NYS Not-For-Profit Task Force Letter

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NYS Not-For-Profit Task Force Letter Powered By Docstoc
					                              STATE OF NEW YORK
                           GOVERNOR’S TASK FORCE ON
                            NOT-FOR-PROFIT ENTITIES
                               ONE STATE STREET
                           NEW YORK, NEW YORK 10004
Andrew M. Cuomo                                               Benjamin M. Lawsky
Governor                                                      Superintendent
                                                              Department of Financial Services
                                                              Task Force Chairman



                                            August 25, 2011

BY FIRST CLASS MAIL
Board of Directors of
[Not-For-Profit]
[Street Address]
[City], [State] [Zip]

       Re:      New York State Not-For-Profit Task Force

Dear Members of the Board:

        As you may be aware, the Governor announced earlier this month that he has
created a task force to investigate the executive, administrator and board compensation
practices at not-for-profits that receive taxpayer support from the State of New York.

        Our task force is conducting a top-to-bottom review, not only to audit current
compensation levels, but also make recommendations for future rules to ensure taxpayer
dollars are used to serve and support the people of this state, not pay for excessive
salaries and compensation. Not-for-profits that provide services to the poor and the
needy have a special obligation to the taxpayers that support them.

        Pursuant to this inquiry, we are collecting information from the not-for-profit
organizations throughout the State, which were selected based on an analysis of funds
received from the State of New York. To this end, we request that [Not-For-Profit
Name] provide us with the following annual information between 2007 and June 2011 by
no later than September 15, 2011:

       1.    Federal Employer Id. (EIN)
       2.    NY State registration no.
       3.    NTEE classification no.
       4.    Annual total revenue (in US$)
       5.    Annual total government grants/contracts (in US$)
       6.  Annual total government grants/contracts from New York State (in US$)
       7.  Annual total program service revenue/fees for services(in US$)
       8.  Annual total expenses (in US$)
       9.  Annual total salaries, other compensation, and employees benefits (excluding
           work related reimbursements) (in US$)
       10. Annual total number of employees
       11. Annual total number of employees with base salaries over $100,000
       12. Annual total number of executives
       13. Annual total base salaries (in US$)
       14. Annual total bonus (in US$)
       15. Annual total other compensation (in US$)
       16. Annual total deferred compensation (in US$)
       17. Annual total work related reimbursements to employees (in US$)
       18. List of any distributions and/or grants to any other not-for-profit and the
           amounts of such distributions and/or grants
               a. Name of distribution/grant recipient
               b. Recipient’s Federal Employer Id (EIN)
               c. Annual total transferred to the recipient (in US$)
       19. List of State funds received, including but not limited to, all grants, contracts
           and fees for services or program service revenue.
               a. Name of government agency provided fund or paid fees
               b. Nature of the fund (G-Grants/C-Contracts/F-Fees for services or
                   program service revenue/O-Others)
               c. Annual total amount received (in US$)

        In addition, for each individual who is an executive/administrator/board member
or received total compensation of over $100,000 from [Not-For-Profit Name] in 2007 to
June 2011, please provide the following annual information:

       20. Last name
       21. First name
       22. Number of income/compensation/reimbursement generating positions
       23. From the reporting organization
               a. Job title
               b. Is this an executive/administrator/board member position (E-
                   Executive; A-Administrator; B-Board member)
               c. Start date of employment
               d. End date of employment (if applicable)
               e. Annual base compensation
               f. Annual bonus
               g. Annual other compensation including, but not limited to, incentive
                   compensation, benefits of any kind, and/or perks such as cars, travel
                   and hotel expenses of any type, apartments, tickets to games/events
                   and/or club memberships
               h. Annual deferred compensation
               i. Annual total compensation (e+f+g+h)
               j. Annual reimbursement received
               k. Average hours per week
24. From other organizations (please repeat item “a” through “p” if engaged in
    more than one other organization.
       a. Name of organization
       b. Is this organization a not-for-profit organization (Y/N)
       c. Is this organization affiliated with the reporting organizations stated
           above (Y/N)
           If answer (Y) for question 24.c, please provide responses to 24.d
           through 24.p
       d. Federal Employer Id. (EIN)
       e. NTEE classification no.
       f. Job title
       g. Is this an executive/administrator/board member position (E-
           Executive; A-Administrator; B-Board member)
       h. Start date of employment
       i. End date of employment (if applicable)
       j. Annual base compensation
       k. Annual bonus
       l. Annual other compensation including, but not limited to, incentive
           compensation, benefits, (of any kind), and/or perks such as cars,
           apartments, tickets to games/events and/or club memberships.
       m. Annual deferred compensation
       n. Annual total compensation (j+k+l+m)
       o. Annual reimbursement received
       p. Average hours per week

25. A description of your executive and administrator compensation program,
    including, base pay, bonuses, annual incentive pay, sales incentive pay, long
    term incentive pay, supplemental incentive pay, and any other incentive plans.

26. A description of your bonus program, including, cash and other incentive
    breakdowns, vesting periods, claw-back provisions and any other provisions
    to tie compensation to performance.

27. A description and chart of the compensation awarded to executives and
    administrators for each year.

28. A description and chart of all bonuses awarded to executives and
    administrators for each year.

29. Identify the number of employees who receive any compensation, bonus
    and/or incentive pay with a combined value equal to or greater than $200,000.
    Identify each employee receiving any compensation, bonus and/or incentive
    pay equal to or greater than $200,000.

30. Identify all compensation consultants retained as part of the compensation
    process.

31. Provide a list of the top twenty-five (25) highest paid executives,
    administrators and/or board members.
       32. A description and chart of the board compensation including compensation for
           each board member. Please provide a summary of how the compensation was
           derived for each board member.

       33. A description of all policies, procedures and protections the board has
           instituted that will ensure board review of all such company expenditures
           going forward. Please provide the task force with an accounting of the actions
           the Board plans to take that will protect taxpayer funds.

       34. Do you believe that recoupment and/or claw-back of executive and/or board
           compensation is necessary?

       35. What is your view regarding recoupment and/or claw-back of executive
           and/or board compensation?

       36. Given current economic conditions and information, is the board or
           management considering any recoupment and/or claw-back for past salary
           and/or benefits?

       37. What are your comparables in determining executive, administrator and/or
           board compensation?

       38. What justified the compensation to executives?

       39. What justifies you being a not-for-profit?

        The task force believes that the Board of Directors is most appropriately
positioned to respond to these requests as the not-for-profit’s top management likely has
a significant interest in the size of their compensation. In this era of responsibility,
boards of directors must prevent wasteful expenditures of funds on outsized executive
and administrator compensation.

        Please provide information for questions (1) to (24) to our office in Microsoft
Excel spreadsheet in conformance with those included on the enclosed CD. On the CD,
you will find an Excel Workbook containing two spreadsheets, denoted by separate tabs
at the bottom. The first spreadsheet, entitled “Organization,” requires information
responsive to requests (1) through (19). The second spreadsheet, entitled “Individuals,”
requires information responsive to our requests twenty (20) though twenty-four (24).
After exporting your data into conforming spreadsheets, please send the spreadsheets to
us in electronic form, along with your response to requests twenty-five (25) through
thirty-nine (39) by overnight mail to my attention at the New York State Insurance
Department, 25 Beaver Street, New York, NY, 10004. Please identify with your
submission a person at [Employer Short Name] who may contact in the event we need
further information. If you have any questions, including if you require technical
assistance, please contact our office at [(212) xxx-xxxx] and reference this letter.
      Thank you for your attention in this matter.

                                            Very truly yours,



                                            Benjamin M. Lawsky
                                            Superintendent
                                            Department of Financial Services
                                            Chairman, Task Force on Not-For-Profit
                                            Entities
Enclosure

cc:   Task Force on Not-For-Profit Entities
      “Not-For-Profit Name”

				
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