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Ccf Financial Management Narative
 

Ccf Financial Management Narative

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    Ccf Financial Management Narative Ccf Financial Management Narative Document Transcript

    • Built for Lasting Impact Financial Management Workshop Non-profit Financial Fundamentals Essentials to a Healthy Non-profit Workshop Description: Non-profit Financial Fundamentals provides an overview of the elements for sound financial management with a practical understanding that will prepare the organization for demonstrated results. Mastering the fundamentals will improve financial management, inspire confidence in potential donors, and provide the tools to manage grants and financial resources. The organization will complete a self evaluation and develop an action plan toward grant readiness and improved financial management capacity. These 5 foundational elements for sound financial management will be reviewed in the seminar. . 1. Strong Budget Process 2. Timely Management Reports 3. Strong Internal Controls 4. Consistent Documentation: Financial & Program Activity 5. Self Assessment & Capacity Development Plan. ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 1 of 27
    • Financial Foundations Example Case: Food & Warmth Inc. Congratulations you are the new finance manager for a food and clothing bank; Food & Warmth Inc. a small non-profit. The need for food and clothing in your community has been growing and the interest in the organization has been growing as well. You estimate that there will be a demand for 20% more services next year. A local foundation, Capacity Funding Inc. wants to fund 15% of your non-administrative projected budget for next year. Unbelievably they want to fund 15% of the total non- administrative value of goods and services provided through Food and Warmth Inc. Non-administrative costs include both fundraising and program goods and services. They are willing to grant you the money if you can tell them how much you need, when you would like it, what it will pay for, and how much of an increase you are projecting comparing last year with the proposed budget. In addition they want a report at the end of the year to demonstrate that the money was spent based the agreed upon budget you provided when the funds were received. The Foundation requires these reports to be generated from financial/accounting software. Finally, The Foundation wants to know what processes you changed, why, and how the change was able to improve things. Things were a little disorganized last year. The volunteer who was in charge of the finances moved out of state. The board treasurer is a little embarrassed. All he knows is that lots and lots of food and clothing were distributed last year. The community was generous and donated not only the food and clothing, but cash and checks to pay for some of the workers electric bills, paper products, and whatever they needed. The treasurer isn’t sure how much money came in, or how much was spent. All he knows is that after 12 months there is still some money in the bank. The treasurer gives you a box of receipts that they gathered up, and a folder with maybe 20 bank statements. The treasurer thinks they represent a couple of years worth of statements for maybe 1, or was it 2 or 3 different bank accounts. He encourages you by saying, “We’re all counting on you. You have 45 days before the budget and grant proposal is due. Oh, by the way…I sent in a $500 check last year that was never cashed. Let me know if you find it? I’m a little worried my account information is in the wrong hands. If it has happened to me, maybe there are others. And one other thing, I think some of our clothing is being taken and re-sold at garage sales.” The treasurer shows you your desk, shakes your hand, walks toward the door and with a parting gesture says, and “God bless you!” Your say to yourself, great to have a blessing, but what do I do next……? The irony of the phrase “be warm and filled,” hits you sitting at your desk in the food and clothing bank, watching your boss walk away, not having one clue what to do next? What would you do first? How would you get organized in 45 days and for the coming year and grant proposal? What does 15% of total non-administrative “value” of goods and services mean? Sounds like it could mean a lot of grant money…….!!!!!! ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 2 of 27
    • Financial Foundations Food & Warmth Inc. Case What are some of the issues / problems you seen in the case. For Example: The board treasurer does not know basic financial information. What will you have to do in order to earn Capacity Funding Inc.’s grant? For Example: You need to know how much to request and when you need it. ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 3 of 27
    • Financial Management Example Chart of Accounts Type of Account Category Account Bank Accounts 1010 . Cash in bank - operating account ABC Bank 1011 . Cash in bank - operating account XYZ Bank 1020 . Cash in bank - payroll Bank 1030 - Cash in bank - Federal Grant Bank 1040 . Petty cash Bank 1070 . Savings & short-term investment Bank 1500 . Credit card Credit Card Fixed Assets 2100 . Furniture Fixed Asset 2200 . Computers Fixed Asset 2500 . Accumulated Depreciation Fixed Asset Liabilities 3000 . Long Term Loan Liability 3100 . Line of Credit Liability Revenue Accounts 4010 - Individual & Business Contributions Income 4020 - Foundation Grants Income 4030 - Federal / State / City Grants Income 4040 - Program Fees Income 4050 - Special Events Income Expenses Accounts 5000 - Salary & Wages 5010 - Salary & Wages Expense 5020 - Benefits (Health / Dental / Wk Comp) Expense 5030 - Payroll Taxes ( @ 8% of Wages & Salary) Expense 5100 Insurance - Non-Employee Expense 5200 - Transportation / Mileage Expense 5300 - Professional Services 5310 - Accounting Expense 5320 - Consultants Expense 5400 - Occupancy Costs 5410 - Rent / Mortgage Expense 5420 - Utilities Expense 5430 -Repairs & Maintenance Expense 5500 - Other Expenses 5510 - Program / Office Supplies Expense 5520 - Printing / Copying Expense 5530 - Minor Equipment Expense 5540 - Training Expense 5550 - Postage Expense 5560 - Other Expense In-Kind Contributions 7000 In-Kind Contributions 7010 - Volunteer Time Income 7020 - Goods (Food & Clothing) Income 7100 In-Kind Expenses 7110 - Volunteer Time Expense 7120 - Goods (Food & Clothing) Expense ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 4 of 27
    • Financial Management, Food & Warmth = Budget A B =A+B C D =C+D A+B+C+D Actual Budget Total 12 Next Admin Fund Non- Program Program Total Overall Category Months Yr . Raising Program - Food Clothing Program Total Income 4010 - Individual & Business Contributions 4020 - Foundation Grants 4030 - Federal / State / City Grants 4040 - Program Fees 4050 - Special Events Total Income Expenses 5000 - Salary & Wages 5010 - Salary & Wages 5020 - Benefits (Health / Dental / Wk Comp) 5030 - Payroll Taxes Total - Salary & Wages 5100 Insurance - Non-Employee 5200 - Transportation / Mileage 5300 - Professional Services 5310 - Accounting 5320 - Consultants Total - Professional Services 5400 - Occupancy Costs 5410 - Rent / Mortgage 5420 - Utilities 5430 -Repairs & Maintenance ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 5 of 27
    • Financial Management, Food & Warmth = Budget A B =A+B C D =C+D A+B+C+D Actual Budget Total 12 Next Admin Fund Non- Program Program Total Overall Category Months Yr . Raising Program - Food Clothing Program Total Total Occupancy Costs 5500 - Other Expenses 5510 - Program / Office Supplies 5520 - Printing / Copying 5530 - Minor Equipment 5540 - Training 5550 - Postage 5560 - Other Total Other Expenses Total Expenses Net Income Non-Cash In-Kind 7000 In-Kind Contributions 7010 - Volunteer Time 7020 - Goods (Food & Clothing) Total In-Kind Contributions 7100 In-Kind Expenses 7110 - Volunteer Time 7120 - Goods (Food & Clothing) Total In-Kind Expenses Total Income & In-Kind Contributions Total Overall Net Income ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 6 of 27
    • Project cash flows by month for the time period reflected in the budget. Food and Warmth Inc. Exercise: Statement of Cash Flows: 1. Review the Bank Statement Handout. What do you notice about the net deposits and debits through the year. 2. What were the total deposits for last year? 3. What were the total expenses for last year? 4. Given the 20% increase in demand for service, what do you expect your total expenses to be? 5. What is the total amount of grant moneys you will be asking from Capacity Funding Inc? 6. How much, and when would you like the money? Total Deposits: ___________ Total Debits: ___________ 20% Increase Amount: ____________ Total Grant Request: ____________ Last Year Projected Cash Flows Projected Grant Total Total Expense Projected Funding Month Deposits Debits Net s Income Required January $2,000 $7,500 ($5,500) February $2,000 $7,500 ($5,500) March $2,000 $7,000 ($5,000) April $2,000 $6,800 ($4,800) May $2,000 $7,800 ($5,800) June $2,000 $8,800 ($6,800) July $12,000 $9,800 $2,200 August $2,000 $9,800 ($7,800) September $12,000 $7,800 $4,200 October $2,000 $7,800 ($5,800) November $20,000 $10,800 $9,200 December $40,000 $15,050 $24,950 Total $100,000 $106,450 ($6,450) ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 7 of 27
    • Element # 2: Timely Management Reports: Determine which information is important for your organization in the arena of financial management. Also determine how you will report the information. People within your organization will respond to what you report and how it is reported. Reports provide the opportunity to focus on the right things, demonstrate faithful stewardship, and provide valuable information that guides and supports decision making in achieving the mission of your organization. . Report building blocks: 1. Elements of good financial reporting: a. Timely: Ensure all deadlines are met. b. Accurate: Use accounting data that has been reviewed. c. Complete: Contain all pertinent information relating to the reporting period. d. Identify costs by program year and budget category. e. Account for each grant separately. f. Distinguish administrative, fundraising, and program costs. g. Track program outcomes and indicators. 2. Suggested Reports: a. Monthly and year-to-date budget to actual reports. b. Monthly cash on hand. c. Monthly status of restricted funds. d. In-Kind giving by area. e. Develop program outcomes and indicators to go along with financial reports. 3. Skill Development: a. Understand the difference between direct and indirect costs. b. Develop methods to allocate full costs to programs. c. Able to track and monitor restricted fund balance. d. Develop methods to capture in-kind contributions. e. Identify program metrics and indicators as well as financial reports. Food & Clothing Inc. Example Food Clothing Category Admin Fundraising Bank Bank Total Actual Annual Cost $40,000 $40,000 $260,000 $160,000 $500,000 Number Staff 1 1 2 2 6 Number Volunteers 8 6 14 Space Used 500 500 4,000 5,000 10,000 (Square Feet) Direct Costs? ___________ Indirect Costs? _____________ Percent Breakdown: Admin: ______%, Fundraising _______% Program _______% Full Program Cost: Food Bank $ ____________ Clothing Bank $ _____________ ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 8 of 27
    • Non-Profit Financial Fundamentals: ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 9 of 27
    • In-Direct Cost Allocation A B C D E Fundraisin Food Clothing Category Admin g Bank Bank Total Actual Annual Cost $40,000 $40,000 $260,000 $160,000 $500,000 Number Staff 1 1 2 2 6 Number Volunteers 8 4 12 Number Staff + Volunteers 10 6 18 Space Used 500 500 4,000 5,000 10,000 (Square Feet) Direct Costs = (C+D) $420,000 Indirect Costs = (A+B) $80,000 Percent Breakdown % Admin = (A / E) 8% % Fundraising = (B/E) 8% % Program = (C+D)/ E 84% Allocating Admin + Fund Raising Cost to Program Percent Calculation To Food = To Clothing Total Full Program Cost Allocation Method C/(C+D) = D/(C+D) Total Food Clothing Total If based on Cost $49,524 $30,476 $309,524 $190,476 $500,000 If based on Number of Staff $40,000 $40,000 $300,000 $200,000 $500,000 If based on Volunteers $53,333 $26,667 $313,333 $186,667 $500,000 If based on Staff + Volunteers $50,000 $30,000 $310,000 $190,000 $500,000 If based on Space Used $35,556 $44,444 $295,556 $204,444 $500,000 ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 10 of 27
    • Element # 3: Strong Internal Controls The purpose of internal controls is to ensure expenditures are spent only upon proper authorization of management, for valid business purposes, and that all disbursements are properly recorded. It is important to formalize your internal controls in written policies and procedures. Written policies allow for clear definition of responsibility, accountability and ease of training. At the end of the day it is important that deliberate decisions are made about who to pay, how much to pay, and when to pay. Internal Control Building Blocks The purpose of internal controls is to ensure expenditures are spent only upon proper authorization of management, for valid business purposes, and that all disbursements are properly recorded. It is important to formalize your internal controls in written policies and procedures. Written policies allow for clear definition of responsibility, accountability and ease of training. At the end of the day it is important that deliberate decisions are made about who to pay, how much to pay, and when to pay. Internal Control Building Blocks 1. Board Approved Budget: The Board reviews and approves the annual budget. 2. Established authority limits: Identify who is authorized to spend money and at what limit. Areas to set limits include the following: a. Determine who is a signer on each bank account. b. Set signature authority limits: i. For example: Checks over $5,000.00 require two signatures. ii. Program Director can authorize spending up to $500 without Executive Director approval. 3. Cash Management: a. Two to count cash: Whenever possible have two people count cash and sign the documentation for the total. b. Petty Cash. The petty cash account can be the most problematic. Unless there good system and discipline to use it you can loose track of how much is being used and for what purpose. Assign only one person to be responsible for petty cash. The following elements should be included in a petty cash voucher. Petty Cash Voucher Date: _________________ Amount: $ _____________ _________________________________________________________ Dollars For: ____________________________________________________________ Department / Program: ______________________________________________ Paid To: ________________________ Signed: ___________________________ Approved by: ______________________________________________________ ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 11 of 27
    • c. Days cash on hand: Set a target amount of operating days cash to have in reserve. This will provide a cushion for unforeseen changes in revenue or expenses, and provide monies for an emergency. As your operating budget increases the amount of days cash in reserve needs to increase. The following table illustrates how cash reserves vary with average monthly operating expenses. Target / Goal Average Monthly Expenses Days Cash on Hand $ 10,000 $ 15,000 $ 20,000 30 $ 10,000 $ 15,000 $ 20,000 60 $ 20,000 $ 30,000 $ 40,000 90 $ 30,000 $ 45,000 $ 60,000 4. Segregation of Duties: Segregation of duties means that no financial transaction is handled by only one person from beginning to end. Separation of duties is important to provide protection and accountability in handling cash and assets. a. Fill out the segregation of duties work sheet to evaluate how much overlap you currently have and whether or not you have opportunity to make changes in the following areas. i. Receiving cash / check donations or payments. ii. Payment iii. Payroll iv. Account reconciliation v. Monthly reporting b. These same principles can be applied for non-cash items such as the inventory of a food and clothing bank, donated computers, etc. c. Procedures and process for the duties above will flow out of your segregation of duties. d. Segregation of Duties Exercise: i. Fill out the actual segregation of duties as you understand this are today in your organization. ii. Exchange with someone who is not part of your organization and give each other recommendations on how segregation of duties can be improved. iii. Fill out the revised segregation of duties per your recommendations. ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 12 of 27
    • Fundamental Financial Management Actual Segregation of Duties Fill out the chart as you understand your organization functions today. Put in your specific job titles or names as appropriate in the row next to "Process" Put an X under the column of the job title or name that performs the process. Receptionis Book Office Program Executive Board Example Job Titles t Keeper Manager Director Director Treasurer Process Receiving Cash/ Check Donations Opens Mail / Receives $$ Counts $$ Completes Deposit Slips Deposits $$ in Bank Performs Inter-account / Bank Transfers Records Deposit in Accounting Records Outgoing Payments Opens Mail / Records Bills Records Bills in accounts payable Approves Invoices / Bills Approves Purchase Writes Checks Signs Checks Mails Checks Distributes Petty Cash Record Expenses in Accounting Records Payroll Approves pay rates Approves time sheets Writes Checks Signs Checks Distributes Checks Record Expenses in Accounting Records Account Reconciliation Reconciles Bank Statements Reviews Bank Statement Reconciliation Monthly Reports Produces Report Reviews Report ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 13 of 27
    • Fundamental Financial Management Revised Segregation of Duties Using the principle of segregated duties identify who is responsible for each process. Put in your specific job titles or names as appropriate in the row next to "Process" Put an X under the column of the job title or name that performs the process. Book Office Program Executive Board Example Job Titles Receptionist Keeper Manager Director Director Treasurer Process Receiving Cash/ Check Donations Opens Mail / Receives $$ Counts $$ Completes Deposit Slips Deposits $$ in Bank Performs Inter-account / Bank Transfers Records Deposit in Accounting Records Outgoing Payments Opens Mail / Records Bills Records Bills in accounts payable Approves Invoices / Bills Approves Purchase Writes Checks Signs Checks Mails Checks Distributes Petty Cash Record Expenses in Accounting Records Payroll Approves pay rates Approves time sheets Writes Checks Signs Checks Distributes Checks Record Expenses in Accounting Records Account Reconciliation Reconciles Bank Statements Reviews Bank Statement Reconciliation Monthly Reports Produces Report Reviews Report ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 14 of 27
    • 5. Restricted Fund Management: Money which has been restricted by the donor for a specific use such as buying a new building or starting a new program, should be only used for the purpose for which it has been given. For example, federal grants come with a contract in which you formally agree to only spend the monies for specific purposes outlined in the grant. a. It is important for the Board to review the status of restricted funds on a monthly basis. A simple report can be developed. In example 1 below the total of restricted funds is less than the total cash on hand. This is good. In example 2 is not good. There should be at least $125,000 to cover the restricted funds but there is only $120,000 in the bank. In this case $5,000 has been borrowed from restricted funds. Example 1 Example 2 Funds Acct. Bal. Acct. Bal. Total Cash All Accounts $ 120,000 $ 120,000 Restricted Funds Building $ 60,000 $ 80,000 Federal Grant $ 15,000 $ 25,000 Intern Support $ 5,000 $ 20,000 Total Restricted Funds $ 80,000 $ 125,000 Unrestricted Funds $ 40,000 $ (5,000) Total Restricted & Unrestricted $ 120,000 $ 120,000 b. In some cases donors may allow for the temporary borrowing of restricted funds. In cases where borrowing against restricted funds is permitted, the board should establish policies which describe the circumstances under which borrowing is allowed and for how long. 6. Performance Standards: Establish goals for timeliness and accuracy. a. Bill and reimbursement payment. b. Deposits: Daily, no cash overnight. c. Receipts. d. Filing. e. Account reconciliation monthly. f. Treasurer review monthly; i. Cash on hand ii. Restricted fund balances iii. Bank account reconciliations ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 15 of 27
    • 7. Establish a Three Bid Requirement: Some grants require you to get three bids on purchases over a certain threshold. $500 is a common threshold. For example, purchase of a computer or lap top with software would require you to solicit three bids before purchase. Documentation of the bids would need to be saved. Fundamental Financial Management EXAMPLE PROCURMENT FORM Agency: Project: Materials Product Supplies Service Specify/Describe: Small Purchase ($500-$1,000) Larger Purchase (Over $1,000) VENDOR/CONSULTANT Telephone Written Price Selected ADDRESS Solicitation Quotation Quoted Yes/No PHONE Check One 1.) _______ _______ $____ ______ 2.) _______ _______ $____ ______ 3.) _______ _______ $____ ______ COMMENT SECTION ___________ Agency Signature Date Project Manager Approval Date ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 16 of 27
    • Element #4: Consistent Documentation: Financial & Program Activity Documentation demonstrates stewardship and accountability in your organization relative the financial transactions. It is being faithful in the daily “little” things that will prepare you for the trust donors and grantors will give you for greater resources. Good documentation will provide you a clear audit trail to know who, what, and when in financial dealings. Some program activity is needed as it relates to allocation of expenses. It may also be very helpful in developing an understanding resource commitment. For example: Average cost / participant this year compared to last. Documentation Building Blocks 1. Donations: • Donor Receipts: Develop donor receipts that include where the funds have been designed to. • Bank Deposit Documentation: Make a copy of the checks, accounting software deposit report, and bank deposit receipt. Set up a filing system by calendar month. Each deposit should be stapled separately. Your documentation will match the deposit records on the bank statement and can be easily verified. Keep these records in a secure place. • In-Kind Donation: Not all donations are cash. In-Kind donations are goods, services, material, equipment, building and land that have been donated to the organization. i. Valuing and tracking these donations are important for two reasons: 1. Including them provides a more accurate picture of the true cost to run your program. The other side of that coin is a more accurate picture of the value your program provides. Donors want to know they are making a good investment. 2. Many grants require a percent “In-Kind” contribution by the organization. This percent or amount is a requirement for maintaining funding. For example a Head Start pre-school program requires in-kind contributions by the organizations that host them. ii. Documentation of In-Kind Contributions: 1. Document the basis for valuing the donation. 2. Time cards and sign in sheets are excellent methods of documentation. A sign in sheet for a training class validates that the class took place. 2. Expenses: • Accounts Payable: Good documentation practice includes the following. i. Authorization for payment is made on the bill or on a form. Signature and date of individual authorizing payment required. The form can also include accounting codes and which area to charge the expenses to. ii. Payment documented by writing on bill or by attaching check to bill stub. Check number and date of check required. ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 17 of 27
    • iii. File bill with check documentation by vendor by year. This method provides and easy method to validate expenses. Bank statement verification is also facilitated. • Payroll: Payroll records can easily be supported by time sheets. Hourly employees require time sheets to verify payroll. Allocation of salary to support grant activity is also easily supported by a time sheet. Important elements of a time sheet include: i. Reflect an after the fact distribution of each employees activity. ii. Account for the total activity of each employee. iii. Be prepared to coincide with actual pay periods. iv. Be signed by the employee and supervisor. 3. Bank Reconciliations: Each bank account each month must be reconciled and reviewed. • Reconcile on Time: Set your standard and stick with it. This will force the processes posting deposits and receipts and filing to take place on time. • Print and Sign Report: Print out the reconciliation report from the accounting software to verify the account has been reconciled. Whoever reconciles the account should sign the report, date it, and staple it to the bank statement. • Review: Each month the account reconciliation should be reviewed and signed by either the Executive Director or Treasurer. It is always a good idea to have your Treasurer randomly review these statements. • File: File the stapled account reconciliations and bank statements by bank account by month. Putting them in three ring binders is an excellent method of filing for bank statements. ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 18 of 27
    • Food & Warmth Inc. Request for Reimbursement Request Date: _____________________ Date Needed: _____________________ Make Check Payable To: (Include all of the following available.) Name: __________________________________________ Address: _________________________________________ ____________________________________________________ ____________________________________________________ Contact Person if Not Above:___________________________ Phone : _________________________________________ Fax: ____________________________________________ Check one of the following: o Mail to the above address. o Return to Requestor @ Location: _____________________ __________________________ ___________________________ Account Expense Description Budget Class Amount Code (Y / N ) Check Total Check Approved by: _____________________Date: ____________ Print Name:_______________________________ Transaction Entered by: _______________________Date: ______ Print Name: ______________________ ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 19 of 27
    • Food & Warmth Inc. Request for Expenditure Request Date: _____________________ Date Needed: _____________________ Make Check Payable To: (Include all of the following available.) Name: ________________________________________________ Address: _____________________________________________ ____________________________________________________ _____________________________________________________ Contact Person: ____________________________________________ Phone: ____________________________________________ Fax: ____________________________________________ Check one of the following: o Mail to the above address. o Return to Requestor: o Complete an online purchase. Account Expense Description Budget Class Amount Code (Y / N ) Check Total Check Approved by: __________________________Date: ________ Print Name:_______________________________ Transaction Entered by: _______________________Date: ______ Print Name: ______________________ ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 20 of 27
    • Food & Warmth, Inc. Debit Card Expenditure Vendor: _________________________ Purchase Date: ____________ Purchase Made by: (Include all of the following available.) Name: _____________________________________________ Address: _____________________________________________ _____________________________________________ _____________________________________________ Phone: ____________________________________________ Account Vendor &Expense Budget Class Amount Code Description (Y / N ) Debit Total Debit Transaction Approved by: _________________Date:________ Print Name:_______________________________ Transaction Entered by: _______________________Date: ______ Print Name: ______________________ ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 21 of 27
    • Food & Warmth Inc. Electronic Funds Expenditure Expense From Account: Wire Account: **** 9999 General Checking: ****9999 Transaction Date: _____________________ Transaction Paid To: (Include all of the following available.) Name: _______________________________________________ Address: _______________________________________________ _______________________________________________ ________________________________________________ Phone: ____________________________________________ Account Vendor &Expense Budget Class Amount Code Description (Y / N ) EFT Total Debit Transaction Approved by: __________________Date:_________ Print Name:_______________________________ Transaction Entered by: _______________________Date: ______ Print Name: ______________________ ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 22 of 27
    • Food & Warmth, Inc. Bank Transfer Authorization Date of Transfer: _______ $ Amounts $ Amounts Bank Account From To Purpose 9999 – XYZ Bank Wire Transfer 9999 – XYA Bank General Checking Transfer made by: _____________ Date: ____________ Executive Director: _____________ Date: ____________ File Copies in: Accounts Payable: File under Bank Transfer Authorization Folder Deposits: File in deposits under the month transfer was made. ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 23 of 27
    • TIMESHEET Food & Warmth Example Time Sheet for semi-monthly payroll Name: _______________________________________ Date Range: April 1 - 15, 2007 Date: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total Lasting Impact Hours Worked Federal Grant Hours Worked Hours Vacation Hours Personal Leave TOTAL NOTE: Report hours by classification for each day. Reports are to be submitted at end of pay period to your supervisor for his approval. Employee signature: Approved Approved by: by: Supervisor Executive Director ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 24 of 27
    • Financial Foundations Example Forms Volunteer Time Sheet ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 25 of 27
    • Volunteer Name Date Location Hours Service Provided ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 26 of 27
    • Element #5: Self Assessment & Capacity Development Plan. Remember financial management is a tool to control and direct the resources of your organization in achieving your mission. Good financial management is found in the little daily activities that keep things up to date and accurate. The key improving is to determine what you need to work on, and get busy. Set your goals to incrementally improve. Capacity Building Blocks: 1. Self Evaluation Action Plan: Complete the self evaluation check list. 2. Identify two areas to start with and develop an action plan to implementation. 3. Evaluate Critical Elements for Grant Readiness: a. Chart of accounts and accounting software that supports segmentation and reporting of revenue and expenses by grant. b. Internal controls that ensure grant funds are expended according to the grant. c. Capacity to add the additional work not only for grant program implementation, but in the accounting and administrative areas. d. Develop a clear idea of what you need resources for. 4. Complete an audit by an outside organization. In Review: The 5 Elements of Non-profit Financial Fundamentals: 1. Strong Budget Process 2. Timely Management Reports 3. Strong Internal Controls 4. Consistent Documentation: Financial & Program 5. Self Assessment & Capacity Development Plan Enjoy the daily process and you will reap fruitful rewards in stewardship, trust, and increased capacity. Build a strong foundation and your organization will be strong. Richard Speck Urban Strategies rspeck@urbanstrategies.us 602-818-6750 June 2008 ccffinancialmanagementnarative-100129104342-phpapp01.doc Page 27 of 27