About Me!! ED of the Support, Advocacy & Resource Center (SARC) for 18 years - PowerPoint Presentation

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About Me!!

ED of the Support, Advocacy & 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 attorneySlide2

“Risk Reduction”

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.Slide3

Identify Various Risks to Agencies:

Financial

Negative press

Law suits Natural disasterWork place violenceTurn overFire, theft, etcSlide4

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.Slide5

Why You Need a Risk

Reduction PlanSlide6

Components of a Risk Reduction Plan

Crisis Plan

Sustainability AuditNonprofit Compliance ChecklistDocument Destruction and Retention PolicySuccession PlanSlide7

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.Slide8

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.Slide9

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 ManualFirst aid kits, fire extinguishers, exit signs, and emergency evacuation routes

Safety Committee Slide10

Crisis Plan Cont.Slide11

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? Slide12

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 personSlide13

Crisis Plan Cont.Slide14

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?Slide15

Crisis Plan Cont.Slide16

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 honestBe conciseLook 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 bookWebsiteSlide17

Crisis Plan Cont. Command CenterSlide18

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? Slide19

Crisis Plan Cont. – After Crisis ReviewSlide20

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?Slide21

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.Slide22

Sustainability AuditSlide23

Sustainability Audit

Organizational Sustainability Audit/Screening

Date Conducted: _______________________________ Conducted By: _________________________________ Organizational Identity

We have a vision that is the overarching dream for which our agency aims.

We have a mission statement that tells others how the agency works towards realizing our vision.

Our values tell the world how the agency operates, its philosophy and the core principles.

We have identified our niche.

Our agency is identifiable to the public through our logo and look of our publications. The leadership of the agency is well known and respected by community partners and leaders.

Accountability

We check our compliance with all IRS 501c3 requirements at least annually.

We have a checklist for all contract, grant, and program requirements and deliverables and ensure our compliance on at least quarterly.

We can justify all expenditures and back them up with a receipt tied directly to a specific funding source.

We have an outside audit once a year.

The Board of Directors approves an annual budget.

The Executive Director provides financial reports at the Board meetings.

Financial Security

We know exactly how much money we need to sustain our work for the upcoming year.

We know what it costs to run our organization of one month.

We have operating funds on hand or available for the next 3 months.

No one funding source makes up more than 30% of our budget.

We have had more revenue than expenses in the last 7 out of 10 years.

We actively seek to identify methods of leveraging our resources

We have a financial investment strategy and policies.

Organizational Operations

We have a current strategic plan and update it on a regular basis.

As part of the strategic planning process we assess the external environment and analyze the internal strengths and weaknesses.

Our mission, vision and niche are revisited on a regular basis to assess whether they are still relevant.

We have long term goals and objectives aligned to help us reach our goals.

Operating plans are developed each year in alignment with the strategic plan.

We have the necessary staff or volunteers to accomplish our mission.

We have the staff that was outlined in funded grant applications.

We have written organizational policies and procedures that are updated annually.

We have the necessary office space and equipment to accomplish our mission.

We do an annual review of all organizational operations and strategize ways to strengthen the organization. Slide24

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). Slide25

Sustainability Audit Cont.

Areas of Concern or Need of Focus: Organizational Identity AccountabilityFinancial Security

Organizational Operations

Relationships

Board of Directors

Staff Development and Culture Slide26

Non Profit Compliance Checklist

Required Disclosures

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?

Are the Form 990, schedules and attachments available to public upon request?

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?

Is the letter from the IRS ruling that the agency has exempt status made available to the public upon request?

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 Does the agency refrain from participating in political campaigns?

Are lobbying activities restricted to an insubstantial part of its activities?

Does the agency ensure that earnings do not benefit private shareholders or individuals?

Does the agency provide commercial-type insurance as a substantial part of its activities?

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?

Does the agency operate for a primary purpose not related to its exempt purpose?

Does the agency have a purpose or activities that are illegal or violate fundamental public policy?

Required Filings

Is an annual 990 tax return filed?

Does the agency receive unrelated business income tax?

If the agency receives unrelated business income tax is the form 990-T filed?

Employment Taxes

Is the Executive Director properly trained to understand the difference between an individual being an independent contractor or an employee?

Does the agency withhold and make payments of federal income taxes, social security taxes and Medicare taxes?

Are employees who have no federal income tax withheld notified that they may be able to claim the Earned Income Credit?

Does the agency file Form 941 quarterly?

Does the agency provide W-2s to all employees before January 31?

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.)

Does the agency submit Form 1099-misc as needed?

Retirement Plan Compliance

Does the agency meet all retirement plan requirements? Slide27

Document Destruction and Retention PolicySlide28

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 Slide29

Document Destruction and Retention Policy Cont.

Corporate Records Retention Requirement

Annual Reports to Secretary of State/Attorney General PermanentArticles of Incorporation Permanent Board Meeting and Board Committee Minutes PermanentBoard Policies/Resolutions Permanent Bylaws PermanentConstruction Documents Permanent

Fixed Asset Records Permanent

IRS Application for Tax-Exempt Status (Form 1023) Permanent

Contracts with invoices (after expiration) 10 years

Correspondence (general) 4 years Slide30

Document Destruction and Retention Policy

Accounting Records Retention Requirement

Annual Audits and Financial Statements (end of year) Permanent

Depreciation Schedules 10 years IRS For 990 Tax Returns Permanent Budgets 7 yearsGeneral Ledgers PermanentAccounts Payable Ledgers and Schedules 10 yearsAccounts Receivable Ledgers and Schedules 10 years

Business Expense Records 7 years

IRS Form 1099 7 years

Journal Entries 10 years

Invoices 10 years

Sales Records (books) 10 yearsPetty Cash Vouchers 3 years Cash Receipts 5 yearsCredit Card Receipts 5 years Slide31

Document Destruction and Retention Policy

Bank Records Retention Requirement

Check Registers 7 years

Bank Deposit Slips 10 yearsBank Statement and Reconciliation 10 years Electronic Fund Transfer Documents 7 years Slide32

Document Destruction and Retention Policy

Payroll and Employment Tax Records Retention

Requir

. Payroll Registers PermanentState Unemployment Tax Records PermanentEarnings Records 7 yearsGarnishment Records 7 years Payroll Tax Returns 7 years

W-2 Statements 7 years Slide33

Document Destruction and Retention Policy

Employee Records Retention Requirement

Personnel Files 10 years after termination

Retirement and Pension Plan Documents PermanentAccident Reports and Worker’s Compensation Records 5 yearsSalary Schedules 5 yearsEmployment Resumes 3 yearsTime Cards 10 years after termination

Volunteer Advocate Files 5 years after termination

Board of Director Files 5 years after termination

Slide34

Document Destruction and Retention Policy

Personnel

Related

Documents Retention Requirement Job Descriptions 10 yearsPersonnel Policies 10 years Slide35

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 completionRejected grant proposals, correspondence, etc. 3 years after rejection Fundraising Documentation Summary Permanent

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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 Slide37

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

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Document Destruction and Retention Policy

Program Records Retention Requirement

Agency Newsletters Permanent

Program Statistics (End of Year) Permanent Program Outcomes (End of Year) PermanentReturned outcome surveys After end of year outcome reports are doneAnnual 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 PermanentStrategic/Operating/Diversity Plans Permanent Slide39

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 PermanentNCA Accreditation Application Permanent Slide40

Succession PlanSlide41

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.Slide42

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 knowledgeProgram Director – Could be vacant for a short period of time; however, needed for direct supervision, program reportsOffice Administrator – Needed to process payroll, invoice grants, accountingSlide43

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. Slide44

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 positionSlide45

Additional Strategies to Reduce Risk

Have positive relationships with staff, volunteers, community members

Develop Policies and Procedures (e.g. Personnel Policies, Direct Services Handbook)

Have appropriate and adequate insuranceEnsure that all staff and Board of Directors are well trained on Risk Reduction PlanEnsure that Executive Director, or other responsible person, receives appropriate training on areas of potential riskSafety and Health CommitteeSlide46

Questions??

JoDee Garretson,

Executive Director

Support, Advocacy & Resource Ctr509-374-5391jgarretson@frontier.com