For-Profit Administration and Financial Management (CA-AFM) 4: Administrative Oversight
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PurposeThe for-profit organization ensures accountability through effective administration and management, and sound financial management practices.
|Self-Study Evidence||On-Site Evidence||On-Site Activities|
- establishes policies; and
- reviews policies periodically and when legal requirements or regulations change.
- One of the elements could be strengthened in some minor way.
- A systematic review of policies has not been conducted for more than four years.
- establishing targets and goals; and
- ensuring adequate resources to support the organization’s services.
- One of the elements has not been fully addressed.
- One of the elements has not been addressed at all.
Interpretation Organization staff may be responsible for assessing different areas of risk throughout the year and sending the results of the assessments to the owner or designee to inform the annual review of overall risks.
- compliance with legal requirements;
- disruption of operations due to a public health emergency;
- technology and information management;
- insurance and liability;
- health and safety of administrative and service environments;
- human resources practices, including use of independent contractors and volunteers;
- contracting practices and compliance;
- client rights and confidentiality issues;
- financial risks;
- public relations, branding, and reputation; and
- conflicts of interest.
- fraud and misuse of funds;
- tax liabilities;
- physical assets and financial information;
- fundraising practices;
- funding of benefits, including health retirement benefits, pensions, etc.; and
- deferred revenue.
Practices are basically sound but there is room for improvement; e.g.,
- While the owner or designee assesses risk annually, risk related to different aspects of the organization are reviewed by the owner or designee at different times of year, inhibiting their capacity to comprehensively assess overall risk.