Can you describe your ideal setup for OTW finances going forward, given that many of you flagged the current situation as an issue?
The current Board is emphatically aware that the current situation is less than ideal and has set out the general structure for the OTW’s finances going forward: by the end of this year we will have engaged a CPA to set up a structure for the OTW’s bookkeeping, as well as another CPA to review the books on a regular basis. We will also engage a firm to prepare the OTW’s tax returns from now on so that this important part of maintaining the OTW’s 501(c)3 status is taken care of quickly and accurately by professionals who have the expertise to do the best possible job. As we continue to grow the organization we will engage financial professionals who can help the OTW structure its overall finances and investments so that we are able to responsibly grow our assets while maintaining adequate funds to carry out our operations in service of our mission and to maintain the financial reserves mandated by the current strategic plan.
There is currently no internal or external auditing structure checking the OTW’s bookkeeping (no legal worries, here: the Delaware state laws do not require annual auditing from nonprofits). If you join Board, is this something you would like to change? If so, how?
The current Board is emphatically aware that the current situation is less than ideal and has determined how we will change it in order to move closer to best practices. By the end of this year we will have engaged a CPA to set up a structure for the OTW’s bookkeeping, as well as another CPA to review the books on a regular basis. We will also engage a firm to prepare the OTW’s tax returns going forward so that this important part of maintaining the OTW’s 501(c)3 status is taken care of quickly and accurately by professionals who have the expertise to do the best possible job. Each of these parts of the process will act as a check on the other, just as the Board and the Treasurer act as a check on them and each other. This accounting structure is very much a basic foundation; as we continue to implement the strategic plan we will continue to refine our financial tools, policies, and practices so that the Treasurer’s job does not become too much for any one person and so that the Board and necessary personnel maintain adequate access to the accounts while making them as secure as possible. At a minimum, however, this accounting structure will provide for regular external audits going forward so that we are able to quickly and accurately examine the overall state of the finances and details as necessary at any time.
Our finances are currently being overseen by only one person with actual decisional and content-producing power, which is concerning in terms of transparency, and efficiency. If elected, how would you go about building a sound administrative Financial structure for the Organization?
It is not correct to say that the Treasurer is the only person with decision-making or content-producing power in terms of the finances. Every financial decision is reviewed and approved by the Board, and every director has the ability to review the accounts even under the current, irregular bookkeeping structure. The draft budget was reviewed collaboratively by the entire Board with support from other attendees at the annual meeting in Vancouver. Other key personnel also have the access they require to do their work for the organization. As said above, the Board has set out the general structure for the OTW’s finances going forward: by the end of this year we will have engaged a CPA to set up a structure for the OTW’s bookkeeping, as well as another CPA to review the books on a regular basis. We will also engage a firm to prepare the OTW’s tax returns going forward so that this important part of maintaining the OTW’s 501(c)3 status is taken care of quickly and accurately by professionals who have the expertise to do the best possible job. This accounting structure is very much a basic foundation; as we continue to implement the strategic plan we will continue to refine our financial tools, policies, and practices so that the Treasurer’s job does not become too much for any one person and so that the Board and necessary personnel maintain adequate access to the accounts while making them as secure as possible.
I saw many concerns about finances in the candidates’ statements, but I did not see outsourcing financial oversight mentioned as a solution. I’d like to know what the candidates think about outsourcing (paying for) some responsibilities, in particular engaging a company with a background in financial services for non-profits.
An internal, volunteer Audit Committee would have made perfect sense several years ago when the OTW’s finances were still relatively simple and, equally to the point, when we had a much smaller asset base and effective operating budget than we do today. The Board has reviewed the position of the Treasurer as it was constituted until the present and concluded that the duties it consisted of (essentially, everything) were and are too much to ask of any one volunteer. In particular, the OTW is now at a point where its assets are or should be of sufficient complexity that finding an individual with the necessary skills to accomplish all aspects of the job essentially meant finding a professional, and also was less than desirable from the perspective of responsible oversight of the finances. Accordingly, the Board has determined that by the end of this year we will have engaged a CPA to set up a structure for the OTW’s bookkeeping, as well as another CPA to review the books on a regular basis. We will also engage a firm to prepare the OTW’s tax returns going forward so that this important part of maintaining the OTW’s 501(c)3 status is taken care of quickly and accurately by professionals who have the expertise to do the best possible job. Engaging professionals for these aspects of the job greatly lessens the burden on the Treasurer, ensures that these parts of the operations are taken care of accurately and regularly by people with proven expertise, and enables us to better support the OTW personnel working in service to our mission on a volunteer basis.