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By the end of this chapter, you should be able to: Discuss how recent state and federal legislation and proposals, such as the Grassley White Paper, have changed the public s expectations of CEO and CFO behavior Explain why the Executive Team is a crucial link between the board and nonprofit operations Describe the role of the Executive Team in coordinating SOX compliance and best practices Trace the connection among the supporting factors that contribute to fraud in a nonprofit Provide an outline of an effective crisis communication plan Identify the ways in which the executive team can provide oversight to important components of SOX compliance and best practices within the nonprofit SOX Expectations of Management Team The history of the events leading up to the passage of SOX pointed to the common factor of corruption in the board and the executive team Since then public expectations of Executive Team accountability have been raised across all economic sectors The two requirements of SOX and its best practices reflect these public expectations for nonprofits: Accountability: The Executive Team will support the board n its role as ultimate authority in the nonprofit Transparency: Financial and other operational transactions will be open for review and fully transparent Disclosure: Nonprofit management will ensure that transactions will take place under the mantle of full disclosure Examples of this include: Sign the IRS Form 990s and other financial statements under penalty of perjury Responsible for ensuring that protocols exist to ensure full disclosure and organizational transparency Responsible for ensuring that the SOX requirements of Whistleblower Protection and Document Preservation are in place and enforced Responsible for implementing SOX best practices throughout the organization Responsible for facilitating change in the board s culture and in the organization s culture Today s legislative tone has made this mandate for change permanent There s no turning back As we saw in 4, media attention and donor reaction to nonprofit.

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scandals leave permanent scars on the nonprofit s ability to raise money and enjoy the level of public trust that they had before the scandal The executive team needs to lead the way in changing the nonprofit s current methods to introduce permanent change The Executive Team Is Vital in Facilitating Organizational Change The benefits of SOX requirements and best practices can be translated into higher performance through meaningful change in the nonprofit s culture and operations The Executive Team gains nothing from just minimal compliance with SOX In order to achieve a higher level of performance, the executive team needs to work closely with the nonprofit board, staff, and volunteers to introduce these change agents The executive team needs to: Communicate the deeper meaning of Sarbanes-Oxley legislation: Donors, clients, and the public deserve a nonprofit that provides services in a transparent fashion in their community Many nonprofits would prefer to whine about the unflinching provisions of this law and the expectations of its best practices Introducing meaningful change requires a steadfast adherence to these requirements and best practices In other words, no whining from anyone! The SOX requirements and best practices are protocols that every organization private sector or nonprofit should have been doing all along! Establish the intention for change: Central to setting resolute tone is the expectation that governance and accountability will be taken to a higher level in your nonprofit Implementing SOX requirements and best practices without fully expecting a higher level of efficiency and performance is a waste of everyone s time You re just dabbling Minimum compliance is almost as bad as not complying at all Talk openly about fraud: One of the most difficult topics for an Executive Team to address or even talk about is fraud No one likes to believe that people in their organization (particularly nonprofits) would ever steal or use resources in inappropriate ways If you believe that there s no chance of fraud in your nonprofit, please stop reading this chapter, reread 4, and then come back to this paragraph Executive Team needs to candidly address the issue of fraud before internal controls can be strengthened and before the rest of the organization understands why business as usual is not an option Talking to Staff and Volunteers about Fraud Studies have shown that many of the cases involving fraud first involved the CEO and/or the CFO (COSO, 1999) The fraud began, literally, at the top This means that the Executive Team needs to first model the behavior they expect from the rest of the nonprofit Executives need to adopt a Code of Ethics that includes prohibitions against loans and gifts.

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The present and future of test development theory and practice is exciting to contemplate as the consumer need for innovative measurement continues to grow The challenges are many, but the potential improvements in interpretation of test results will be substantial One of the major challenges to any evolving testing program is the ommitment of resources, time, and money to set a course for the future Navigating this course requires us to conceptualize and con rm the content and mode of assessment, to develop and verify the method of establishing and maintaining templates, and to build the required technology These strategic activities are legitimate research projects As a consequence, accurately estimating the necessary time and expense is dif cult Budgeting strategic development work involves managing and balancing opposing kinds of risk On one hand, the demand for visible results can lead the program to implement innovations too quickly Developers who produce a viable prototype case study or simulation often will be faced with pressure to implement it in production before validation and certi cation of the systems and procedures required to support operational work This intermediate step might be missed in response to the pressure to move ahead rapidly However, it is this phase of development, between innovation and production versioning, that allows program management to develop the processes necessary to ensure sustainability Instantiation of the prototypes will require careful attention to content and construct validity, beginning at the templating stage On the other hand, the desire to resolve all issues prior to implementation can lead to excessively long research and development timelines Experience shows us that every program will encounter unexpected results when introducing a new assessment format, regardless of how much research is YYePG Proudly Presents, Thx For Support!.

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The transparency of the system provided features that would allow users to obtain, evaluate, and present information more ef ciently than previous methods The MWDSS provided concurrency and helped to interrelate with current programs so that they are seen as similar and not distinct subjects For example, the epidemiological data is viewed in conjunction with the other military information in a database-centric common operational picture The MWDSS case contributes information regarding optimizing enterprise performance with a strategy that vastly improves enterprise data resource management re ected in more ef cient and cost effective IT support that produces high impact results for executive and operations management users Smart data describes data that has been engineered to have certain superior characteristics, such as being exible and current and is a product of state-of-theart data engineering discipline, such that it is interoperable and readily exchangeable among quali ed members of the military enterprise user community Smart data as demonstrated in this case, is an executive strategy and tool for exacting higher performance enterprise-wide MWDSS operates by leveraging stateof-the-art infrastructure and enterprise services Overall, participants indicated that MWDSS had signi cant potential utility for mobile medical informatics, especially by utilizing a shared database Some of the SME s reluctance to accept new mobile medical informatics may be viewed through a cognitive perspective The research drew on personal construct theory (PCT) as a mechanism to argue that SME s reluctance to use new mobile medical informatics are in uenced by inability to change established group personal constructs, related to information systems development and delivery activities In this scenario, the smart data and SOE philosophy along with distributed computing mechanism allowed for a method of communicating and coordinating work among concurrent processes The MWDSS used web protocols and a shared, database-centric architecture to deliver a SOE environment that stretches across the globe The case study also demonstrates outcomes, such as the reluctance of some end-users to embrace the smart data and SOE philosophy due to their inability to change their group personal activities As stated before, smart data also provides increased agility more responsive to change, lower IT cost to change, continuous optimization, etc By adapting exible standards that come with smart data in an SOE setting, implementers can rapidly adapt to changes as their business needs change Business dashboards ave become an important Business Intelligence (BI) mechanism tool available to managers and executives to monitor various aspects of organizational functioning including continuous performance monitoring In general BI systems are an SOE component and represent smart data driven-decision support systems (DSS) Similar to a car dashboard which shows current trip status and monitors vital car statistics, business dashboards can offer real-time information about the organization and aid in better managerial decision making and agility SOE application modules are utilized to investigate production, sales, nancial, supply chain, and other business data to make output comparisons to other companies performance.

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