sustainability Audit Cont.
Areas of Concern or Need of Focus:
 Organizational Identity
 Accountability
 Financial Security
 Organizational Operations
 Relationships
 Board of Directors
 Staff Development and Culture
Non Profit Compliance Checklist
Required Disclosures
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Do the Office Administrator and Executive Director understand that the Form 990, schedules, and attachments must be made available to the public
upon request and on the same day as requested?
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Are the Form 990, schedules and attachments available to public upon request?
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Do the Office Administrator and Executive Director understand that the letter from the IRS ruling that the agency has exempt status must be made
available to the public upon request and on the same day as requested?
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Is the letter from the IRS ruling that the agency has exempt status made available to the public upon request?
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Is a disclosure statement provided to all contributors who donate more than $75 with the donor receiving a good and/or service?
Potentially Jeopardizing Activities
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Does the agency refrain from participating in political campaigns?
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Are lobbying activities restricted to an insubstantial part of its activities?
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Does the agency ensure that earnings do not benefit private shareholders or individuals?
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Does the agency provide commercial-type insurance as a substantial part of its activities?
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Does the agency operate for the benefit of private interests such as the founder, the founder’s family, shareholders or persons controlled by such
interests?
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Does the agency operate for a primary purpose not related to its exempt purpose?
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Does the agency have a purpose or activities that are illegal or violate fundamental public policy?
Required Filings
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Is an annual 990 tax return filed?
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Does the agency receive unrelated business income tax?
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If the agency receives unrelated business income tax is the form 990-T filed?
Employment Taxes
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Is the Executive Director properly trained to understand the difference between an individual being an independent contractor or an employee?
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Does the agency withhold and make payments of federal income taxes, social security taxes and Medicare taxes?
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Are employees who have no federal income tax withheld notified that they may be able to claim the Earned Income Credit?
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Does the agency file Form 941 quarterly?
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Does the agency provide W-2s to all employees before January 31?
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Does the agency provide Form W-3 to the Social Security Administration by the last day of February? (If filed electronically the form may be submitted
by March 31.)
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Does the agency submit Form 1099-misc as needed?
Retirement Plan Compliance
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Does the agency meet all retirement plan requirements?
Document Destruction and
Retention Policy
Document Destruction and
Retention Policy
Purpose: The purpose of this policy is to eliminate accidental or innocent destruction of records, ensure that agency manages data
in an efficient and effective manner, maintains historical records related to its financial and administrative operations, and
purges documents as part of its normal management process. By establishing a specific timeline for document purging, this
shall also ensure compliance with the Sarbanes-Oxley Act, which prohibits the alterations, falsification or destruction of
documents that are part of any official proceeding.
“Record” and “Document”: Refers to any item listed in the table below, in either hard copy, or electronic form. Electronic files also
include those in audio/visual or emailed forms.
Labeling and Storage: All files, both hard copy and electronic, shall be labeled by topic and year (if applicable). Electronic copies
shall be saved in appropriate folders on appropriate computer. Hard copies shall be stored in file cabinets, or archived in the
storage unit in Pasco. If documents of similar type and with the same retention and destruction requirements are stored
together, they shall also be labeled with a “destroy after” date so that they do not have to be reviewed additional times.
Review and Purging: Review and purging of files may take place in an ongoing manner, but must occur at least every two years in
odd numbered years, and must follow the minimum retention requirements stated below. Such review and purging must also
occur prior to archival storage of any files.
Document Drafts: Once the final copy of a document has been completed, the drafts may be recycled or deleted, unless they are
documents of legal value. For documents determined to be of legal value, drafts containing comments shall be saved for a
minimum of two years, and drafts without comment may be destroyed once the final version is complete.
Compliance: Failure on the part of employees to follow this policy can result in possible civil and criminal sanctions against the
SARC and its employees and possible disciplinary action against responsible individuals. The Executive Director will
periodically review these procedures with legal counsel or the
Document Destruction and
Retention Policy Cont.
Corporate Records
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Retention Requirement
Annual Reports to Secretary of State/Attorney General
Articles of Incorporation
Board Meeting and Board Committee Minutes
Board Policies/Resolutions
Bylaws
Construction Documents
Fixed Asset Records
IRS Application for Tax-Exempt Status (Form 1023)
Contracts with invoices (after expiration)
Correspondence (general)
Permanent
Permanent
Permanent
Permanent
Permanent
Permanent
Permanent
Permanent
10 years
4 years
Document Destruction and
Retention Policy
Accounting Records
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Annual Audits and Financial Statements (end of year)
Depreciation Schedules
IRS For 990 Tax Returns
Budgets
General Ledgers
Accounts Payable Ledgers and Schedules
Accounts Receivable Ledgers and Schedules
Business Expense Records
IRS Form 1099
Journal Entries
Invoices
Sales Records (books)
Petty Cash Vouchers
Cash Receipts
Credit Card Receipts
Retention Requirement
Permanent
10 years
Permanent
7 years
Permanent
10 years
10 years
7 years
7 years
10 years
10 years
10 years
3 years
5 years
5 years
Document Destruction and
Retention Policy
Bank Records
Retention Requirement
 Check Registers
 Bank Deposit Slips
 Bank Statement and Reconciliation
 Electronic Fund Transfer Documents
7 years
10 years
10 years
7 years
Document Destruction and
Retention Policy
Payroll and Employment Tax Records Retention Requir.
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Payroll Registers
State Unemployment Tax Records
Earnings Records
Garnishment Records
Payroll Tax Returns
W-2 Statements
Permanent
Permanent
7 years
7 years
7 years
7 years
Document Destruction and
Retention Policy
Employee Records
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Retention Requirement
Personnel Files
10 years after termination
Retirement and Pension Plan Documents
Permanent
Accident Reports and Worker’s Compensation Records 5 years
Salary Schedules
5 years
Employment Resumes
3 years
Time Cards
10 years after termination
Volunteer Advocate Files
5 years after termination
Board of Director Files
5 years after termination
Document Destruction and
Retention Policy
Personnel Related Documents Retention Requirement
 Job Descriptions
 Personnel Policies
10 years
10 years
Document Destruction and
Retention Policy
Donor and Grant Records
Retention Requirement
 Donation records of endowment funds and of significant
restricted funds
Permanent
 Donor Records and Acknowledgement Letters
10 years
 Grant Applications and Contracts
7 years after completion
 Rejected grant proposals, correspondence, etc.
3 years
after rejection
 Fundraising Documentation Summary
Permanent
Document Destruction and
Retention Policy
Legal, Insurance, and Safety Records
Retention Requir.
 Appraisals
Permanent
 Copyright Registration
Permanent
 Environment Studies
Permanent
 Insurance Policies
Permanent
 Real Estate Documents
Permanent
 Stock and Bond Records
Permanent
 Trademark Registrations
Permanent
 Leases
10 years after expiration
 OSHA Documents
5 years
 General Contracts
10 years after termination
 Safety Meeting Minutes
5 years
Document Destruction and
Retention Policy
Client Related Records
Retention Requirement
 Counseling Files
10 years
 Client (Advocate) Files
10 years
 Support Group Folder
10 years
 Subpoenas
10 years
 SHIP Participation Documentation
4 years
 Counseling Referral Forms
4 years
Document Destruction and
Retention Policy
Program Records
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Retention Requirement
Agency Newsletters
Permanent
Program Statistics (End of Year)
Permanent
Program Outcomes (End of Year)
Permanent
Returned outcome surveys
After end of year outcome reports are done
Annual Reports
Permanent
Volunteer Advocate Newsletters
4 years
Third Party Call Records
4 years
Volunteer Staffing Schedules
4 years
Education Presentation Binders
4 years
Information and Awareness Binders
4 years
Staff Meeting Minutes
Permanent
Strategic/Operating/Diversity Plans
Permanent
Document Destruction and
Retention Policy
Accreditation Records
Retention Requirement
 OCVA Accreditation Final Reports
Permanent
 OCVA Accreditation Back Up Documentation
Current
accreditation only
 National Children’s Alliance Final Reports
Permanent
 NCA Accreditation Application
Permanent
Succession Plan
Succession Plan
Purpose:
 Ensure that your agency continues to operate effectively when
individuals occupying critical positions depart.
 Not a technique to plan individual career advancement
opportunities or a reward for high performers.
 The plan is strategic in both investment of resources devoted
to it and in the kinds of talent it focuses on.
 Will be reviewed and updated on an annual basis to reflect a
current analysis of critical positions and the ability of current
staff members to fill or assist with gaps if employment of a
staff member in a critical position occurs.
Succession Plan Cont.
Critical Positions with Position Analysis:
 Determine which positions are absolutely critical to run
the agency. Based on such factors as job responsibility
skill base, and ease to backfill position.
 ED – Specific training required for financials, personnel
management, education requirement, agency knowledge
 Program Director – Could be vacant for a short period of
time; however, needed for direct supervision, program
reports
 Office Administrator – Needed to process payroll, invoice
grants, accounting
Succession Plan Cont.
Action Steps:
 For each position – determine what training can be
done to prepare current staff to help fill gaps in skills
in case of a position opening.
 E.g. For next fiscal year the Program Director will be
provided with additional training on leadership.
Assuming that she continues to excel and is ready, a
focus on beginning to teach the financial management
piece may be incorporated into the next succession
plan.
Succession Plan Cont.
 To prepare for an expected absence that is longer than 30
days, and expecting that the Executive Director will return
to regular full time employment:
 To prepare for an unexpected absence that is longer than
30 days, yet expecting that the Executive Director will
return to regular full time employment:
 To prepare for termination of the Executive Director’s
employment:
 Do the above for each critical position
Additional Strategies to
Reduce Risk
 Have positive relationships with staff, volunteers,
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community members
Develop Policies and Procedures (e.g. Personnel Policies,
Direct Services Handbook)
Have appropriate and adequate insurance
Ensure that all staff and Board of Directors are well
trained on Risk Reduction Plan
Ensure that Executive Director, or other responsible
person, receives appropriate training on areas of potential
risk
Safety and Health Committee
Questions??
JoDee Garretson,
Executive Director
Support, Advocacy & Resource Ctr
509-374-5391
[email protected]