American National Standard

CAUTION NOTICE: This American National Standard is permitted to be revised or withdrawn at any time. The procedures of the American National Standards Institute require that an action be taken to reaffirm, revise, or withdraw this Standard no later than five years from the date of publication. Purchasers of American National Standards receive current information on all Standards by calling or writing the American National Standards Institute.

This AMC Standard was developed by AMC Institute. The American National Standards Institute (ANSI) recognized AMC Institute as the AMC Standard Developer on March 28, 2000. ANSI approved the AMC Institute AMC Standard in April 2002 and re-approved the revised AMC Institute AMC Standard in May 2008.

Foreword

Members of AMC Institute have developed a Standard of Good Practices for the Association Management Company industry. The purpose of this Standard is two-fold: (1) to collectively enhance management practices across Association Management Companies (AMCs) and (2) to assist AMCs in the establishment of internal quality service systems.

AMCs that conform to the Standard communicate to present and prospective association clients — as well as the marketplace at large - a commitment and ability to deliver the highest services to clients as demonstrated in their performance polices, and procedures.

Further, AMC Institute offers an AMC Accreditation Program closely linked to this Standard. AMCs that can demonstrate the adoption and good use of internal quality service systems, from policy statements to clearly outlined performance requirements and procedures, are eligible to apply for AMC Institute Accreditation.

AMC Institute will take into consideration the request for appropriate revisions to this Standard. Requested changes will be vetted through the AMC Institute Standard Advisory Task Force and through a public review process as per AMC Institute's Standard Procedures and ANSI's Essential Requirement Procedures. AMC Institute's Standard Advisory Task Force will also review any requests for interpretations or appeals related to the Standard.

The first two sections (Scope and Definitions) are meant as background information to serve as a guide for sections 3 through 13.

1.	Scope
1.1	This Standard establishes requirements that provide a measurement for practices that are utilized by all sizes and types of Association Management Companies (AMCs) in order to enhance the performance of the AMC and its staff.
1.2	This Standard establishes requirements that each individual AMC is permitted to use to create its own measurables. An AMC's compliance with this Standard will depend on its adoption and implementation of its own definitions, procedures, and policies as they relate to each element in this Standard.
2.	Definitions
2.1	Association Management Company (AMC): A for-profit professional service company that manages two or more associations, societies, foundations, or other types of organizations.
2.2	Client Team: Employees of an AMC who work together with a particular client or clients.
2.3	Performance Policy Statement: A compilation of documents adopted by an AMC containing the procedures it has in place, which will cause it to be in conformance with this Standard.
2.4	Performance Service Systems are internal processes (described in sections 3 through 12 of this document) that must be developed, documented, and operational by an AMC. When these systems are in place, an AMC: 2.4.1 Ensures that a client's needs are identified and the services to be provided by the AMC are agreed upon by the AMC and the client; 2.4.2 Requires regular feedback from clients; 2.4.3 Provides for understanding and a prompt response to clients' needs and reasonable requests; 2.4.4 Supports a staff personnel training and development program; 2.4.5 Fosters an organizational culture embracing professional performance attributes; and 2.4.6 Controls costs, improves efficiency, and promotes prompt performance of quality services to the client.
3.	Client Contracts: Review Procedures and Requirements
3.1	AMCs shall maintain written agreements with their clients whenever feasible:
3.2	AMCs shall adopt client contract review procedures, which shall ensure that all contractual requirements are acceptable to the client and the AMC before the AMC agrees to provide services to the client. This includes written service commitments ensuring that service and service delivery processes meet the client's needs and expectations.
3.3	AMCs shall adopt and document internal procedures to coordinate the periodic review of client contracts and their amendments.
3.4	AMCs shall adopt procedures specifying how client contracts are amended and ensuring that changes in the contract are communicated through the AMC organization.
3.5	AMCs shall establish transition procedures that at a minimum include the following: 3.5.1 A Time Table to include the closing or transferring of all accounts, shipment of client materials, and notification to members. 3.5.2 A list of clearly defined responsibilities of current AMC, volunteer leaders and new management. 3.5.3 Established procedures as well as fees and charges for agreed upon services that may be rendered following termination. 3.5.4 A process and timeline for the shipment of materials in an organized manner, with clearly marked files. 3.5.5 The methodology to be used for timely notification to all vendors of management change. 3.5.6 An outside audit by a CPA of the financial records immediately after the transfer of financial responsibilities; or, if no audit is authorized, a release in writing from the client Board that they will accept the financial records as transferred.
4.	Servicing the Clients and Service Delivery Procedures
4.1	AMCs shall establish service policies and service delivery systems that include the following characteristics. 4.1.1 Quantity and types of services to be provided; 4.1.2 Competence and knowledge of staff servicing the client; 4.1.3 Service accessibility and availability; 4.1.4 Service speed and accuracy; 4.1.5 Ability to increase and expand services for the client with appropriate staff; 4.1.6 Ensure that the client is the focal point of the policy; 4.1.7 Emphasize the importance of customer satisfaction; 4.1.8 Provide an internal communication policy that emphasizes performance of service; 4.1.9 Measure the performance of the service and service delivery processes against established objectives; 4.1.10 Establish methods to improve performance.
4.2	AMCs shall establish responsibilities owed to the client and assign authority to staff for implementation.
4.3	AMCs shall establish a system of internal communication including, as appropriate, briefings, meetings, memos, email, reports, and telephone conversations with staff on the client team.
4.4	AMCs shall establish a system of communication with clients including staff communication and interaction, reaction to client expectations and comments, and information about the AMC and the services being provided.
4.5	AMCs shall establish procedures to correct or prevent failures to perform as they are identified by the client or the AMC.
5.	Project (Service) Completion, Reviews, and Post-Contractual Procedures
5.1	AMCs shall adopt methods for clients to use to evaluate the performance of AMC services, including methods for measuring client satisfaction.
5.2	AMCs shall adopt an internal measuring system that evaluates service performance and provides a basis for identifying areas where performance needs improvement.
6.	Financial Management and Internal Controls
6.1	AMCs shall establish procedures that ensure that the most recent year-end financial statements present fairly, in all material respects, the financial position and changes in net assets, and that cash flows at year-end are in conformity with generally accepted accounting principles (GAAP) as determined by the American Institute of Certified Public Accountants or corresponding organization for internationally based AMCs.
6.2	AMCs shall establish procedures that ensure financial control and reporting systems, which conform to GAAP, are in place and utilized as appropriate.
6.3	AMCs shall adopt a written policy that prohibits co-mingling of any and all client assets with AMC or any other client assets.
6.4	AMCs shall adopt written policies and procedures to protect the privacy and integrity of client's proceedings, records, and data.
6.5	AMCs shall adopt policies to ensure disclosure to clients of all income received from commissions, finders' fees, and other sources directly attributable or related to such clients.
6.6	AMCs shall propose to Client Boards the need for an outside independent review or audit of all financial transactions and records by a qualified third party (CPA or non-US equivalent). The recommendation should be noted in the Board's formal minutes. If the Board approves the audit, it will be paid for by the Client.
6.7	AMCs shall propose to Client Boards the need for General Liability and Association Professional Liability Insurance (APLI) Policies; if declined, a release in writing from the client Board indicating that they declined to pay for this insurance coverage shall be executed.
7.	Insurance Coverage
7.1	AMCs shall have in place a comprehensive insurance program that provides the following minimum coverage where such coverage is available in the state or country where the AMC has its headquarters.     Minimum Amount or Recommendation for AMC to determine amount based on the suggested criteria. 7.1.1 Commercial General Liability $1,000,000 7.1.2 Property (including property in transit) Full value of property 7.1.3 Valuable Papers Full value to reconstruct 7.1.4 Employee Dishonesty For both AMC and client property 7.1.5 Money and Securities Maximum amount of cash on hand including convention receipts 7.1.6 Computer Equipment and Data Full value of equipment and reconstruction of data 7.1.7 Non-Owned and Hired Auto Liability $1,000,000 7.1.8 Worker's Compensation Minimum amount based on each state's regulations 7.1.9 Errors and Omissions $1,000,000
8.	Employee Recruitment and Selection
8.1	AMCs shall adopt a procedure for creating, reviewing, and updating employee job descriptions, and shall adopt procedures for interviewing and assessing candidates for positions within the AMC.
8.2	AMCs shall adopt a procedure for exit interviews and personal assessments from departing employees.
9.	Employee Training and Professional Development Procedures
9.1	AMCs shall adopt an evaluation procedure for all employees covering competencies, performance assessment, and professional development.
9.2	AMCs shall provide periodic training in the following areas: 9.2.1 Process monitoring and control; 9.2.2 Data collection and analysis; 9.2.3 Performance improvement and corrective action; 9.2.4 Teamwork, interaction, and communications.
10.	Subcontracting and Purchasing Requirements
10.1	AMCs shall adopt procedures to ensure that due diligence is exercised when purchasing products or services for clients and that they meet all service requirements.
10.2	AMCs shall adopt procedures to ensure that due diligence is exercised when preparing purchase or service orders and bid/quote documents for clients.
10.3	AMCs shall adopt procedures that permit the AMC or clients to verify acceptability of products or services purchased.
10.4	AMCs shall adopt procedures for evaluating the hiring of subcontractors. Include the following: 10.4.1 The subcontractor's service procedures and facilities; 10.4.2 Samples of the subcontractor's products or services; 10.4.3 Experience other companies have had with the subcontractor.
10.5	AMCs shall adopt procedures to track and record the identity and use of products and services provided by subcontractors and used by the AMC to service clients.
11.	Record Keeping Requirements
11.1	AMCs shall adopt a records retention policy that identifies and defines the information and records that are to be retained and identifies what property, files, data, and materials are the property of the client.
11.2	AMCs shall adopt procedures to maintain and control a record-keeping system to: 11.2.1 Collect and record information (create records); 11.2.2 File, index, store, and maintain records; 11.2.3 Remove, archive, or destroy old records on a predetermined time basis; 11.2.4 Prevent records from being altered without approval of a designated authority; 11.2.5 Safeguard records from damage or deteriorat; 11.2.6 Protect records from unauthorized access.
11.3	AMC's shall adopt a business continuity plan that will include at a minimum. 11.3.1 Procedures for the management of electronic back-up of software and electronic records; 11.3.2 Communications to inform staff, members, vendors, etc. about recovery plan 11.3.3 Building evacuation plan; 11.3.4 Options for temporary facility in the event current office(s) is (are) not available.
12.	Internal Audit Procedural Requirements
12.1	AMCs shall adopt internal audit procedures that: 12.1.1 Determine whether performance complies with the AMCs written plans, procedures, and programs; 12.1.2 Verifies the effectiveness of the AMCs corrective actions. 12.1.3 Audit activities are appropriately planned; 12.1.4 Internal auditors are independent of the procedures and people being audited and external auditors are recognized independent entities; 12.1.5 Audit results, corrective actions, and corrective action results and consequences are appropriately recorded; 12.1.6 Audit conclusions are discussed with the people whose activities and results are being audited, and deficiencies are corrected; 12.1.7 Copies of the audit reports are kept on file for future reference in accordance with the records retention policy, but for not less than four years.

For a comparison between the April 2002 version and the May 2008 version of the ANSI Standard of Good Practices for the Association Management Company Industry please click here.