Adminstration: Risk Management
The purpose of this policy is to establish an overall risk management plan to identify and manage risk through appropriate financial audits, internal operations controls and procedures, insurance coverage, policy reviews, and program and performance evaluations.
Scope & Responsibilities
The following practices and reviews will be followed as part of a comprehensive risk management plan.
Finance & Administration
- Internal Controls and Financial Procedures - SmithBucklin has detailed procedures in place regarding monthly and year-end procedures, balance sheet reconciliations, cash receipts, chart of accounts, security of checks and other sensitive banking information. A separate check signing policy requiring the Executive Director and the Treasurer to approve and sign all checks is in place.
- Reserve Fund and Investment Fund Policy – the Finance Committee will review the Investment and Reserve Fund Policy annually and the performance of the investment firm.
- Annual Financial Audit – The Executive Director will review performance of auditor annually with Treasurer. An RFP for services will be conducted every five years.<
- Annual Bookstore Inventory – An annual inventory (physical count) of the bookstore items will be conducted by the fulfillment house with Lamaze administrative staff providing on site supervision.
- Licensee Royalty Audit – An audit of each major corporate licensee will be conducted at least once every three years.
- Information System Controls and Procedures - SmithBucklin information systems professionals maintain and review information system controls and procedures.
- Contracts – All major contracts are reviewed by legal counsel and appropriate advisors to evaluate a contract’s business terms.
- Insurance – Directors and officers, and general liability insurance coverage is reviewed and supervised by independent insurance brokers.
- Human Resource Policies and Practices – SmithBucklin human resource professionals maintain and review human resources policies and practices.
- Regulatory Issues – Accounting, taxes, reports, payroll & benefits are all reviewed by outside professionals.
- Strategic Plan – The board will annually review and update the strategic plan, and review existing products and services in relation to identified goals to ensure that the organization’s financial resources are effectively used to advance it’s mission and goals. The Program Development and Program Evaluation Process will be used to evaluate programs and ensure that they are tied to the strategic plan.
- Annual Budget – The Finance Committee will review and propose a budget, which supports the goals identified in the strategic plan, to be approved by the board on an annual basis.
- Annual Orientation for New Board Members and Secretary/Treasurer – An orientation for new board members will be held each year to ensure board members have an understanding of the organization’s mission, goals and programs and are aware of their fiduciary responsibilities. An orientation will also be held for the Secretary/Treasurer when newly appointed.
- Routine Policy Review by Board – The board is responsible for periodically reviewing the organization’s policies for implementation by management.
- Annual Review of Management Performance – The President and others as requested will provide feedback on the Executive Director’s and management performance through the annual evaluation process.
- Periodic Review of Overall Organization Performance – A periodic review of overall organization performance will be conducted to assess overall organization performance and impact, identify opportunities for growth, review governance and management practices.
Drafted: August, 2002
Revised: March, 2008