In order to meet all the oversight requirements from the Internal Revenue Service and other governmental agencies, the firm provides compensation reviews. These are performed utilizing information obtained from peer agencies, salary surveys, and other regulatory guidelines and they help protect agencies and schools from penalties associated with excessive compensation.
If your agency is subject to Executive Order #38 you may be required to utilize comparative salary information for key employees.
There is also a requirement under Form 990 for Not-for-Profit organizations as follows:
Internal Revenue Service: Form 990 Part VI Governance, Management and Disclosure
Section B: Policies Question 15: Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a. The organization’s CEO, Executive Director, or top management official?
b. Other officers or key employees of the organization?
If “Yes” to line 15a or 15b, describe the process in Schedule O.
“We provide independent surveys to Board of Directors in order to meet requirements and assist in the approval of bonus and salary increases for staff. These decisions must be documented and supported to be allowable.”