linc 07 administrators conference successful board partnerships nora v. murrant, fca, fcbv
TRANSCRIPT
LINC 07Administrators Conference
Successful Board Partnerships
Nora V. Murrant, FCA, FCBV
Presentation
Governance Primer
Role of the Senior Staff Officer
Suggestions for Optimizing Your Board - Management Relationship
Governance
The processes and structures used to direct
and manage an organization’s operations
and activities.
Responsibilities
Governance Board of Directors
Operating Staff
Activities Volunteers
Board of Directors
Volunteers
Staff
All Volunteer All Staff
OperatingActivities
Governance
Board Member Involvement The Board has stewardship
responsibility – to take care of the organization’s resources
Board members may also be involved in operating activities
Need to be conscious of which “hat” they are wearing
Director’s Standard of Care Imposed by statutes, common
law and contracts
Subjective in nature
Degree of skill required - what may reasonably be expected from a person with the same knowledge and experience
Basic Principles Reasonable, prudent and
judicious
Act honestly, in good faith
Act not in self interest but in the best interests of the organization
Board Duties
Ensure the organization conforms with its “legal purpose”
Approve strategy and strategic direction
Monitor and manage risk
Board Duties Hire, fire and evaluate all
directly-reporting staff
Approve budgets
Provide accounting to stakeholders
Manage assets
Board members may havepersonal liability for:
Unpaid wages and withholdings Unpaid GST Environmental Damage Health and Safety Fundraising Terrorism Other
Senior Staff Officer’s
Role and Responsibilities
Common Structure
Board of Directors
Senior Staff Officer
STAFF STAFF STAFF STAFF
Written job description for Senior Staff Officer is vital
List specific duties
Define the specific authority delegated by the board to this position Matters beyond this authority
must be referred to the board for approval
Written strategic plan is key
Documents the board -approved future direction for the organization
Basis for the annual operating plan and budget
Sets out the board’s performance expectations
Senior Staff Officer must keep the board informed of progress and problems on a timely basis
Ideally, the SSO will then be permitted to manage without interference!
Optimizing Your
Board - Management Relationship
1. Ensure that all board members understand your organization
New director orientation
Operations updates at each meeting
Special topic presentations
2. Ensure that board members understand what is expected
Board terms of reference
Board job descriptions
Regular board performance self-assessment
Code of Conduct
3. Establish a regular strategic planning process
4. Develop a detailed tactical plan to support the strategic plan and budget
5. Review your progress with reference to the strategy
6. Establish a standardized board reporting schedule to provide directors with assurance that the organization is in compliance with all external requirements
7. Review risk management issues on a regular basis at board meetings
8. Work with the board Chair to develop a well thought-out meeting agenda and ensure directors receive materials in advance.
9. Ensure minutes are accurate and all pertinent discussion and decisions are recorded.
10. Assist in the board selection / development process
Identify competencies that will strengthen the board
Maintain board candidate “inventory”
Assess other volunteers as prospective directors
Financial Management
Primer
Ingrid M. Enhagen, CA
Financial Statement Basics Prepared by management for
stakeholders
Prepared based on certain standards
Profit vs not-for-profit Basic financial statement
components• Expense vs capital
Financial Statement Basics
Likely required to be audited
Supplemental information may be required
Financial Management Basics
Roles Bookkeeping vs accounting
Internal controls Systems Sub-ledgers Reconciliations
Budgets