Keynote%20 %20 Seestadt[1]

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Keynote%20 %20 Seestadt[1]

  1. 1. Financial Oversight by Nonprofit Boards The Experienced, the New, and the Absent ©2009 Robert Seestadt/CFOShare LLC cfoshare.com 248.714.9400
  2. 2. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC Board Engagement: Communicating Financial Matters
  3. 3. Source: Nonprofit Finance Fund March 2009 survey of 47 MI nonprofit leaders; used with permission Plans and actions to weather the recession
  4. 4. Which of the following types of technical assistance would be helpful now to your organization? Source: Nonprofit Finance Fund March 2009 survey of 47 nonprofit leaders; used with permission
  5. 5. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC Tools for Financial Communication: Portraying the Key Message
  6. 6. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC Tools for Financial Communication: Presenting Financial Condition <ul><li>OnBOARD SM Nonprofit Assessment </li></ul><ul><li>Capital position (liquidity) and forward momentum (outlook) </li></ul><ul><li>Assess board focus and consensus on financial condition </li></ul><ul><li>Useful in reporting change over time, dynamic </li></ul><ul><li>Focuses attention on financial reporting and data </li></ul><ul><li>Identifies disagreements / opportunities; CEO vs. finance vs. outside board? </li></ul>
  7. 7. Board Oversight The experienced, the new and the absent ©2009 Robert Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment: Capital Position <ul><li>Liquidity </li></ul><ul><li>Access to cash </li></ul><ul><li>Ability to pay bills when they come due </li></ul><ul><li>Adequate reserve </li></ul><ul><li>Balance sheet focus </li></ul><ul><li>“ Noun” </li></ul>
  8. 8. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC <ul><li>Performance-oriented </li></ul><ul><li>Look at recent trends and outlook </li></ul><ul><li>“ Verb” </li></ul><ul><li>Are we going in the right direction with enough “mass”? </li></ul>OnBOARD SM Nonprofit Assessment: Forward Momentum
  9. 9. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Self Assessment: Capital Position Factors 0-3 4-6 7-10 Cash reserves and investments Serious concerns over short-term Sufficient for short-term Sufficient or better in short/mid term Receivables & other liquid assets Insignificant Moderate Significant Payables and debts Aging is excessive and/or upcoming debt svc issues Some vendor delays but reasonable aging Current and manageable Financing & access to outside capital Nominal access to line of credit or other financing Some financing available such as line of credit Significant financing available if needed OVERALL ASSESSMENT (0-10): Little/no liquidity for operating needs Sufficient liquidity for short term operating needs Sufficient capital for current and mid-term operating & investment needs
  10. 10. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Self Assessment: Forward Momentum Factors 0-3 4-6 7-10 Management track record in generating surplus Mostly deficits over past 3-5 years Balance of surplus and deficits Mostly surpluses over past 3-5 years Short-term financial projections Anticipate losses in short-term Likely near or at break-even Projected operating surplus Backlog & pending awards Insignificant Moderate Significant Budget adaptability Difficult to adjust expense structure in short-term Some ability to manage costs to fit budgetary need Able to materially adjust budget to fit resources Recent trends & economic environment Very challenging and concerning Some hurdles, but with planning can overcome Positive economic environment OVERALL ASSESSMENT (0-10): Short/mid-term outlook negative/ challenges significant Outlook neutral opportunities & challenges are balanced Outlook favorable for short and mid-term
  11. 11. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example A
  12. 12. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example B
  13. 13. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example C
  14. 14. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example D
  15. 15. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example E
  16. 16. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example F
  17. 17. ©2009 Robert P Seestadt/CFOShare LLC OnBOARD SM Nonprofit Assessment : Example G
  18. 18. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC For the “New”
  19. 19. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC For the “New” <ul><li>Inquiry is key to understanding </li></ul><ul><li>Simple is good </li></ul><ul><li>Response is verbal and non-verbal </li></ul><ul><li>Follow up </li></ul><ul><li>Curiosity and interest most important </li></ul>
  20. 20. Board Oversight The new, the experienced and the absent ©2009 Robert Seestadt/CFOShare LLC For the “Experienced”: Taking it to the Next Level
  21. 21. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC The Tough Questions Are we meeting our potential? <ul><li>Capital position </li></ul><ul><li>Forward momentum </li></ul><ul><li>Capacity utilization </li></ul>What is it? “Cost to Serve” How to Measure?
  22. 22. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC For the “Absent”:
  23. 23. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC For the Absent <ul><li>Welcome “non-accountants” to participate </li></ul><ul><li>Responsibility is year-round and comprehensive </li></ul><ul><li>Where to start </li></ul><ul><li>Management letter as a tool </li></ul>
  24. 24. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC For You Facilitating Change in Board Oversight
  25. 25. Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC Additional Resources: Tools and Tips
  26. 26. <ul><li>ArtServe Michigan </li></ul><ul><li>BoardSource </li></ul><ul><li>BoardWALK </li></ul><ul><li>Bridgespan </li></ul><ul><li>City Connect Detroit </li></ul><ul><li>Community Legal Resources </li></ul><ul><li>Compass Pointe </li></ul><ul><li>Detroit Executive Service Corps </li></ul><ul><li>Lawrence Tech University Center for Nonprofit Management (Learning Circle) </li></ul><ul><li>Michigan Nonprofit Association </li></ul>Additional Resources (not all-inclusive) NEW Nonprofit Finance Fund Society for Nonprofit Organizations (National) United Way of Southeast Michigan Volunteer Centers of Michigan Board Oversight The experienced, the new, and the absent ©2009 Robert Seestadt/CFOShare LLC Questions? [email_address]

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