Little League Fraud and Embezzlement

Source: sadlersports.com - Little League Fraud and Embezzlement
Author: John M. Sadler

Insider crime leads to big league problems

Vice Sports recently published a story on embezzlement and fraud schemes and apparently lax financial management system in Little League across the country. In “Little Big Crime,” Vice Sports reports volunteer staff embezzled or stole close to $2 million from within 37 Little Leagues in 2009, with 19 of those cases taking place in the last two years.

Every parent, coach, administrator and officer of a youth sports organization should read the article. The point of the story isn’t to paint Little League as a corrupt youth sport organization. The fact of the matter is that embezzlement in volunteer-run organizations and the high dollar amount of funds that go missing aren’t uncommon. It could easily be happening in your organization right under your nose.

We’ve been posting articles on fraud and embezzlement within youth sports for quite some time and offering tips on how to prevent such crimes. If I’ve heard one, I’ve heard a hundred administrators of sports organizations say it could never happen to them. Well, the first few paragraphs of the Vice Sports article illustrates just how shockingly vulnerable every organization is. Over a six year period a trusted and well-respected man serving as a trusted Little League vice president for over 15 years stole more than $200,000 before the crime was discovered.  After accounting for the interest payments on unnecessary loans he took out in the league’s name, the ultimate cost to the league was in the range of $270,000.

Protecting your organization

Needless to say, without a Crime Insurance policy, there’s little hope of ever recovering that money. Crime Insurance protects organizations from employee dishonesty, forgery and alteration, and theft of money and securities. Such a policy should be specially endorsed to cover theft by employees and officers.

It can’t be stressed strongly enough how important it is to put safeguards in place to prevent theft of registrations fees, concession profits, fund raising money and abuse of credit cards and bank accounts. If you or someone other than the person handling the finances of your organization hasn’t checked the books and bank statements lately, do it today.

And if your organization doesn’t have a Crime Insurance policy, call us today to discuss your needs and get a quote at 800- 622-7370.

Source: Aaron Gordon, “Little Big Crime:The Multimillion Dollar Little League Fraud Crisis,” sportsvice.com. 06 Oct. 2014.

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Increase in High School Football Participation

Source: sadlersports.com - Increase in High School Football Participation
Author: John M. Sadler

Concussion education and laws helping to boost the numbers

In previous posts we’ve discussed the impact media attention on concussions may have on the future of youth football.  Some people have gloomily predicted an end to the sport. However, after a five-year nationwide decline in high school football participation, an increase in 2013 has been reported by the National Federation of State High School Associations.

Educating parents and coaches on concussion diagnosis and return to play and new concussion laws being enacted in every state and the District of Columbia have no doubt played a significant role in the increase.  During the 2013-14 school year, there were 6,607 more boys and 184 more girls participating in football over the previous year.

Parents are apparently measuring benefits of participating with the chances of an injury and deciding that the precautions now in place have lowered the risk of injury to an acceptable level, according to Davis Whitfield, the N.C. High School Athletic Association commissioner.  The NFSHS enacted several rule changes, such as where players line up on kickoffs and anyone losing a helmet during play is required to leave and not return until it has been properly secured. And many state associations have limited the amount of contact in practices.

Ongoing concerns

Despite the growing awareness and positive changes in protocols, not all the news is good. Four high school football players died during the 2013 season from head injuries. And several high profile former NFL players have expressed concerns about having their own children play football.

In North Carolina, the deaths of two high school players in 2008 were the impetus for passing the Gfeller-Waller Concussion Awareness Act. That state law says that all public middle and high schools must provide concussion education to coaches, parents and players, develop emergency action plans, and to have post-concussion protocol in place to be followed as to when players with suspected injuries can resume play or practice.

However, violations of the law are occurring, but there are no penalties attached to it. An state audit of the found that high schools in 13 of the state’s 115 districts weren’t in compliance, most for not posting emergency action plans. There’s no reason to think other states aren’t experiencing similar violation issues.

The NCHSAA is proposing fines and other penalties for non-compliance. The commissioner cited violating return-to-play protocol could carry a fine and failure to get a parental concussion education form signed would mean the player is ineligible to play.

Looking ahead

Only 13 states have concussion laws covering all youth sports, while most cover just high school and middle school athletics.  Advocates of stronger protocols say that expanding concussion laws to include any youth teams and leagues using public fields should be the standard for all states.

Please see our other articles on concussion risks, research and prevention.

Source: Tim Stevens, “Participation in high school football increases despite concussion risk,” newsobserver.com. 03 Jan. 2015

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Rest Time for Youth Following a Concussion

Source: sadlersports.com - Rest Time for Youth Following a Concussion
Author: Sadler Copywriter

How long is long enough? or too long?

It’s now common knowledge that rest from school and other activities is the recommended protocol for young concussion patients. But the new question is how much rest is beneficial to the healing process. Some experts are saying that less is more.

Doctors and scientists are divided in their opinions as to how much rest is best for injured youngsters. Some recommend 24 to 48 hours, while others say longer is required.

Results from a recent study led by Danny G. Thomas, a pediatric emergency medicine doctor at Children’s Hospital of Wisconsin show that the patients resting for five days reported more physical symptoms such as nausea and headaches. They also exhibited more emotional symptoms over the course of 10 days, such as irritability and sadness.

The study looked at 88 concussed patients ages 11 to 22 who sought treatment at the emergency room of Children’s Hospital. Those whose doctors prescribed strict rest for five days reported more symptoms than those told to rest only one or two days. The patients resting longer also had slower recovery times than the patients prescribed with less rest time.

None of the patients in the study were admitted to the hospital and researchers say the findings don’t apply to patients with severe brain injuries.

Participants of the study rated their symptoms every day, took computerized and paper exams to test their brain function, and had their ability to balance measured. Researchers saw no difference in brain function or ability to balance among the patients.

There may be consequences to unnecessarily restricting of activities, suggests Gerard Gioia, a pediatric neuropsychologist at Children’s National Medical Center in Washington. Prolonged rest could cause students to worry about falling behind in schoolwork and being apart from their friends. This could result in anxiety or mood changes, according to Gioia.

Obviously a too-early return to normal activity is an invitation for a second injury. Concussion patients should be under the care of a doctor who specializes in concussions. For more information on returning to activities following a concussion, we encourage you to read “Skip Practice, and the Books, following a Concussion” and our other concussion-related articles.

Source: Catherine Saint Louis, “Limiting Rest Is Found to Help Young Concussion Patients,” nytimes,com. Share05 Jan. 2015

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Most Youth Sports Organizations Don"t Have 501(c)(3) Tax-Exempt Status

Source: sadlersports.com - Most Youth Sports Organizations Don"t Have 501(c)(3) Tax-Exempt Status
Author: John M. Sadler

Don’t assume yours does

According to Kids Non Profits USA, 75 percent of all youth sports organizations qualify for Internal Revenue Service 501(c)(3) status, but fail to apply for it as required by federal law. Unfortunately, many sports organizations have been under the mistaken belief for many years that they were tax exempt under federal law.

Below are the most common reasons that many sports organizations mistakenly believe that they are 501(c)(3) tax exempt:

• On their application for a Federal Employer Identification Number, they indicate that they were a nonprofit and thought that this was all that was required.


• They received state nonprofit corporation status, but they neglected to apply for federal 501(c)(3) status as a tax exempt organization.


• The assumed that they were automatically tax exempt as a volunteer-run organization.


• They assumed that the prior administrators properly applied for tax-exempt status many years ago.

The benefits of 501(c)(3) tax-exempt status are as follows:

• Exempts the sports organization from paying federal income taxes


• Allow a federal tax deduction for donors of cash, property, or equipment.

The risk of not properly applying for 501(c)(3) tax exempt status are as follows:

• Sports organization is responsible for filing and paying federal and state income taxes as a taxable business.


• The sports organization is subject to federal and state penalties as well as back taxes.


• Donors may have taken improper tax deductions on their personal tax returns thinking that the sports organization was tax-exempt.

In addition,  the IRS revoked the tax-exempt status of some 250,000 organizations in 2010 for failure to file an annual information return for the three prior years. Such organizations are required to refile for tax-exempt status.

Directors & Officers liability policies may cover certain lawsuits alleging that managerial negligence led to loss of tax-exempt status and resulting damages. However, such insurance should not be relied upon due to common policy exclusions for knowing violation of the law.

Kids Non Profits USA offers a special 501(c)(3) application package starting at $399 (plus an IRS application fee).

Source: knpusa.org

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Crime and Equipment Policies for Sports Organizations

Source: sadlersports.com - Crime and Equipment Policies for Sports Organizations
Author: John M. Sadler

The difference is important

Some administrators who make the insurance purchasing decisions for sports organizations are confused over the difference between Crime Insurance and Equipment Insurance.  They mistakenly believe that theft of equipment by outsiders or vandalism of equipment is a crime covered by a Crime Policy.  This is not correct.

Here is an easy way to distinguish between the two policies:

Equipment Insurance = Loss of sports equipment due to fire, wind, vandalism, theft, etc.

Crime Insurance = Employee/Volunteer theft of equipment or embezzlement of funds.

Of course, the above explanation is an over simplification, but it is an easy way to understand the main differences between the two policies.

Read Full Story: http://www.sadlersports.com/blog/the-difference-between-crime-and-equipment-insurance-for-sports-organizations/

Medical Emergencies in Youth Sports

Source: sadlersports.com - Medical Emergencies in Youth Sports
Author: John M. Sadler

CPR and first aid training for coaches is critical

Sadler Sports and Recreation Insurance has always been a strong advocate of youth sports coaches and volunteers receiving first aid and emergency training. Injuries and medical emergencies can occur anywhere, at anytime to anyone, especially in a sporting environment. Coaches and other adults in attendance during practices and play have to be able to respond in such cases. Unfortunately, only 40 percent of youth coaches have any safety training, according to a 2012 SafeKids Worldwide survey.

There’s really no excuse for such lack of training because certification classes in first aid and CPR are offered in every community for free or very little cost. It’s the responsibility of the sports organization and local community to ensure that coaches and volunteers have access to the training needed to respond appropriately to an injury or life-threatening event.

Empowering your volunteers

In particular, the education of volunteers in safety procedures strengthens the sports program. Volunteers offer their time and energy in so many capacities. They should be given the tools they need to be an even greater help, which means safety training or recertification at no cost to them. And it’s important to remember that coaches and volunteers serve as safety role models for the youth with whom they’re working. Older athletes should be encouraged to register for CPR and first aid certification courses, as well.

No matter what sport you’re involved with, the unexpected can occur. Here are a few examples of emergency situations where immediate administration of first-aid made all the difference to the injured person.

• An Alabama high school football player collapsed during the first practice of the season. Coaches and the athletic trainer sprang into action, quickly determining a case of cardiac arrest after seeing no signs of concussion, heat stroke or dehydration. The trainer used the school’s AED while waiting for EMTs to arrive on the scene. The teen survived, thanks to the safety training his coaches had received.


• An Oregon varsity high school basketball game was unexpectedly interrupted when an official collapsed on the court. Quick thinking staff, students and medical professionals in the stands rushed to his aid, administering CPR until an ambulance arrived.


• An 8-year-old youth baseball player collapsed after being hit in the chest by a batted ball. It was his good fortune that two off-duty paramedics who were in the stands were able to administer CPR until paramedics arrived and transported him to the hospital.

You can’t count on there being someone nearby who will know what to do in a medical emergency. Whether the injured person is one of the athletes, a trainer, an official or a fan in the stands, the coaches are who people will look to for help in an emergency.

Getting the necessary training

The American Red Cross offers CPR/AED training as well as specific first aid, health and safety training for sports coaches. Because CPR techniques and use of AEDs on children and adults differ, it’s important that coaches receive training for medical assistance for both age groups

The National Alliance for Youth Sports encourages all volunteer coaches get CPR training. Their website offers member coaches access to a first aid and CPR section full of safety information, including how to develop an emergency action plan. NAYS also offers free concussion training for coaches and volunteers.

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Special Events May Require Special Coverage

Source: sadlersports.com - Special Events May Require Special Coverage
Author: John M. Sadler

Safety should be priority No. 1

Many for profit and not for profit organizations hold special events throughout the year. These can be tournaments, banquets, marathons, fundraisers, award ceremonies or simply family days that include fun activities and entertainment. A lot of planning and organization are required to ensure these events are successful. One element of the planning stage that should never be overlooked is determining whether your insurance program includes the coverage needed for a safe event for everyone involved – hosts, participants, volunteers, vendors and guests.

There are risks involved in hosting and managing special events that may require either added short-term or annual coverage. Beyond checking with your agent as to whether your event is adequately protected, below is a list of areas that require particular attention during the planning stages.

Vendors

Vendors can include caterers, tent and equipment rentals, concessions, security, and parking attendants. It’s important to research your vendors well because poor service or a mishap on their part can spoil an entire event – think of the potential consequences of a collapsed tent or food poisoning. It’s critical that each of your vendors provide you with a valid certificate of insurance evidencing General Liability with a limit of at least $1 million each occurrence and that they can add your organization as an additional insured on their policy.

Venues

It’s not unheard of for the actual venue of an event to be a factor that causes an accident or injury claim. Stages can collapse, fire exits get blocked, and severe weather can trigger the need for fast evacuations. The more knowledge you have about the number of people attending the event, the electrical equipment needed, and potential for severe weather, the better prepared you will be. For indoor events, make sure you know the emergency protocols of the building, which includes knowing where all the fire extinguishers, exits and stairwells are located. For outdoor events, be sure the terrain and any light/sound rigging are properly installed. Monitor the weather in the days leading up to the event as well as during the event – storms can pop up unexpectedly with disastrous results. There are weather apps for smartphone that can alert you to severe weather watches and warnings.

Emergency Planning

Every event should have a unique emergency plan which all staff and volunteers receive and sign that they have read it. The emergency plan should include who has the authority to shut the event down or ask a vendor to vacate. Sudden storms, a shooter in the area, or a vendor with a lapsed permit are only a few examples of when someone may need to make an on-the-spot decision.  The emergency plan should also include a protocol for announcing a closing or changes in the event programming. It goes without saying that all event staff and volunteers should be familiar with the event emergency plan, to include medical emergencies, lost children, crime and severe weather.

Security

Security often is something that tends to get “overlooked” because it doesn’t generate income. However, security should be considered an investment that reduces your risk of liability, which is just as good or even better than income. Below are some security tips that can make for a much safer event for everyone involved.

• Volunteers are a great resource, but don’t use them for security enforcement purposes, such as dealing with unruly people, enforcing parking or alcohol regulations, or providing first aid. It’s best to have trained medical and law enforcement professionals handling these duties.


• Using teachers, senior/varsity athletes and other community leaders is also not a good idea when it comes to maintaining order in the crowd. These temporary-authority figures aren’t always respected by others when they’re out of their element.


• If you pay for professional security, don’t scrimp. Going with the cheapest security service may not be your wisest decision. Are their employees simply hired staff or trained personnel? Ask what types of sports events and what size crowds can they handle. Ask for examples of situations they managed to control and get references.

Sadler offers Special Event insurance and one of our insurance experts would be happy to help you determine what coverage your event needs. Call us today at (800) 622-7370 or simply request a quick quote now.

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The Positive Impact of Concussion Awareness

Source: sadlersports.com - The Positive Impact of Concussion Awareness
Author: John M. Sadler

Reporting and treatment in youth football on the rise

Injury data taken from the county’s largest youth football organization, American Youth Football (AYF) paints a bright picture. The data indicates that recent increased awareness and education of administrators, coaches, parents, and players is resulting in greater concussion identification and more aggressive medical treatment and follow up.

According to claims data from the AYF-endorsed Accident insurance plan, the rise in incidents of concussions to total injuries reported began in 2011. This coincides with the media’s first reports on high profile concussion lawsuits and alarming injury studies. The trend continued in 2012 and 2013.

Percentage of concussions to total injuries:

2005 – 2010       6.7%  average

2011                11.5%

2012                16.4%

2013                16.4%

What the numbers mean

This is concrete evidence that educational awareness and concussion recognition, treatment, removal, and return to play protocols are having a positive impact on protecting youth, according to John Sadler, president of Sadler Sports Insurance. In the past, many concussions were missed or ignored. When concussions were identified, parents tended to self-treat with a wait-and-see approach. Now, many more concussions and potential concussions are being identified with more emergency room visits, diagnostic tests, and follow ups with concussion experts who are critical in helping parents and athletes making return-to-play decisions.

Education is critical

We believe and statistics prove that the more you know about concussions, the better prepared you are to deal with them. We encourage you to read our other articles on concussions, which include information on American Youth Football’s concussion risk management initiatives.

Read Full Story: http://www.sadlersports.com/blog/positive-impact-concussion-awareness/

Electronic Signatures on Waiver Release Forms

Source: sadlersports.com - Electronic Signatures on Waiver Release Forms
Author: John M. Sadler

Can they be accepted?

Actual Client Question:

We were wondering if you require hard signatures on the release of liability form, player parent contract, code of ethics? We do online registration where everyone has their own password to login to their child’s registration, where we have “I Accept” buttons.  In the past, we have had the parents click those buttons and then we have printed the forms and had the parents come to another registration to supply a hard signature. Do you require a hard signature for insurance purposes or would the trigger button hold up in the event of a claim? What is the guideline for electronic signatures?

Answer:

I am not aware of any current court cases that provide a definitive answer to the question of whether electronic signatures on waiver/release forms will likely be upheld. I recently interviewed the claims department manager and general counsel for one of our largest insurance carriers in the sports insurance niche. They indicated that they did not want to inhibit e-commerce by not accepting electronic signatures on waiver/release agreements, but would be watching carefully for any court cases on this issue.

For now, electronic waiver/release forms are generally being accepted by the insurance carriers.

However, I have concerns that should be addressed. First, the electronic signature should be stronger than simply clicking “I Agree.” It should require the full name of the parent who is signing. Second, there must be a place for the minor participant to sign as well. Some may question this, but it is an absolute must. The minor must sign in order to trigger the assumption of risk defense as the waiver/release serves as the risk warning and the acceptance of risk by the minor. If these additional electronic safeguards can’t be initiated, I would advise the use of a paper waiver/release with a hard signature to supplement the electronic registration.

Of course, it goes without saying that the waiver/releases must be properly worded to be given weight in court; so many of them violate the basic principles of contract law. A copy of a sample waiver/release can be found in our risk management library.

– John Sadler

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New concussion test detects specific symptoms

Source: sadlersports.com - New concussion test detects specific symptoms
Author: John M. Sadler

Hope for faster recovery times

Some athletes bounce back after a mild concussion. Others take months. That’s because there are six different kinds of concussion, each identifiable by symptoms exhibited by the concussed patient: balance issues, migraine headaches, vision problems, cervical (neck) problems and mood and anxiety.

A new test that detects concussion symptoms that current tests can miss has been developed by University of Pittsburgh Medical Center researchers. The test focuses on the vestibular ocular system, where vision, movement and balance coincide. The vestibular ocular system, located in the inner ear, is what helps the eyes stay focused on a target when the head moves about.

What researchers observed

The symptoms exhibited in the worst concussions are dizziness, vision issues and fogginess, according to Michael Collins, director of the UPMC Sports Medicine Concussion Program. These symptoms are frequently missed in the tests currently used to diagnose concussions.

Vestibular/ocular motor screening (VOMS) was 90 percent accurate in identifying patients with a concussion, according to the American Journal of Sports Medicine article. Diagnosing a concussion is fairly simple, but the VOMS test diagnoses the exactly type of concussion.

There are five specific areas VOMS assesses: eyes following a moving object, rapid eye movement, stabilization of images while head is in motion, dizziness, and the points where eyes can hold together without double vision. It only takes a few minutes to administer the test and the only tools needed are a metronome and tape measure. Results are based on the immediate responses of participants when asked about their symptoms after focusing on an object or moving their head back and forth quickly.

Improvements in treatment

Research participants consisted of concussed patients five days after their original injury. The VOMS test picked up impairments in 60% of the participants that could have been easily missed using current diagnostic procedures.

Adding VOMS to the other tests used to determine neurocognitive deficiencies could mean a significant change in both diagnosing and treating concussions, said Collins. Immediately identifying vestibular and ocular concussions could decrease significantly how long it takes to treat them.

For more information on long-term recovery concussions please read “Skip practice, and the books, following a concussion.” 

Source: Jack Kelly, Pittsburgh Post-Gazette, 11 Oct. 2014

 

 

 

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