Attention Board Presidents! You might get this call...

After a week of traveling on business (for Sage), I returned to the office Friday to a somewhat confusing voicemail. It was a lovely woman from the City of Austin Health Services department, inquiring about an audit report, and if I could give her a call back.

I thought "hmmm....an audit report? I wonder if they are a fund accounting customer, and somehow got transferred to me instead of support."

So, I picked up the phone, and gave her a call. I introduced myself as calling from Sage, and she, too was equally confused.

Then the light bulb moment hit. She was calling on BookSpring - the nonprofit I'm president of, not Sage. Ahhhh...starting to make sense.

This group had received our audit report, and wanted to know if the board had reviewed the audit. Additionally, she wanted to know if we had an audit committee, if the board meets with the auditor, and if they could have the minutes for the meeting in which we discussed the audit.

Of course my responses were "yes, yes, yes, and sure - let me get them to you Monday since my documents are on my home PC."

If you've been following Austin at all, you might of heard of a well-respected nonprofit called Family Connections. This organization, the board, funders, and supporters were duped by a very smart, very clever executive director who basically took them for all their worth - and fled to another country where she has duality. (http://www.statesman.com/news/local/family-connections-shuts-down-561391.html)

There are three points to this post:

1. Board Presidents: expect to recieve more and more calls like this, particularly from funders and program supporters.
2. All board members: it IS your responsibility to understand the controls your organization has in place. Question, question, question - not everyone brings a strong financial background to a board, but we ALL are financially responsible for it's performance. Contact your local nonprofit membership organization if you need a starting place to ensure proper board governance!
3. Prospective board members: while this level of transparency is expected, does it make you nervous to join a board? If not join, take a leadership role?

I have lots of thoughts and predictions, but I'll save them for another post when they are a bit more formalized (and before I make an ass out of myself).

Until then....