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Financial operations reviews deliver insight. Reviews help organizations move beyond budgets and expenses into staffing, policies and processes. Learn how to determine financial viability of new programs and link money with mission.
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Peeling Back The Covers On Your Finance Organization: Diagnosing Financial Issues And Seizing Opportunities
Rebeka Mazzone
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Today’s Speaker
Hosting: Sam Frank, Synthesis Partnership
Assisting with chat questions: Chris Dumas, FirstGiving
Rebeka Mazzone Accounting Management Solutions, Inc.
Peeling Back the Covers of Your Finance Department
Rebeka J. Mazzone, CPA
Accounting Management Solutions, Inc.
September 29, 2010
Agenda
• Overview/Introduction
• Case Study
• Common Issues
• What should you look for?
Rebeka J. Mazzone, CPA
6
Director, Rhode Island Region Accounting Management Solutions, Inc.
About Us
• For more than a decade,
Accounting Management
Solutions, (AMS) has provided
accounting support and financial
management leadership at the
consulting CFO, controller and
accounting manager level to
dynamic companies throughout
the Northeast.
Why Should You Care About Finance?
• Finance impacts every
aspect of your organization
• To know finance is to work
well with it
• Money and mission are
directly linked
8
Anatomy of a Financial Operations Review
• Assess financial operations
• Identify issues and areas for improvement
• Prioritize best practices and next steps
• Reviews are frequently used during
organizational changes
Example: AMS Rapid DiagnosticTM
Gap Analysis Best Practices Current State
Operations
Systems
Process
Assessment Review Output
Policies/Procedures
Financial Health
Best Practices
Recommendations
ROI/ Profitability
Implementation Plan
Day 1 Day 5
Case Study: $7M Not-for-profit Real Estate
11
12
How Can You Prevent This?
Case Study: $18M Healthcare Organization
13
14
How Can You Prevent This?
Common Themes
• Inadequate reporting
• Improper staffing
• Inadequate
management and board
oversight
• Lack of strategic
measures to help
detect early warning
signs
15
What Should You Know About Finance?
• Do we have enough resources to effectively
deliver the programs we have committed to?
• What are our outstanding liabilities?
• What will our future resources look like?
• Are we effectively managing our financial
processes?
• Do we have the right team in place?
16
Reporting as a Roadmap
17
Reporting
18
Question Reports
Where do we want to go? Strategic plan
How are we going to get there? Budget
Do we have enough resources
to get there?
Balance Sheet and Cash Flow
Are we on track? Income Statement vs. Budget
If not, what are we going to do
about it?
Board Discussion
Finance Department
• Bookkeeper
• Controller/Director of
Finance
• CFO
19
Staffing
20
• Job description
• Expert interview
• Skill set match
• Effective transition
Policies, procedures, checklists
21
Audits
• Management letter comments are very valuable
• Address issues from previous years’ audits
• Talk to auditors about adjusting entries
• Audit adjustments should be recorded monthly, not
annually
• Why would you want to show your Board
numbers that are different from what you will
show the public?
22
Engaged Board and Management
• Ask the “dumb” questions
• Ensure more than one member of the Board
understands finance
• Perform board member training and
orientation
• Present financial information in a meaningful
way
23
Goal: Improve Operations
OPERATIONAL EFFICIENCIES
PR
OF
ITA
BIL
ITY
/CA
SH
FL
OW
Next Steps: Questions to Ask
• Is there financial knowledge
across the organization?
• Is your organization missing
critical functions?
• Do you have the right people in
the right role?
• Can you link money to mission?
Contact Us
Massachusetts Office 800 South Street, Suite 195
Waltham, MA 02453
(781) 419-9200
New York Office 1501 Broadway – 12th Floor
New York, NY 10036
(212) 984-0711
Rhode Island Office 1 Richmond Square, Suite 124 C
Providence, RI 02906
(866) 267-9952
• Interested in
• Additional Information?
• AMS Newsletter with reporting
deadlines and industry updates?
• Invitations to upcoming events
and seminars?
• Access to our online resource
center?
Rebeka J. Mazzone, CPA
(866) 267-9952
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Chris Dumas [email protected]
707-812-1234
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