Posts tagged with "financial management training"

FTM Nonprofit Forum – December 23, 2020 – Developing Effective Dashboards and Key Performance Indicators

Developing an effective dashboard and key performance indicators

Nonprofit Forum Agenda                                                                                                                              Register

11:30 to 12:30-Developing an Effective Dashboard and Key Performance Indicators

Do you have a dashboard and know what your key performance indicators (KPI’s) are for your organization?  Please bring your questions so we can have a candid conversation regarding dashboards and KPI’s.

We will cover the critical aspects of Effective Dashboards and Key Performance Indicators including:

Nonprofits are complex organizations that are built around mission and outcomes, which must be supported by the right revenue and expense models.

Dashboards are one way to simply communicate and give an overview of the organization by using a graphical summary of important information. It is an easy way for decision-makers to see where and whether the organization is on the planned financial path, and additionally can be used with funders and stakeholders to transparently show progress towards desired goals.

But a dashboard without metrics is useless to the organization, it is important to develop the associated metrics and constantly review to ensure you are measuring success for the organization.

A properly designed dashboard allows a nonprofit to monitor its effectiveness as evidenced by the financial health along with the impact of the programs and services provided.  Board and staff should develop strategies and goals to create dashboards with focused conversation and collaboration.

When you select the dashboard elements, you should understand the data you will track and how that data will influence decision making.  Questions to ask include: Are the metrics for the organization or function? Is the tool for the board, staff, or funders?

This webinar will help Executive Directors, Finance Directors, and finance staff to develop and use a financial policies and procedures manual.  Savvy nonprofit leaders know that effective dashboards and key performance indicator development can be the difference between good and great performance.

Immediately following the presentation on the benefits of outsourcing nonprofit accounting, we will host a discussion on MIP advance, graph, and chart refresher.

Those attending the forum will receive handouts.

12:30 to 12:50-MIP User Group-MIP advance, graph, and chart refresher for MIP

12:50 to 1:00-FTM Updates and Closing                                                                                                                                                       Registe

FTM Nonprofit Forum – November 18, 2020 – Effective Nonprofit Financial Governance and Leadership

Are financial governance duties clearly understood and performed by the board, finance committee, and executive committee(s)?   Register

This webinar will help Nonprofit Leaders, Executive Directors, Finance Directors, Finance Staff, and your board members to define, document, and execute crucial responsibilities.  Avoid complacency and confusion by clearly defining and communicating expectations.  Savvy nonprofit leaders know that a dynamic board can be the difference between good and great performance.

How would you answer the following questions:

What are the typical financial responsibilities and misunderstandings of board members?

What are the essential financial governance responsibilities for the nonprofit board and its members?

What are the nonprofit financial governance basics and misperceptions that board and nonprofit leaders need to know?

We will answer this and more.  We will review and take a financial acumen quiz to reinforce leadership learning and address the confusion of financial governance.

Immediately following the presentation on nonprofit financial governance, we will host a MIP Fund Accounting User Group meeting focusing on board financial reporting and other financial governance.

12:30 to 12:50-MIP User Group-Board Financial Reporting and other financial governance

12:50 to 1:00-FTM update and Question and Answer session                                                                                                                Register

FTM Nonprofit Forum – October 28, 2020 – Effective Grants Management and Cost Allocation

Nonprofit Forum Agenda                                                                                                                                             Register

11:30 to 12:30-Effective Grants Management and Cost Allocation

How should you perform your grants management and cost allocation responsibilities?   We will describe the best practices for these responsibilities.  Please bring your questions so we can have a candid and productive conversation.

We will cover the critical aspects of grants management and cost allocation including:

  • General grants management requirements
  • Governance requirements for grants administration
  • Review Uniform Grant Guidance
  • Internal control and financial management system requirements for federal awards
  • Schedule of Expenditures of Federal Awards and associated audit requirements
  • Cost Allocation methodologies including examples
  • Cost Allocation plan requirements
  • Best practices for grant budget financial management
  • Best practices for grant reporting and reconciliations
  • Performing an effective grant close out
  • How to use your accounting system to perform grants management role?
  • How to maximize your grant reimbursement?
  • What are signs that grants management role is not being performed?

How should you as leader evaluate your various options?  We will share our expertise and candid advice to better prepare you for these complex decisions.

3 Key Things you will learn include:

  • What are best practices for performing grants management role effective?
  • What are federal compliance grants management requirements?
  • What are signs that grants management role is not being performed correctly?

Those attending the forum will receive handouts.

12:30 to 12:50-MIP User Group-Grants Management and Cost Allocation refresher using MIP

12:50 to 1:00-FTM Updates and Closing

FTM Nonprofit Forum – September 30, 2020 – Building a Superior Budget

Building a Superior Budget

RegIster

11:30 to 12:30-Building a Superior Budget

How should you evaluate your budget and planning process?  Please bring your questions so we can have a candid conversation regarding budgeting.

We will cover the critical aspects of budgeting including:

A strong budget is an essential element for any nonprofit organization to achieve financial leadership. Superior budgets, though, have written plans about the core activities to include strategic, organizational, and program goals and how they will be financed.

Most financial leaders focus too much time on budget variance analysis and not enough time to anticipating or planning for the future. By anticipating or planning, organizations can focus on what’s upcoming regardless of their budget cycle or fiscal year-end.  A budget can be complemented with rolling forecasts to better anticipate upcoming financial results.

Budgets also need to include cash flow projections, which may be outside of the finance department’s capacity or capabilities.  Financial leaders must have a direct role in developing useful cash flow projections and assumptions with frequent, detailed analysis.

Any cash flow shortage needs to be further evaluated to determine if it is just a timing difference or an actual cash deficit.  Shortfalls created by deficits need to be solved by budget adjustments or strategic choices to absorb a shortfall. An organization can determine the timing or actual deficits by reviewing the budget to see if it had planned for or not.

Financial sustainability can only be achieved with a well-prepared and continuously monitored budget.  Conversely, a poorly developed budget can diminish mission-focused activities opportunities and threaten long-term success.

This webinar will help Executive Directors, Finance Directors, and finance staff to develop and use a financial policies and procedures manual.  Savvy nonprofit leaders know that effective budgets and projections can be the difference between good and great performance.

How should you evaluate your budgeting process?  We will share our expertise and candid advice to better prepare you for this important role for your organization.

3 Key Things you will learn include:

  • Financial sustainability can be achieved with well prepared and monitored budget
  • Budgets should include cash flow projections
  • Best practices for a superior budgeting process

Immediately following the presentation on building a superior budget, we will host a discussion on budget refresher.

Those attending the forum will receive handouts.

12:30 to 12:50-MIP User Group-Budget refresher for MIP and Microix

12:50 to 1:00-FTM Updates and Closing

Nonprofit Forum – August 26, 2020 – Common Audit Pitfalls and Implementing the New Standards

Common Audit Pitfalls and Implementing the New Standards                                                                                                                                     Register

11:30 to 12:30-Common Audit Pitfalls and Implementing the New Standards

How should you evaluate your audit process?  Please bring your questions so we can have a candid conversation regarding the auditing process.  We will share our expertise and candid advice to better prepare you for this important role for your organization.

While not required by law, one reason a nonprofit might conduct an audit is to demonstrate the organization’s commitment to financial transparency and accountability.

And while a nonprofit can spend considerable resources for its annual audit, it is important that it consider the following to ensure the audit is a success.

No delays: An audit needs to avoid any major delays.

Minimal accrual and year-end adjustments: The nonprofit needs to ensure that all accrual and year-end adjustments are completed prior to the start of the audit.

Minor board and management comments: It is a good idea to have an exit interview after the fieldwork to review the audit’s results.

No material weakness or significant deficiency: This is a deficiency in internal controls that could negatively impact financial integrity.

Nonprofit should prepare audited financial statements and related disclosures:  The organization should have the ability and accounting systems to prepare the audited financial statements and related footnotes and disclosures.

Fraud detection is not the purpose of audit:  While nonprofit leaders may believe the annual audit will uncover fraud, it is very unlikely this will occur.

Auditor does not guarantee financial statement accuracy:  While auditor does issue an opinion on the nonprofit’s financial statements, the auditor does not certify or guarantee its accuracy.

If your nonprofit has one of these audit pitfalls or misperceptions, you should take action to bring expertise and capacity to your organization to remedy it.

This webinar will help Nonprofit Leaders, Executive Directors, Finance Directors, and Finance  Staff to better prepare for an annual audit.  Savvy nonprofit leaders know that effective financial audits can be the difference between good and great performance.

Immediately following the presentation on nonprofit financial governance, we will host a MIP Fund Accounting User Group meeting focusing on how to use MIP to help with your audit.

3 Key Things you will learn include:

  • Why audits have become more complicated to complete?
  • Best practices to improve annual audit
  • What audit pitfalls should I avoid?

Those attending the forum will receive handouts.

12:30 to 12:50-MIP User Group-How to use MIP to help with your audit?

12:50 to 1:00-FTM Updates and Closing                                                                                                                                                                        Register

FTM Nonprofit Forum on July 29, 2020 – Best Practices for Financial Policies and Procedures

The board and finance committee’s responsibility includes that financial policies and procedures exist and are followed by the organization. Management has usually delegated the responsibility to develop and maintain financial policies and procedures with little direction or guidance from the board and finance committee. The board and finance committee is usually consumed by other financial matters like budgets, audits, financial statements, and cash flow.

Financial Policies and procedures help sustain and strengthen your organization by providing the following to your organization:
• How the accounting function is performed including transaction processing like accounts payable, account receivable, payroll, journal entries, and grants and program management?
• What authorization and custody controls exist to reduce financial risks and protect the organization?
• What environment and culture exist for your organization, how is authority defined, and what external influences exist?
• How does your accounting system help you implement your financial policies and procedures?
• What segregation of duties and controls exists to detect or prevent accidental or intentional mistakes?
• What training do you provide to ensure competence and knowledge of accounting staff?

It is important for your major transaction processing like accounts payable, accounts receivable, payroll, and general ledger transactions that you evaluate best practices. This is important as you need to evaluate costs versus benefits received for each transaction process.

If it has been a while since you reviewed and improved your financial policies and procedures, we can help you develop and update your financial policies and procedures. An organization with good financial policies and procedures benefits from operating efficiencies, clear expectations,  and financial accountability.

FTM Nonprofit Forum – June 24, 2020 – Developing Effective Dashboards and Key Performance Indicators

Developing an effective dashboard and key performance indicators

Nonprofit Forum Agenda                                                                                                                              Register

11:30 to 12:30-Developing an Effective Dashboard and Key Performance Indicators

Do you have a dashboard and know what your key performance indicators (KPI’s) are for your organization?  Please bring your questions so we can have a candid conversation regarding dashboards and KPI’s.

We will cover the critical aspects of Effective Dashboards and Key Performance Indicators including:

Nonprofits are complex organizations that are built around mission and outcomes, which must be supported by the right revenue and expense models.

Dashboards are one way to simply communicate and give an overview of the organization by using a graphical summary of important information. It is an easy way for decision-makers to see where and whether the organization is on the planned financial path, and additionally can be used with funders and stakeholders to transparently show progress towards desired goals.

But a dashboard without metrics is useless to the organization, it is important to develop the associated metrics and constantly review to ensure you are measuring success for the organization.

A properly designed dashboard allows a nonprofit to monitor its effectiveness as evidenced by the financial health along with the impact of the programs and services provided.  Board and staff should develop strategies and goals to create dashboards with focused conversation and collaboration.

When you select the dashboard elements, you should understand the data you will track and how that data will influence decision making.  Questions to ask include: Are the metrics for the organization or function? Is the tool for the board, staff, or funders?

This webinar will help Executive Directors, Finance Directors, and finance staff to develop and use a financial policies and procedures manual.  Savvy nonprofit leaders know that effective dashboards and key performance indicator development can be the difference between good and great performance.

Immediately following the presentation on the benefits of outsourcing nonprofit accounting, we will host a discussion on MIP advance, graph, and chart refresher.

Those attending the forum will receive handouts.

12:30 to 12:50-MIP User Group-MIP advance, graph, and chart refresher for MIP

12:50 to 1:00-FTM Updates and Closing                                                                                                                                                       Register

FTM Nonprofit Forum on May 27, 2020 – Essential Nonprofit Financial Governance and Leadership

   Register

Are financial governance duties clearly understood and performed by the board, finance committee, and executive committee(s)?

This webinar will help Nonprofit Leaders, Executive Directors, Finance Directors, Finance Staff, and your board members to define, document, and execute crucial responsibilities.  Avoid complacency and confusion by clearly defining and communicating expectations.  Savvy nonprofit leaders know that a dynamic board can be the difference between good and great performance.

How would you answer the following questions:

What are the typical financial responsibilities and misunderstandings of board members?

What are the essential financial governance responsibilities for the nonprofit board and its members?

What are the nonprofit financial governance basics and misperceptions that board and nonprofit leaders need to know?

We will answer this and more.  We will review and take a financial acumen quiz to reinforce leadership learning and address the confusion of financial governance.

Immediately following the presentation on nonprofit financial governance, we will host a MIP Fund Accounting User Group meeting focusing on board financial reporting and other financial governance.

12:30 to 12:50-MIP User Group-Board Financial Reporting and other financial governance

12:50 to 1:00-FTM update and Question and Answer session                                                                                                                Register

COVID-19 Financial Management Strategies and Financial Contingency Planning

Not-for-profit organizations are almost always dealing with the fragile nature of their operations and existence. Fears of possible loss of major donors, fears of recession, changes in tax laws, changes in reimbursement revenues, changes in government regulations, and dealing with the ever increasing cost of operations, are always present.

What are some financial steps your organization can take to weather this pandemic and survive?

  1. Assess Available Cash and Reserves
    1. Your organization should know where you are with available cash.
    2. Determine how much of this available cash is unrestricted by reviewing your operating, money market, investment accounts, board reserves and review all receivable expected to be collected.
    3. Determine a typical months cash expenditures and consider different scenarios.
    4. Determine # of days of cash available by dividing available cash by a typical month’s expenditures to determine how long you can survive with no other sources of revenue or cash.
    5. Cash Flow projections over the next several months are important to identify future cash flow issues before they occur.
    6. Consider other possible sources of cash to include line-of credit, credit cards, board designated endowment funds, or donor restricted funds that would allow you to release restrictions for operating purposes.
    7. With this essential financial information, your board, management, and staff can work collectively to assess the urgency of the situation, make informed decisions, and develop a plan of action.
  2. Assess Impact on Organization’s Sources of Revenue
    1. Review sources of revenues and determine how they may change in the short term.   Keep in mind program service revenues may decrease significantly if the availability of these services decline.  Social service revenues may actually increase for services provided to vulnerable populations and fees for services contracts with federal, state, or local agencies may continue.  Grant making agencies and foundations may actually provide increased funding for short-term emergency needs
    2. Organizations who rely on investment earnings to fund operations should consult with investment advisors to determine projected investment revenues.
    3. Organization needs to prioritize those programs and activities with the most impact and profitability while considering reducing, delaying, or eliminating those programs and activities with less impact and profitability.  Can we reassign certain staff to those activities with greatest need and associated funding?  What is the financial impact if fundraising events need to be cancelled or rescheduled?
    4. Reach out to your supportive donors and foundations to explain to them your specific situation and what you are doing to address this crisis and your proposed solutions.  Also, ask them for support and help during the crisis.  You might suggest to donors to consider making their annual contributions now when its most needed instead of waiting until the end of the year.  For donors with restricted contributions, you might ask them if you can use their donation for general operations.    You should communicate your plan of action with progress updates so your donors can track  your progress and needs.  You might consider in-kind donations in addition to cash donations for goods, services, and volunteers.
  3. Assess Impact on Organization’s Expenditures
    1. You can identify variable expenditures(payroll, travel, and office expenses) and determine to what extent they can be reduced while still allowing you to operate
    2. You can reduce those program expenses where you experience reductions in program revenues
    3. You can increase program expenses from those programs that see increases and reallocate staff and resources from other program areas.
    4. You should evaluate each type of expense to determine the projected increases or decreases to the projected budget.
    5. This maybe the time when difficult decisions need to be made regarding the reduction or elimination of programs and activities including the reduction of employees.  Would some employees consider some volunteer services in order to keep the programs going and increase their chance of returning to work in the future?  Keep employees informed of upcoming potential lay-offs or terminations.
    6. You should contact vendors and negotiate extended payment terms or payment plans.  Also, contact your landlord or banker to delay rent or loan payments.  You might check to see if you bank would consider interest only payments instead of full payments for a short period of time.

It is important to communicate with everyone in the organization to find solutions and have a collaborative approach.  Lower level staff may have a better hands-on evaluation of what specific measures need to be taken.  This crisis in not a result of lack of oversight, poor management, or bad decision making.  Everyone seems to be effected by this crisis so take comfort in knowing that we are all going through this together at the same time.    Your organization can do it’s best by having a pro-active crisis response that’s decisive and provides timely and accurate communication to all.   You should be exploring all funding sources available to your organization including the federal loan, grant, and tax credit program available to help with these short-term financial needs.  You should take this opportunity to reach out and show everyone how you have taken control or your organization’s destiny.

There are 5 Nonprofit Finance Must-Do’s in the time of COVID.

  • Understand your cash position
  • Assess damage to revenue streams
  • Look at the dual bottom line to include financial and impact
  • Include everyone in the discussion
  • Communicate consistently

The following financial management strategies should be considered as financial contingency planning for your short-term financial needs with the following practical takeaways.

  1. Forgivable loans to maintain full operations.  You should pursue this option if you plan to continue at the same staffing level as you did before the crisis.  You will apply with your financial institution and it will pay your entire payroll for 8 weeks after funds are revised and pay your essential operating costs like rent payments, mortgage interest, and utilities.  We would suggest you track how these loan proceeds are used so you can maximize the loan forgiveness once these funds are spent.  Keep in mind the employer portion of Social Security and Medicare is excluded from the allowable payroll costs.
  2. Employer Social Security Tax Deferrals.  Employers can defer the deposit and payment of Social Security taxes from March 27, 2020 to December 31, 2020.  The deposit due date for 50% of the taxes is deferred to December 31, 2021 and the remaining 50% deferred until December 31, 2022.  Please note that an employer is ineligible to defer paying the Social Security Tax if it acquires a loan through the Paycheck Protection Program and receives a decision from the lender that the loan was forgiven.
  3. Families First Coronavirus Response Act – Employment Provisions.  Two weeks of emergency paid sick leave to quarantine, seek diagnosis, or preventive care including 2/3 regular rate for family member care.   Twelve weeks of emergency family and medical leave for those employers with more than 50 employees.  Employers paying the mandated paid leave are entitled to claim a refundable tax credit.
  4. Employee Retention Credit.  This is a fully refundable tax credit for employers equal to 50% of qualified wages from March 12, 2020 to December 31, 2020.  This is a great option for those organizations that have experienced a significant decrease in revenues or reduction in operations.   An eligible employer may not receive the employee retention credit if the eligible employer receives a paycheck protection loan.

You can use these financial contingency planning options, but feel free to customize what works best for your organization.  Let us know if we can provide assistance to help you make and implement these difficult financial decisions.

FTM Nonprofit Forum on April 29, 2020 – Effective Grants Management and Cost Allocation

Nonprofit Forum Agenda                                                                                                                                             Register

11:30 to 12:30-Effective Grants Management and Cost Allocation

How should you perform your grants management and cost allocation responsibilities?   We will describe the best practices for these responsibilities.  Please bring your questions so we can have a candid and productive conversation.

We will cover the critical aspects of grants management and cost allocation including:

  • General grants management requirements
  • Governance requirements for grants administration
  • Review Uniform Grant Guidance
  • Internal control and financial management system requirements for federal awards
  • Schedule of Expenditures of Federal Awards and associated audit requirements
  • Cost Allocation methodologies including examples
  • Cost Allocation plan requirements
  • Best practices for grant budget financial management
  • Best practices for grant reporting and reconciliations
  • Performing an effective grant close out
  • How to use your accounting system to perform grants management role?
  • How to maximize your grant reimbursement?
  • What are signs that grants management role is not being performed?

How should you as leader evaluate your various options?  We will share our expertise and candid advice to better prepare you for these complex decisions.

3 Key Things you will learn include:

  • What are best practices for performing grants management role effective?
  • What are federal compliance grants management requirements?
  • What are signs that grants management role is not being performed correctly?

Those attending the forum will receive handouts.

12:30 to 12:50-MIP User Group-Grants Management and Cost Allocation refresher using MIP

12:50 to 1:00-FTM Updates and Closing