LINC 07 Administrators Conference Successful Board Partnerships Nora V. Murrant, FCA, FCBV

1. LINC 07Administrators ConferenceSuccessful Board PartnershipsNora V. Murrant, FCA, FCBV

2. Presentation • Governance Primer • Role of the Senior Staff Officer • Suggestions for Optimizing Your Board - Management Relationship

3. Governance The processes and structures used to direct and manage an organization’s operations and activities.

4. Responsibilities GovernanceBoard of Directors OperatingStaff ActivitiesVolunteers

5. Governance Board of Directors Operating Activities Staff Volunteers All Staff All Volunteer

6. 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

7. 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

8. Basic Principles • Reasonable, prudent and judicious • Act honestly, in good faith • Act not in self interest but in the best interests of the organization

9. Board Duties • Ensure the organization conforms with its “legal purpose” • Approve strategy and strategic direction • Monitor and manage risk

10. Board Duties • Hire, fire and evaluate all directly-reporting staff • Approve budgets • Provide accounting to stakeholders • Manage assets

11. Board members may havepersonal liability for: • Unpaid wages and withholdings • Unpaid GST • Environmental Damage • Health and Safety • Fundraising • Terrorism • Other

12. Senior Staff Officer’s Role and Responsibilities

13. Common Structure Board of Directors Senior Staff Officer STAFF STAFF STAFF STAFF

14. 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

15. 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

16. 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!

17. Optimizing Your Board - Management Relationship

18. Ensure that all board members understand your organization • New director orientation • Operations updates at each meeting • Special topic presentations

19. Ensure that board members understand what is expected • Board terms of reference • Board job descriptions • Regular board performance self-assessment • Code of Conduct

20. Establish a regular strategic planning process • Develop a detailed tactical plan to support the strategic plan and budget • Review your progress with reference to the strategy

21. Establish a standardized board reporting schedule to provide directors with assurance that the organization is in compliance with all external requirements • Review risk management issues on a regular basis at board meetings

22. Work with the board Chair to develop a well thought-out meeting agenda and ensure directors receive materials in advance. • Ensure minutes are accurate and all pertinent discussion and decisions are recorded.

23. Assist in the board selection / development process • Identify competencies that will strengthen the board • Maintain board candidate “inventory” • Assess other volunteers as prospective directors

24. Financial Management PrimerIngrid M. Enhagen, CA

25. 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

26. Financial Statement Basics • Likely required to be audited • Supplemental information may be required

27. Financial Management Basics • Roles • Bookkeeping vs accounting • Internal controls • Systems • Sub-ledgers • Reconciliations • Budgets