Fiduciary Management Plan 2004 Joint Conference of NAELA NGA NCPJ Colorado Springs, CO November 12,

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Fiduciary Management Plan2004 Joint Conference
of NAELA / NGA / NCPJ Colorado Springs,
CONovember 12, 2004

• Presented by the Maricopa County Public
  Fiduciarys Office
• Richard T. Vanderheiden, Public Fiduciary
• Shari Tomlinson, Deputy Public Fiduciary
• Roger T. Coventry, Deputy Public Fiduciary

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Heres What to Expect

• Managing for Results (MFR)
• Quality Assurance and Controls
• Outline of Comprehensive Fiduciary Management
  Plan
• Best Practices, Ideas and Systems

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NovemberThis is one of the peculiarly
dangerous months to speculate in stock
investments
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The others are July, January, September, April,
October, May, March, June, December, August and
February - Mark Twain
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Managing for Results

• Managing for Results-- what is it?
• Strategic or Business Planning
• Development of Mission, Vision, Goals
• Self Evaluation

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Managing for Results (cont.)

• Identification of Services and Key Results
• Development of Performance Measures
• Type of Performance Measures

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Why Measure?

• Organizations can only improve what they can
  effectively measure.
• Measures provide information and knowledge to
  make better decisions.
• Improves customer service.
• Strengthens accountability and motivates
  performance.
• Provides basis for celebration and recognition of
  results

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Types of Measures

• Result
• Output
• Demand
• Efficiency
• Outcome

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Managing for Results (cont.)

• Identification of Services and Key Results
• Development of Performance Measures
• Type of Performance Measures

• Accountability for Results to Stakeholders

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Goal Linkage
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Managing for Results (cont.)

• Identification of Services and Key Results
• Development of Performance Measures
• Type of Performance Measures
• Accountability of Results to Stakeholders

• Use of Balance Scorecard

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Balanced ScorecardMeasurement Areas

• Financial
• Productivity and Timeliness
• Quality of Services
• Professional Experience and Competency
• Client Satisfaction
• Employee Satisfaction

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Financial

• Under Expenditure Budget
• Over Budget Revenue Goal
• Number of Liability Claims and Lawsuits
• Change in Cost Per Case
• Cost Per Number of Citizens Served
• Estate Administration Division was Self
  Supporting
• Department Received Fiscal Fitness Award

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Productivity and Timeliness

• of Court Accountings Timely Filed with Court
• of Annual Guardianship Reports Timely Filed
  with Court
• of Court Inventories Timely Filed with Court
• Average Time to Close Probate Case
• Number of Billable or Accountable Hours per
  Department and Individual
• Successful Gainsharing Plan for Achievement of
  Results
• Department Received Strategic Fitness Award

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Professional Experience and Competency

• Number of Years of Department Fiduciary
  Experience
• Number of Staff Certified by State and National
  Guardianship Foundation
• Education and Training Expenditures as a
  Percentage of Total Payroll
• of Employees Satisfied with Education and
  Training Opportunities

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Ethics and Standards

• State or Local Code of Conduct
• NGA Standards
• National Probate Court Standards
• Communication and In-service Education

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Audit Management

• Policy and Procedure Development Considerations
• External Audit Preparation and Considerations
• Internal Audits and Controls

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Quality Control
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Quality cannot simply be measured at the end of
the project. The end of the project is too late.
Quality happens as the result of a well-managed,
well-organized process.Managing Your
Documentation Projects by JoAnn T. Hackos, John
Wiley Sons, Inc. 1994
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Quality is like buying oats. If you want nice,
clean, fresh oats, you must pay a fair price.
However, if you can be satisfied with oats that
have already been through the horse, that comes a
little cheaper.Author Unknown
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Case ReviewSummary of Financial Issues

• Budget
• Income/Expenditures
• Benefits
• Accounting Balances
• Fees

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Case ReviewSummary of Guardianship Issues

• Diagnosis Issues
• Visits / Assessments
• Guardianship Report Filed
• Key Issues
• Summary of Billable Time

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Question Screen     1. Are all asset values and
locations shown accurately on the
Computrust System? Yes/No?
If No, Please explain.   2. Is there any
litigation or potential litigation connected with
this case? If Yes, please explain.   3. Are
there any particular 'people problems' in this
case? If Yes, Briefly explain.   4. If there
are substantial investable assets, is the
investment objective appropriate and being
attained?   5. Is more than routine attention
necessary in this case? Please explain if not
already described above.    
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Fiduciary Committee Meeting

• Purpose
• How Formed

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Fiduciary Committee Meeting Components

• Minutes
• Follow-up List
• Inventory of All Assets
• T-Code Report
• Un-cashed Checks Report
• Inventory Not on System

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Fiduciary Committee Meeting Components (cont.)

• Judgment and Litigation Reports
• Accountings Due
• Statistics, Revenue and Workload Reports
• Unknown Deposits Report
• Special Investigations

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Multi-disciplinary Staffing

• Purpose
• Functions
• Participants
• Purpose / Reason
• Discussion
• Assignment of Action Items

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Policy Procedure
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Real Property Management Sales Procedures

• Ownership Issues
• Documentation
• Protection
• Valuation
• Liquidation

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Real Property Ownership Issues

• Immediately record your appointment in all
  counties in which you are aware of your client
  having an ownership interest in real property.
• Research title(s)
• On-line recorded documents
• Title work through an agency
• Begin steps to clear title, as needed.

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Real Property Documentation

• Document Date of Appointment Title and Note
  Encumbrances
• What deeds are recorded?
• Any Issues
• How is property titled?
• Impact to your client
• Document any Pertinent Analysis or Decisions Made
  During Your Administration

Documentation is an ongoing task! Your policies
should help drive the documentation.
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Real Property Protection

• Property Insurance Coverage Policy
• See sample policy in materials
• No Insurance memosRisk Analysis
  documentation
• Maintenance
• Impact of Codes, Covenants Restrictions
• Decisions regarding expenditures for repairs
• Protection of Loss through Foreclosure
• Alternatives to Foreclosure

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Real Property Valuation

• Type of Valuation?
• Document reasoning
• When Sale is Imminent
• Appraisalif at all possible
• Issues that Impact Net to Client
• Taxes owed
• Liens/Encumbrances/Code Violations
• Environmental Issues

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Justification Memos

• Policy provides framework for analysis
• Analysis and resulting recommendations are
  documented in your justification memo
• Justification memo details your consideration for
  various interests and the anticipated
  implications of each of your actions
• See sample in materials
• For Real Property Sale or Abandonment

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Real Property Sales(Liquidation)

• Consider Petitioning for Court Approval
• Pros Cons
• Alternative Procedures
• Who makes the decision?
• Policy for Abandonment of Property
• When appropriate?

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Investment Management
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Investment Management

• Investment Policy
• Analysis
• Use of Investment Managers
• Court Approval
• Investment Account Review

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Investment Policy Development

• Prudent Investor Rule
• Client Profile
• Risk Analysis
• Needs Analysis
• Focus on the Process

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Use of Investment Managers

• Internal Expertise v. Liability
• Selection Criteria
• Additional Resources They Offer
• Management Fees
• Service
• Depth
• Ultimate Responsibility is on the Fiduciary

Tip Ask if they will pool the client account
balances to qualify for a break-point on their
management fee.
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Court Approval

• Court ApprovalPros Cons
• Testimony of Investment Plan Manager

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Investment Account Review

• Investment Account Review Committee
• Oversight
• Internal Audit
• Objectives Met?
• Options?

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Fiduciary Management Plan
Putting it All Together
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Fiduciary Management Plan
Putting it All Together
www.maricopa.gov/pubfid/default.asp