C01 Workshop Agenda Countdown to Renewal: Accreditation overview - PDF document

10/15/2018 C01 Workshop Agenda Countdown to Renewal: • Accreditation overview It’s Never Too Early to • New accreditation requirements Start Planning • Renewal application • Documentation challenges (including Expectations October 12, 2018 for Improvement) Greg Good, Senior Review Specialist • Workplanning Valerie Roof, Senior Review Specialist • Resources • Wrap up Separate Roles Land Trust Accreditation Commission • Independent program of the Land Trust Alliance • 19 diverse volunteer commissioners • Verifies implementation of • Sets Land Trust • 7 staff Land Trust Standards and Standards and Practices Practices (via indicator (last updated in 2017) elements) • Sets accreditation • Develops accreditation indicators application, review • Provides general training process, and and educational materials requirements, plus associated training • Makes accreditation decisions Accreditation Impact Accreditation Impact  Fifteen years ago the land trust community was ill  Accreditation was a strong motivator for change in prepared to live up to the promise of perpetuity and land trusts; 87% of accredited land trusts responded was under legislative and regulatory threat . that accreditation moderately or substantially ⁻ The Alliance created the Accreditation Commission motivated them to make organizational as a solution and offered accredited preparation improvements. services to its members.  Today, accredited land trusts far outpace those  Public confidence in land trusts increased as a result; 85% of public agencies and foundations say not yet accredited . accreditation increases their confidence in land trusts ⁻ They have significantly bigger budgets, more and 83% of landowners feel the same way. staff and volunteers and ⁻ 8 times more money invested to steward and defend their conservation lands than their peers  These positive impacts can grow as more land trusts of similar size – they also save 3 times more join the program. land. 6 1

10/15/2018 Commission’s Review Approach D01: Transformation through Land Trust •Consistency •Fair but flexible Accreditation •All must demonstrate compliance •No one-size-fits all SATURDAY 10:30-Noon •Recognize diversity Decision by Full Commission • 98% • Accreditation –Renewed for 5-year • 99% period –(Maybe) Expectations • 17% for Improvement • Conditional Accreditation –Renewed, with formal check-in • Not Renewed Common Renewal Questions 2017 Standards  2018 Requirements •What if… –We don’t meet the requirements? –We didn’t address our expectations for improvement? –We don’t have documentation •Explain why not –How does your land trust typically meet the requirement? –What circumstances led to your land trust not meeting the requirement? –What alternative steps did your land trust take to meet the intent of the requirement or mitigate the risks? 2

10/15/2018 2018 Requirements Framework: Key Concepts 1. Indicator Elements in Four Accreditation Groups 2. Documents for Each Group Requirements 3. Requirements for Each Group 4. Two Categories of Requirements • Bold ‒ Proactive Verification ‒ Hard Stop! • Not Bold ‒ Red Flags ‒ Next Step Depends on Risk 15 Requirements: Risk-Based Bold Example  New board members trained. Documentation of training new board members will be verified for every applicant. Non-bold Example  Land trust generally operates in accordance with its bylaws. Red flag: look at risk in the context of the entire application. ‒ Low risk: Bylaws require 9-15 board members; land trust has 8 board members; board operates effectively. No questions. ‒ High risk: Bylaws require a 9-15 member board; land trust has 4 board members; board appears to be controlled by one member. Questions. 3

10/15/2018 New Finance Requirements: Records & Financial Health • Operating surplus exists at the end of Governance Finance last fiscal year [statement from board officer explains reason for deficit] • Operating reserves at the end of last fiscal year sufficiently cover three months of operating expenses [board evaluation of operating reserve needs Transactions Stewardship and a feasible plan to address the needs] • Concentrated or sole source of funding not overly relied on • Debt or lease payments can generally be met. 20 New Finance Requirements: Board New Finance Requirements: Records & Financial Health Oversight & Donor Restrictions • Board approval of annual budget • Operating surplus exists at the end of last fiscal year [statement from board officer explains reason for deficit] • Board review of periodic financial reports that include: • Operating reserves at the end of last fiscal year sufficiently cover ‒ Unrestricted, board-designated and restricted net assets three months of operating expenses [board evaluation of ‒ Actual unrestricted and restricted revenue and expenses for operating reserve needs and a feasible plan to address the the reporting period as compared to budget needs] • Documentation of the business process system it • Concentrated or sole source of funding not overly relied on follows when a) soliciting and accepting restricted • Debt or lease payments can generally be met gifts/grants b) determining restrictions on gifts/grants c) documenting donor restrictions and d) tracking receipt of and expenditures from restricted gifts/grants to comply with donor restrictions 21 22 Changed Requirements for Audit, New Finance Requirements: Internal Review, Compilation Controls and Insurance 2016 • Written internal controls or accounting procedures • Have general liability insurance that covers significant risks • Board [or delegated entity] 2018 evaluates insurance needs at least every five years: ‒ Directors and officers liability insurance ‒ Property insurance ‒ Insurance required by law 23 4

10/15/2018 Defense Fund Requirements 2016 2018 26 New Transaction Requirements Changed Transaction Requirements 2016 • Evaluate the Form 8283 and landowner’s appraisal and document the following: ‒ Did not knowingly participate in potentially fraudulent or abusive transactions ‒ Involved legal counsel as appropriate, especially in potentially 2018 fraudulent or abusive transactions ‒ Took appropriate action to resolve substantial concerns with the appraisal, appraised value or other terms of the transaction Signed the Form 8283 only when a gift was received • Follow the then current Land Trust Alliance Tax Shelter Advisory 27 28 Narratives for Practice Elements New Stewardship Requirements • Fee Inspection reports include the following: ‒ Inspection date ‒ Property inspected ‒ Name of inspector ‒ Observations related to property’s condition and conservation values ‒ Observations related to any potential conservation easement violations or conservation property ownership challenges • Inspect fee properties annually • Monitoring or inspection reports completed promptly after monitoring or inspection event. 29 5

10/15/2018 Renewal Process Steps Application • Simplified Registration • Simplified Pre-Application Process – Selected Projects/Attestation Verifications • Application • Additional Information Request Land Conservation Project List Similarities and Differences with First-Time • Structure is the same: –Questionnaire, Attachments/Statements –Schedule of Dedicated and Restricted Funds –Land Conservation Project List –Project Documentation • Review by team of staff and commissioners • Focus is on work over the accredited term Civicore: Application Management Land Conservation Project List System OLD vs. NEW 2019 Round 1 and 2 Applicants 2019 Round 3 Applicants and beyond 6

10/15/2018 Pre-Application Process Steps • Simplified Registration • Simplified Pre-Application – Selected Projects/Attestation Verifications • Application • Additional Information Request Process Steps Process Steps • Simplified Registration • Simplified Registration • Simplified Pre-Application • Simplified Pre-Application – Selected – Selected Projects/Attestation Projects/Attestation Verifications Verifications • Application • Application • Additional Information • Additional Information Request Request Application Application Questionnaire 7

10/15/2018 Selected Projects Verification Documents General Tips and Pointers Process Steps • Questionnaires: –Can complete in more than one sitting –Can revise at any time prior to submitting final application • Simplified Registration • Simplified Pre-Application • Attachments: – Selected – Upload only final versions of documents (scan as needed) Projects/Attestation – Use universal file types (.pdf, .doc, .xls, etc.) – File names should be no more than 200 characters Verifications – Up to 100MB per file • Application • Additional Information Request Additional Information Request Process Steps • Simplified Registration • Simplified Pre-Application – Selected Projects/Attestation Verifications • Application • Additional Information Request 8