Pub. 4 2014-2015 Issue 2

24 Succession planning is not just for board members, but includes key management personnel as well. Confidence in management is not limited to the board only, but key management positions such as executive director/principal, finance director, business manager and others. As boards provide governance, set policies and develop the mission of the school, the key management personnel are responsible for carrying out that direction. Without solid key management, the best of boards most likely will not succeed. Why is specific succession planning important? It provides a pre-approved structure for replacing decision makers outside of a vacuumwhen the position becomes available. Many times when these positions become available, there can be ascen- sions to fill this spot. It occurs that without a due process, a rushed method may be employed to fill the spot for a variety of reasons. However, an approved, methodical approach to fill the spot with a qualified, motivated individual is in the best long-term interests of your organization. An approved approach can also eliminate the emotional or biased approach to replace an individual. Further, specifically for charter schools, there are other reasons this is important. Should your school desire to apply for the Utah Charter Finance Authority’s “Credit Enhancement Program” seeking the State’s Moral Obligation to enhance your municipal bonds, which provides a huge advantage in lowering the interest rate on the bonds, the Applicant, as specifically outlined in the Credit Enhancement Application, “shall have in place sound and detailed management policies and practices, adopted by its board, which guide all aspects of financial, debt, and risk management, including policies dictating minimum reserve and coverage levels, and post issu- ance compliance requirements. The Board should also have S uccession planning for any organization is essential. Many of us to believe that we are indispensable to our organization and that without our involvement our organization will surely fail. However, believe it or not, many will continue forward beyond our involve- ment. Having a proper succession plan will provide comfort not only to the leadership of the organization, but also to the parents, employees, creditors, those who rely on the services of your organization, those who send monies for your utilization and other third parties who interact with your organization. Succession Planning – Why This is SO Important! BY DAVID ROBERTSON, VICE PRESIDENT - LEWIS YOUNG ROBERTSON & BURNINGHAM, INC.