This document contains a self-evaluation checklist for a non-profit organization to assess its financial management capacity. It includes elements such as having a strong budget process, timely management reports, strong internal controls, consistent documentation, and a capacity development plan. The checklist contains over 45 questions organized into 5 categories to help the organization identify areas of financial management that are in place as well as gaps that need to be addressed to strengthen financial operations.

1. Financial Management
Building Blocks for Financial Strength
Self Evaluation Check List & Capacity Development Plan
I know what this is
and why its My organization has this in
important. place / has the information.
No I In Place Needed Target
Elements Category Yes I do don't (Yes) (No) Not Sure Action Needed By Whom Date
Element #1 Strong Budget Process
1 Chart of accounts
2 Dollars spent last year and for what purpose.
Total revenue received last year (donations &
3 other income sources).
Revenue by sources of income, how much
4 was donated, and for what purpose.
Profit and loss financial statement (income
statement) for last year including In-Kind
5 giving.
Most recent three years financial
6 performance. (Income Statements)
Projected trends for future financial
7 performance.
8 Budget for the current fiscal year.
9 Program specific budget.
Budget verses actual report for current fiscal
10 year to date.
11 Cash flow projection for the rest of the year.
12 Separate bank accounts for federal grants.
Accounting system tracks grants and their
13 expenses separately.
14 Amount of cash on had at month end.
Restricted and Un-restricted funds are
15 reported.
Expenses can be broken down and reported
in these categories: Administrative, Fund
16 Raising, and Program Costs.
Senior leadership is committed to a budget
17 process and monitors progress.
Element #2 Timely Management Reports
18 Indirect cost allocation.
Full program costs including direct and
19 indirect costs are calculated.
20 Report timing standards are established.
Determination has been made for who needs
21 to receive financial and programmatic reports.
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2. Financial Management
Building Blocks for Financial Strength
Self Evaluation Check List & Capacity Development Plan
I know what this is
and why its My organization has this in
important. place / has the information.
No I In Place Needed Target
Elements Category Yes I do don't (Yes) (No) Not Sure Action Needed By Whom Date
Element #1 Strong Budget Process
22 We have and review the following reports:
Monthly and year-to-date budget to actual
22.1 financials.
22.2 Cash on hand by bank account.
Status of restricted funds. How much was
22.3 spent for designated funds,
22.4 In-Kind giving by area.
We have and measure key program
22.5 outcomes.
Element #3 Strong Internal Controls
We have a board approved budget for the
23 current fiscal year.
We have a signature authority limit policy in
24 place.
We have a policy that sets a check amount
25 limit that would require two signatures.
I know who is handling the cash and what
26 procedure they are using.
27 Two people count cash money at all times.
The treasurer (or other board member)
28 reviews account reconciliations.
Segmentation of duties for financial
29 transactions is reviewed and acted on.
How many $'s should be in the restricted fund
30 balance in known every month.
We have established performance standards
31 for the following:
31.1 Bill payment and reimbursement
31.2 Deposits
31.3 Receipts
31.4 Filing
31.5 Account Reconciliation
Petty cash account balance is reconciled
32 monthly.
Days cash to keep on hand guidelines are in
33 place.
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3. Financial Management
Building Blocks for Financial Strength
Self Evaluation Check List & Capacity Development Plan
I know what this is
and why its My organization has this in
important. place / has the information.
No I In Place Needed Target
Elements Category Yes I do don't (Yes) (No) Not Sure Action Needed By Whom Date
Element #1 Strong Budget Process
I know how many days cash we have on
34 hand.
Policy that requires three bids on the
purchase of items over a defined limit is in
35 place..
Element #4 Consistent & Accurate Documentation
Donor receipts include what they have given
36 toward.
Bank deposit documentation includes copies
of checks, accounting software deposit report,
37 and bank deposit receipt.
38 We document in-kind donations.
Accounts payable documentation includes
invoice, copy of check or check stub, and
39 appropriate signature authorizing payment.
Bank reconciliations are done monthly and
40 signed.
Deposit and payable information is neatly filed
41 and kept by year.
We have a method to track and trend key
42 program indicators.
Element #5 Capacity Development Plan
Financial management is included in the
43 organizations strategic and business plan.
Key elements for grant readiness have been
44 put in place.:
We have a chart of accounts and accounting
software that supports segmentation and
44.1 reporting of revenue and expense by grant.
We have internal controls that ensure grant
44.2 funds are expended according to the grant.
We have capacity to add the additional work
not only for grant program implementation, but
44.3 in the accounting and administrative areas.
We have systems in place to track
44.4 programmatic grant outcomes.
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4. Financial Management
Building Blocks for Financial Strength
Self Evaluation Check List & Capacity Development Plan
I know what this is
and why its My organization has this in
important. place / has the information.
No I In Place Needed Target
Elements Category Yes I do don't (Yes) (No) Not Sure Action Needed By Whom Date
Element #1 Strong Budget Process
We have a clear idea of the resources we
need for the next three years and know where
45 to get it.
We have completed an audit by an outside
46 firm.
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