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