checklist for accountability how is your clinic/project ... · supervisor employee employee...
TRANSCRIPT
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Checklist for Accountability –How Is Your Clinic/Project Access Doing?
Presented by
Mark R. Cruise, President
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MissionTo equip nonprofit organizations to excel in governance, leadership and accountability at all stages of their
life cycle.
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Accountability
The obligation of an individual or organization to account for its
activities, to accept responsibility for them, and to disclose the results in a
transparent manner.
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Accountability Defined Another Way
“Clear commitments that – in the eyes of others – have been kept.”
WalkTheTalk.com
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What groups of people are accountable in your
clinic/project access?
To whom are they accountable?
Do they know this?
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CEO or Designated Supervisor
Employee
Employee Accountability
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All Who Provide $$
Board of Directors and CEO
Fiduciary Accountability
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Designated Supervisor
Volunteer
Volunteer Accountability
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Medical Director
Clinic Volunteer Physician
Clinic Volunteer Physician Accountability
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Medical Director
Clinic Volunteer Physician
Clinic Volunteer Physician Accountability
OR
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Clinic Manager/
Coordinator
Clinic Volunteer Physician
Clinic Volunteer Physician Accountability
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Project Access Program
Project Access Volunteer Physician
Project Access Volunteer Physician Accountability
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CEO
Medical Director
Clinic Medical Director Accountability
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A Board has 13 members, led by its Board Chair. It also has an Executive Committee made up of four officers.
How many bosses does the CEO have, and who are they?
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Board Chair
CEO
CEO Accountability
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Executive Committee
CEO
CEO Accountability
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Medical Director
CEO
CEO Accountability
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Board of Directors
CEO
CEO Accountability
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Board Wholism
➢ Board authority is corporate; individual Board members have no authority, except that which the Board may explicitly grant in rare instances
➢ The Board speaks with one voice (through its policies); dissenting Board members agree to accept and support the majority decision
➢ The CEO works for and reports to the whole Board (not the Chair or any Committee, wealthy donor, founder, etc.)
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Board Wholism (cont’d)
➢ Board members may give advice; the CEO may ask them for it; however, the CEO must be able to accept or reject Board member advice without repercussions or reprisals
➢ Since Board authority is corporate, the relationship of the CEO and Board members individually is collegial and collaborative, not hierarchical
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“Moral Ownership”
(Carver)
Board of Directors
Board Accountability
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The “Moral Owners” of a Nonprofit (Carver)
➢ Those on whose behalf the organization has adopted its mission
➢ Not stakeholders but instead a special class of stakeholders who have moral authority and give the nonprofit legitimacy
➢ The board of a nonprofit represents these “moral owners” in making decisions for the organization
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“Owners” of Clearwater Free Clinic
All in northern Pinellas County that have a vested interest in a strong and vibrant
health care safety net for uninsured and underserved residents
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In order to be truly accountable, a nonprofit board must:
1. Make explicit the moral ownership group to whom the Board is accountable.
2. Establish the organization’s Ends, i.e., desired results/outcomes for a specific group of beneficiaries at an acceptable cost.
3. Continually engage with owners to understand and reflect their values, beliefs, and interests when making decisions.
4. Assure that results/outcomes are achieved, and provide an annual report to the ownership.
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What Board member or CEO wants to make a mess and then have to clean it up?
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Every Board’s and CEO’s Dilemma
❖ The Board and CEO are on the hook (read: liable) for what happens in the organization, good or bad
❖ If your clinic or project access is ever sued, chances are very good that the Board and CEO will be named in the suit
❖ How can a Board and CEO 1) prevent bad things from happening, and 2) assure good things happen?
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The only way a Board and CEO can achieve true accountability is to
develop Board policies and management policies, and then to doggedly monitor compliance with
them.(Note: Board policies are different from
management policies)
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Hierarchy of Documents
Articles of Incorporation
Bylaws
Board Policies
Management Policies
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Does anyone here doubt that the employer-employee
relationship has enormous legal ramifications?
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Sample Board Policy
The Executive Director shall operate with an Employee Handbook, approved and periodically
reviewed by a qualified employment law attorney and signed annually by all employees, which
clarifies workplace rules and expectations, provides for effective handling of grievances, contains
whistleblower protections, and protects against other wrongful conditions.
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?
Patient
Patient Accountability
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Do you have a patient contract?
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Does anyone here doubt that the clinic-provider-patient
relationship is a solemn compact with extraordinarily
legal and ethical ramifications?
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Imagine you come to the office one day and this statement appears in a
letter addressed to you.
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The most important thing I will tell you today is this:
Establish sound, thorough clinic policies and procedures, and
regularly monitor and ensure that staff and volunteers are adhering
to them.
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Make sure your clinic and providers have good medical malpractice protection.
1. FTCA (Federal Tort Claims Act) is great but HRSA has ruled that receipt of TN Safety Net Funds disqualifies a clinic from being “deemed” under FTCA.
2. Tennessee’s limited liability statute for volunteer health care providers does not cover defense costs. It also does not include entity coverage.
3. Tennessee’s free and charitable clinics, therefore, must find other means of malpractice protection for their providers, employees, and entity.
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Make sure your clinic and providers have good medical malpractice protection.
4. Directors and officers liability insurance is a must for free and charitable clinics also, but it does not cover malpractice liability. Make sure your directors and officers liability policy includes employment practices protection.
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Take seriously these areas of non-clinical liability and risk:
❖ Board’s 3 legal duties: care, loyalty, obedience
❖ Employment – hiring – discrimination –background checks – harassment – termination
❖ Financial policies – internal controls – regular reporting – transparency – two sets of eyes –external review/audit
❖ Cash management – cash receipts – two people
❖ Asset protection – inventory control – record retention – cybersecurity – emergency preparedness
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Board Members of Nonprofit 501c3 Organizations Have 3 Legal Duties
1. Duty of Care – acting carefully and responsibly; conducting business with the same degree of diligence that an ordinarily prudent person would in similar circumstances
2. Duty of Loyalty – giving primary allegiance to the organization at all times; avoidance of self-dealing and handling conflicts of interest appropriately
3. Duty of Obedience – complying with state and federal laws and regulations governing nonprofit corporations; adhering to the Articles of Incorporation and Bylaws
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Nonprofit Finances
Board Policies
Governing Finances
Periodic Direct
Inspection by Board
Segregation of Duties
Accounting Policies and Procedures
Audit by Outside
Independent CPA
Regular Financial
Reports to Board
Clear Person in Charge of Managing Finances
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Every single expense should have supporting documentation and two
sets of eyes looking at it.
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BEWARE of Self Dealing!!!
Self-dealing is when a Board member, or his/her family or business, is personally enriched from a commercial transaction with a nonprofit, or otherwise uses his/her role on the Board for personal benefit or competitive advantage.
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What’s Wrong With This Picture?
A Board engages one of its own member’s firms to serve as the Investment Manager for its endowment
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What’s Wrong With This Picture?
A CEO signs a contract and pays her husband’s firm to handle event logistics for a fundraising event
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Adopt a rigorous Conflict of Interest Policy. Sign Disclosure Statement at time of election, annually, and when
a conflict arises. Circulate to Disclosure Statements to the Board.
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Aim for the Big 5 Policies
❖Governing Policies
❖ Clinic Policies and Procedures
❖Accounting Policies and Procedures
❖ Employee Handbook
❖Administrative Policies and Procedures
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TCCN has policy samples!!
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Source: www.nafcclinics.org/content/publications
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www.nonprofitrisk.org
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Develop a Culture of Accountability
Rules, standards, and practices are far more effective when the people they affect understand them, know why they are important, and embrace them. Teach
new employees and volunteers about your principles, and give those with more experience refreshers and
updates. Share and highlight examples of good behavior.
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Let Governance4Good Help You!
◆ Board Governance Training
◆ Strategic Planning/Facilitation
◆ Board and Management Policy Development
◆ Board Leadership Boot Camp
◆ Governance Assessment
◆ Coaching for Board Chairs and CEOs
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◆ Board-CEO Mediation
◆ Transition Consultation
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◆ Feasibility Studies for Mergers and Acquisitions
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Andre Aggasi
“No one ever achieves peak performance without a coach.”