348 Final Project Assignments

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Purdue University *

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348

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Medicine

Date

Apr 3, 2024

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1. FINANCIAL OVERSIGHT List at least three “internal control” policies that you would recommend to the board to ensure stronger fiscal oversight and accountability in the wake of the Cashcow scandal. BOARD DEVELOPMENT - The three remaining board members are: Chair: Van Diesel, Senior Vice President, Caterpillar – Mr. Diesel, a middle-aged white man who has lived in Lafayette for 20 years, brings strong management expertise to the board. Vice-Chair: Vi Society, wife of a retired corporate executive; this white, senior citizen – who is a member of one of Indiana’s wealthiest families – is very active in social and civic affairs in and around Lafayette. Secretary / Treasurer: Archie Ologist, professor at Purdue University; this highly-detailed professional specializes in researching and teaching about Mexico (especially Mayan culture) where his ancestors immigrated from 50 years ago. You need to recruit six new board members. The three current members have 12 people for you to consider. Their bios are attached. Who did you recruit to the museum’s board of directors? Why? What gaps does your board still have, if any? Tamika Catchings - She donates to mentoring programs for underprivileged children. She's trying to employ high school students to teach them about entrepreneurship. Deborah Daniels - Assists agencies to private sectors on compliance and public policy matters. Practices education and school law. Tony Dungy - parents nine children. Author. Previous nfl player and coach. Donates to big brothers big sisters, boys and girls clubs. Santiago Jaramillo (hispanic man) - columbian man who built a mobile company. Speaks about his struggles as a child and fitting in. David Wolf (white man) - born in indiana. Science degree. Doctor of medicine degree. Us air force flight surgeon training. Named nasa inventor of the year in 1992. Research scientist, flight surgeon, public speaker, engineer, astronaut. Private consultant for indianapolis childrens museum and is an active public and motivational speaker. Martha Hoover (white woman) - former attorney, owner of restaurants in indy. Passion for food and cooking. Created foundation with mission to feed healthy meals to at risk and food insecure children.
STRATEGIC PLAN - With the museum in disarray, the board will start over with a new strategic plan. Write the new strategic plan, with at least four goals. Include a page with at least five bullet points of supportive data and/or research. OPERATIONS PLAN Use one goal and objective from the new strategic plan to write an operations plan for a new program. The program can be an exhibit, or new service or an event designed to increase visibility for the museum, increase ticket sales from increased attendance and demonstrate to the public at large that the museum is on a new, positive track. The new program is estimated to serve 2,400 people in this fiscal year. LOGIC MODEL Draft a logic model in support of your operations plan. BUDGET Before you arrived, the board approved a budget for the new fiscal year. However, that budget now needs to be revised to reflect your new program. Review the attached budget document. Also see the template of a Time Study to complete with museum staff. Estimate the percentage of time each staff person will spend on General Administration, Fundraising, the Existing Program (E.P.) and the New Program (N.P.). What is the Time Study Factor for General Administration, Fundraising, the Existing Program and the New Program? Enter these percentages onto the budget document.
Using information from the completed Time Study, fill out the budget lines for Salary, Benefits, Rent / Utilities, Telephone, Equipment, Maintenance & Repair, and Staff Development. What percentage of this budget is for General Admin and Fundraising? Enter that percentage onto the budget document. What is the per person cost of the Existing Program and of the New Program? Assume that 2,400 people utilize the new program. GIFT ACCEPTANCE POLICY Create a gift acceptance policy listing at least 10 companies, and/or products, and/or people from whom the museum will not receive a charitable donation. GIFTS RANGE CHART Create a gift range chart based on the total cost of the New Program. CASE STATEMENT Write a compelling case statement for the museum. FUNDRAISING LETTER - Write a fundraising letter to Bill and Carmen Stanczak, who live at 1964 Northwestern, in Anderson, IN 46015. Request a gift in support of the museum’s new program. Include a response mechanism. FINAL EXAM – Case Study Based on a true story ..... You have been hired as Executive Director of the Heartland Museum, a state and national cultural center based in Lafayette. Soon after taking the job, you learn that your predecessor had resigned under a cloud of controversy. The previous executive director, Colleen Cashcow, had no experience in nonprofit management. Instead, she was a former bank president who was hired for her strong business management skills and her relationships with wealthy people in Indiana and across the country.
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Within an agency budget of $2 million, Cashcow originally received a salary of $100,000. With little oversight from the board, and no oversight allowed by her staff, she raised her own salary in stages over four years, eventually reaching $750,000. The board agreed to provide an annual housing allowance of $250,000 since she promised to use her house for museum fundraising events. News of the housing allowance made a local newspaper reporter curious. A months-long investigative report revealed that in addition to significantly increasing her own salary and receiving the large annual housing allowance, Cashcow missed a total of two months of work each year while serving on various corporate boards. Service on those boards paid an additional $1 million on top of her museum salary. Further investigation revealed Cashcow lavishly spent museum money on herself. For example, instead of flying on a commercial flight, she once paid $15,000 for a charter flight, reportedly to visit a prospective donor in Las Vegas. She spent $150,000 of museum funds to remodel her house, and she spent an additional $7,000 to repair the heat pump in her backyard swimming pool. She later justified the expenses by again stating that her home often was used for museum fundraising events. Worst of all, Cashcow spent thousands of dollars on golf lessons, golf equipment, a country club membership and countless rounds of golf. The exact dollar amount is not known, since Cashcow told auditors that she recorded the financial amounts on her golf score cards, which eventually were discarded. She insisted, however, that her decision to purchase and use pink golf balls – with part of each sale going to charity – demonstrated that her time on the golf course was related to her work in the nonprofit sector. A subsequent investigation revealed no criminal wrongdoing by Cashcow, who nonetheless was
forced to resign in response to the intense media scrutiny and public attention given to her salary, outside income and lavish personal spending of museum funds. Her resignation was not the last. Soon after you took the job, six of the nine board members resigned. They said they were exhausted after all of the public controversy generated by Cashcow, as well as by the time the board spent drafting new policies to ensure greater accountability. Plus, they were confident that with all that you learned in “Administration of Social Service Not- For-Profit Organizations” while studying at Purdue, you would have the skills needed to restore and strengthen this nonprofit organization. Your complete response is due on Brightspace no later than December 13, 2023, at 6:30pm.