Resource and Crisis Center of Galveston County
POLICIES AND PROCEDURES OF THE RCC BOARD OF DIRECTORS
Responsibilities of a Non Profit Board of Directors: The primary purpose of the board
of directors is to assure that the agency fulfills its mission and meets its goals. This is
done by setting broad policy, reviewing and approving programs and budgets developed
and implemented by the executive director and ensuring the financial stability and
accountability of the agency.
Board members must abide by the powers and duties granted the corporation by Texas
law, its Articles of Incorporation and its bylaws. Directors must act in good faith and must
ensure that the interest of the corporation prevails over any personal interests. It is
recommended that the board have regular updates of changes made in the Texas NonProfit Corporation Law.
Financial Responsibility: The board of directors must approve an agency budget annually.
The budget should include all programs and expected incomes and expenditures. The
board should assure that the budget is reasonable and responsible and reflects the mission
and goals of the agency programs. The stewardship function of the board of directors is to
ensure fiscal accountability of all funds received and spent by the agency. The RCC board
receives regular financial reports detailing the actual and expected income and expenditures
of all agency monies. The reports include approved budget figures. It is the responsibility of
members to review the reports and assure themselves that the agency is functioning in a
responsible manner.
Functional Responsibility: In addition to the above responsibilities, the board of
directors has functional responsibilities in the following areas: Human Resources - Board
members have four key responsibilities in this area:
1)
Board Membership - includes recruiting new board members, recognizing
and nurturing existing members and providing board members with opportunities to
grow and develop as leaders. It is the policy of RCC that new members be recruited by
a procedure which encourages a diverse representation of members in terms of
ethnicity, age, profession or background, and communities served;
2)
Executive Director Accountability - includes hiring, firing and ongoing
evaluation of the Executive Director;
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Resource and Crisis Center of Galveston County
3) Agency Policies - includes providing policy guidance about salaries, benefits
and grievance procedures and approving all agency policy; and
4)
Volunteer Involvement - includes setting policies regarding how volunteers
should be utilized, in what areas volunteer work is appropriate, and, in general, how
the organization should treat, recognize and celebrate its volunteers.
Planning - Board Members have four key responsibilities in this area:
1)
Mission/Philosophy - includes setting and reviewing organizational
mission/philosophy;
2)
Short/Long Range Goals - includes planning for the future of the organization by
means of short and long-range planning;
3)
Services/Programs - includes deciding and planning which
services/programs the organization will provide; and
4)
Program Evaluation - including evaluating the organization's programs and
operations on a regular basis.
Finance - Board Members have four key responsibilities in this area:
1)
Financial Accountability - including financial accountability for the organization;
2)
Budget - includes overseeing an ongoing process of budget development,
approval, and review.
3)
Fund-raising - includes raising funds and/or ensuring that adequate funds
are raised to support organization policies and programs; and
4)
Property Management - including managing and maintaining properties and/or
investments the organization owns or is responsible for.
Community Relations - Board Members have four key responsibilities in this area:
1)
Addressing Community and Client Needs - Includes ensuring that
organization programs and services appropriately address the needs of the community
and the client we serve,
2)
Marketing - includes marketing organization services and programs;
3)
Public Relations - includes ongoing public relations and developing an
awareness in board members that they, as representatives of the agency, are always
emissaries of the organization in the community; and
4)
Cooperative Action - including occasions when the organization could/should
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Resource and Crisis Center of Galveston County
participate in coalitions, joint Fund-raising, etc.
Organizational Operations - board members have four key responsibilities in this area:
1)
Ensuring that the board operates adequately and appropriately;
2)
Organizational Structure - includes ensuring that the agency's organizational
structure is adequate and appropriate; and
3)
Legal and Funding Requirements - includes ensuring that the organization and
the members of the board meet all applicable legal requirements and those required
by funders. This should include ensuring that the agency maintains documents
required by law or by funders for required time periods. Such documents include, but
are not limited to:
Articles of incorporation and letter(s) granting 501 (c) (3) status,
A mission statement,
A brief history of the agency,
Appropriate insurance policies,
By laws that include all required sections,
Current list of board members,
A current organizational chart,
A list of current programs with a description of each,
Agency policies that contain all required information,
Current and past operating budgets, amendments and audits,
A list of donors,
Minutes of board meetings,
Any other documents by law or a funding source.
The Texas Non Profit Corporation Act requires that all records, books and annual reports of
the financial activity of the corporation must be kept at the principal office for at least three
years after the closing of the fiscal year and must be available to the public for inspection
and copying during normal business hours. All records related to Texas Department of
Human Services contracts, Office of the Attorney General and most other state or federal
funding sources must be maintained by the agency for three years and 90 days or until all
litigation, claims or audit findings are resolved, whichever is longer.
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Resource and Crisis Center of Galveston County
Conflict Of Interest/Nepotism: The Resource and Crisis Center shall ensure that no
officer, employee, or member of the governing body of the agency shall vote for or confirm
the employment of any person related within the second degree by affinity or third degree by
consanguinity to any member of the agency's governing body or to any officer or employee
who would directly supervise such people. This prohibition shall not prohibit the continued
employment of a person who has been continuously employed for a period of two years to
the election or appointment of the officer, employee, or governing a body member related to
such person in the prohibited degree.
Composition of the Board: It is the policy of Resource and Crisis Center to assure that the
board of directors will remain diverse and representative of the community and the
populations we serve. The nominating committee of the board should endeavor to include a
range of professions, backgrounds, ethnicity, age and special populations on the board at all
times.
The by laws of the agency limit board members to two three year terms. Members who fill an
unexpired term may complete that term and then complete two full three year terms.
RCC conducts criminal background checks on all staff and volunteers, including members of
the board of directors. The policy related to criminal background checks follows.
ADVISORY BOARD: The Board of Directors may appoint an unlimited number of
persons to serve on an Advisory Board at their discretion. The purpose of the
Advisory board is to advise and assist the Board of Directors.
a.) Advisory Board members are appointed for a one-year term and
may serve an unlimited number of terms if so elected by the Board of Directors.
b.) The Board of Directors may appoint a Chairman of the Advisory Board.
CRIMINAL HISTORY BACKGROUND CHECKS
For the protection of clients, staff and volunteers, RCC does a complete background check
on all applicants for employment and potential volunteers who have direct client contact or
have access to client information. The background check will include contacting three
references (supplied by the applicant or potential volunteer) and a criminal history check.
A criminal history does NOT automatically rule out employment or volunteer service. The
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Resource and Crisis Center of Galveston County
incident should be discussed with the Program Coordinator. The Program Coordinator and
the Executive Director will make a determination regarding further affiliation with the
agency. The factors to be considered in making a final determination will include the nature
of the crime, circumstances surrounding the incident, the length of time since the crime,
evidence of rehabilitation and the applicant's/volunteer's willingness to be honest about the
events. Applicants for employment and potential volunteers will be told of the final
determination and the rationale for that decision. In some instances, the applicant or
potential volunteer may be offered other opportunities to be of service to the agency. Refusal
to participate in the background check or provide necessary information to complete the
background check will result in terminating the affiliation with the agency. Each employee or
volunteer should complete a Release for Criminal History Background Check form, providing
the necessary information to complete the check.
RCC maintains the confidentiality of clients within the limits of the law. Members of the
board of directors are expected to abide by and uphold this confidentiality and are asked to
sign a copy of the policy. The agency policy on confidentiality follows.
CLIENT CONFIDENTIALITY AND RELEASE OF CONFIDENTIAL
INFORMATION
All those affiliated with RCC, employees, contractors and volunteers in any
capacity are expected to observe the rules of confidentiality. All information
regarding clients, including the information that a named individual is a client, is
to remain confidential within the limits of the law. An employee, contractor or
volunteer must obtain a written authorization from the client before divulging
information about the client or the client's situation with any other person other
than another agency employee with authorization and/or reason to have the
information. The agency has Release of Information forms to be used for written
authorization. There are exceptions to releasing confidential information without
a written authorization from the client. When we are presented with a valid court
order or subpoena requiring the information we may be forced to comply. When
we receive a valid request for information available under the Public Information
Act, we will request guidance from the Attorney General's office before releasing
information. The law requires that any person report information about child
abuse or elder abuse, regardless of how the information was learned. When we
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Resource and Crisis Center of Galveston County
learn of a threat to self or others, we will ethically take appropriate actions to
protect those threatened. All clients should be told of these exceptions during the
intake process.
Confidentiality applies to written and verbal information and all records related to the
client or the services provided to the client. Client records should not be taken from
agency property without specific permission of a Program Coordinator. Client records
or other information regarding clients should not be left in areas where unauthorized
persons might see the information.
All those affiliated with RCC, employees, contractors and volunteers in any capacity
are will be asked to sign a confidentiality agreement. Adult clients who participate in
group activities will also be asked to sign confidentiality agreements. The agreement is
binding even after the employee, contractor, and volunteer have left the program.
Annual Budget Process: The following guidelines were approved for implementation
in May 2002.
1.
The annual budget proposal should be presented no later than the
October Board meeting, with an in-depth presentation. This will allow
time for review by the Board and discussion prior to approval.
2.
The annual budget should include a budgeted reserve of 5% for
emergencies.
3.
After each of the first three quarters a reforecast needs to be done if
there is a 25% or greater variance in the actual budget.
Monthly Financial Reports: Monthly reports should be submitted to the Treasurer no later
than 10 business days following the close of the month. This will allow for review and
revision if necessary before the Board meeting. Each monthly financial report should
include a detailed explanation for any items showing a variance greater than $1000
and 10% in actual current and YTD budget columns. A detailed revenue and
expenditure statement for each of the thrift stores should be available to
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Resource and Crisis Center of Galveston County
the Thrift Store Committee. A monthly monitoring of all expenses is included in
reports.
Investment Policy
Measurement of Performance
1. The total return is expected to exceed the total return of a balanced index,
which reflects the asset mix of the portfolio as determined by the
Investment Committee.
2. The investment manager is expected to consistently maintain volatility
(beta) of no more than 1.00 -1.50 and is expected to maintain a positive
risk-adjusted performance (alpha).
3. The total return for various segments of the equity portion of the fund is
expected to exceed the total return of the S&P 500 (large cap equities).
S&P Mid-Cap stock index (mid cap equities). Russell 2000 stock index
(small cap equities) or the EAFE index (international equities).
4. The total return for the fixed income portion of the fund is expected to
exceed the total return of the Lehman Brother Aggregate Bond Index.
Investment Manager Evaluation Criteria
1. Adherence to the philosophy and style articulated to the investment
committee at, or subsequent to, the time the manager was retained.
2. The investment manager shall handle the voting of proxies and tendering
of shares in connection with a tender offer. The investment manager shall
vote proxies and tender shares in a manner that is consistent with the
investment objectives and in the best interest of the Endowment.
3. The investment manager shall immediately notify the Investment
Committee in writing of any material changes in its investment strategy,
ownership, organizational structure, financial condition, and senior or
investment personnel.
4. The investment manager should be prepared to meet with the Investment
Committee semi-annually.
Restrictions
The investment manager shall be subject to the Prudent Man Standard of the Uniform
Trustees Powers Law of the State of Texas. While the investment committee cannot
impose specific restrictions on pooled investment vehicles, it is intended that the majority
of the Endowments investments meet these
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Resource and Crisis Center of Galveston County
broad restrictions. Each of the following restrictions must be adhered to unless
written approval is received from the Investment Committee.
1. There shall be no short-selling, margin trading, securities lending, private
placements, or investing in commodities. Investments in derivative securities
shall not be utilized to increase the actual or potential risk posture of any
investment portfolio.
2. There shall be no investments in non-marketable securities (including
unregistered and restricted stocks).
3. The fixed income portfolio must have a weighted average credit rating of
AA or better by S&P or AA or better by Moody's rating services, and should
never have more than 10% below investment grade securities. No fixed
income investment shall have a maturity date exceeding ten years, with the
exception of pooled investment vehicles.
4. If any security becomes an unauthorized investment subsequent to
purchase, the investment manager must immediately submit a written notice
and analysis of the security to the Investment Committee providing a
recommendation for holding or disposing of such security.
Asset Allocation
The Endowment shall have the following asset allocation through the use of mutual funds
approved by the Investment Committee. The investment manager shall follow this
asset allocation with a variance allowed of 5-10%. This asset allocation reflects a portfolio
objective of growth and income.
1. Cash Equivalent
2.Short/lntermediate Investment Grade Bonds
3.Long-lnvestment Grade Bonds
4.Real Estate
5.U.S. Large Cap Stocks
6.U.S. Mid Cap Stocks
7.U.S. Small Cap Stocks
8.Foreign Developed Stocks
5%
20%
10%
5%
15%
20%
10%
5%
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