UMUC

[finminded]

Ms. Gaylor:

Have you seen any changes in corporate governance for nonprofits since the passage of Sarbanes-Oxley? If so, what sorts of changes? Do you see other needed changes in the future? Thank you.

Joe

[tgaylor]

I apologize for my tardy response and appreciate that I can still log in and answer your question.

Yes. There are couple of required applications of Sarbanes Oxley to non-profits. One of them is document retention and destruction policies and the other is the whistle-blower requirements. In my prior role as the COO/CFO of a retirement community that included healthcare services, these were especially relevant. In my current role at Suited for Change. the size of the organization (less than $300,000 annual budget) and scope of the organization's services makes implementation of Sarbanes Oxley requirements unnecessary from a public protection standpoint as well as from a "best use" of resources standpoint. At the same time, the act highlighted important areas of oversight for nonprofits.

Thank you for your question and interest in this topic.