Evaluating your co-op manager
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1 June 17, 2013 Evaluating your co-op manager When co-ops sign a contract with a person to be their co-op manager, the contract usually includes a provision to conduct an evaluation of the service. This tool is a template co-ops can adapt for use in their co-op to conduct these evaluations. The purpose of the evaluation is to: acknowledge good service improve service if necessary, and resolve any problems identified by the co-op or the staff. This process should be a quest for continuous improvement in the management of the co-op and in doing so help to strengthen the governance. The evaluation of your manager should be completed by the Board of Directors or a subcommittee of the board. The board (or sub-committee) should set aside one meeting per year to go through this evaluation tool and a separate meeting to discuss with your manager the outcomes of this process. Your manager should have sufficient notice of this meeting date and receive a copy of the completed evaluation in advance so they can come to the meeting prepared to discuss any issues they might have and propose solutions to any problems identified by the board. This evaluation tool has been set up to follow the Core Management Standards for co-op housing. It is intended to help the board focus on the services the co-op receives from its manager and prepare the board for its annual evaluation meeting with the manager. Remember you are evaluating the service your manager provides! t all of the questions in the tool may be applicable to the job that your manager does so review it carefully and compare it to your manager s job description/contract. For example, in the section titled Managing the finances, if your co-op hires a separate bookkeeper then the questions about preparing monthly financial statements would not apply and should not be used in evaluating the manager s performance. (Those questions could be used by the manager in evaluating the bookkeeper s performance.) Make sure you evaluate each area of responsibility in the manager s job description. It is important to note and mention those tasks that are well done. For areas that performance does not meet expectations, make sure you discuss with the manager the possible reasons and how the performance may be improved. The board should be looking for specific outcomes from the duties it has assigned to the manager. This tool will assist the board in identifying those outcomes and how the outcomes relate to their expectations. There are a series of questions that when answered by the board will assist you in assigning a rating for that standard. 1
2 Remember, the annual evaluation does not replace ongoing communication with staff. Regular feedback between the board and staff will keep the relationships in good stead. When completing the tool, it is important to provide comments that explain the rating you have assigned as these will be the basis for your discussion with management. When using this tool please use the ratings of: exceeds expectations (EE) when the service the co-op receives is exceptional, meets expectations (ME) when the service the co-op receives is what was asked for in the job description/contract does not meet expectations (DNME) when the service the co-op receives is not fulfilling the duties listed in the job description/contract. The information gained from the tool will then be used to fill out the final evaluation form which gives an overall rating of your manager s performance in meeting each of the Core Management Standards. In summary, the following are the steps involved in the evaluation process: Step 1 - The board of directors (or sub-committee) meets and completes the Co-op manager evaluation tool. Step 2 - The board of directors (or sub-committee) summarizes the information gained from completing the evaluation tool and completes the Co-op manager evaluation form. Step 3 - The board gives a copy of the completed evaluation form to the manager and sets a date to meet with the manager to discuss the evaluation. Step 4 Meet with your manager to discuss the evaluation and receive feedback from your manager. Your manager should be encouraged to add any comments or observations they have to the evaluation form. Step 5 - Make a plan to follow up on any recommendations or directives that come out of the evaluation process. CHF Canada, Members of CHF Canada may use this information. This material is not to be used or copied by others without the express, written consent of the Co-operative Housing Federation of Canada. À l'heure actuelle, ce règlement n'est disponible qu'en anglais. Les membres de la FHCC devraient communiquer avec la Région de l'ontario de la FHCC pour demander une traduction. 2
3 Co-op manager evaluation tool Managing the finances 1. The manager s services in preparing and presenting the monthly financial statements to the board of directors. (do not use if you have a separate bookkeeper) Did you receive financial statements (including balance sheet, income statement, arrears report, and cheque register) each month in your board package in advance of the board meeting? Were the statements in a format that was easy for you to read and understand? Were the financial statements accurate? If you had questions about the financial statements was the manager able to answer your questions? 2. The manager s services in collecting housing charges and reporting arrears to the board of directors in accordance with the co-op s Arrears Policy. Did you receive an Arrears Report monthly? Was the Arrears Report up to date and accurate? Was your Arrears Report in a format consistent with your Arrears By-Law/Policy? (eg. If your Arrears By-Law/Policy states that if a member pays late x times in a year they are considered chronically late and will be issued a tice to Appear, does the report tell the Board how many times the Member has paid late this year?) Did the manager send late notices to members who did not pay on time as outlined in the Arrears By-law/Policy? 3
4 If the co-op s Arrears By-law/Policy provides for late charges were these charges applied consistently? 3. The manager s services in administering the RGI program including the timely processing of the Annual Income Review. Before you assign a rating you might want to consider the following: Were there concerns from members or your Auditor regarding the calculation of housing charges? Did your Auditor or funder (Service Manager or The Agency) indicate any concerns about the documentation in the member files for calculation of RGI assistance? (eg. Missing or incomplete documentation) Was the Annual Income Review completed on time? Did the manager send notices of changes in housing charges in a timely manner? If you are a federally funded co-op, did your co-op use more RGI Assistance than you received from CMHC? 4. The manager s services in administering the Spending By-law/Policy. Did all of the co-op s expenditures have appropriate approvals? Were the co-op s bills paid on time to avoid late charges? Were competitive quotes obtained for purchases in accordance with your Spending By-Law/Policy? 4
5 Were overages in budget categories reported on in accordance with your Spending By-Law/Policy? 5. The manager s services in maintaining adequate cash flow. (This may not be an issue for all co-ops and can be eliminated if the co-op does not have a cash flow issue) Does the board receive a Cash Flow Projection from the manager regularly? (i.e. Monthly or quarterly) Does the co-op have enough cash to pay its bills? Does the board receive information from the manager about outstanding invoices the co-op owes each month? Does the manager advise the board in advance if cash flow is going to be a problem? Does the manager propose solutions for cash flow problems? Can the manager explain to the board the cause of any cash flow problems? Does the manager propose investing surplus money sitting in the co-op s operating account? 6. The manager s services in drafting and presenting the Operating and Capital budgets. (do not use if this is the responsibility of the Bookkeeper) Before you assign a rating you might want to consider the following: Does the manager propose to the board an operating budget with any necessary market housing charge increases annually? Can you understand your operating budget in the format that the manager presents it? 5
6 Can the manager answer questions you have about the proposed operating budget? Does the manager propose to the board a capital budget annually? Does the proposed capital budget follow your co-op s BCA in recommending capital replacements? Can you understand your capital budget in the format that the manager presents it? 7. The manager s services in following the co-op s Investment By-Law for investing the capital replacement reserve. Does your manager refer to your Replacement Reserve Fund study when making recommendations to the board about investing surplus funds? Does your manager invest funds in accordance with the co-ops Investment By- Law/Policy and any pertinent legislation? (eg. HSA) Does the board receive regular reports about the co-op s investments? 8. The manager s services in filing required financial reports as outlined by the coop s funding program. Are your Audited Financial Statements and AIR filed to your funder (Service Manager or The Agency) by the deadline each year? Does the board review the Audited Financial Statements and AIR annually before they are filed? 6
7 If your co-op is a project in difficulty, does your manager file any extra reports that are required? (eg. monthly financial Statements, monthly monitoring reports etc.) Comments on Managing the Finances: 7
8 Keeping the co-op in good repair 9. The manager s services in advising the board on property matters. Does the board receive monthly property management and maintenance activity reports? Is the board advised promptly if there are any safety hazards identified on the property? Does the manager make sure that life safety requirements are met? 10. The manager s services in developing a routine and preventative maintenance plan. Does the co-op have a work order system that accurately tracks the work that has been completed and the work that is currently outstanding for all the units? Does the co-op respond in a timely manner to work requests submitted by the members? If applicable, does the manager meet the agreed to standards for maintenance and cleaning? Does the manager follow the co-op s preventative maintenance plan and recommend changes to the plan as appropriate? 8
9 11. The manager s services in ensuring the units, common areas and grounds are inspected annually. Are the inspections completed each year? Does the board receive a report on the items identified through the inspections as co-op responsibilities? Does the board receive regular updates on the status of the required repairs identified through the annual inspections? 12. The manager s services in ensuring a capital plan is developed and kept up to date. Does the co-op have a current building condition assessment (BCA)? Does the board review the BCA annually? Does the co-op have a reserve fund study? Does the board review the reserve fund study annually? Are the BCA and reserve fund study used to complete the capital budget each year? 9
10 Comments on Keeping the co-op in good repair: 10
11 Keeping the co-op full 13. The manager s services in developing a strategy to maintain full occupancy of the co-op. Does the board receive monthly vacancy and marketing reports? Are units quickly restored to market ready condition after move-outs? Does the manager have a marketing plan to fill units that are vacant? Are move-outs, internal moves and move-ins co-ordinated in order to minimize vacancy loss? Do all members sign Occupancy Agreements before they move into units? (Internal moves and new members) Do all new members make necessary payments before they move in? Are new members promptly welcomed and orientated to the Co-op? Comments on Keeping the co-op full: 11
12 Meeting the co-op s legal requirements 14. The manager s services in ensuring that the co-op meets its legal requirements. Does the board receive reports on legal issues as they arise? Does the co-op have adequate insurance coverage? Are insurance claims reported promptly as events occur? Are the co-op s corporate records and minute book kept up to date? Are audited financial statements and required reports filed on time to appropriate government agencies? Are notices of change in directors reported on time to Ministry of Government Services each time there is a change in your board of directors? If the co-op is processing an eviction, does the lawyer receive all the information required in a timely manner? Does the co-op comply with all program rules, the Co-operative Corporations Act and all other laws that apply to the co-op? Does the co-op protect the privacy of personal information? Comments on Meeting the co-op s legal requirements: 12
13 Supporting good governance 15. The manager s services in supporting good governance in the co-op by the board and membership. Does the board receive a management report each month that contains information and recommendations that assist in making sound decisions for the co-op? Does the manager help the board plan effective members meetings and ensure meeting notices are distributed on time? Does the manager help to organize a board orientation each year? Does the board receive information from the manager about other training opportunities available to them throughout the year? Does the manager help the board organize an annual planning session? Comments on Supporting good governance: 13
14 Office and staff administration 16. The manager s services in ensuring the efficient administration of the co-op s office and its systems and for supervision of other staff of the co-op. Does the manager ensure that effective office systems and administrative procedures are in place and followed? Does the manager forward correspondence as appropriate to the board or others and responds or assists with board response as required? Does the manager hire, orient, supervise and evaluate other staff? Does the manager maintain personnel records and administer the employee benefits program? Does the manager maintain the required Workers Safety and Insurance Board records and prepare claims as necessary? Does the manager report to the Board quarterly on personnel matters? Comments on Office and staff administration: 14
15 Co-op manager evaluation form Name of co-operative: Name of manager: Date of evaluation meeting: Period of evaluation: To 1. Managing the finances: Rating: Exceeds Expectations Meets Expectations Does t Meet Expectations Reasons for the rating given: 2. Keeping the co-op in good repair: Rating: Exceeds Expectations Meets Expectations Does t Meet Expectations Reasons for the rating given: 15
16 3. Keeping the co-op full: Rating: Exceeds Expectations Meets Expectations Does t Meet Expectations Reasons given for rating: 4. Meeting the co-op s legal requirements: Rating: Exceeds Expectations Meets Expectations Does t Meet Expectations Reasons given for rating: 5. Supporting good governance: Rating: Exceeds Expectations Meets Expectations Does t Meet Expectations Reasons given for rating: 16
17 6. Office and staff administration: Rating: Exceeds Expectations Meets Expectations Does t Meet Expectations Reasons given for rating: Signatures & Comments: Any further general comments by the board: This report is a fair and accurate assessment of the manager s performance during this review period. Board Signature: Title: Date: Manager s Signature: Date: I have read this report and discussed it with the board of directors. Comments by the manager: 17
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