the impact of sarbanes oxley and the era of corporate governance on nonprofit organizations january...
TRANSCRIPT
![Page 1: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/1.jpg)
The Impact of Sarbanes Oxley and the Era of Corporate Governance on
Nonprofit Organizations January 17, 2008
FacilitatorsGary J. Dubas, CPA, CVA - Partner
David B. Blain, CPA/ABV, CVA - Principal
[email protected]@macpas.comwww.macpas.com
![Page 2: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/2.jpg)
What We Will Cover
• What is Sarbanes-Oxley and why does it exist?
• Why is this law important?
• Applying Corporate Governance Principles to Non-Profits.
• Tips and Tools.
![Page 3: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/3.jpg)
What is Sarbanes-Oxley and why does it exist?
![Page 4: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/4.jpg)
In a Nutshell, Sarbanes Oxley…
• The Sarbanes-Oxley Act signed into law July 30, 2002.
• Officially “American Competitiveness and Corporate Accountability Act of 2002.”
• Criminal penalties…– 10 years in prison.– $1 - 5 fine (millions).
![Page 5: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/5.jpg)
In a Nutshell, Sarbanes Oxley…
• Response to corporate and accounting scandals– Companies: Enron, Worldcom– Activities: Document Destruction, misleading financial statements– Results: Share holder loss, employee retirement funds lost
• Most provisions apply only to publicly traded corporations. – With two notable exceptions…
![Page 6: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/6.jpg)
The Goal of SOX
• SOX has a purpose…really!– The creation of a Proper Control Environment
• Encompasses the attitudes and values of directors and executives.
• How much they recognize the importance of: – Transparency– Accountability– Method
![Page 7: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/7.jpg)
What is a control?
• Internal Controls defined:– “…a process or set of processes designed to address
operating efficiencies and effectiveness and reliability of financial reporting and compliance with laws and regulations.”
• Or…– “An action that ensures that the right things are being
done at the right time.”
![Page 8: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/8.jpg)
SOX Provisions
• Public Companies have more to do.
• Knowing all the areas can help you decide where to focus your efforts.
![Page 9: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/9.jpg)
Benefits of Sarbanes-Oxley
• Review of your business, its processes, function, and activities.
• Clearer expectations.• Better record keeping.• Better transparency.• Better accountability.• Standardized processes.
![Page 10: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/10.jpg)
Applying SOX Corporate Governance Principles to Nonprofit Organizations
![Page 11: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/11.jpg)
Ten Principles to Consider
• Role of the Board.• Importance of Independent Directors.• Audit Committee.• Governance and Nominating Committee.• Compensation Committee.• Disclosure and Integrity of Institutional Information.• Ethics and Business Conduct Codes.
![Page 12: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/12.jpg)
Ten Principles to Consider – (cont)
• Executive and Director Compensation.• Monitoring Compliance and Investigating
Complaints.• Document Destruction and Retention.
![Page 13: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/13.jpg)
Principle 1
Determine the Role of The Board
![Page 14: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/14.jpg)
Determine the Role of the Board
• “The organization’s governing board should oversee the operations of the organization in such a manner as will assure effective and ethical management.”
• Review Board Structure and operations• Determine optimal size – Effectiveness• Composition – Expertise and requirements• Operating procedures – Term limits, leadership,
agenda, frequency of meetings
![Page 15: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/15.jpg)
Steps For Review of Board Structure
• Step 1 – Process • Critically review how effectively the board oversees
organization operations and management.
• Step 2 – Assumptions• Validate the usefulness of all positions. No “Sacred
Cows.”
• Step 3 – Information Gathering • Be sure to gather information from a variety of sources
through interviews, surveys, and “walk around management.”
![Page 16: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/16.jpg)
Steps For Review of Board Structure, cont.
• Step 4 – Document Findings• Ensure all findings are documented and discuss with
management.
• Step 5 – Future Reviews• Establish annual review process through a governance
committee or by board delegation by the executive board.
![Page 17: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/17.jpg)
Principle 2
Importance of Independent Directors
![Page 18: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/18.jpg)
Importance of Independent Directors
• “The independent and non-management board members are an organizational resource that should be used to assure the exercise of independent judgment in key committees and general board decision making.”
![Page 19: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/19.jpg)
Common Issues Affecting the Independence of Directors
• Deference to Management– Avoid the tendency for boards to become complacent
and defer decision-making to management.
• Cultural Issues– Realize and address issues that may affect otherwise
independent directors’ decisions – such as dominant board member personalities or close personal relationships between directors and management.
• Ensure Proper Size and Makeup of Board
![Page 20: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/20.jpg)
Principle 3
Audit Committee
![Page 21: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/21.jpg)
Audit Committee
• “An organization with significant financial resources should have an audit committee composed solely of independent directors.”
• Audit Committee Functions– Assure independence of Financial Auditors.– Review critical accounting policies and internal controls.– Oversee accuracy of financial statements and reports.
![Page 22: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/22.jpg)
Audit Committee Considerations
• Is an Audit needed or required?– Legal requirements, size of organization
• Independence of Committee Members.– Assure Financial Integrity– Strengthen Board’s oversight through information
avenues independent of management
• Proper delegation of authority to the Committee.• Committee’s expertise and understanding of
financial matters.
![Page 23: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/23.jpg)
Audit Firm Considerations
• Non-Audit Services Provided– Impact of fees on independence and decision making.
• Rotation of Audit Partner and/or Audit Firms– Maintain arms length perspective.
![Page 24: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/24.jpg)
Principle 4
Governance/NominatingCommittees
![Page 25: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/25.jpg)
Proper Governance
• “An organization should have one or more committees composed solely of independent directors that focus on core governance and composition issues.”
• Governing Concerns Include:– Governing Documents of the Board and Organization– Appropriateness of the Board’s Size– Criteria for and Evaluation of Potential Directors– Leadership of the Board– Committee Structure– Code of Ethical Conduct
![Page 26: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/26.jpg)
Governance Best Practices
• Create/Maintain Governance and Nominating Committees.– May be useful to combine committees.
• Periodically Evaluate the Board and the Directors.
• Governance Committee should take responsibility for “Setting the Tone at the Top”.
![Page 27: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/27.jpg)
Principle 5
Compensation Committee
![Page 28: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/28.jpg)
Compensation Committee
• “An organization should have a committee composed solely of independent directors that determines the compensation of the chief executive officer and determines or reviews the compensation of other executive officers.”
![Page 29: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/29.jpg)
Applications
• Executive Compensation should be Performance Based and Tied to Predetermined Goals.
• Ensure that a Proper Succession Plan is in Place for Key Executives.
![Page 30: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/30.jpg)
Principle 6
Disclosure and Integrity of Institutional Information
![Page 31: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/31.jpg)
Openness and Certification
• “Disclosures made by an organization regarding its assets, activities, liabilities, and results of operations should be accurate and complete and include all material information.”
• Fairly represent the financial condition of the organization.
• Executives should be able to certify the accuracy of the financial information and the adequacy of internal controls.
![Page 32: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/32.jpg)
Openness
• Determine the appropriateness of certifying financial information.
• Determine which information and how much to disclose.
• Ensure that at least one staff member is responsible for ensuring compliance with Federal and State Laws.
![Page 33: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/33.jpg)
Principle 7
Ethics and Business Conduct Codes
![Page 34: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/34.jpg)
Ethics
• “An organization should adopt and implement ethics and business conduct codes applicable to directors, senior management, agents, and employees that reflect a commitment to operating in the best interests of the organization and in compliance with applicable law, ethical business standards, and the organization’s governing documents.”
![Page 35: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/35.jpg)
Business Conduct Codes
• Proper Codes of Conduct should include:– Definitions of, and procedures for handling, conflicts of
interest.– Prohibitions against use of corporate information or
resources for personal gain or in competition with the organization.
– Nondisclosure of confidential information.– Promotion of procedures to assure compliance with
applicable laws.– Means to encourage the reporting of illegal or unethical
behavior.
![Page 36: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/36.jpg)
Principle 8
Executive and Director Compensation
![Page 37: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/37.jpg)
Compensation
• “Executive (and directors if appropriate) should be compensated fairly and in a manner that reflects their contribution to the organization.”
![Page 38: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/38.jpg)
Executive Compensation Considerations
• Should be no loans to executives.• Based on individual and organizational
performance.– Can be financial or mission-related objectives.
• Comparable to similarly sized and complex organizations.
• Critical that all compensation is reported for tax purposes.
• Understand benefit rules and implications.
![Page 39: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/39.jpg)
Director Compensation Considerations
• Liability Considerations.
• Form of Compensation.
• Who will approve compensation for Directors.
• Available data from comparable organizations.
• State laws that may cap Director compensation.
![Page 40: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/40.jpg)
Principle 9
Monitoring Compliance and Investigating Complaints
![Page 41: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/41.jpg)
Obtaining Timely Feedback
• “An organization should have procedures for receiving, investigating, and taking appropriate action regarding fraud or noncompliance with law or organization policy, and should protect ‘whistleblowers’ against retaliation.”
• Create and periodically review a written policy for the communication of concerns from employees.
• Ensure that current policy (if applicable) complies, at a minimum, with “whistleblower” protection provisions.
![Page 42: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/42.jpg)
Principle 10
Document Destruction and Retention
![Page 43: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/43.jpg)
Proper Retention of Documents
• “An organization should have document retention policies that comply with applicable laws and are implemented in a manner that does not result in the destruction of documents that may be relevant to an actual or anticipated legal proceeding or governmental investigation.”
• Be aware of increased criminal sanctions for obstruction of justice by destruction of documents.
• Periodically review document retention policies to ensure proper compliance with state and federal laws.
![Page 44: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/44.jpg)
Tips and Tools
![Page 45: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/45.jpg)
STEPS TO EFFICIENT SOX COMPLIANCE
• Step 1 – Educate Your Organization
Understand the requirements of SOX. Formulate the appropriate plan of action. Education will enhance the effectiveness and efficiency
of compliance.
![Page 46: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/46.jpg)
STEPS TO EFFICIENT SOX COMPLIANCE
• Step 2 – Retain Experienced Consultants
Look for a firm that:• Has extensive working knowledge and experience
with SOX.• Has not-for-profit industry experience.• Has provided SOX training to executive management.
![Page 47: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/47.jpg)
STEPS TO EFFICIENT SOX COMPLIANCE
• Step 3 – Retain Experienced Consultants (cont’d)
Look for a consulting firm that can educate your staff and implement your Plan of Action.
• Proper education can allow for work to be shifted to internal resources.
• Experience gained by internal resources can help reduce future compliance costs.
![Page 48: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/48.jpg)
STEPS TO EFFICIENT SOX COMPLIANCE
• Step 3 – Demonstrate Complete Management Buy-In
Early management buy-in is critical to the success of a SOX project.
This will set tone for entire project (and the business). Encourage pre-project and weekly management
meetings to monitor the success of the project. Integrate IT & Accounting Controls.
![Page 49: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/49.jpg)
STEPS TO EFFICIENT SOX COMPLIANCE
• Step 4 – Start Early
Allow adequate time to properly complete requirements of SOX compliance.
Short deadlines and rush-to-completion can increase the financial cost of the project.
Take time early to appropriately assess information system needs.
![Page 50: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/50.jpg)
STEPS TO EFFICIENT SOX COMPLIANCE
• Step 5 – Invest in the Proper Tools
Learn from others who have already completed a SOX project.
Plan ahead, investigate and seek input from your consultant.
Remember, software alone will not complete this project.
![Page 51: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/51.jpg)
CONCLUSION
THANK YOU!!!!
![Page 52: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/52.jpg)
The End, The Beginning…
Questions
Open Discussion
Practical Experiences
![Page 53: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/53.jpg)
Appendices
![Page 54: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/54.jpg)
Appendix A - Samples
• Conflict of Interest Statement
• Document Retention Policy
• Whistleblower Policy
![Page 55: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/55.jpg)
Appendix B – Informational Sources
• American Bar Association (ABA) – Guide to Nonprofit Corporate Governance in the Wake of Sarbanes-Oxley
• Pennsylvania Association of Nonprofit Organizations – Standards for Excellence – An Ethics and Accountability Code for the Nonprofit Sector
![Page 56: The Impact of Sarbanes Oxley and the Era of Corporate Governance on Nonprofit Organizations January 17, 2008 Facilitators Gary J. Dubas, CPA, CVA - Partner](https://reader035.vdocuments.net/reader035/viewer/2022070407/56649e2a5503460f94b18e20/html5/thumbnails/56.jpg)
Appendix C – Published Articles to Research
• “Are Your Nonprofit Leaders Super?” – PICPA Journal, Winter 2007
• “Good Governance Policies for Charitable Organizations” – AICPA Focus, September/October 2007
• “Can Sarbanes-Oxley Hold the Keys to Nonprofit Governance” – PICPA Journal, Winter 2006