As the first financial manager of FREEPLAY, you also observe that there are irregularities in the way that the non-profit board of directors is organized to oversee finances of the organization. The Board is led by a Chair who is a college friend of the Executive Director, working with a Secretary and Treasurer, both of whom are FREEPLAY outreach volunteers. Nobody on the board has experience or training related to financial management. The organization has had the same auditor for the 5 years of its existence. The audit committee is chaired by the Secretary and consists of the Treasurer, two other board members, and a volunteer who is the single-largest donor to the organization.

The Executive Director is working on a strategic plan for board development, and learned about the Sarbanes-Oxley act in a recent training she attended. She has asked you for ideas about how the organization and the board can better conform with the spirit and legal requirements of Sarbanes-Oxley. In about 150 words, outline the legal requirements of Sarbanes-Oxley as it applies to FREEPLAY. Recommend three changes in board governance practices that would improve its conformance with the spirit of Sarbanes-Oxley.