Goodwill Industries are organizations for nonprofit making that provide or render employment, community based programs, placement services, and job training to individuals that cannot access proper education, disabled individuals and the unemployed. A huge network of institutions of retail thrift, that works as organizations of nonprofit organizations, sponsor goodwill industries. A large portion of goodwill industries finance is donated items from retail stores. The community’s generous donations of household items and clothing provide the store’s merchandise.
Such donations are critical to goodwill industries mission of Colorado Springs, both donating and shopping in their stores, give a hand in supporting programs for workforce development that serve more than 45000 people every year in northwest N. C (Helms, 2001). Goodwill Industries are nonprofit making organizations that render or provide employment, job training, placement services and community based programs to people who have no proper access to education, to those who have a disability, unemployed.
Goodwill is sponsored by a massive network of retail thrift institution which also operates as nonprofit organizations. Goodwill Industries works hand in hand with employers to identify other people who qualify for employment opportunities available at any particular time (Helms, 2001). A substantial portion of the financing of Goodwill Industries comes from the sales of donated goods in various stores. Merchandise in this stores is provided via generous donations things such as household items, clothing’s and from different communities. Such donations are critical the mission of Goodwill Industries (Moore, 2001).
Goodwill Industries accepts material donations of any kind, such as cars, computers and boats. The common donations include; clothing, shoes, house wares such as dinnerware, pans and pots, kitchen utensils and flatware. Small appliances are also common donations like blenders, toasters, juicers and mixers; bicycles; toys; sporting equipment; books; collectables; furniture; tools; decorations; computers among others (Moore, 2001). Goodwill industries ensure that business operations and community activities are carried on in an environmentally favorable manner.
The Industry is dedicated in turning discarded things into useable products, and where they cannot salvage an item; they ensure that thorough recycling methods are utilized (Moore, 2001). Goodwill’s Mission Goodwill industries sell donated goods. The profits generated by the sales fund training opportunities for various those with trouble in finding and keeping jobs. They also train and hire individuals with disabilities. These disabilities can be mental or physical due to lack of previous work experience, housewives re-entering the job market, outdated work skills, senior citizens, and people with limited communication skills (Moore, 2001).
Goodwill Industries serve people experiencing barriers in employment and related circumstances. A barrier to employment include development age, disabilities, learning disabilities, single parenthood, lack of education, language barriers, felony history, prolonged absence from the workforce (such as disabled veterans or displaced homemakers), substance abuse, co-occurring disorders, domestic neglect or violence, homelessness, and physical challenges. These Industries serve to intervene for such people and hence contributing to economic development in the long run.
The Supported Program for employment is projected for only those with significance of disability. It provides greater comprehensive support to the victims in order to increase their opportunity for being successful on their relevant job (Moore, 2001). Goodwill Industries only accepts only those items that are in excellent shape. For instance if the items include electronics they have to be fully operational. Goodwill Industry does not perform repairing services.
In case it accepts non functional items without its knowledge, it contracts a salvage company to clear from its stores non working items such as radios, televisions, microwaves, cameras and similar products working order (Moore, 2001). Goodwill can offer pick up services for organizations, businesses and schools that would be interested to donate: overstock, scratch and dent, office furniture and surplus inventory. Goodwill Industries have created policies help them follow up and keep constant track of all donated items. These policies also aids in preventing frauds.
To begin with, any donated goods that are yet to been processed cannot be issued or sold before they reach the relevant retail stores. After they are processed, they are distributed to store randomly (Helms, 2001). Goodwill Industries also provide career solutions for adults via various programs. These programs include, computer classes, forklift certification, job readiness sessions, Microsoft Office Suite classes, security guard training, call center training, janitorial services, counseling and job placement, customer and retail, service basics, and also transitional employment services.
Goodwill determines prices of donated items by market value and competitive. However, prices at Goodwill Industries are at least 50 percent less compared to what customers would pay in other retail stores. Any states do not charge taxes on second hand goods an especially clothes which acts as a major advantage for Goodwill Industries (Helms, 2001). These industries offer retail jobs, which include; Retail sales clerks, Administrative, support staff, processors and management Youth services staff, Truck drivers/helpers Rehabilitation program aides, Adult services staff, material handlers and Donation center attendants.
These employees enjoy accrued benefit such as health insurance, vacation, Competitive wages, dental insurance, holiday and a retirement plan (Helms, 2001). Goodwill Industries do not hold fundraising events or solicit cash donations, but financial donations are gratefully accepted. Most of these Industries set offer employment with higher opportunities for disabled and those with barriers to employment. Some of the services that the disabled perform include, Light Assembly, sorting, labeling and Packaging.
They are also involved in: shrink Wrapping, Mailing, Blister Packing, Craft projects and Stuffing Envelopes (Keeler, 1992). Goodwill Industries strive to ensure that their stores are invariably full of fresh products. Merchandise remains in the retail stores for few weeks, and then it is marked down severally after few weeks. If the item does not sell after a given time, it is transferred to any Clearance Center where it is offered at an amount. If the items still fail to sell in the Clearance Center, they are sold in bulk to third party recyclers or recycled (Moore, 2001). Goodwill Industries make sales online.
They have created online bidding sites that require bidders to register online in order to browse, place bid and be able to buy any item that is available for sale. This site normally notify bidders whenever they are outbid on an item and if they have lost or won the auction (Keeler, 1992). All activities of Goodwill and business operations are handled in a manner that they are environmentally friendly. They believe in making useable goods from discarded items, and if an item can’t be salvaged a proper method of recycling is ensured. By so doing, they are able to call themselves upstanding citizens of environment (Helms, 2001).
Policy of Goodwill Industries Goodwill industries are dedicated to services delivery in an environment that is conformed to the highest standards of administration accountability, financial management, developmental training, marketing and business. Goodwill industries leadership is committed to the need to detect and prevent fraud, misappropriation of funds, fiscal management and hence maintenance and development of a corporate compliance formal program to ascertain conformance and ongoing monitoring with all regulatory requirements that are legal.
Additionally, the organization is dedicated to the maintenance, implementation and establishment of a program of corporate compliance that insists on a number of things (Moore, 2001). Firstly, avoid wrong doings, which can be both unintentional or intentional, and immediate investigation and reporting of questionable practices and activities without any penalty to the party reporting. Secondly, immediate correction of any circumstance that puts the goodwill industries, its staff or leaders, consumers and sources of funding at risk (Moore, 2001).
Procedures of Goodwill Industries The operations of goodwill industries entail the following procedures. The board of directors through official declaration, delegates’ general responsibility for the program of Corporate Compliance to the CEO/ President with supervisory responsibilities allocated to the Committee specifically the Finance Committee. The CEO/ Preside will assess the program of the corporate compliance of the Organization and provide regular and periodic reports to the whole Board of Directors and committee on issues relating to the program.
The CEO officially delegates to the Administration and Finance Vice President as Officer of the Corporate Compliance. The Officer of Corporate compliance has various responsibilities (Moore, 2001). The first responsibility is providing staff assistance to the Financial Committee and works as the main contact point of the Organization for all issues of corporate compliance, which include coming up with recommendations to the Board of directors, the Committee and CEO/President and regular reporting on activities of compliance (Helms, 2001)..
Another responsibility is to monitor, implement and develop – on a consistent and regular basis – the program corporate compliance of the organization, which include all systems and procedures, reporting and investigative processes, auditing, and external and internal monitoring (Helms, 2001). Thirdly, the committee is responsible for monitoring, coordinating and scheduling periodic and regular reviews of areas of risk by competent external and/or internal persons to the organization.
These reviews will supplement the yearly audit of the organization’s system of accounting and offer an additional inner measure. This is to make sure that it complies with financial practices and policies that will endure the thorough examination of any regulatory examination or audit. Another responsibility of the committee is that it has unimpeded and directs access to the independent auditors of the organization, legal body on issues that relate to compliance of the organization, board of directors and CEO/president (Helms, 2001).
The reports to the Board of directors, the committee and CEO/President will include the following, a summary of all criticisms processed in the previous twelve months in combination with the program of corporate compliance, investigations and allegations. Additionally, a description of all complete corrective accomplishments taken and thirdly, any recommendations to changes in procedures and/or policies of the organization.
The summary will consist of incidents of theft of funds of Goodwill and or pattern, product of irregularities in finances, significant irregularities in accounting and/or errors, investigations of media related to ethics and confidentiality breach (Moore, 2001). Committee Formation The Board’s Finance Committee shall be in charge of oversight of all activities of Corporate Compliance. Committee members can also be part of other committees. They should not depend on management and free themselves from any association that would affect the use of their independent decision as members of the Committee.
The Committee of such organization shall meet more than two years annually, and as frequent as the situation requires. The committee of goodwill industries shall keep all the meetings’ minutes to document its recommendations and activities (Moore, 2001). Primary Committee’s Goals The committee helps the Board in accomplishing its fiduciary duties relating to financial and legal compliance with applicable policies, industry guidelines laws, and regulatory requirements.
Additionally, it is in charge of all practices of auditing reporting and accounting, whose goal is to reveal accurately and properly the financial condition and status of the Organization (Keeler, 1992). Another responsibility of the committee is to oversee the implementation and adoption of procedures and policies that will necessitate for the industry and its workers to comply fully with all relevant polices, regulations and laws. Moreover, it helps the board to fulfill its tasks to stakeholders that relate to integrity and quality of financial reporting, practices of financial reporting, and policies of accounting (Keeler, 1992).
Duties of the Committee While the committee carries out its responsibilities and duties, it should ensure that part of its members possess expertise in the financial field. The financial experts must have a general understanding of GAAP and an understanding of statements of finance. Additionally, such persons should have an in depth understanding of preparing, analyzing, auditing, and evaluating statements of finance, which should include a level and depth of complexity of issues of accounting that are usually around six to twenty pages.
These pages should be comparable to the complexity and breadth of matters that can rationally be anticipated to be introduced by the financial statements’ registrant (Helms, 2001). The financial experts should be experienced in supervising individuals taking part in these financial activities. Additionally, they should understand internal procedures and controls for financial reporting. Another duty of these experts is to have an understanding of compliance and audit functions.
Moreover, they should provide ample opportunity for the external auditors to meet with committee members so that they can receive feedback on their individual compliance evaluations relating to auditing, accounting, financial, regulatory and legal practices (Helms, 2001). The financial experts meet with the financial management and independent auditors at the end of the yearly audit to review results of audit which include any recommendations or comments of the external auditors. Moreover, they evaluate changes in the applicable procedures and policies and standards of accounting.
Additionally, they review the outcomes, which is included in the management letter of the independent auditors and response and actions of management to be taken. Another duty involves evaluation of the yearly statements of finance and ensures that the external auditors become satisfied with the disclosure and content and of the statements of finance. Moreover, they are in charge of the compliance program’s implementation connected to business conduct that will make sure that high conduct and ethical standards are complied with and communicated properly to all employees regularly (Moore, 2001).
Adequate Documentation Policy The purpose of the policy of documentation is to ensure that all cost, accounting and financial, data based its information on adequate, verifiable and auditable documentation. The policy of all release or disclosure of statements of finance should be stated such that it does not contain false material statement, or leave out a statement of material fact. Additionally, it should reconcile the information of finance presented including the financial results and condition of business operations.
Moreover, all financial and cost data should be based on statistical and financial records that can be verified. The data of cost should be relevant to an approved costing method and on accrual accounting basis (Moore, 2001). Goodwill industries prohibit material omissions and misstatements of any data that is arranged on behalf or by the organization. Additionally, presentation of cost, accounting and financial data which is misleading is not acceptable. Moreover, financial data accessible to external reports must follow GAAP.
Adequate cost, accounting and financial data should be efficient and effective for the organization’s management, should be reliable in relation to applicable business concepts and should be capable of undergoing auditing. Moreover, adequate cost data must have records which support it so as to gain reimbursement by any government or agencies from which finances are gotten. The prerequisite of adequate information insists that data have sufficient details and be accurate in order to achieve the goals intended (Keeler, 1992).
The financial disclosure statement policy has been introduced by goodwill industries to guarantee the integrity of disclosure of financial, annual statement. The objective of financial disclosure integrates integrity, review of any possible variance of interest between affiliates, officers and board of directors and auditor that can affect the independence of auditors (Keeler, 1992). Another objective is to promote professional competency and ethics standards, performing evaluation of a work product of auditors, and ensure capability of auditors.
All these goals are intended to validate assessment of management of the performance of the organization, business trends and effects of significant accounting estimates and policies. This is highlighted as the crucial feature of annual disclosure of financial statement. This policy is intended to ensure the truth of documents of corporate finances, highlight the imprecision in all activities of reimbursement and ensure immediate remediation and disclosure of any overpayments identified (Keeler, 1992).
The goodwill industries ensure that Ethics Code are adopted and applicable to each and every employee and promotes ethical and honest conduct; averting of variances of interest; timely, fair, accurate and understandable disclosure in the periodic reports of the issuer, and conformance with applicable government regulations and rules. For example, to make sure that the Colorado Springs goodwill industries’ best interests are fulfilled, the organization has introduced a policy of conflict of interest which applies to all employees, officers and directors.
Additionally, the committee will oversee entire financial and other types of disclosures as stated under such a policy (Helms, 2001). Good will industries have a legal policy related to search warrants, subpoenas and other investigations. These policies provide assistance relating to how search warrants, subpoenas and other investigations are handled. This legal policy does not take care of investigations or subpoenas, which a worker may receive and which are not directly linked to their Goodwill employment.
The purpose of the policy is to ensure that goodwill organizations cooperate with external audits, searches and investigations of the government. In case of an inquiry or a visit from an agency of the government related to legal documents, search warrant and subpoena is received, the CCO (Corporate compliance officer) must be notified. This officer will evaluate the document and ensure that follow up action is undertaken, including the legal CEO Counsel being notified (Moore, 2001).
Members of Staff who receive an inquiry or a visit from an agency of the government regarding any Goodwill Industries should direct such a person to the CCO, and must desist from talking about business matters of the Organization with such an individual until and/or unless CCO gives such a directive. Moreover, members of staff served with a subpoena requiring them to testify on a matter linked to their employment must notify the CCO.
The CCO will review the subpoena received immediately and ensure that follow up action is undertaken (Moore, 2001). In conclusion, Goodwill industries ensure that any operation that is carried out by such organization is environmentally friendly. Additionally, such industries have financial experts who ensure that the statements of finance of such organizations are not misrepresented. Therefore, goodwill companies ensure that they employ integrity in all their financial and operational activities.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 29 September 2016
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