1March 24, 2015

YWCA USA Financial Leadership & Management ProgramFinancial Leadership

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Join us on Twitter: @SpectrumSteve

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We’re Launching!

FMLP…a significant new YWCA USA capacity-building initiative!

Our hopes and dreams

We have great participation

A few logistics

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WELCOME

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Why this matters

Lead Proactively: No Money, No Mission

Board/CEO responsibilities for financial vitality―Duty of Care, ―Duty of Loyalty ―Duty of Compliance―Stewardship and Legacy

YWCA Assets: Our legacy, our future

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Today’s Conversation

• Tenets of Financial Leadership• Staffing -The Staff / Board Role• Internal Controls• Accounting Policies &

Procedures

AGEN

DA

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Who’s Your Audience?

• Funders?• Board?• IRS?• State?• Management

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Authoritative Guidelines

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Financial Leadership

The financial leader of your organization

is . . . . . . .

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Tenets of Financial Leadership

1. Move beyond mission vs. money thinking.

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Mission and Money

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Who is involved?

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Who is involved?

Everyone

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Cultivate Leadership

• Leaders like & invest in company

• Valuing financial literacy in ALL staff

• Executive responsibility for board/staff exposure and training

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Tenets of Financial Leadership

1. Move beyond mission vs. money thinking.

2. Cultivate financial leadership on the staff and board.

3. Understand your business model.

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Impact Strategy

Financial Strategy

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Understand Your Business Model

A nonprofit business model is leadership’s hypothesis of how impact drives human and financial participation.

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Tenets of Financial Leadership

1. Move beyond mission vs. money thinking.

2. Cultivate financial leadership on the staff and board.

3. Understand your business model.

4. Recognize the relationship between strong infrastructure and strong programs.

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Invest in Infrastructure

Strong Infrastructure Strong Programs

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Tenets of Financial Leadership

1. Move beyond mission vs. money thinking.

2. Cultivate financial leadership on the staff and board.

3. Understand your business model.

4. Recognize the relationship between strong infrastructure and strong programs.

5. Set the tone of accountability and sustainability.

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The Age of Accountability

• IRS Form 990• Website• Annual Report• Board review of

internal controls• Audit

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Tenets of Financial Leadership

1. Move beyond mission vs. money thinking.

2. Cultivate financial leadership on the staff and board.

3. Understand your business model.

4. Recognize the relationship between strong infrastructure and strong programs.

5. Set the tone of accountability and sustainability.

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Financial Leadership Model

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Financial Leadership Model

a) Staffing

b) Internal Controls

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Staffing

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Staffing

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Areas of Focus

Internal

• Budgeting

• Reporting

• Cash flow

External

• Focus on funders– Grant budget– Tracking / Invoicing– Grant reporting

• Audit

• Regulatory reporting

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Staffing

Role

• Strategic• Planning & Analysis

• Operational• Accumulation & Reporting

• Transactional• Inputting & Filing

Skills Needed

– Big picture thinking– Communication

– Accounting rules and regulations

– Attention to detail

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The Hiring Spectrum

Outsource to contract bookkeeper

Admin. Asst. does bookkeeping with review by CPA

Hire bookkeeper with review by ED?

Hire Controller / Accountant / Fiscal Manager

Where you are depends on:

Budget size and complexity of funding.

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Hiring a Bookkeeper

• Involve your board.

• Test for fit with the organization, ability to explain and work with you as well as technical knowledge.

• www.blueavocado.org

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Board vs. Staff

Board Responsibility Staff Responsibility

Approval of strategic planProviding accurate and timely financial information

Approval of budgetRecommending and enacting internal controls

Approval of internal controlsMaintaining and reviewing financial reports

Review of interim financial statementsUsing finances in strategic decision making

Set up finance committee and/or audit committee

Hiring an auditor and reviewing the audit

Review Form 990

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Internal Controls

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Influences on Internal Controls

Your Culture

Your Environme

nt

Your Procedures

Your Monitoring

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Who is involved?

Everyone

• Board: Approve and monitor

• Management: Design

• Staff: Implement

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Simple Steps to Take

• More than one check signer

• Payroll service

• Board review

• Think about your processes and define responsibilities – process map?

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Segregation of Duties

Invoice received and approved.

Entered into system.

Payables reviewed with cash flow forecast.

Checks printed.

Check signed.

Check Mailed.

Invoice stamped paid and filed.

Bank Statement received and reconciled.

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• Personnel Policy

• Accounting Policies and Procedures

• Training / Professional Development

• Encourage Vacations

Additional Steps for Internal Controls

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Accounting Policies & Procedures

• Internal controls

• Reporting

• Accrual Basis of Accounting

• Cash Management

• General Ledger

• Payroll

• Expense Allocations

• Detailed Procedures

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Recap

Staff the position correctly

Internal controls:Build a strong

foundation

Good procedures lead to good analysis

You’re the financial leader!

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YWCA FLM: Discussion Sitehttp://ywcaflm.ning.com/

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Next Webinar: April 21

Understanding & Assessing Financial Health

• Cash vs. Accrual Accounting

• Monitoring cash flow

• Reading financial statements

• Calculating key ratios

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Steve ZimmermanSpectrum Nonprofit Services

www.spectrumnonprofit.com

stevez@spectrumnonprofit.com

414-727-1029