Human Resource Certification Institute

“In 2015, the institute underwent an internal reorganization followed by a dissolution. As part of its restructuring, the institute's name was changed to hrci, corp prior to its dissolution.”

“The institute's federal form 990 is reviewed by the institute's chief executive officer and chief financial and operations officer. Such review takes place upon receipt of the draft federal form 990 from the public accounting firm. The review involves comparison of financial data in the federal form 990 with the audited financial statements and the books and records of the institute and review of all narrative information for accuracy and completeness. Additionally, the treasurer of the board reviews a copy of the return for accuracy. Prior to filing the federal form 990 with the internal revenue service, a complete copy is provided to all voting members of the institute's board of directors.”

“The board of directors' conflict of interest policy provides the following procedures for addressing potential conflicts of interest that may require board of committee action: 1) the interested person must disclose all facts material to the conflict of interest and such disclosure must be reflected in the minutes of the meeting where such matter is being reviewed; 2) the interested person is prohibited from participation in discussions except to disclose material facts and respond to questions; 3) such person shall not attempt to exert his or her personal influence with respect to the matter either at or outside of the meeting; 4) such person may not be present to hear the board or committee discussions on the matter; 5) such interested person is precluded from voting on the matter and such person's presence may not be counted in determining the presence of a quorum for purposes of the vote at the meeting; 6) such person may not be present during the vote unless the vote is by secret ballot; and 7) such person's ineligibility to vote should be reflected in the minutes. Additionally, the institute employee code of conduct applies to all employees of the institute; and all employees receive a copy of the code of conduct and return an acknowledgement to the institute hr department that they understand and will comply with the code of conduct. Section iv(k) of the code of conduct sets forth the conflict of interest rules applicable to all employees. It is the institute's intent to avoid impropriety in all decisions and actions. The code of conduct requires employees to avoid transactions, activities and relationships which play personal interest in conflict with the institute's; not to use institute assets or the employee's position at the institute for personal use or gain; not to accept gifts from vendors unless with the gift guidelines. Employees are informed that actual or potential conflicts of interest may go beyond dealings with certificants, customers, vendors or suppliers. Conflicts may also involve dealings with managers, subordinates or other staff members. If a conflict or potential conflict arises, employees under the policy may consult with their supervisor, the chief executive officer or the hr department. In addition, all contracts over $5,000 are considered for review by the institute's outside legal counsel.”

“Compensation of the 10% highest paid employees at the institute is recommended by an independent compensation consultant through review of relevant comparability data. The recommendation is discussed and substantiated by the chief executive officer and the hr department. Compensation amounts are directly linked to the individual's performance.”

“The institute complies with the public inspection requirements of internal revenue code section 6104 by making its form 1023, application for recognition of exemption under section 501(c)(3) of the internal revenue code, determination letter from the irs, and the forms 990 for its three most recently completed tax periods available to the public. However, as section 6104 does not require organizations exempt under section 501(c)(3) to disclose its governing documents, conflict of interest policies, or financial statements, hrci has decided not to make such information available for public inspection.”

“In 2015, the institute formed human resource certification institute subsidiary, llc (the subsidiary), which was created a wholly owned limited liability company. The subsidiary was disregarded for federal income tax purposes. The subsidiary was created to further the institute's exempt purpose of establishing and maintaining professional standards in the field of human resource management. The subsidiary's activities are limited to those in which the institute engages. All members of the institute are also members of the subsidiary. In 2015, the board and management determined that it was in the institute's best interest to reorganization its corporate structure to better serve its tax exempt mission. As part of its internal reorganization, the institute began transferring its assets and its liabilities to its wholly owned subsidiary in 2015. To ensure the dedication of the transferred assets to appropriate purposes that accomplish the institute's exempt mission and the subsidiary's continuity with the institute's mission, all of the institutes officers, directors, trustees and key employees were transferred to the subsidiary. Additional protections related to the use of the assets transferred by the institute include the subsidiary's adoption of key institute policies related to management and governance, including the subsidiary's adoption of the institute's: conflict of interest policy, including the monitoring and enforcement procedures; the written whistleblower policy; the written document retention and destruction policy; and the compensation approval process and policy. The transfer of the internal reorganization was completed in 2015. Currently, the subsidiary in the early stages of preparing to complete an application for tax-exempt status so that the subsidiary may obtain its own irs determination letter recognizing it as an organization exempt from federal income tax.”

“Other professional services: program service expenses 790,346. Management and general expenses 688,408. Fundraising expenses 0. Total expenses 1,478,754.”

“Discontinued net assets -35,430,670.”