Our Members. Guzman & Gray. Certified Public Accountants

Transcription

1 Check Your Nonprofit Pulse

2 Our Members Guzman & Gray Certified Public Accountants

3 Who We Are The Nonprofit Collaborative of Southern California is a network of professionals and consultants serving nonprofit organizations. Our shared passion, ethics and commitment to value allow us to serve the nonprofit community and cross-refer one another to clients with confidence while continuing to grow and learn from one another. For the nonprofit community, we provide a diverse array of services and products critical to organizational stability and success.

4 Workshops People, Liability and the Law Human Resources, Insurance and Legal Considerations Thursday, March 19, 2015, 8 a.m. to 10 a.m. Speakers: Ron Smedley, Lillian Romero-Gomez and Casey Hale Advancing the Mission Evaluation, Fundraising, Grants and Marketing Thursday, April 16, 2015, 8 a.m. to 10 a.m. Speakers: Leah Ersoylu, Joan McBride, Joan Hansen and Barbara Kimler Finances and Technology Accounting, Finance and Information Technology Thursday, May 21, 2015, 8 a.m. to 10 a.m. Speakers: Patrick Guzman, Janet Fohrman

5 Presenters: Workshop 1 People, Liability and the Law Ron Smedley Casey Hale Lillian Romero-Gomez

6 Workshop 1 People, Liability and the Law Presenter: Ron Smedley

7 Synergistic Resource Associates What is NEEDED in Human Resources Management? A Human Resource / Development Boutique Consulting Firm

8 What is Human Resource Management? Introductio on The intentional and strategic actions of employing, utilizing, developing, and retaining employees to become transformational in all they think and do within an organization to successfully impact, directly or indirectly, the objectives and metrics of an individual, department, and/or the organization.

9 What is Strategic Human Resources? Introductio on Focusing on everything you say and do all transactions with a focus on being transformational to those involved so that it gives the organization a direct or indirect advantage. This brings about a positive change in the quality of the other person or process involved. If it does not occur; chaos, strife, miscommunication, and distrust are the outcomes, typically leading to unjust accusations, poor relationships and potential liability.

10 Your HR Process - Strategic? Your Transactional Transformational?

11 Vision, Mission & Values Introduction Customer Needs Key Strategies - Objectives - Allocation of Resources Determining the Organization Climate Fulfilling Human Capital Needs Acquiring Human Capital On-boarding Human Capital Developing Human Capital The SHR Pr ocess Retaining Human Capital Metrics/Goals - Assessment Products, Programs, Services The Strategic HR Model

12 WHAT are the REAL HR Issues Today? Let s examine 3 BIG buckets 1 - Relationship Chaos Gallup Poll the famous Q12 Survey Why would you want to work for your employer? It s all about having a great culture! Non-Profit Challenges Legal Survey in California Why are you suing your employer in the labor areas? (psst It s all about NOT having a great work culture!) Real Issues - trust, lost productivity, quality, no motivation, and THEN (only then) poor HR practices (legal).

13 REAL ISSUES So one REAL question is: HOW are employees perceived & valued by senior management (& pastors)?...as a commodity? as a warm body? we give them a job in today s economy or as the most valuable asset within the organization? Non-Profit Challenges The greatest asset is your people. Yet the greatest problem can also be your people. Note - the key here is NOT an Employee HB. The key is Culture.

14 REAL ISSUES 2 - Classification Challenges Exempt Nonexempt Receiving Overtime Breaks Meal Periods Employee Volunteer Independent d Contractor t Non-Profit Challenges 3 Policy & Procedure Inconsistencies Policy is what you do, not what is in writing Good policy is written simple, easy-to-read, 9 th grade Your procedures should be separate from polices and don t forget your position descriptions & forms!

15 So What s NEXT? The mission of SRA is creating relational-focused cultures. We work to bring about a strategic advantage by aligning people and organizations for today and beyond. Assess yourself you know you best really! Let s talk what do you see as the challenges and what can we do to assist your organization. Let s do an HR Audit What is really there? Let s determine - What s next & what oughta be there! Let s just DO IT - With solid systems and culture Synergistic Resource Associates

16 In SUMMARY Human Resources is all about 1 Who we are & relationships 2 - What we do & systems This is the foundational strategy for success within any Organization, regardless of size, service, product or status. Synergistic Resource Associates Without placing the relationship first, any and all processes and legally correct systems will fail if people are involved. Just give them time. Great cultures equate to people wanting to be motivated and who desire excellence.

17 Synergistic Resource Associates What is NEEDED in Human Resources Management? Dropbox link:

18 Workshop 1 People, Liability and the Law Presenter: Casey Hale

19 Agenda Top 9 areas What you need to know Specific items

20 1. Corporate Documents Articles of Incorporation Corporate Documents Policies Bylaws

21 1. Corporate Documents Articles of Incorporation Current? Correct?

22 1. Corporate Documents Bylaws Current? Correct? Complete? New law regarding non voting ex officio directors?

23 1. Corporate Documents Policies Current? Correct? Complete?

24 1. Corporate Documents Policies Conflict of Interest Document Retention Whistleblower Accountable Expense Reimbursement Driver Policy Criminal Background Check Child Abuse Prevention Communicable Disease Policy Gift Acceptance Policies Data Protection/Breach

25 2. Governance Know your role Fiduciary Duties Right Skill Sets Effective Board of Directors

26 3. Adherence to Corporate Formalities Adhere to bylaws Regular Board Meetings Member Meetings if Voting Members Maintain Good Minutes Follow Policies

27 4. Child hldabuse Prevention Policy and Protocols Screening and Selection Response Plan Training and Education Compliance with Reporting Laws Limits and Regulations on Child Adult Contact Facilities Layout

28 5. Insurance Coverage Disputes Review Policies and Coverage General Commercial Liability Indemnification Clauses Directors and Officers Liability Special Events Worker s Compensation Employment Practices Liability Insurance (EPLI)

29 6. Personal Injury Amor Ministries/Central Christian Church $5.9M Hotchkiss School $42M verdict 1. Insurance 2. Releases/Assumption of the Risk 3. Indemnification Provisions 4. Preparedness

30 7. Employment Issues Employee vs. Independent Contractor Wage and hour claims Wrongful termination

31 8. Cyber Liability Hot topic Policies and insurance

32 9. Asset Protection ti Insurance Structural Firewall Isolate the asset Isolate the risk

33 Conclusion Questions?

34 Next Steps For a complimentary consultation contact Casey Hale at or casey.hale@brownandstreza.com Please turn in your evaluation forms. Thank you for attending!

35 Workshop 1 People, Liability and the Law Presenter: Lillian Romero - Gomez

36 Insurance-Nonprofits Insurance should be part of your Risk Management Plan. The board of directors should be informed of your risk management program. Insurance should not be your Risk Management Plan.

37 What to look for What is the Best Rating of an insurance company? Admitted vs Non Admitted Insurance Carriers? (D 1 Notice) Claims Made vs Occurrence Policy Form (Liability) Claims Made Liability coverage responds only to claims during the policy period (or extended reporting period) Claims Made Retro date? Occurrence Policy Liability coverage responds during the policy period even if claim is brought months or years after the policy expired.

38 Insurance-Nonprofits Standard Forms General Liability Crime / Fidelity Bond Occurrence Form some Claims Made (ERISA? Volunteer Endorsement? Blanket?) Workers Compensation (Statutory) t t (If volunteers are not covered, purchased Accident Coverage) Property (Replacement Cost? t?business Interruption?) ti

39 Insurance-Nonprofits Non-Standard Forms Employment Practice Liability/Directors & Officers Liability Sexual Misconduct Claims Md Made Coverage Claims Made (most policies) Special Events Liability Liquor liability? Professional Liability Claims Made Coverage and Occurrence Volunteer Accident (If volunteers/interns are not covered under workers comp.) Cyber Liability Risk Management Services/ Crisis Management

40 Cyber Insurance A special form of commercial insurance created to protect businesses against cyber (Internet) risks, ik such as hackers and other breaches of computer system security. Website: Database for Breaches History of All Data Breaches in U.S.: breach Verizon Annual Data Breach Study (This is the annual report most insurance underwriters read).

41 EPL POLICIES What to look for Wrongful Termination Sexual Harassment Disability Discrimination Pregnancy discrimination Age Discrimination Race Discrimination Wage & Hour Policy Considerations Not all EPL policies are created equal. Duty to Defend Insurance carrier advances costs of defense (First Dollar) Broad definition of Insured including the company, all employees and leased employees, Spousal Liability Cost of Defense OUTSIDE the limit Defense Cost sublimit for Wage and Hour type claims (most carriers in CA will not offer indemnity coverage.) Low Retention (deductible) Full Prior Acts Coverage (when prior coverage is carried) NO Hammer Clause (insurance carrier has to work with you in the settlement of a claim

42 Workers Comp Ins Companies Services to look for in an insurance carrier: Special Investigations Unit /Fraud (SIU) Zero tolerance for fraud Policyholder Websites Loss Control Webinars Online Payroll Reporting Policyholders can view invoices & submit payroll py reports eclaim Online Claim Reporting Automatic Payments and Direct Deposits TIP: Take advantage of the insurance carriers FREE loss control services, including Webinars and Safety Meetings.

43 Risk Management Tips to Reduce Workers Comp Premium Report Workers Comp Injuries immediately to your insurance carrier. Make sure injured employees get prompt medical care. Make a thorough investigation of the details surrounding a work injury (secure statements from witnesses, take pictures / video, etc.) Determine corrective measures to prevent future accidents. Stay in contact with the insurance claim representative handling your employee s claim and be proactive in the claim process. Safety is key. Conduct on going safety training.

44 Most Common Types of Claims Reported to our Agency 1. Employment Practice (wrongful termination/ discrimination) 2. Workers Compensation (independent contractors?) 3. General Liability (additional insureds) 4. Property (theft/vandalism) 5. Business Auto (Non owned Auto) 6. Crime (employee theft) 7. Special Events Liability (Liquor Liability, Equipment Rental) 8. Abuse & Molestation 9. Cyber Risk

45 Thank You! Please follow us at Our handouts and presentations will be there for your convenience.

46 Thank you to our Sponsor! Brown Streza LLP for the generous use of their training room and support of our program!

47 Thank you to our Sponsor! Luis Orama, CFP, CRPC Senior Vice President Investments CA Insurance Lic# 0B9102 Member FINRA/SIPC Wells Fargo Advisors, LLC 620 Newport Center Drive Suite 1600 Newport Beach, CA Tel: Fax: Toll Free: