Statement of Financial Accountability
The Michigan 4-H Foundation is a 501 (c) (3) non-profit organization founded in 1952 to solicit, manage and steward private gifts and grants to support Michigan 4-H Youth Development. The foundation is managed by a 30-member volunteer board of trustees and maintains headquarters in East Lansing with facilities operations in Tustin, Mich.
The Michigan 4-H Foundation Board of Trustees is responsible for overseeing the work of professional staff and other foundation agents to ensure the fiduciary responsibility and financial health of the foundation. This responsibility is managed by board review and action to:
- Approve an annual budget.
- Ensure the foundation maintains adequate funds to operate annually.
- Ensure that all financial obligations, reporting and government requirements are met by and to the foundation.
- Ensure that there is transparent accountability for the fiscal operations of the foundation.
- Conduct an annual, independently managed audit of the foundation’s finances.
The board of trustees has set forth the following policies to ensure the sound and responsible management of the Michigan 4-H Foundation’s assets.
Conflicts of Interest
The bylaws of the Michigan 4-H Foundation mandate that no trustee shall receive or be lawfully entitled to receive any pecuniary profit from the operations of the corporation. As volunteers, trustees receive no compensation for their service to and management of the foundation’s affairs. It is the policy of the foundation that actual conflicts of interest, and the appearance of conflict of interest, be avoided.
Independent and Competent Audit Process
The Michigan 4-H Foundation, as a non-profit organization, annually undergoes an independent audit process. Currently, this process is managed by the foundation’s finance committee.
Responsibilities of Auditors
The Michigan 4-H Foundation annually involves an independent accounting firm to prepare the fiscal year audit of the foundation’s finances. Currently, this firm is involved in the annual audit process and annual tax preparation only. All other financial management operations are handled internally by paid foundation staff.
Certified Financial Statements
The Michigan 4-H Foundation’s executive director and finance director routinely review and sign off on financial statements with approval and support from the foundation’s treasurer and finance committee.
Disclosure
The Michigan 4-H Foundation provides access to the annual independent audit report and Form 990 at the request of interested parties.
Whistle Blower Protection
Both the audit process and the annual personnel review of the foundation’s management team (executive director, finance director, and unit directors) allow for penalty-free disclosure of any complaints related to the fiscal management of the Michigan 4-H Foundation.
Document Destruction and Retention
The Michigan 4-H Foundation maintains a detailed document retention and destruction policy that ensures that all personnel records pertaining to current employees, all financial management documents, all state and federal tax related documents and official documents pertaining to the organization are maintained on file permanently. This policy outlines specific terms of maintenance and subsequent destruction of documents in increments of three years, seven years and permanently. Should the foundation be subject to legal review or official investigation, all document destruction policies would cease until such matters are resolved. A detailed review of this policy is available upon request.
Approved by the Michigan 4-H Foundation Board of Trustees on Oct. 1, 2004.