October 2010

Metra's Chairman on Blackman Kallick's Risk Management Services

In light Metra's recent challenges concerning its former executive director, the Metra Board of Directors have sought to implement organizational change and reforms to increase accountability and transperency within the organization.

The excerpt from the October 2010 issue of Metra's commuter newsletter, On the Bi-Level, in which the Chairman speaks about Blackman Kallick's guidance is below:

"On June 11, we engaged the accounting and financial risk management experts at Blackman Kallick to perform a risk assessment and control analysis and to provide our Board of Directors with the best practices for oversight of senior manage ment at an organization like Metra.

"So far, Blackman Kallick has performed a preliminary internal control and risk assessment, and has identified specific processes that require further testing and reform. Currently, many of the practices that have been the subject of scrutiny – executive compensation increases, 401(k) contributions, vacation payouts, etc. – have been suspended. Before resuming, we will have additional ordinances, policies and procedures in place. Based on the recommendations of Metra’s Executive Committee and Financial Reporting and Review Committee, the board on Sept. 17 passed ordinances establishing a policy for board approval of waivers from the non-contract employee handbook, amending 401(k) plan rules, and establishing a nepotism policy and a whistleblower policy."

Read the full article online at MetraRail.com.