Continuous Quality Improvement Plan

11 US Route 206, Suite 100 Augusta, NJ 07822

2013 – 2014 Revised 2/14/2013

SCARC, Inc. 11 US Route 206, Suite 100 Augusta, NJ 07822 973-383-7442

Continuous Quality Improvement Plan

The business of providing services for people with intellectual / developmental disabilities is experiencing rapid change as with all aspects of the service industry. Services to persons with disabilities are becoming subject to financial efficiencies, new technologies, funding reductions, an increase in professionalism and an increase in responsiveness to service customers. Persons with disabilities and their families are becoming more selective and more specific in their service requirements. Family members want to be assured that the services which are provided are in fact quality services, which results in family satisfaction. The disabilities arena no longer simply wants a place that will provide families with respite during the day and where people can be protected from harm. In the midst of this rapid change, more and more persons, families, and communities are demanding that disability service recipients will be enabled and supported to engage in working, living and recreating in natural integrated community settings.

The Mission of SCARC, Inc.

SCARC is committed to providing its services to persons with disabilities in a community integrated atmosphere utilizing professional and natural supports. SCARC’s Mission Statement summarizes the seriousness of focus of the Board of Trustees, Administration, and Employees of our organization.

SCARC, an organization serving people with developmental disabilities, is dedicated to the empowerment and support of persons with developmental disabilities and their families. The organization will facilitate partnerships with community resources, assist in maximum community participation, promote individual planning based on choices, preferences and needs, and foster the development of socially valued roles for each person served.

With such an important Mission and noble vision, SCARC intends to maintain a continuous quality improvement strategy in order to better serve persons who are involved with SCARC. This Plan is essentially our Strategic Plan. SCARC will establish an approach to service delivery that constantly reevaluates the concept of quality, as well as seeks to improve a vision of quality in the future. We will constantly challenge ourselves to continuously and constantly improve the quality of services provided to people with disabilities. We will continuously improve the outcome of services which are provided. Furthermore, we will constantly implement a method of identifying the changing expectations for quality in keeping up with the ongoing changes in service technology and in organizational management. A copy of SCARC’s Mission Statement and its explanation and elaboration is attached as Appendix A.

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The concept of Continuous Quality Improvement Plan captures our attention to improving the processes, products and services of our organization. SCARC will develop an obsession with quality outcomes for each individual served. New methods will be implemented to empower employees to work to achieve the mission of Continuous Quality Improvement. Everything that is done at SCARC will be directed to providing Continuous Quality Improvement and the achievement of individual goals and outcomes for each person served. The Goals of SCARC, Inc. The beginning of the Continuous Quality Improvement process at SCARC will be noted by the establishment of goals for the entire organization. The following goals have been established by the Board of Trustees and administrative staff to represent seven areas of general emphasis for the operation and organizational health of the SCARC Organization.

2013-2014 Goals and Objectives

Goal No. 1a - Based on assessed needs, resources and priorities, SCARC will maintain (if appropriate) and improve current programs and services.

Goal No. 1b - Based on assessed needs, resources and priorities, SCARC will foster the development of new resources for individuals with disabilities and their families.

Goal No. 2 - SCARC will assure the financial health of the organization.

Goal No. 3 - SCARC will develop, promote, recruit and retain quality staff through opportunities for personal and professional growth.

Goal No. 4 - SCARC will assure effective management of the organization.

Goal No. 5 - SCARC will promote to the public a better understanding of intellectual / developmental disabilities and of the activities of the Association.

Goal No. 6 - SCARC will coordinate its activities to assure achievement of outcome measures for people.

Goal No. 7 – SCARCs’ Board of Trustees will plan for its continuous quality improvement.

The goals which are established by the SCARC Board of Trustees are supported by the Mission statement of our organization. Together, the Mission Statement and the Goals statement create a unity of purpose and a clear direction for the organization. Measurable objectives are established to flow from each of the seven goal statements. These objectives are established by a joint strategic planning meeting of the Board of Trustees and the Senior Administrative Staff. The strategic planning goal setting session occurs in March of each year for the subsequent fiscal year. The goals and objectives become the heart of the Annual Strategic Plan of the agency. Each objective is accompanied by a projected date of accomplishment, the responsible administrative staff for accomplishing the objective, and an objective rating system whereby achievement of the objective is noted. Quarterly reports to the Board of Trustees result in a Board discussion of the rate of achievement of the goals and objectives for the year. The strategic planning document is tailored for a one-year period beginning July 1st of each year. Monitoring the achievement of goals and objectives is a major foundation for SCARC’s Continuous Quality Improvement process. As goals and objectives are discussed throughout the year, staff and the Board are essentially discussing the Continuous Quality Improvement Plan, which is essentially our SCARC Strategic Plan. SCARC’s Goals and Objectives are attached in Appendix B.

Who are SCARC’s Customers? Becoming customer driven implies that an organization is clear about who its customers are. With the knowledge of its customers, an organization not only is able to seek their input and respond to their needs, but also is able to anticipate their future desires. Because of its unique nature, SCARC has many customers. The following customer groups exist at SCARC. 1. The persons who are served in SCARC programs. Persons with developmental disabilities who are served by SCARC are our major customer group. Such persons receive residential, employment, recreation and community services support. SCARC’s Individual Habilitation Planning process is designed to benefit this primary customer group. SCARC services are specifically designed to meet the particular needs and interests of persons within this customer group. SCARC is committed to a Person Centered planning philosophy as well as to an Interdisciplinary Team support philosophy. 2. Families of persons who are served. SCARC is a family-centered organization in that we believe that a person with disabilities comes to SCARC as a member of a family who desires the best services for their family member with disabilities. SCARC was formed by parents of children with disabilities and continues to be supported by family members. The majority of the members of the Board of Trustees are parents or family members of a person with developmental disabilities. Family members are an integral part of the Interdisciplinary Team, and relationships with family members are encouraged and solicited for every person served in a SCARC service. 3. Other agencies. Many other agencies in the Sussex County and in the New Jersey Community are customers of SCARC. The New Jersey Division of Developmental Disabilities is the largest agency customer of SCARC services. SCARC contracts with the New Jersey Division of Developmental Disabilities to provide an array of services to persons with developmental disabilities. SCARC also contracts with the Department of Community Affairs for some SCARC services. In addition to these state agencies, many Sussex County agencies interface with SCARC activities. Many agencies refer people with disabilities to SCARC for services. SCARC solicits support from many agencies and SCARC is committed to establishing partnerships with community resources in Sussex County. 4. Suppliers. Agencies that embrace a Continuous Quality Improvement program understand that developing strong relationships with suppliers will improve our business operation. SCARC knows that to be most effective, we must utilize the support of suppliers based on their ability to provide quality products and services and also to become involved in the financial support of the SCARC organization. 5. The public. The Sussex County Community benefits from the SCARC organization. Services provided to persons with developmental disabilities in our county result in a greater appreciation for persons with disabilities in Sussex County by Sussex County citizens. It is the intention of the SCARC organization to offer a positive impact on all aspects of Sussex County life, including opportunities for work, recreation, and for residential life. We believe that the overall quality of life in Sussex County can be positively impacted by the SCARC organization, and therefore it is important that the public image of the SCARC organization be highly regarded among Sussex County

citizens. Public relations and fund raising efforts will foster the enhancement of a positive Sussex County image.

6. SCARC Employees. Employees of SCARC are considered internal customers of the overall organization. The employee customer concept is not ordinarily thought of in terms of a customer focus. It is the intention however, at SCARC, to focus on the satisfaction of employee customers in terms of working conditions, compensation and benefits, employment policies, fairness and equality, employees place in the overall SCARC Mission, and a general feeling that SCARC is a great place in which to work. Employee satisfaction on the job will lead to a higher quality of services to persons that are served by SCARC. A disgruntled employee will quickly lead to the spread of negative attitudes and to a decrease in the focus on SCARC’s Mission.

SCARC employees are a team of professionals and paraprofessionals who are highly trained and who are encouraged to focus on the people that are served by SCARC. Employees are a vital part in the achievement of SCARC Goals and Objectives and without committed employees, SCARC would not function with a high degree of excellence and quality. In a real sense, the quality of life of the people that we serve is dependant on employee intervention and support of such persons.

7. SCARC Board of Trustees. As the governing body of SCARC, the Board of Trustees is the entity ultimately responsible for the over-all operation, mission, functioning of the organization. The Board is entrusted with this responsibility by the New Jersey Secretary of State, to carry out the mission of SCARC for the public good.

The satisfaction of the Board in carrying out this mission is of paramount interest. The Board is annually surveyed as to this satisfaction and feed-back as to “how things are going.”

SCARC’s Annual Agency Evaluation

It is imperative that goals and objectives are not established in isolation from the input and evaluation from various customer groups which are served by SCARC. Organizations which implement Continuous Quality Improvement programs are noted for staying close to their customers. This customer obsession creates a customer focused attitude that permeates the organization and underlies everything that is done within the organization. There is an emphasis on active listening to customers and appreciating their input. There is also an emphasis on responsiveness to customer needs and recommendations.

SCARC’s responsiveness to customer needs begins with an Annual Agency Evaluation. The Agency Evaluation process begins each January. The process gathers data through the use of questionnaires from various customer groups including parents/families, persons served by SCARC, agencies which interface with SCARC, employees of SCARC, the Board of Directors of SCARC and other designated customer groups. It is through the process of Agency Evaluation that SCARC is able to determine if the outcomes that it has been trying to achieve have in fact been accomplished. The ultimate measure of SCARC’s performance is the extent to which the Association is helping people with developmental disabilities to realize outcomes in their lives, which in turn measures the extent that SCARC is enhancing the quality of the services and supports they receive. It is important that the Agency Evaluation and data gathering process begins prior to the strategic planning meeting in March. SCARC’s Agency Evaluation questionnaires are distributed in January and February. The results are then compiled and consolidated and are then distributed to the strategic planners at the March goal setting meeting. The results of the surveys are also distributed to those survey participants. Copies of recent survey documents are attached as Appendix C. SCARC’s Agency Evaluation Policy (A.2) is attached as Appendix D.

SCARC’s Commitment to Outcome Based Performance Measures

SCARC is committed to the principle that quality must be built into services and supports when they are designed. Services and supports must be designed around the individual from the beginning of the planning process. Quality cannot be solely achieved through compliance to prescribed standards. Quality is related to the achievement of outcomes and outcome performance measures.

SCARC is committed to the pursuit of outcome based performance measures as defined by The Council on Quality and Leadership and by CARF, and as published in Outcome Based Performance Measures, a publication of The Council on Quality and Leadership, and by CARF in its publication, Employment and Community Services Standards Manual. Outcome measures focus on outcomes for people rather than on the organizational processes that contribute to the outcomes. Outcome based performance measures are determined based on assessments of thousands of persons with disabilities. A list of the outcome measures for people are attached as Appendix E. The 30 Outcome Measures as defined by The Council on Quality and Leadership relate not only to people with disabilities, but to people in general.

SCARC’s Continuous Quality Improvement program embraces the pursuit of outcomes for people as a measure of the quality of the status of SCARC programs as well as a description of the process utilized in pursuit of quality. To the extent that outcomes are present in the lives of people who are served by SCARC, they will define whether or not SCARC is successful in providing quality services. SCARC’s Continuous Quality Improvement Program examines, on a regular basis, the organizational processes that contribute to outcomes. Changes in services and supports, and training and education for staff, should be based on an analysis of programs and processes that most contribute to achievement of outcomes for people. In order to assure itself of meeting national quality standards, SCARC will periodically pursue National Accreditation through CARF.

SCARC, Inc. 11 US Route 206, Suite 100 Augusta, NJ 07822 973-383-7442 The Board’s Role in Continuous Quality Improvement

Any organization’s Board of Directors plays a vital role in overall survival of the organization. The SCARC Board of Trustees is entrusted by the New Jersey Secretary of State with the responsibility to assure that the SCARC Certificate of Incorporation and its purposes are upheld in the community. Although the ultimate legally responsible party for the survival of SCARC is state government, it is the responsibility of our local Board of Trustees, to assure that the agency operates in accordance with the desires of the Board, and in concert with legal parameters imposed by state and Federal governments.

It is the responsibility of SCARC’s Board of Trustees to establish and maintain its Bylaws, to develop the purposes for the organization, to develop a mission and vision for the organization, to establish annual goals and objectives, and to assure that the organization is operated in accordance with prudent management principles. It is also the obligation of the Board to assure that the organization operates legally. Since the Board allows for the employment of staff, the working conditions at SCARC must be congruent with state and federal labor laws.

It is the responsibility of the Board to establish a mission and vision for the agency. Even though most Boards create a vision and mission in concert with administrative staff members or its varied customers, the Board has a responsibility to envision the major roles for the organization. The Board of Trustees is also a guardian of organizational values. The Board must create the values which relate to its operation, its mission, its programs and support services, and its role in the community. Although at times the focus on values can lead to a predominant internal focus, the role of governing boards must take on an external focus. The Board must assure a market-like external customer responsiveness. As such, the SCARC Board is outcome-driven and is more interested in the needs and markets outside of the agency than with the internal issues of operational mechanics. These are left to administrative and employee roles.

Because the SCARC Board meets on a monthly basis, it has ample opportunities to monitor the ongoing operations of the organization. There is also a vital opportunity to interface with Executive level staff that meets with the Board. SCARC’s Continuous Quality Improvement process then is interrelated with the Board’s decision-making governance responsibility. As administrators report to the Board on a monthly basis as to the services and supports which exist throughout SCARC, Board Members are able to identify whether or not its services and supports are congruent with its mission and stated purposes.

It is the Board’s responsibility to employ a Chief Executive Officer. It is the Chief Executive Officer’s responsibility to employ all other necessary staff to achieve the goals and objectives established by the Board. It is the Chief Executive Officer’s responsibility to assure that sufficient funds are available to operate SCARC programs in the pursuit of quality services for persons with developmental disabilities served by SCARC.

It is the responsibility of the Board to establish policies for the organization to use in providing services to people with disabilities. The details of carrying out the policies are the responsibility of the Chief Executive Officer and his staff.

As prescribed in the Bylaws of SCARC, the Board of Trustees is responsible for the election of officers, the approval of the annual operating budget, the employment of the Chief Executive Officer, the compliance with the Constitution and Bylaws of the Arc of New Jersey and the Arc of the United States, and to assure that purposes of the organization as originally itemized in the Certificate of Incorporation are upheld. The Board also assumes the role of overall monitor of the activities and services within SCARC. As such the Board is intimately involved in SCARC’s Continuous Quality Improvement of services.

Organizational Compliance Leading to Continuous Quality Improvement

As a non-profit organization operating in the state of New Jersey, SCARC must comply with various regulatory agencies within the state and federal government. The following is a list of regulatory arrangements to which SCARC must be registered.

1. SCARC is registered with The New Jersey Department of State and must file an annual report filing form which reports changes in Board Officers on an annual basis.

2. SCARC also must maintain an active Certificate of Incorporation with The New Jersey Department of State which reflects the original purpose of the organization as well as the registered name of the organization.

3. SCARC maintains a registration with the Charitable Registration Section within the Office of Consumer Protection, Department of Law and Public Safety. An annual registration statement is submitted to Charitable Registration, and such a statement indicates SCARC’s compliance to charitable regulations and to fundraising practices.

4. SCARC also is registered with the Legalized Games of Chance Control Commission, Division of Community Affairs, Department of Law and Public Safety. This enables SCARC to be a Qualified Organization to engage in Games of Chance including raffles, and other appropriate fund raising activities.

5. On a federal level, SCARC is registered with the Internal Revenue Service, Department of the Treasury as a Tax Exempt Organization within the parameters of the Internal Revenue Code, Section 501(c)(3) and Section 509(a)(2). Since SCARC is an affiliate member of the Arc of New Jersey, the Arc of New Jersey holds a Group Ruling within the Internal Revenue Service which affects all of the chartered local Arc units in New Jersey. As a result of the Internal Revenue Service tax exempt status, SCARC must submit an annual report, Form 990, to the IRS. Form 990 compiles information about the financial activity of a non-profit organization.

6. SCARC is also in compliance with Internal Revenue Service regulations regarding SCARC’s 401K plan, and SCARC’s Health Insurance Plan for employees.

7. SCARC is a member of The Arc of the United States and a member of The Arc of New Jersey. It holds a charter from The Arc of the Untied States and serves the jurisdiction of Sussex County, New Jersey. As such, no other Arc agency will be permitted to operate within the confines of Sussex County, New Jersey.

8. SCARC is an agency which holds approved contracts with the New Jersey Department of Human Services, the New Jersey Department of Labor and Industry, the New Jersey Department of Community Affairs, Department of Children and Families, and formerly was an approved non-public school by the New Jersey Department of Education. SCARC also contracts with the Sussex County Board of Chosen Freeholders, Department of Human Services. SCARC also is an approved agency to provide housing services under the jurisdiction and contractual arrangement with the United States Department of Agriculture, Rural Development Administration (formerly Farmers Home Administration), and HUD. In addition, several municipalities within Sussex County contribute to the SCARC operation.

9. SCARC operates its residential services in accordance with standards for licensed community residences for the developmentally disabled (NJAC 10:44A). The purpose of the New Jersey Administrative Code, 44A is to provide for the “overall improvement of the Quality of Life for individuals residing in community residences for the developmentally disabled.” SCARC is committed to adhering to these standards and to cooperating with licensing staff who visit each residential program on an annual basis. Deficiencies noted during the inspection process will be reviewed and ameliorated. In addition to the licensing standards, SCARC is committed to operating its residential programs consistent with local building and fire codes and other applicable local laws. A copy of NJAC, 44A is attached as Appendix F.

10.SCARC operates its Day Habilitation and Adult Training programs in accordance with the New Jersey Division of Developmental Disabilities “Standards for Adult Day Programs” manual, most recently published in 2007. SCARC is committed to compliance with all applicable rules, regulations, standards, and Division Circulars.

SCARC, Inc. 11 US Route 206, Suite 100 Augusta, NJ 07822 973-383-7442 Continuous Quality Improvement For SCARC Employees

A vital component of SCARC’s overall Continuous Quality Improvement program is the role of employees in the Quality Improvement Process. SCARC employees are an integral part of the success in our pursuit of excellence and the pursuit of the quality of life for persons served by SCARC. Without dedicated and committed staff members, SCARC’s Quality Improvement Process would not be what it is.

An Organizational Chart presents the design for employment arrangements at SCARC. The SCARC Board of Trustees employs a Chief Executive Officer who is empowered to employ all other staff members for the purpose of achieving the goals of the organization. The quantity and type of staff member depends on the various goals and objectives within SCARC, and certainly is contingent upon funding availability. SCARC’s Organizational Chart is attached as Appendix G.

All SCARC staff are trained in accordance with a substantial training program established throughout the agency. SCARC’s policy and procedure concerning Employee Development and Staff Training (C.8) outlines the methods and procedures designed to prepare employees to perform their assigned jobs in a competent manner and to outline procedures pertaining to staff training and professional growth. A copy of SCARC’s Employee Development and Staff Training Policy (C.8) is attached as Appendix H.

SCARC employs a Senior Coordinator of Training as part of its Human Resources Department. The Training Coordinator is responsible for securing and providing training for all staff members in conjunction with requirements of the New Jersey Division of Developmental Disabilities. Beyond the basic training parameters of the Division, SCARC employees are trained in a variety of specialized topics. Such trainings are designed to provide continuous learning and re-learning of subject and skill areas so that employees will be better able to participate in SCARC’s Continuous Quality Improvement program. All trainings are designed to improve services which are provided to persons served by SCARC.

SCARC also is committed to a pro-active Employee Performance Appraisal System. The purpose of Employee Performance Appraisals is to document the quality of performance for the sake of determining an employee’s continued employment. The Performance Appraisal will indicate to the employee how the employee might improve performance in designated areas and to show the employee the areas of strength and exceptional performance. All employees are apprised of their employment performance at least once annually. Performance Appraisals are based on observed behavior and professionalism. The results of a Performance Appraisal will be used to determine merit wage increases.

A copy of SCARC’s Employee Performance Appraisal Policy (C.7) is attached as Appendix I.

All employees receive a Job Description and a List of Duties which the employee is expected to fulfill. All employees also design goals and objectives for employment growth related to the job assignment. During the Performance Appraisal, the employee and a supervisor review the Job Description, the goals and objectives, and job performance. The Performance Appraisal interview is part of SCARC’s overall Continuous Quality Improvement program. All employees are encouraged to actively participate in the Performance Appraisal process, thus having an integral part of the determination of job performance. One main purpose for the Performance Appraisal System is to improve services to people served by SCARC.

Supporting Employees in a Continuous Quality Improvement Program

A consistent message in Quality Improvement is that people are the primary source of an organization’s success. “There are no limits to the ability to contribute on the part of a properly selected well trained, appropriately supported, and above all, committed person.” (Tom Peters, Thriving on Chaos) Several strategies are in place at SCARC to underscore the importance of the role of employees in our Continuous Quality Improvement program.

1. SCARC enhances the dignity and value of all employees. Staff members who feel valued and who are engaged in their work perform better. Personnel who are actively committed to their jobs, focusing on achieving desired outcomes, and are closely aligned with a mission and values of SCARC, reach for greater levels of performance than those who view their work as merely a job. Also, employees who feel devalued by their employers cannot perform on the job with a sense of contribution to the mission. SCARC’s commitment to Continuous Quality Improvement requires that various strategies be implemented to enhance the dignity and value of all employees.

2. SCARC promotes teamwork and supports self-directed work teams. Teamwork is a key to the success of a Continuous Quality Improvement program. SCARC’s administrative team meets frequently to implement and monitor the Goals and Objectives established by the Board. SCARC’s Board of Trustees acts as a united team to support the mission of our organization. Program staff members work together as teams to support various components of the agency. Employee teams are involved in reviewing our agency’s strategies, developing new visions for agency energies, and other team assignments.

3. SCARC invests intense resources in recruiting, selecting, orienting and training staff.

4. SCARC eliminates internal communication barriers and promotes communication throughout the agency. Such activities are designed to increase employee commitment and contribution to the mission of the agency. A committed SCARC employee is highly motivated to work for the agency and to support persons with disabilities who are served by the agency. The resulting outcome of such an emphasis is the constructive and positive feedback from staff members.

SCARC, Inc. 11 US Route 206, Suite 100 Augusta, NJ 07822 973-383-7442 Monitoring SCARC Programs & Services

In addition to customer satisfaction survey efforts, and the annual Agency Evaluation, there are several opportunities throughout the year for monitoring of SCARC programs. The process of monitoring SCARC programs allows interested stakeholders to review various components of SCARC programs to assure quality, and to confirm that efforts are being made to continuously improve the quality of services.

One of the roles of SCARC’s Safety Committee is to review program locations in the light of safety issues and safety and health policies. Although the physical building of each program location shall be inspected monthly by the program supervisor/manager, the role of the Safety Committee is to inspect each program location at least annually for safety concerns. In so doing, the Safety Committee will be able to determine if unsafe conditions may lead to reducing the quality of services provided. Utilizing a safety check list, committee members will assure that a Continuous Quality Improvement process is in place regarding safety.

The SCARC Board of Trustees Safety Committee will inspect SCARC’s residential Group Homes, Day Program facilities, and Administrative Office Building on an annual basis to assure that the asset value of each property is maintained. The Safety Committee will be comprised of Board members who will then report back to the Board their findings and recommendations. Physical facility improvements and repair needs will be suggested. It will then be the responsibility of the Chief Executive Officer and staff to achieve the recommendations of the Safety Committee.

SCARC’s administrative staff will constantly inspect SCARC property as a regular component of administrative visits and meetings in various program locations. Deficiencies or recommendations will be noted and referred to SCARC’s Director of Facilities, Transportation and Risk Management. It will be the Director of Facilities, Transportation and Risk Management responsibility to follow through on any suggestions for physical home/program improvements or repair needs. An ongoing system of repair and maintenance is implemented to assure that a Continuous Quality Improvement process is in place.

SCARC has established a Human Rights Committee which functions in the capacity of a reviewing body that can make recommendations, which the committee feels best, to support the human rights of each individual served by SCARC. The Human Rights Committee will review and monitor incidents of rights violations, potential human rights issues, the Individual Habilitation Plan process, rights reviews for individuals served by SCARC, the use of chemical and physical restraints, the general prevalence of psychotropic medications used at SCARC, and the general accessibility of persons served by SCARC services. Members of the Human Rights Committee will represent SCARC administrators and staff members, individuals with disabilities, family members, and interested members from the community. In addition, an observer from the Division of Developmental Disabilities as well as representatives from the public will also serve as members.

SCARC, Inc. 11 US Route 206, Suite 100 Augusta, NJ 07822 973-383-7442 Continuous Quality Improvement Financial Management

It is imperative that the SCARC organization operates in a manner that is financially efficient and in accordance with financial management policies and procedures. This will enable SCARC to maintain a high degree of financial health. In fact, one of the annual goals is that SCARC will assure the financial health of the organization. Numerous policies and procedures have been developed to assure that the SCARC organization will be managed in a quality manner in light of its financial priorities. Without financial management principles in place, the SCARC organization may quickly drift into chaos.

The foundation for sound financial management principles is the establishment of a Business and Financial department within the SCARC organization. SCARC’s Chief Financial Officer supervises SCARC’s financial operation. SCARC’s business office oversees such general areas as employee payroll, accounts payable, accounts receivable, cash receipts, budgeting, financial reporting, computer systems, the organization and safeguarding of SCARC assets and inventories, insurance, banking and investments, risk management, contract management as well as relationships with funding sources.

The process of budgeting for SCARC is a year round process. Although a budget is developed for each fiscal year prior to the beginning of the fiscal year, the monitoring of the budget is continuous. Monthly budgeting reports are submitted to the Board for its review. Monthly budgeting reports are also submitted to various funding sources. Quarterly budget reports are also prepared for certain purposes.

The annual SCARC budget is an integral part of the overall SCARC Strategic Planning Process. After SCARC establishes goals and objectives, which are based on the Annual Agency Evaluation, a budget is developed to meet the stated goals and objectives for the year. Annual budgets are submitted to various funding sources for review, comment, and approval. The budget commencement occurs at the beginning of the fiscal year, July 1, and is concomitant with the commencement of goals and objectives for the year. The SCARC Board of Trustees Finance Committee and the Board of Trustees reviews the annual budget prior to its final submission to various funding sources.

An important aspect of SCARC’s Continuous Quality Improvement program is the constant monitoring of finances, expenditures, revenues, and needs. This is done at the administrative level, and also done at the level of each program location. Program budgets are communicated to each program supervisor, and the supervisor with administrative staff monitor the expenditure of funds throughout the year. Monthly reports are developed for administrator review concerning the comparison of budgets, expenditures, revenues and deficit management. From time to time throughout the year, funds are transferred from one account to another in order to assure that there are sufficient funds to meet program needs.

Budget modifications occur throughout the year when new programs are brought on board or when new funds become available. Program modifications are prepared and approved by funding sources. Overall, budget modification approvals come from SCARC’s Chief Financial Officer and Chief Executive Officer. The SCARC budget is fine-tuned throughout the year in order to assure that there is a Continuous Quality Improvement monitoring in place. Mid- course corrections are an often used strategy.

Other examples of important Continuous Quality Improvement processes include the following:

1. Monthly reviews of SCARC bank accounts including check reconciliations. 2. Monthly reviews of employee benefit accounts including SCARC’s Pension Plan, SCARC’s Health Insurance Plan, and other employee benefit accounts. 3. An annual review of SCARC’s overall agency inventory. 4. A quarterly review of SCARC’s insurance policy coverages. 5. A monthly review of SCARC’s workers compensation insurance claims. 6. A continuous review of employee leaves of absence. 7. A semi-monthly review of employee benefit time use. 8. Annual reviews of employees’ performance, in relation to stated organizational goals. 9. Annual reviews of SCARC’s internal policies & procedures. 10.A monthly review of DDD capital and major maintenance funding.

Probably the most important Fiscal Management control in SCARC’s Continuous Quality Improvement process is the Annual Audit. The SCARC Board of Trustees engages a Certified Public Accounting Firm to perform its Annual Audit. The Annual Audit is performed in August and September of each year and the audit report certifies the status of SCARC assets, liabilities, and fund balances as of the end of the Fiscal Year, June 30th. The Annual Audit also is an analysis and review of SCARC Financial Management Policies and Procedures and tests for compliance to Generally Accepted Auditing Standards and Generally Accepted Accounting Principles.

SCARC is required by its government funding sources to engage in an Analysis of Internal Controls and compliance with Office of Management and Budget Circular A-133, OMB Circular 98-7, and other government auditing standards. SCARC’s accounting firm additionally reviews the SCARC finances in terms of the federally required Single Audit Standards. Ideally, the results of SCARC’s Annual Audit will indicate that there are no material weaknesses in internal controls as well as no non-compliance issues which are material in relation to the Financial Statements of SCARC. The accounting firm also prepares and submits the annual IRS Form 990, the annual NJ Charities Registration Annual Report, and assorted other federal and state reports.

Continuous Quality Improvement

Appendices

Appendix A………………………….. SCARC’s Mission Statement Explained & Elaborated

Appendix B...... SCARC’s Goals and Objectives

Appendix C...... SCARC Agency Evaluation Surveys

Appendix D...... SCARC’s Agency Evaluation Policy (A.2)

Appendix E...... CQL Outcome Based Performance Measures

Appendix F...... NJ Administration Code, 10:44A

Appendix G...... SCARC Organizational Chart of Employees

Appendix H...... SCARC’s Employee Development and Staff Training Policy (C.8)

Appendix I...... SCARC’s Employee Performance Appraisal Policy (C.7)