Arizona Adaptive Watersports Whistleblower Policy

This is the Whistleblower Policy of Arizona Adaptive Watersports, an Arizona nonprofit corporation (the "Corporation") adopted by the Board of Directors of the Corporation on August 31,2018.

In keeping with the policy of maintaining the highest standards of conduct and ethics, Corporation will investigate any suspected fraudulent or dishonest use or misuse of Corporation's resources or property by staff, board members, consultants, or volunteers. This Whistleblower Policy is intended to provide a mechanism for the reporting of illegal activity or the misuse of Corporation assets while protecting the employees who make such reports from retaliation.

Staff, members of the Board of Directors, consultants, and volunteers are encouraged to report suspected fraudulent or dishonest conduct (i.e., to act as "whistleblower"), pursuant to the procedures set forth below.

Questionable Conduct

This policy is designed to address situations in which an employee, volunteer, officer or member of the Board of Directors has a reasonable suspicion that another person has engaged in illegal acts or questionable conduct involving the Corporation's assets or activities. This conduct might include outright theft (of equipment or cash), fraudulent expense reports, misstatements of any accounts to any manager or to Corporation's accountants, or even an employee's conflict of interest that results in financial harm to Corporation. The Corporation encourages people to report such questionable conduct and has established a system that allows them to do so anonymously.

Reporting

A person's concerns about possible fraudulent or dishonest use or misuse of resources or property should be reported to his or her supervisor or, if suspected by a volunteer, or the staff member supporting the volunteer's work. If, for any reason, a person finds it difficult to report his or her concerns to a supervisor or staff member supporting the volunteer's work, the person may report the concerns directly to the President or any member of the Board of Directors. Alternately, to facilitate reporting of suspected violations where the reporter wishes to remain anonymous, a written statement may be submitted to one of the individuals listed above.

Definitions

Baseless Allegations: Allegations made with reckless disregard for their truth or falsity. Individuals making such allegations may be subject to disciplinary action by Corporation, and/or legal claims by individuals accused of such conduct.

Fraudulent or Dishonest Conduct: A deliberate act or failure to act with the intention of obtaining an unauthorized benefit. Examples of such conduct include, but are not limited to:

  • Forgery or alteration of documents

  • Unauthorized alteration or manipulation of computer files

  • Fraudulent financial reporting

  • Pursuit of a benefit or advantage in violation of Corporation's Conflict-of-Interest Policy

  • Misappropriation or misuse of Corporation resources, such as funds, supplies, or other assets

  • Authorizing or receiving compensation for goods not received or services not performed

  • Authorizing or receiving compensation for hours not worked

Improper Activities: Prohibited conduct includes, but is not limited to, the following improprieties that should be reported:

  • Supplying false or misleading information on the Corporation's financial or other public documents, including its Form 990

  • Providing false information to or withholding material information from the Corporation's Board of Directors or accountants

  • Destroying, altering, mutilating, concealing, covering up, falsifying, or making a false entry in any records that may be connected to an official proceeding, in violation of federal or state law or regulations

  • Altering, destroying, or concealing a document, or attempting to do so, with the intent to impair the document's availability for use in an official proceeding or otherwise obstructing, influencing, or impeding any official proceeding, in violation of federal or state law or regulations

  • Embezzling, self-dealing, private inurement (i.e., the Corporation's earnings inuring to the benefit of a director, officer, or senior management) and private benefit (i.e., the Corporation's assets being used by anyone in the organization for personal gain or benefit)

  • Paying for services or goods that are not rendered or delivered

  • Using remarks or actions of a sexual nature that are not welcome and are likely to be viewed as personally offensive, including sexual flirtations; unwelcome physical or verbal advances; sexual propositions; verbal abuse of a sexual nature; the display of sexually suggestive objects, cartoons, or pictures; and physical contact of a sexual or particularly personal nature.

  • Using epithets, slurs, negative stereotyping, and threatening, intimidating, or hostile acts that relate to race, color, religion, gender, national origin, age, or disability

  • Circulating or posting written or graphic material in the workplace that denigrates or shows hostility or aversion toward an individual or group because of race, color, religion, gender, nationality, age, or disability

  • Discriminating against an employee or potential employee due to a person's race, color, religion, sex, sexual orientation, national origin, age, physical or mental impairment, or veteran status

  • Violating the Corporation's Conflict-of-Interest Policy Facilitating or concealing any of the above or similar actions

Whistleblower: An employee, consultant, or volunteer who informs a supervisor or the chief executive about an activity relating to Corporation which that person believes to be fraudulent or dishonest.

Rights and Responsibilities

Supervisors are required to report suspected fraudulent or dishonest conduct to the President or to any member of the Board of Directors if the President is involved in the conduct. Reasonable care should be taken in dealing with suspected misconduct to avoid:

  • Baseless allegations

  • Premature notice to persons suspected of misconduct and/or disclosure of suspected misconduct to others not involved with the investigation

  • Violations of a person's rights under law

Due to the important yet sensitive nature of the suspected violations, effective professional follow-up is critical. Supervisors, while appropriately concerned about "getting to the bottom" of such issues, should not in any circumstances perform any investigative or other follow-up steps on their own. Accordingly, a supervisor who becomes aware of suspected misconduct:

  • Should not contact the person suspected to further investigate the matter or demand restitution

  • Should not discuss the case with attorneys, the media, or anyone other than the chief executive or member of the Board of Directors

  • Should not report the case to an authorized law enforcement officer without first discussing the case with the chief executive

Investigation

All relevant matters, including suspected but unproved matters, will be reviewed and analyzed, with documentation of the receipt, retention, investigation, and treatment of the complaint. Appropriate corrective action will be taken, if necessary, and findings will be communicated to the reporting person and his or her supervisor. Investigations may warrant investigation by independent persons such as auditors and/or atorneys.

Whistleblower Protection

The Corporation will use its best efforts to protect whistleblowers against retaliation. Whistleblowing complaints will be handled with sensitivity, discretion, and confidentiality to the extent allowed by the circumstances and the law. Generally, this means that whistleblower complaints will only be shared with those who have a need to know so that Corporation can conduct an effective investigation, determine what action to take based on the results of any such investigation, and in appropriate cases, with law enforcement personnel. Should disciplinary or legal action be taken against a person or persons as a result of a whistleblower complaint, such persons may also have the right to know the identity of the whistleblower.

Employees, consultants, and volunteers of Corporation may not retaliate against a whistleblower for informing management about an activity which that person believes to be fraudulent or dishonest with the intent or effect of adversely affecting the terms or conditions of the whistleblower's employment, including but not limited to, threats of physical harm, loss of job, punitive work assignments, or impact on salary or fees. Whistleblowers who believe that they have been retaliated against may file a written complaint with the President or any member of the Board of Directors. Any complaint of retaliation will be promptly investigated and appropriate corrective measures taken if allegations of retaliation are substantiated. This protection from retaliation is not intended to prohibit supervisors from taking action, including disciplinary action, in the usual scope of their duties and based on valid performance-related factors.

Whistleblowers must be cautious to avoid baseless allegations as described earlier in the definitions section of this policy.

SECRETARY'S CERTIFICATE

I, the undersigned officer of Arizona Adaptive Watersports, an Arizona nonprofit corporation (the "Corporation"), do hereby certify that the foregoing Whistleblower Policy is a true and correct copy of the Whistleblower Policy of the Corporation adopted by the affirmative vote of the Directors of the Corporation on August 31, 2018.

IN WITNESS WHEREOF, I have hereunto set my hand on August 31, 2018.

Bryan Church, Secretary