Northwest Horticultural Council
Work Place, Employment, and Operational Policies
Policy Number 1 – Equal Opportunity
The Northwest Horticultural Council will abide by federal and state laws in regard to non-discrimination in employment.
Adopted July 21, 1990
Amended July 23, 1999
Policy Number 2 – Drugs
Consistent with Federal and State law, the Northwest Horticultural Council is committed to maintaining a drug-free workplace. The unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in NHC’s workplace. Employees that violate this policy may be subject to disciplinary action up to and including immediate termination of employment. Employees must notify the NHC in writing of any conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction. Employees shall be provided a copy of the NHC’s Drug-Free Workplace Policy annually and shall review, execute, and return a copy of the signed Drug-Free Workplace Statement, which will be kept on file for each employee.
Within 30 calendar days of receiving employee notification of a conviction, the NHC will take appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the law, or require such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or, local health, law enforcement, or other appropriate agency.
Adopted July 21, 1990
Amended July 23, 1999
Amended August 15, 2019
Policy Number 3 – Family and Medical Leave Policy
The Northwest Horticultural Council (“NHC”) recognizes that employees may need to be absent from work for family and medical reasons. To that end, NHC provides paid and unpaid leaves of absence to eligible employees in accordance with applicable federal, state or local law.
Administration of This Policy
If an employee has any questions regarding this policy or about paid or unpaid leaves of absence that are not addressed in this policy, please contact the president.
Eligibility Requirements
To be eligible for Paid Family and Medical Leave (“PFML”) benefits, an employee must have worked for an employer in Washington state for at least 820 hours in either the last four completed calendar quarters or four of the last five completed calendar quarters. An eligible employee may receive PFML benefits for the following amounts of time within a one-year period:
- Family Leave. Up to 12 weeks of leave to:
- bond with the employee’s newborn child, newly-adopted child, or newly-placed foster child within the 12 months following the birth, adoption, or placement of the child (“Parental Leave”);
- care for a family member with a serious health condition; or
- prepare for a family member’s pre-and post-deployment activities, as well as time for childcare issues related to a family member’s military deployment.
- Medical Leave. Up to 12 weeks for the employee’s own serious health condition.
- Combined Family and Medical Leave. Up to 16 weeks of leave for a combination of Medical Leave and Family Leave (with up to an additional two weeks of leave if the employee experiences a pregnancy-related disability, for a total of 18 weeks).
For purposes of PFML, a family member is defined as the employee’s child (including step-child, adopted child, foster child, or child to whom the employee stands in loco parentis, is a legal guardian, or is a de facto guardian), grandchild, grandparent, parent (including parent-in-law, adoptive, de facto, or foster parent, step-parent, or legal guardian), son-in-law or daughter-in-law, sibling, spouse, registered domestic partner or beginning July 25, 2021, an individual the employee is caring for who has an expectation to rely on the employee for care. Washington’s Employment Security Department (“ESD”) and NHC may require documentation about an employee’s relationship to a family member (as defined herein) and/or certification of the family member’s medical need.
Employees ineligible for PFML may make a request for unpaid leave for family, medical or military service reasons with the president.
Additionally, all employees may request paid or unpaid leave in connection with a non-occupational disability or pregnancy disability as an accommodation, in accordance with applicable law.
Procedures
If an employee needs to take PFML for Parental Leave, the employee should give at least 30 days advance written notice of the employee’s request for leave. If 30 days’ notice is not possible, the employee should give as much advance written notice to NHC as soon as practicable.
If an employee’s need to take PFML or unpaid leave for a family member’s serious health condition or the employee’s serious health condition is foreseeable based on planned medical treatment, the employee must: (a) make a reasonable effort to schedule the treatment so as not to disrupt unduly NHC’s operations, subject to the approval of the employee’s health care provider or the health care provider of the family member, as appropriate; and (b) provide NHC with at least thirty (30) days advance written notice of the employee’s intention to take leave, or if thirty (30) days is not possible, as much advance written notice as is practicable.
If an employee’s need to take PFML for preparation for a family member’s pre- or post-deployment activities, including time for childcare issues related to a family member’s military deployment is foreseeable, the employee must provide NHC with at least thirty (30) days advance written notice of the employee’s intention to take leave, or if thirty (30) days is not possible, as much advance written notice as is practicable.
If an employee is suffering from a non-occupational related disability or pregnancy related disability and requires reasonable accommodation (which may include leave), the employee may speak with the president to discuss a reasonable accommodation. Employees may be required to submit medical certification of their disability.
Compensation During Leave
Employees using PFML for Parental Leave, as defined in the Eligibility Requirements section above, will be entitled to full salary replacement for the first 6 weeks of leave, the cost of which will be partially funded by ESD and the remainder by NHC. Thereafter, if the employee is still on PFML for Parental Leave, the employee will be entitled to partial salary replacement for the remaining duration of the employee’s PFML for Parental Leave, receiving a portion of the employee’s average weekly salary, up to a maximum of $1,206 per week or other maximum established by ESD and paid solely by ESD. For the avoidance of doubt, only Parental Leave is eligible for full salary replacement, and in no event, shall such salary replacement exceed 6 weeks.
Employees on other types of Family Leave, Medical Leave or Combined Family and Medical Leave will be entitled to partial wage replacement while on leave to be paid solely by ESD, receiving a portion of their average weekly salary, up to a maximum of $1,206 per week or other maximum as established by ESD.
An employee desiring to take PFML must apply to ESD, which pays the benefits or portion of the benefits set forth herein. Please visit www.paidleave.wa.gov for more information on applying for PFML benefits.
Use of Other Leaves During PFML
Employees may – but are not required to – use their allotted, unused paid leave (e.g., allotted but unused, paid vacation time and sick leave) to supplement their PFML benefits during PFML or unpaid leave of absence. Supplementation with an employee’s allotted, but unused paid vacation time or sick leave does not extend the length of the PFML period permitted by law. In no case can the use of an employee’s allotted, but unused paid vacation or sick leave result in an employee’s receipt of more than 100% of the employee’s weekly salary in any given week during PFML.
Long-term disability insurance, if elected, may also be available for leave associated with a non-occupational disability or pregnancy related disability. Please see the president for information about long-term disability insurance.
Benefits During Leave
During PFML and unpaid leaves of absence, all benefits provided under an employee benefit plan are governed by the terms and conditions of the applicable employee benefit plan documents in accordance with applicable law.
Reemployment
Employees who return from PFML will be restored to the same or an equivalent job if the employee has worked for the Company for at least 12 months and has worked at least 1,250 hours in the 12 months before taking leave.
If an employee is on a non-occupational disability or pregnancy-related disability leave, whether paid or unpaid, when the employee is able to return to work, the employee must submit a doctor’s certification stating that the employee is medically able to return to the employee’s normal duties. Continued absence from work beyond the employee’s required disability leave period (as determined by the employee’s physician) and exhaustion of all other available leave may be deemed a voluntary abandonment of the employee’s job.
Nothing in this policy requires NHC to reemploy individuals who are not eligible for reemployment rights under applicable law.
Discrimination and Retaliation Prohibited
NHC will not discriminate or retaliate against employees for requesting or taking PFML. NHC is committed to enforcing this policy against discrimination and retaliation. If employees feel that they or someone else may have been subjected to conduct that violates this policy, they should report it immediately to the president. If employees do not report such conduct, NHC may not become aware of a possible violation of this policy and may not be able to take appropriate corrective action.
Adopted November 4, 2021
Policy Number 4 – Paid Sick Leave and Vacation
The Northwest Horticultural Council (“NHC”) provides all employees who have worked with NHC for at least 90 days with paid sick leave as set forth in this policy. Paid vacation time is provided for all employees who have worked for the NHC for at least 180 days as set forth in this Policy.
Paid Sick Leave
Sick Leave Allotment
All employees will be awarded 80 hours of paid sick leave in full at the beginning of each calendar year. Employees may carry up to 80 hours of unused paid sick leave to the following year. NHC employees that have been with the company for more than 20 years may carry up to 320 hours of unused paid sick leave to the following year.
Use of Sick Leave
Employees can use paid sick leave for the following reasons:
- An absence resulting from an employee’s mental or physical illness, injury, or health condition to accommodate the employee’s need for:
- medical diagnoses, care, or treatment of a mental or physical illness, injury, or health condition; or
- preventative medical care.
- To allow the employee to care for a family member with a mental or physical illness, injury, or health condition.
- To allow the employee to care for a family member who needs medical diagnosis, care, or treatment of mental or physical illness.
- To allow the employee to care for a family member who needs preventative medical care
- When NHC has been closed by order of a public official for any health-related reason, or when an employee’s child’s school or place of care has been closed for the same reason, including closures related to the Covid-19 pandemic.
- An absence that qualifies under the Domestic Violence Leave Act.
Employees should give at least 7 days advance written notice of the need to use paid sick leave. Where the need is unforeseeable, employees should provide advance written notice as soon as practicable.
If an employee has used paid sick leave for an authorized purpose for more than three (3) consecutive work days, the employee must provide verification that establishes or confirms that the use of paid sick leave is for an authorized purpose.
Unlawful and/or excessive unauthorized use of paid sick leave may be subject to discipline.
Payment of Sick Leave
Paid sick leave will be paid at the employee’s normal hourly rate, or for exempt employees, an equivalent hourly wage, as calculated by NHC.
Unused paid sick leave will not be paid out upon employment termination. If an employee is rehired within 12 months of termination, any balance of paid sick leave unused at termination will be reinstated.
Prohibition on Discrimination.
NHC will not discriminate or retaliate against an employee for using paid sick leave.
Interaction with Other Leaves
An absence that qualifies under the Washington Paid Sick Law and any other applicable law will be paid out of an employee’s allotted paid sick leave and concurrently deducted from an employee’s entitlement under other applicable leave laws.
Paid Vacation
In addition to paid sick leave, NHC provides employees who have been employed with NHC for at least 180 days with paid vacation time, based upon their years of service. Paid vacation may be taken for any reason, including, vacation or other personal time away from work.
Vacation Time Allotment
Paid vacation time is awarded in full or “front-loaded” at the beginning of each calendar year. Employees’ length of service determines the number of paid vacation days allotted to employees each calendar year as set forth below. Employees may not use their allotted paid vacation time until they have worked 180 days.
Length of Service | Maximum Days Per Year | Maximum Carry Over |
0‑24 months | 10 days | 5 days |
25‑60 months | 15 days | 10 days |
61-240 months | 20 days | 10 days |
241+ months | 25 days | 15 days |
No paid vacation time will be granted beyond the maximum allotments listed above. However, unused paid vacation time carries over from year to year up until the maximum allotment listed above. Employees will not be permitted to “cash-out” their allotted paid vacation time—or any portion of allotted paid vacation time—at any time during their employment. Employees’ allotted vacation time will only be paid out at the time of separation from employment, up to a maximum of 20 days, unless otherwise required by applicable law.
Requests for Paid Vacation Time
All employees are encouraged to take their allotted paid vacation time each year. Employees must take paid vacation time in increments of at least 4 hours, but no more than 10 consecutive days, without special approval by the president. Employees must request vacation from the president as far in advance as possible, but at least 2 weeks in advance for vacations of more than 3 days and 60 days for vacations of longer than 10 days. NHC generally will grant requests for vacation when possible, taking business needs into consideration.
Adopted July 21, 1990
Amended July 23, 1999
Amended November 5, 2015
Amended November 4, 2021
Policy Number 5 – Business Travel
All reasonable expenses incurred by an employee of the NHC related to travel while in the pursuit of NHC business shall be reimbursed in full by the NHC. A written statement of expenses from each employee claiming reimbursement shall be made on a form supplied by the NHC. Approval by the president or senior vice president of the NHC is required prior to payment of any employee claim for travel reimbursement.
In regard to airline travel, employees shall fly coach class on domestic flights, absent special circumstances. Foreign business travel may be by either coach class or business class. The president, senior vice president, vice president for export programs, and vice president for scientific affairs are entitled to join one airline travel club at the expense of the NHC. NHC employees are entitled to the use of any frequent flyer plan awards for personal use.
In regard to automobile travel, mileage for the use of an employee’s personal car in the conduct of business for the NHC shall be reimbursed at the standard allowance rate for mileage as published by the Internal Revenue Service. Members of the professional staff of the NHC are expected to each maintain a valid driver’s license. No reimbursement shall be made for ordinary travel between residence and work.
Adopted July 21, 1990
Amended July 23, 1999
Amended November 5, 2015
Policy Number 6 – Membership in Professional Societies
The NHC shall pay the reasonable membership dues for its employees in professional societies deemed important to the work of the NHC. It will also pay reasonable expenses for continuing education requirements that might be required by the profession.
Adopted July 21, 1990
Policy Number 7 – Retirement Plan
Regular employees of the NHC shall be covered by a Simplified Employee Pension (SEP) retirement plan. The NHC reserves the right to not fund this plan in any given fiscal year, but if funded, the same contribution percentage of gross salary shall be set aside for each eligible employee. Eligibility for participation in this plan shall commence immediately upon hire. Workers under the age of 21 are not eligible. Compensation for a plan year must be at least $650 in 2022 (or such other minimum amount as set by the Internal Revenue Service for future years). All contributions, once made, are 100% vested.
Adopted July 21, 1990
Amended May 5, 2022
Policy Number 8 – Medical and Dental Insurance
The full-time employees of the NHC are provided medical and dental coverage, with eligibility for participation commencing one month after an employee’s date of hire. Continued coverage and the extent of employer contribution to the cost of this insurance shall be reviewed on a yearly basis by the Executive Committee.
Adopted July 21, 1990
Amended July 23, 1999
Amended November 5, 2015
Policy Number 8A – Disability Insurance
The full-time employees of the NHC are provided an opportunity to acquire disability insurance with the assistance of the employer. Subject to a maximum contribution amount to be set by the Executive Committee in conjunction with the adoption of each fiscal year’s budget, the NHC initially will pay three quarters the cost of disability insurance to the individual employee’s one-quarter contribution. Continued coverage and the extent of employer contribution to the cost of this insurance shall be reviewed on a yearly basis by the Executive Committee
Adopted July 30, 1994
Amended July 23, 1999
Policy Number 9 – Outside Consulting
No employee of the NHC shall take outside employment or provide consulting services in any regard which conflicts with the work of the Northwest Horticultural Council. Any significant outside consulting or employment by any professional staff member shall be described to and approved by the Executive Committee.
Adopted July 21, 1990
Amended July 23, 1999
Amended May 17, 2018
Policy Number 10 – Whistleblower Protections
At the Northwest Horticultural Council any staff member, trustee, or volunteer who reports waste, fraud, or abuse will not be fired or otherwise retaliated against for making the report. It will be treated with proper confidentiality and may be made anonymously.
The report will be investigated and even if determined not to be waste, fraud, or abuse, the individual making the report will not be fired or otherwise retaliated against. There will be no punishment for reporting problems—including firing, demotion, suspension, harassment, failure to consider the employee for promotion, or any other kind of discrimination.
Reports of suspected waste, fraud, or abuse may be made by:
- Informing the NHC’s president; or
- Submitting a written report to either the NHC’s Executive Committee or its independent certified public accounting firm; or
- Calling, or e-mailing any member of the NHC’s Executive Committee
(Current information on the members of the NHC’s Executive Committee is maintained on the NHC’s website.)
Its recipient will promptly and fully investigate any such written or verbal report. In no later than three months, at least an initial response containing a summary of findings to date will be given to the person, if known, initiating the report. Steps will be taken to deal with the issues addressed, including making any needed operational or personnel changes. If warranted, law enforcement will be contacted to deal with any criminal activities.
The Northwest Horticultural Council will abide by the provisions of the Sarbanes-Oxley Act of 2002 in terms of its whistleblower protections applicable to nonprofit corporations
Adopted December 16, 2005
Policy Number 11 – Conflict of Interest
Section 1. Purpose:
The Northwest Horticultural Council is a nonprofit, tax-exempt organization under Section 501 (c) (5) of the Internal Revenue Code. Maintenance of its tax-exempt status is important both for its continued financial stability and for the support of the Pacific Northwest’s tree fruit industry. Therefore, the IRS as well as state regulatory and tax officials view the operations of the Northwest Horticultural Council (NHC) as a public trust, which is subject to scrutiny by and accountable to such governmental authorities as well as the NHC’s membership.
Consequently, there exists between the NHC and its board, officers, and employees and the public a fiduciary duty, which carries with it a broad and unbending duty of loyalty and fidelity. The board, officers, and employees have the responsibility of administrating the affairs of the NHC honestly and prudently, and of exercising their best care, skill, and judgment for the sole benefit of the NHC. Those persons shall not use their positions with the NHC or knowledge gained therefrom for their personal benefit. The interests of the organization must be the first priority in all decisions and actions.
Section 2. Persons Concerned:
This statement is directed to both trustees and employees of the NHC.
Section 3. Areas In Which Conflict May Arise:
Conflicts of interest may arise in the relations of trustees, officers, and employees with any of the following third parties:
- Persons and firms supplying goods and services to the NHC.
- Persons and firms from whom the NHC leases property and equipment.
- Persons and firms with whom the NHC is dealing or planning to deal in connection with the gift, purchase or sale of real estate, securities, or other property.
- Competing or affinity organizations.
- Agencies, organizations and associations, which affect the operations of the NHC.
- Family members, friends, and other employees.
Section 4. Nature of Conflicting Interest:
A conflicting interest may be defined as an interest, direct or indirect, with any persons or firms mentioned in Section 3. Such an interest might arise through:
- Owning stock or holding debt or other proprietary interests in any third party dealing with the NHC.
- Holding office, serving on the board, participating in management, or being otherwise employed (or formerly employed) with any third party dealing with the NHC.
- Receiving remuneration for services with respect to individual transactions involving the NHC.
- Using the NHC’s time, personnel, equipment, supplies, or goodwill for other than NHC-approved activities, programs, and purposes.
- Receiving personal gifts or loans from third parties dealing or competing with the NHC. Receipt of any gift is disapproved except gifts of a value of $100 or less, which cannot be refused without discourtesy. No personal gift of money should ever be accepted.
Section 5. Interpretation of This Statement of Policy:
The areas of conflicting interest listed in Section 3, and the relations in those areas which may give rise to conflict, as listed in Section 4, are not exhaustive. Conflicts might arise in other areas or through other relations. It is assumed the trustees, officers, and employees will recognize such areas by analogy.
The fact that one of the interests described in Section 4 exists does not necessarily mean that a conflict exists, or that the conflict, if it exists, is material enough to be of practical importance, or if material, that upon full disclosure of all relevant facts and circumstances it is necessarily adverse to the interests of the NHC.
However, it is the policy of the board that the existence of any of the interests described in Section 4 shall be disclosed before any transaction is consummated. It shall be the continuing responsibility of the board, officers, and employees to scrutinize their transactions and outside business interests and relationships for potential conflicts and to immediately make such disclosures.
Section 6. Disclosure Policy and Procedure:
Transactions with parties with whom a conflicting interest exists may be undertaken only if all the following are observed:
- The conflicting interest is fully disclosed;
- The person with the conflict of interest is excluded from the discussion and approval of such transaction;
- A competitive bid or comparable valuation exists; and
- The board, or the Executive Committee, has determined that the transaction is in the best interest of the organization.
Disclosure in the organization should be made to the president (or if he or she is the one with the conflict, then to the chairman), who shall bring the matter to the attention of the board or Executive Committee. Disclosure involving trustees should be made to the chairman (or if he or she is the one with the conflict, then to the board’s vice-chairman) who shall bring these matters to the board or Executive Committee.
The board or Executive Committee shall determine whether a conflict exists and, in the case of an existing conflict, whether the contemplated transaction may be authorized as just, fair and reasonable to the NHC. The decision of the board or Executive Committee on these matters will rest in their sole discretion, and their concern must be the welfare of the NHC and the advancement of its purpose.
Adopted May 22, 2007
Policy Number 12 – Annual Review of Employee Compensation
The Executive Committee of the Northwest Horticultural Council is charged with conducting an annual review of employee compensation in advance of the board’s adoption of each new fiscal year’s budget.
All compensation arrangements shall be approved in advance of receiving said compensation. No trustee setting compensation shall have a conflict of interest with the compensation arrangement. The Executive Committee shall use good business judgment in establishing compensation arrangements that are reasonable and commensurate with services provided. This may, but not necessarily, involve obtaining appropriate data as to comparability; such as compensation levels paid by similarly situated organizations for functionally comparable positions or compensation surveys compiled by independent firms.
All approved compensation arrangements shall be reduced to writing in a timely manner, but no later than within sixty days. This document will be sent to all members of the Executive Committee and include the terms of the transactions and date approved, along with the names of those trustees present during debate on the transactions and any other relevant information.
Among items, beyond yearly gross salary levels, for all employees that shall be considered annually by the Executive Committee, are vacation time; consideration of a contribution percentage of gross salary for the NHC’s Simplified Employee Pension (SEP) retirement plan; and, coverage and extent, if any, of employer contribution in the cost of medical, dental, vision, life, and disability insurance.
Adopted May 22, 2007
Policy Number 13 – Litigation
The Northwest Horticultural Council shall not initiate or join civil litigation without the prior express approval of its governing board. In terms of initiating litigation in any court, the approval of a majority of trustees is required. In the case of joining an amicus curiae brief, the approval of a majority of the Executive Committee is required.
Adopted November 10, 2016
Policy Number 14 – Confidentiality
Northwest Horticultural Council staff may from time to time have access to information from the Northwest Fruit Exporters’ membership or other entities regarding actual export shipments of product, quantity of product a firm will offer for export, or other such confidential or proprietary information. No employee of Northwest Horticultural Council shall intentionally disclose, directly or indirectly, such information to anyone, except as may be provided in the Northwest Fruit Exporters Export Trade Certificate of Review.
Employees of Northwest Horticultural Council shall comply with all terms and conditions related to confidentiality of the Northwest Fruit Exporters Export Trade Certificate of Review. Any employee violating this policy is subject to termination.
Provisionally Adopted November 7, 2017
Adopted May 17, 2018
Policy Number 15 – Investment
Purpose
This policy establishes investment objectives, guidelines, responsibilities, and eligible securities related to financial assets held by the Northwest Horticultural Council.
Responsibilities of the Trustees
The Trustees have a direct oversight role regarding all decisions concerning the Northwest Horticultural Council’s finances and investments. Trustees shall ensure that their fiduciary responsibilities concerning the proper management of financial assets are fulfilled through appropriate investment structure, internal and external management, and portfolio performance consistent with all policies and procedures. Trustees or their delegees shall:
- Approve investment policies and objectives that reflect the long-term investment-risk orientation of the organization.
- Review and act on policy recommendations provided by the Executive Committee with regard to the management of all financial assets.
Responsibilities of the Executive Committee
- Recommend to Trustees long-term and short-term investment policies and objectives for financial assets, including the study and selection of asset classes, determining asset allocation ranges, and setting performance objectives.
- Ensure that financial assets are prudently and effectively managed with the assistance of management and any necessary investment consultants and/or other outside professionals, if any.
- Monitor and evaluate the performance of all those responsible for the management of financial assets.
- Recommend the retention or dismissal of investment consultants and/or other outside professionals.
- Receive and review reports from management, investment consultants and/or other outside professionals, if any.
- Periodically meet with management, investment consultants and/or other outside professionals.
- Convene at least once a year to evaluate whether this policy, investment activities, risk management controls and processes continue to be consistent with meeting the goals and objectives set for the management of financial assets.
Responsibilities of Management
Management shall be responsible for the day-to-day administration and implementation of policies established by the Trustees, including the Executive Committee, concerning the management of financial assets. Management shall also be the primary liaison between any investment consultants and/or other outside professionals that may be retained to assist in the management of such funds. Specifically, management shall:
- Oversee the day-to-day operational investment activities of all financial assets subject to policies established by the Trustees and delegated to the Executive Committee.
- Contract with any necessary outside service providers, such as: investment consultants, investment managers, banks, and/or trust companies and/or any other necessary outside professionals.
- Ensure that the service providers adhere to the terms and conditions of their contracts; have no material conflicts of interests with the interests of the Northwest Horticultural Council: and, performance monitoring systems are sufficient to provide the Trustees with timely, accurate and useful information.
- Regularly meet with any outside service providers to evaluate and assess compliance with investment guidelines, performance, outlook and investment strategies; monitor asset allocation and rebalance assets, as directed by the Trustees or Executive Committee and in accordance with approved asset allocation policies, among asset classes and investment styles; and, tend to all other matters deemed to be consistent with due diligence with respect to prudent management of financial assets.
- Comply with official accounting and auditing guidelines regarding due diligence and ongoing monitoring of investments. Prepare and issue twice yearly status reports to the Trustees and Executive Committee.
Investment of NHC Financial Assets
NHC shall maintain sufficient liquid financial assets to meet its day-to-day expenses throughout the course of the year. These funds shall be maintained in an interest-bearing checking account(s) with a cash balance not to exceed the FDIC maximum amount of $250,000 and FDIC insured money market and/or Certificates of Deposit accounts. When the checking account balance falls below the level needed to pay budgeted monthly expenses or $150,000, management will transfer needed funds to the checking account.
The investment goal of the NHC is to achieve a total return of 1 percent after inflation, over the NHC fiscal year.
Asset Allocation
The target asset allocations are reflected below. Targets represent a long-term perspective and reflect long-term investment risk and reward assumptions. The Trustees or Executive Committee shall review these targets with investment advisors on a regular basis to determine if any changes should be made.
Asset Class | Target | Range |
Liquid assets | 70% | 65 –75% |
Fixed Income | 20% | 15 – 25% |
Equities | 10% | 5 – 10% |
The following guidelines apply to the three main investment asset classes:
Money Market Funds:A quality money market fund will be utilized for the liquidity needs of the portfolio whose objective is to seek as high a current income as is consistent with liquidity and stability of principal. The fund will invest in “money market” instruments with remaining maturities of one year or less, that have been rated by at least one nationally recognized rating agency in the highest category for short-term debt securities.
Certificates of Deposit (CD):
Quality FDIC backed CDs, including those offered through brokerage firms, will be utilized to supplement the liquidity needs provided by money market funds.
Equities:
The equity component of the portfolio will consist of high-quality equity securities traded on the New York, NASDAQ or American Stock exchanges. The securities must be screened for above average financial characteristics such as price-to-earnings, return-on-equity, debt-to-capital ratios, etc.
No more than three percent of the equity portion of the account will be invested in any one issuer. As well, not more than 15 percent of the equity portion of the account will be invested in stocks contained within the same industry.
It is acceptable to invest in an equity mutual fund(s) adhering to the investment characteristics identified above, as long as it is a no-load fund, without 12(b)(1) charges, which maintains an expense ratio consistent with those other funds of similar investment styles as measured by the Lipper and/or Morningstar rating services.
Prohibited equity investments include: initial public offerings, restricted securities, private placements, derivatives, options, futures and margined transactions.
Exceptions to the prohibited investment policy may be made only when assets are invested in a Mutual Fund(s) that periodically utilizes prohibited strategies to mitigate risk and enhance return.
Fixed Income:
Bond investments will consist solely of taxable, fixed income securities that have an investment-grade rating (BBB or higher by Standard & Poor’s and Baa or higher by Moody’s) that possess a liquid secondary market. If the average credit quality rating disagrees between the two rating agencies, then use the lower of the two as a guideline.
No more than five percent of the fixed income portfolio will be invested in corporate bonds of the same issuer. Also, not more than 20 percent of the fixed income portfolio will be invested in bonds of issuers in the same industry.
The maximum average maturity of the fixed income portfolio will be 10 years, with not more than 25 percent of the bond portfolio maturing in more than 10 years.
Prohibited securities include: private placements, derivatives (other than floating-rate coupon bonds), margined transactions and foreign denominated bonds.
Exceptions to the prohibited investment policy may be made only when assets are invested in a Mutual Fund(s) that periodically utilizes prohibited strategies to mitigate risk and enhance return.
Performance Measurements Standards
The benchmarks to be used in evaluating the performance of the two main asset classes will be:
- Equities: S&P 500 Index– Goal: exceed the average annual return of the index over a full market cycle (3-5 years)
- Fixed Income: Lehman Brothers Government/Corporate Index– Goal: exceed the average annual return of the index over a full market cycle (3-5 years).
It will be the responsibility of the Executive Committee to regularly review the performance of the investment account and investment policy guidelines, and report to the Board of Trustees at least once a year with updates and recommendations as needed.
Expenditure Considerations
The Trustees are responsible for the establishment of a balanced investment portfolio spending policy to: (a) ensure that over the medium-to-long term, sufficient investment return shall be retained to preserve and grow its economic value as a first priority; (b) to provide funds for the annual operating budget in an amount which is not subject to large fluctuations from year-to-year to the extent possible.
Adopted June 29, 2023
Policy Number 16-18 (Reserved for future use)
Policy Number 19 – Capitalization
Section 1. Definition and Threshold:
Capital purchases comprise all tangible personal property such as furniture, fixtures, equipment, software, leasehold improvements, etc. that meet two criteria:
- a useful life of more than one year, and
- cost more than a certain amount.
The Northwest Horticultural Council, the Organization, has established $2,500 as the threshold amount for capitalization. The Organization will expense the full acquisition cost of tangible personal property that does not meet these criteria in the year of purchase.
Section 2. Approval:
The Organization’s annual budget includes proposed capital purchases that are anticipated to take place during the year. Those purchases itemized within the approved capital budget are considered approved.
Capital purchases not within the approved capital budget, must be specifically approved by the trustees or executive committee. To seek such approval president must provide the price and rationale for the purchase and assurance of availability of financial resources to support the purchase.
Section 3. Recordkeeping:
The Organization shall maintain a list of fixed assets showing the date of the acquisition, its cost, and a schedule for depreciation of the asset. The Organization shall keep on file documentation for each purchase.
Annual depreciation expense will be included in the Organization’s annual operating budget.
For each purchase, the office manager shall evaluate whether the acquisition will have an impact on insurance coverage, determine if present coverage valuations are adequate, and obtain additional coverage if necessary.
Adopted December 4, 2019, Effective July 1, 2018
Policy Number 20 – Reserve Policy
The unrestricted net assets of the Northwest Horticultural Council should not exceed eighty percent of an amount representing the average of the past three year’s annual operating budget. At the annual meeting an adjustment to the current fiscal year’s assessment schedule, to reflect implementation of this policy, will be considered by the trustees.
The Northwest Fruit Exporters is excluded from Policy Number 20
Adopted July 30, 1994
Amended August 4, 1995
Amended March 25, 1999
Amended November 5, 2015
Amended May 17, 2018
Amended May 11, 2022
Amended May 11, 2023