CONFLICT OF INTEREST:
2013 CONFLICT OF INTEREST/RELATED PARTY QUESTIONNAIRE
Conflict of Interest/Related Parties:
Document refers to you, your spouse, family members, business interests, and/or associates. Conflicts of interest may arise when one party has the ability to significantly influence the management or operating policies of the other, to the extent that one of the transacting parties might be prevented from fully pursuing the interests of Medical Ambassadors (MAI) rather than his/her own separate or related party interests.
Considering the period from September 1, 2012 – October 1, 2013:
|1. I (or a related party of mine) held, directly or indirectly, a position of financial interest in an outside concern from which MAI secures goods or services.|
|2. I (or a related party of mine) rendered directive, managerial, or consultative services to, or an employee of, any outside concern that does business with MAI.|
|3. I have accepted gifts or other benefits from any outside concern that does or is seeking to do business with MAI.|
|4. I have participated in management decisions concerning transactions that affect or benefit me, my family, or my personal financial interests. (Other than ordinary management decisions on employment matters such as compensation.)|
|5. I (or a related party of mine) have been indebted to MAI at some time during the above stated period. If so, please note the nature, date, terms and amount.|
|6. MAI has been indebted to me (or a related party of mine) at some time during the above stated period. If so, please note the nature, date, terms and amount.|
Click here to print the 2013 Conflict of Interest Statement
MAI follows the guidelines of ECFA for Executive Compensation
Executive Compensation Policy for Nonprofit Organizations
A Board’s determination of the nonprofit’s senior staff members’ compensation is one of its key tasks. The compensation must comply with legal requirements for maximum compensation and reporting of taxable elements.
The following policy incorporates both a compensation philosophy (which may vary considerably depending on the organization’s doctrine, mission, constituency and culture), and good practices for tax compliance.
I. Sample Compensation Philosophy
a. The compensation plan will support our organization’s mission, strategy, and values.
b. We will pay for performance, skills and competencies, development and growth, and effective visible commitment to the organization.
c. The compensation structure will encourage recruitment, retention, and motivation of outstanding executives so that the organization can achieve its mission and objectives.
d. Our compensation structure may include base salary, retirement and other benefits, and performance-based pay appropriate to the nonprofit marketplace.
e. Our compensation system will include periodic adjustments to pay ranges based on changes in the marketplace, subject to organizational financial constraints. All adjustments to pay will be consistent with practice in the nonprofit marketplace.
f. The marketplace adequacy of the compensation structure will be judged in terms of total compensation, including benefits; the total packages will be competitive with the marketplace, subject to organizational financial constraints.
g. The compensation structure will be linked to an effective performance management system with individual growth and development as well as professional achievement goals.
II. Approving Compensation
a. The compensation of all disqualified persons (defined below) for each year, or the terms of compensation for a multi-year contract will be established by the Board in advance. If any board members are employees of the organization or related to disqualified persons receiving compensation, they may provide input to the board, but will leave the room and not participate in the discussion or decision making by the Board. The minutes will reflect that they were not in the room during the discussion and vote.
b. “Disqualified persons”
i. The primary definition includes board members, the CEO, president, COO, executive director, CFO, Controller, any vice-president responsible for a substantial portion of the organization, any person (if not listed previously) able to exercise substantial influence over the affairs of the organization
ii. Any person who has held any of the position in (i) with in the past five (5) years.
iii. Any family member of a person in (i) or (ii) including spouse, ancestors, descendents, siblings, spouses of siblings and spouses of descendents.
c. In considering compensation, all elements will be provided to the Board, including (but not limited to): the value of all employee benefits whether taxable or not, housing allowance or value of provided housing, the value of vehicles to the employee or the family of the employee and retirement plan contributions.
d. The chairman of the board or a board compensation committee will meet with the CEO/President/Executive Director in advance of Board compensation discussion to consider with the CEO/President/Executive Director his or her projected needs for the coming year, perspective on his or her compensation, and the types of benefits or “perquisites that might help the CEO/President/Executive Director personally, in their family, and in their job.” The CEO/President/Executive Director input on how the organization’s compensation philosophy may apply to him or her will be requested.
e. Prior to a final vote on the compensation, the Board will collect information regarding amounts paid by comparable organizations for comparable services and consider how the proposed compensation compares to such to the comparison information. If the amount proposed as compensation seems
high based on the comparison information, the Board will consider collecting additional information or obtaining a professional compensation opinion.
III. The vote by the Board will be recorded in the meeting minutes within sixty days after the meeting, including the amount authorized and references to the comparison information. Full collected compensation information and
any compensation opinions provided to the board will be kept with the Board records.
IV. Monitoring Compensation
a. At least every six months the Chairman of the Board will review the compensation package being provided to the CEO/President/Executive Director, and any other executive level employees who are disqualified persons, to assure that it is being followed, and that it remains adequate.
b. At three times a year, at random intervals, a representative of the Board will review the expense reports of the CEO/President/Executive Director, to assure that timeliness and documentation requirements are being met.
c. Reports of the Chairman and board representative of their respective reviews will be provided to the rest of the Board.
This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.
RECORDS RETENTION AND DESTRUCTION:
MEDICAL AMBASSADORS INTERNATIONAL/LIFEWIND
ACCOUNTING POLICY HANDBOOK
6.0 DESTROYING SENSITIVE MATERIALS & RECORD RETENTION – POLICY & PROCEDURES
A. Destroying Sensitive Materials
The Executive Committee of Medical Ambassadors International/LifeWind (MAI) approved the following procedure for destroying sensitive materials at its March 23, 1999 meeting.
1. Rationale for Procedure
At the close of MAI’s January 1999 Winter Retreat, the subject of destroying sensitive materials was discussed. As it turns out, there are risks facing a church or Christian ministry such as MAI, when disposing of obsolete letters, address lists, or financial information. Certain documents may contain names and location of staff working in “high risk” countries. Additionally, financial data may contain bank account numbers or credit card account numbers, which could result in theft and/or significant financial losses.
The following guidelines have been developed to minimize the misuse of documents disposed of by MAI.
a. Items to be Disposed of by Shredding
- Financial documentation, accounting statements, work papers;
- Credit card documents containing credit card numbers;
- Obsolete check stock;
- Donor checks or copies, and donor acknowledgment forms or papers;
- Telephone listings or mailing lists of any sort;
- Written communications from “sensitive fields of work”;
- Internal management correspondence containing any sensitive information.
b. Assessing the Sensitivity of Documents
- If you are unsure of the sensitivity or risk associated with such paperwork, take the safe alternative and shred the paperwork.
B. Record Retention Policy
Following is a basic Records Retention Policy for MAI, developed in December 1999.
Proper maintenance of documents and records is critical from the aspect of both legal and management considerations. In order to comply with federal and state statues, financial records adequate to facilitate an IRS audit, legal action and/or response, and public inquiries must be readily available.
The following information outlines the recommended retention schedule for our organization.
1. Records Requiring Permanent Retention:
- Board Minutes
- Major Contracts
- Annual Financial Statements
- Audit Reports
- Depreciating Schedules
- Fixed Asset Purchases Records
- General Ledger/General Journal Records
- Pension Records
- Stock Transactions
- Tax Returns
2. Records to be Retained for Seven Years:
- Accident Reports
- Accounts Payable Records
- Accounts Receivable Records
- Bank Statements
- Cancelled Checks
- Donor Contribution Records (numbered receipts)
- Electronic Payment Records
- Employee files (for ex-employees)
- Employment Tax Records
- Loan Records
- Minor Contracts
- Payroll Records
- Purchase Orders
3. Records to be Retained for Three Years:
- Employment Applications
- Monthly Statements (used for internal purposes)
- Service Contracts (after termination)
- Working Papers (accounting, budget, financial reports)
4. Shredding of Documents:
The following records or paperwork should not be retained but should be disposed of by shredding. If unsure of the sensitivity or risk associated with such paperwork, take the safe alternative and shred it.
- Credit card documents containing credit card numbers;
- Donor checks or copies and donor acknowledgments;
- Financial documentation, accounting statements, work papers;
- Internal management correspondence that contains any sensitive information;
- Obsolete check stock;
- Telephone and mailing listings;
- Written communications from “sensitive fields of work.”
Evangelical Council for Financial Accountability (ECFA) Membership Manual, “Record Retention Policy.”
Swartz, Retson & Co., PC, Certified Public Accountants, 235 East 86th Avenue.
Merrillville, IN, “Business Record-Keeping Review.”
Giannotti, Maureen, Audit Manager for Deloitte & Touche, LLP, #2 World Financial Center, New York, NY, “Effective Record Retention Policies.”
MAI Memo authored by Michael D. Carroll, Director of Finance and Accounting, “Destroying Sensitive Materials,“ November 17, 1999.
Whistleblowers Are Protected
It is public policy of the State of California to encourage employees to notify an appropriate government or law enforcement agency, person with authority over the employee, or another employee with authority to investigate, discover, or correct the violation or noncompliance, and to provide information to and testify before a public boy conduction an investigation, hearing or inquiry, when they have reason to believe their employer is violating a state or federal statute, or violating or not complying with local, state or federal rule or regulation.
WHO IS PROTECTED?
Pursuant to California Labor Code 1102.5, employees are the protected class of individuals. “Employee” means any person employed by an employer, private or public, including, but not limited to, individuals employed by the state or any subdivision thereof, any county, city, city and county, including any charter city or county, and any school district, community college district, municipal or public corporation, political subdivision, or the University of California. [California Labor Code Section 1106]
WHAT IS A WHISTLEBLOWER?
A “whistleblower” is any employee who discloses information to a government or law enforcement agency, person with authority over the employee, or to another employee with authority to investigate, discover, or correct the violation or noncompliance, or who provides information to or testifies before a public boyd conducting an investigation, hearing or inquiry, where the employee has reasonable cause to believe that the information discloses:
1. A violation of a state or federal statute,
2. A violation or noncompliance with local, state or federal rule or regulation, or
3. With reference to employee safety or health, unsafe working conditions or work practices in the employee’s employment or place of employment.
A whistleblower can also be an employee who refuses to participate in an activity that would result in a violation of state or federal statute, or a violation of or noncompliance with a local, state or federal rule or regulation.
WHAT PROTECTIONS ARE AFFORDED TO WHISTLEBLOWERS?
1. An employer may not make, adopt, or enforce any rule, regulation, or policy preventing an employee from being a whistleblower.
2. An employer may not retaliate against an employee who is a whistleblower.
3. An employer may not retaliate against any employee for refusing to participate in any activity that would result in a violation of state or federal statutes, or a violation or noncompliance with a state or federal rule or regulation.
4. An employer may not retaliate against an employee for having exercised his or her rights as a whistleblower in any former employment.
Under California Labor Code Section 1102.5, if an employer retaliates against a whistleblower, the employer may be required to reinstate the employee’s employment and work benefits, pay lost wages, and take other steps necessary to comply with the law.
HOW TO REPORT IMPROPER ACTS
If you have information regarding possible violations of state or federal statutes, rules or regulations, or violations of fiduciary responsibility by a corporation or limited liability company to its shareholders, investors, or employees, call the California State Attorney General’s Whistleblower Hotline at 1-800-952-5225. The Attorney General will refer your call to the appropriate government authority for review and possible investigation.
SOURCE: 2016 California and Federal Employment Notice