Human Resource Certification Institute

“The institute had a management agreement with the society for human resource management (shrm) in 2013. Shrm provided financial management, human resources, information technology and office space and served as the cfo of the institute.”

“The bylaws of the institute were changed in 2013 to adjust the membership requirements of the strategy committee.”

“The institute bylaws state that the institute board of directors (which shall be composed of between 8 to 20 members) shall include as a voting member, the society for human resource management (shrm) president/ceo or his designee and a shrm foundation board designee. The institute board of directors shall be nominated by the governance committee and elected by the board of directors.”

“The institute's federal form 990 is reviewed by the institute's executive director and director of finance. Such review takes place upon receipt of the draft federal form 990 received from the independent public accounting firm who conducts the financial statement audit of the institute. 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 or 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 participating 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 place 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 within 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 executive director, or the hr department. In addition, all contracts of over $5,000 are required to be reviewed 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 executive director and the hr department. Compensation amounts are directly linked to the individual's performance.”

“The institute will make its governing documents, conflict of interest policy and audited financial statements available to the public upon request.”

“Board services: program service expenses 0. Management and general expenses 142,904. Fundraising expenses 0. Total expenses 142,904. Marketing services: program service expenses 0. Management and general expenses 866,348. Fundraising expenses 0. Total expenses 866,348. Books & publication services: program service expenses 11,664. Management and general expenses 0. Fundraising expenses 0. Total expenses 11,664. Executive office: program service expenses 575,242. Management and general expenses 141,195. Fundraising expenses 0. Total expenses 716,437. Testing services: program service expenses 618,249. Management and general expenses 0. Fundraising expenses 0. Total expenses 618,249.”

“Pension-related charges other than net periodic pension cost: 648,426.”