Greg:  This is PKF Texas, the Entrepreneur’s Playbook.  I’m Greg Price, Director of Consulting Solutions and I’m here again with Sonia Freeman, a director and our audit practice leader at PKF Texas.  Sonia, welcome back to the Playbook.

Sonia:  Thank you, Greg.

Greg:  Sonia, the last time you were here we had you talking about some of the exposures and corrections of mistakes and so forth and so on as it pertains to 401(K) plan.  As it pertains to operational mistakes, can we talk about how one might correct and go about preventing these in the future?

Sonia:  Correction is the key when you have operational mistakes to getting your plan back on track and back in compliance with all of the rules and regulations that we previously spoke about.

Greg:  Some people probably don’t know where to start, Sonia.  So can you give some advice on that?

Sonia:  Well, if a company finds themselves with an operational mistake, our advice is that they seek ERISA counsel for consultation.  Both the DOL and the IRS offer voluntary correction programs and if you entered one of these programs, the penalties and interest and fines that are associated with that are substantially reduced.

Greg:  So can you give us a little bit about what that might entail if you go down that particular process?

Sonia:  What it means is a company needs to make the plan whole, make the employees in the plan whole.  So that means if you had a mistake where the money didn’t get into the plan timely or maybe it never made it into the plan.  The company needs to put that money into the plan, but also for the time period that it should have been there and is not, they have to pay an interest factor and it’s not an onerous.  It’s a market type rate.  So they just basically make the plan whole.  That’s what the DOL wants.  That’s what the IRS wants.

Greg:  So what can we do to help avoid these types of mistakes?

Sonia:  Well, ya’ know, Greg, mistakes will happen, but the way to avoid most of them and to try to prevent as many as possible is to really know your plan document and to make sure that your HR and your payroll folks, that they are familiar with the plan provisions as well.

Greg:  So Sonia, our listeners, there’s probably some administrators of these plans and people that have oversight responsibilities.  What’s the best advice you can give them regarding this area?

Sonia:  The best advice is know your plan.  Know the plan document.  Know the provisions of your plan and then put in a review process.  A lot of times it’s a single person doing the tasks and just having a layer of review, having somebody do the calculation and somebody review it or if it’s on timeliness, just having two sets of eyes looking at that.  So I think with that control in place and knowing your plan document, you will go a long way to not having operational mistakes.

Greg:  Sonia, thanks for sharing that insightful and very informative background on employee benefit plans.  I’m sure our listeners will be scurrying about looking for that.

Sonia:  Thank you for having me, Greg.

Greg: Alright.  We’ll have you back some time in the future.  This has been another Thought Leader Production brought to you by PKF Texas, the Entrepreneur’s Playbook.  Tune in next week for another chapter and if you’d like to get more information about employee benefit plans, go to PKFTexas.com/benefitplanaudits.

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Karen:  This is the PKF Texas Entrepreneur’s Playbook.  I’m Karen Love, Director of Practice Growth and the topic of today’s playbook is about women in business.  Again, today my guest is Lisa Shumate, the Executive Director and General Manager of Houston Public Media.  Welcome back, Lisa.

Lisa:  Thank you.  Glad to be here.

Karen:  Well, today I’d like for you to talk to us about your experience with women on boards and out in the community and I think you had a unique way of explaining why you think women are a great asset to boards.

Lisa:  Well, I see so much progress of women rising in the ranks, running companies and in all fields and I think the missing piece is the corporate boards.

Karen:  Mm-hmm.

Lisa:  And my question is if you think about the consumers out there, half of the consumers look through the lens of being a male consumer and the other half, a female consumer.

Karen:  Right.

Lisa:  So why would you want to have a board that isn’t distributed that way so you can look at your consumers through both lenses?

Karen:  Right.

Lisa:  So I think that’s a very compelling reason and really important reason for companies to expand their boards and really be proactive about having women in those chairs.

Karen:  I like that.  So you avoid the monovision technique for sure.

Lisa:  That’s right.

Karen:  I think that’s great.  Well thank you for sharing that with us and we look forward to talking to you again if you’ll come back.

Lisa:  Love to.

Karen:  Thank you.  Well this has been a Thought Leader production and it’s brought to you by PKF Texas, the Entrepreneur’s Playbook.  So tune in next week and we’ll get to hear another exciting chapter.  Thank you for joining us.

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Leisa: Hello. I’m Leisa Holland-Nelson, and welcome to PKF Texas – Entrepreneur’s Playbook. I’m today’s guest host, and with me is Mary Bottie, former Motorola executive and current board member for Flexsteel Industries. Mary’s in Houston visiting the Greater Houston Women’s Chamber of Commerce Conference for Women, and you’ve been talking about some interesting statistics about women in the workplace and women on boards. How are things changing today, Mary?

Mary: Well, things are changing in that more women are being invited into the boardroom, not as quickly as we like – about 5 percent increase since 2002 when I started on a board of directors. But what I see coming in the future is more and more companies are putting retirement restrictions on their board members, which weren’t there before. So what I believe we’re gonna see is more and more openings on those boards and more opportunity for women to enter.

Leisa: Thank you, Mary. This has been a Thought Leader Production brought to you by PKF Texas – Entrepreneur’s Playbook.

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Greg: This is PKF Texas, the Entrepreneur’s Playbook. I’m Greg Price, director of Consulting Solutions, and I’m here with Sonia Freeman, a director and our audit practice leader at PKF Texas. Sonia, welcome to the playbook.

Sonia: Thank you, Greg.

Greg: So, Sonia, there’s been a lotta discussion around employee benefit plans, 401Ks, and the potential for operational mistakes. Most people don’t know what that is. Can you explain what an operational mistake is?

Sonia: Absolutely. We see lots of operational mistakes, but an operational mistake is when a company has a plan document and they’re not following their plan document.

Greg: So are there common mistakes that companies make?

Sonia: Yes, we see a number of common mistakes. A lot of these will probably register with you, timely remittances of participant deferrals, incorrect use of the definition of “compensation,” in the plan document versus what we normally think of as compensation. Those can be different, so you have to be careful in that. Incorrect calculation of employer matches, and, also, incorrect calculations of vestings. That is just a very short list of many common mistakes that we see.

Greg: Wow, that sounds like you can get into some trouble in a short period of time. If I experience some of these, am I doomed?

Sonia: It depends. If a company ignores these problems, then, yes, you can have some very stiff penalties and fines that are associated to the company who sponsors the plan.

Greg: So how would one either oversee or police these benefit plans?

Sonia: Well, you have both the IRS and the Department of Labor, the DOL, who both have responsibilities of oversight and enforcement of that. And one of the things that is really kind of interesting is that we might think that they are really trying to make it difficult for companies, but it really isn’t the case. They really are looking to make sure that companies are in compliance with their plan documents.

Greg: Wow. This sounds like an area where we’re gonna have to have to you back to talk some more about it in the future. Will you join us on that?

Sonia: I’d be happy to. Thank you.

Greg: Great. We’ll have you back on the playbook. This has been another Thought Leader production brought to you by PKF Texas, the Entrepreneur’s Playbook. Tune in next week for another chapter. And if you’d like to get more information about employee benefit plans, go to PKFTexas.com/BenefitPlanAudits.

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Karen: This is the PKF of Texas, Entrepreneur’s Playbook. I’m Karen Love, Director of Practice Growth and we’re talking about women in business, and my guest today is Susan McEldoon. She’s the President and General Manager of KHOU, and Susan, I’d like to welcome you to the Playbook.

Susan: Thank you, Karen. Thank you for having me.

Karen: The question I’d like for you to share the answer to is about women on corporate boards and the effectiveness of the boards when women are present. Do you have any insight on that?

Susan: My observation is that women are actually less compromising on issues having to deal with principles and ethics, but far more compromising when it comes to dealing with the practical issues. I think a woman tends to know that there are more than one right way to do something, and so, instead of impeding progress, they’re willing to set their own opinion aside, if they can get to the same end result.

Karen: Well, Susan, that’s a really interesting perspective, and really sounds effective. So do you have any other thoughts on that?

Susan: I think some of this is just part of a woman’s DNA, but it’s also part of our life experience. We grow up in a home; we watch our mothers managing the households, raising the children. In my case, my mother was a full-time nurse; and compromise, finesse; letting people win, it’s all part of keeping life’s harmony. So as more women enter the workforce and are attaining these positions of power, I think that it’s just natural then for them to bring these practical life experiences into the workplace.

Karen: Fantastic. Well, you agree with Carnegie Mellon and their study, then, that’s obvious.

Susan: I do.

Karen: Well, fantastic.

Susan: Absolutely.

Karen: Thank you for joining us today and I appreciate your insight. This has been a Thought Leadership Production, brought to you by the PKF Texas, Entrepreneur’s Playbook. Tune in next week for another chapter.

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Karen: This is PKF Texas, The Entrepreneur’s Playbook, and I’m Karen Love, Director of Practice Growth. And the topic of today’s Playbook is the growing number of women in business leadership positions. We call it Women in Business 2.0. My guest today is Lisa Shumate. She’s the Executive Director and General Manager of Houston Public Media. Welcome back.

Lisa: Thank you, Karen. Happy to be here.

Karen: Thank you for being here. You know, a recent study that I was reading in the Wall Street Journal quoted the Carnegie-Mellon and MIT groups as saying that on corporate boards, if you have a woman participating in the board that – you know, we talked in the past about – there’s usually a financial increase. But now, I’ve heard that groups come to more of a compromise and a consensus more quickly when women are involved. Those aren’t my words; that was part of the study. Are you seeing that in groups that you’re a part of?

Lisa: Well, what I see is it really matters about the leadership of the board. And if the leadership of the board can get everyone to see a win-win, compromise happens. I think the main reason to have women on the board is that women represent half the population. And so, really, your product is going to be out there. Shouldn’t you have your board representative of the people consuming your product? But, do I believe that women on boards make the whole board act more effectively because of that input? Absolutely.

Karen: Wonderful. Well, that’s a great insight, and so you agree with Carnegie. That’s for sure.

Lisa: I certainly wouldn’t disagree with Carnegie.

Karen: Well, thank you for your insight. This has been a thought leader production brought to you by PKF Texas, The Entrepreneur’s Playbook. Tune in next week for another chapter.

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Greg: This is PKF Texas, the Entrepreneur’s Playbook. I’m Greg Price, director of Consulting Solutions, and I’m here again with Michael Veuleman, a director in our audit practice at PKF Texas. Michael, welcome back to the playbook.

Mike: Thank you, Greg.

Greg: So Michael, the last time you were here, we had you talking about employee benefit plans, and some of the things that have come forward is that the employers or these plan sponsors have some type of potentially fiduciary liability, and there might be some high level actions that could be taken to limit exposures. What’s your feedback on that?

Mike: Well, Greg, I would say that it’s imperative that every plan sponsor establish an investment or administrative committee. If a plan sponsor becomes part of the litigation, it will be very important that this committee has minutes which summarize key decisions at the plan level.

Greg: So Michael, naming officers is just not enough for this.

Mike: Absolutely. Having this committee is a good start, but this committee will need to meet from two to four times a year to really be an effective committee.

Greg: So I would assume there are some topics that this committee has to address as part of their responsibilities.

Mike: Right. This committee typically decides matching percentages, plan amendments, investment review selection, as well as insuring participant education and monitoring of their service providers to ensure that they’re providing services at reasonable expense ratios. However, the most important factor that this committee has responsibility for is providing the minutes that cover their actions.

Greg: So Michael, it sounds like this is very complex and kind of scary. So where would someone go to get assistance to help them with this stuff?

Mike: As I’ve mentioned before, most service providers have the ability to provide assistance. There are also consultants that specialize in areas such as cost analysis, investment review, benchmarking, and many others. But what’s most important is that this plan sponsor be proactive in reaching out to these advisors rather than weighing on the advisors to contact them.

Greg: Michael that was some really great information. Thanks for sharing that with us today.

Mike: You’re welcome.

Greg: I’m sure this is a topic we’ll be bringing up again in the future. This has been another Thought Leader production brought to you by PKF Texas, the Entrepreneur’s Playbook. Tune in next week for another chapter. If you’d like to get more information the subject of employee benefit plans, go to PKFTexas.com/BenefitPlanAudits.

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On March 18, 2013 I joined 50 of my fellow Partner Power International Team members and probably 300 other volunteers from the Microsoft Convergence Convention to travel to the Gentilly neighborhood of New Orleans. I approached this day with some skepticism of whether we would be welcomed, and quite frankly, could we make a difference.

I couldn’t have been more wrong.

This video shows a nice summary of the day.

My particular project was building a 1,000’ fence for young children to play ball in at the Hope Community Center in Gentilly. Pay attention to the 1:54 mark to 2:00 mark and see the transformation of that field. In addition, our Microsoft volunteers accomplished the following in one day:

• Tree Planting
  •  Volunteers planted 160 trees spanning a twenty block radius
•  Neighborhood homes
  •  Painted one neighborhood home and landscaped 6 residential homes
•  Hope Community Center
  •  Built 2 Decks outside the Community Center
  •  Painted outside wall of gym
  •  Sided one of the outdoor buildings
  •  Senior Lounge in Gym – finished dry wall, painted and installed drop ceiling inside and out
  •  Stained and sealed stairway to existing computer lab
  •  Painted and installed new flooring in boys and girls gym bathrooms
  •  Repainted Concession Stand in Gym
•  Food Pantry – painted pantry, plus built and installed new shelves for the pantry which currently serves approximately 100 people per month – and the work done will enable an increase in service – PLUS – the local food bank had quit servicing this pantry because it didn’t meet code – now services will be reinstated
•  Painted all trim and interior doors in the community center gym Painted 3 art murals and one hand print (featuring all of the Convergence Volunteers) throughout the Gym
•  Sponsored two frame packages and completed one house for New Orleans Habitat for Humanity

At the conclusion of the day, I was emotionally impacted by the course of the success from all our volunteers.  I should have known better and realized that yes, we could, and did make a difference for these people.  I have been touched in a way that I cannot describe, but I know from now on if I have an opportunity to help like this I will always now, “Lead from the front.”

As New Orleans has a special place in my heart, I will try and visit the Hope Community Center in the future. I know they welcome me as one of their own.  As the song says, “I will be there to catch you this time so you won’t fall.”

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If you asked your employees or team how do you measure up on these points, what would they say?   Their answers may or may not surprise you.

Let me hear from you on your thoughts about these deadly sins.

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Karen: This is the PKF Texas: The Entrepreneur’s Playbook®. I’m Karen Love, Director of Practice Growth and we’re talking about women in business today. Any my guest today is Susan McEldoon, President, and General Manager of KHOU in Houston. Susan, welcome to the Playbook.

Susan: Thank you. It’s nice to be here.

Karen: Thank you. I wanted to talk to you in comparison to the industry that I’m in and directors within the accounting industry and women in your industry. I know that we’re increasingly having more women that are managing partners. And I was wondering how that’s playing out in your world.

Susan: Sure. Well most TV stations in the United States are owned by either the broadcast networks or big media companies like Bi-Lo or Meredith or Post-Newsweek, Gannett.

Karen: Right.

Susan: And what I have found that has really changed in the last five years is the number of women that are actually running these companies.

Karen: Right.

Susan: In fact my CEO is a woman in Dallas that runs Bi-Lo. There is a woman that runs the NBC O&O station group. There’s a woman now that runs the Post-Newsweek group.

Karen: Fantastic.

Susan: So this is a really nice change.

Karen: It really is. Well thank you for sharing that. And if you have any more thoughts on that we’d love to have you back.

Susan: Thank you.

Karen: Thank you. This has been a Thought Leader production brought to you by the PKF Texas: The Entrepreneur’s Playbook. Tune in next week for another chapter.

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