How Congreso understands the importance of transparency

by Dario Bellot, Vice-President of Administration

Non-profits in the United States—charitable and educational, civic and religious—represent the most widespread and organized dedication to the American common good. These organizations can work with the community if they have and maintain the public’s trust so, expectations are high. Public concern has grown in recent years around the ethical standards of non-profits, due in part to the media attention surrounding Enron controversies. Bolstering the ethical reputation of non-profits requires a joint commitment from everyone in the public sector. Unethical conduct by one organization jeopardizes public faith in all.

Critics and watchdog groups voiced skepticism about tools used to monitor the fiscal and governance activities of non-profits and foundations. The Federal Government responded with legislation like the Sarbanes-Oxley Act which requires increased accountability and oversight of leaders in all sectors, and changes in the public IRS Form 990. A brief look into the redesign of Form 990 reveals two objectives: (1) enhanced transparency that provides the IRS and the public with a realistic picture of the organization and (2) more accurate reporting of organizational operations in order to allow the IRS to efficiently assess the risk of non-compliance.
In this environment of stronger accountability, Congreso has risen to action with a goal to lead the way within both nationally and locally. Specifically, we have interpreted Sarbanes-Oxley and the redesign of the Form 990 resulting in the following actions:
1. We make information about our operations, governance, finances, programs, and activities openly available through our website, annual report, publications, the public 990 form, etc.

2. We share with staff, funders and Congreso’s supporters the methods that we use to evaluate client outcomes for our programs through our Agency Scorecard, also available on our website and invite any inquiry about our evaluation methodology.

3. Our governing body, the Board of Directors, reviews and approves the organization’s mission, strategic direction, annual budget, audited financial statements , compensation practices for Congreso and its subsidiaries, and governance policies on a regular basis.

4. Our Board demonstrates the strength of its diversity, not only in the ethnic, cultural, and gender identities of its members, but also in the wide range of organizational and financial expertise necessary to advance the organization’s strategic vision. To name a few: , Richard Negrin, Vice President, Associate General Counsel, and a member of the Executive Leadership Council of ARAMARK , appointed by the Mayor of Philadelphia, and confirmed by city council, to be Vice Chair of the new independent Board of Ethics for the City of Philadelphia and recently appointed also as interim Executive Director at the Board of Revision of Taxes for the City. Nick Torres, President of Congreso since 2001, Vice-Chair of the City of Philadelphia Commission on Human Relations and founder of the Eastern North Philadelphia Youth Services Coalition among other initiatives.

Some of the financial expertise of our Board Members includes an understanding of financial statements and generally accepted accounting principles; the ability to assess, suggest and critize financial estimates, accruals and reserve, analysis and evaluation on the preparation and consolidation of the agency annual budget; familiarity with internal controls and financial reporting procedures; and understanding audit committee functions.
Public, funders and partners have been increasingly requesting for higher levels of transparency and accountability in the operation of the organization in the recent years, and Congreso as a multi-service, community-based agency has proactively taken measures to ensure that controls are in place as keys to stong governance. Congreso plays a committed role in the in the climate of growing accountability.

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