FINANCIAL MANAGEMENT CHECKLIST

buttermilkbouncyManagement

Nov 10, 2013 (3 years and 9 months ago)

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I.H.3

The Samaritan Institute


124


FINANCIAL MANAGEMENT CHECKLIST


The items in this checklist are intended to raise the awareness of staff and board members about the
Center’s financial management. Effective financial management does not necessarily require
affirmative answers to all of
these questions, but negative responses on the checklist may point to
areas of vulnerability and to needed corrective actions.










In

Accounting and General Business





Yes Part No

Corrective Actions?

1. Does the Center have a financial & inv
estment


policy that covers authority, investments, operating
procedures, and conflicts?





2.

Is the policy followed?






3. Are funds deposited in a timely way that maximizes
cash flow?





4.

Are third
-
party sources billed on a timely basis (at
l
east once a month)?





5.

Does the Center have policies & procedures for


handling disputed claims from third
-
party sources?





6.

Are unpaid fees billed on a periodic timely basis?

Are those with unpaid pledges also notified?





7.

Does the Center hav
e a collection policy?

Are collections at least as prompt as in prior years?





8.

Are fixed assets adequately accounted for?






9.

Are alternatives to purchasing (e.g. leasing,

donations) considered prior to major purchases?





10.

Does the Center use dona
ted or discounted office

space whenever practical?





11.

Are there procedures to determine the fair market

value of donated property and equipment?





12.

Is the Center receiving the highest available rate of

return on short
-
term investments?





13.

Does the bo
ard receive sufficient information about

fund raising projects to evaluate their effectiveness?





14.

Does the Center have a grant writing policy to guide

exploration of potential sources of funding?





15. Are available cash discounts taken?







Perso
nnel and Payroll

1.

Does the Center have written personnel policies &

procedures, and does it follow them?





2.

Does the Center

have job performance and evalu
-

a
tion practices that meet Samaritan Inst. Standards?





3.

Does the Center regularly review its
benefits

program?







I.H.3

The Samaritan Institute


125

Financial Management Checklist, page 2










In

General Administration





Yes Part No Corrective Actions?

1.

Does the chart of accounts provide for adequate

breakdown of expenses for functional reporting?





2.

Does the C
enter have adequate insurance:

professional liability, general liability, other?





3.

Have telephone expenses been evaluated to

determine cost effectiveness?





4.

Are inventories of supplies maintained at an

appropriate level?





5.

Are the Center’s compu
ter capabilities adequate to

administrative and program needs?






General Accounting

1.

Does the exec. director/financial mgr. generate

timely & accurate financial reports for the board?





2.

Do financial statements conform with recommended

standards of t
he industry?





3.

Are the Center’s budgeting policies consistent with

its accounting policies?





4.

Is the board treasurer properly informed about and

involved in Center financial management?





5.

Are basic general ledger accounts balanced in

detail?





6.

When key personnel are absent, do remaining staff

know how to accomplish basic accounting tasks?





7.

Does the Center have record retention policies, and

does it follow those policies?





8.

Have procedures been established to account for

the value of do
nated services?






Automation

1.

Are transaction volumes high enough to justify

automation?





2.

Has the Center made significant changes in

computer hardware or software in the past 3 years?





3. Is existing computer equipment being used


effecti
vely?





4.

Does the Center automate its fund
-
raising functions?

(mailing lists, donor histories, etc.)






Tax Considerations

1.

Is the Center aware of and does it comply with

Internal Revenue and state filing requirements?





2.

Does the Center file the re
q
uired 990 form
annually?






3.

Are the Center’s financial statements in compliance

with the American Inst. of Certified Accountants?






I.H.3

The Samaritan Institute


126



Financial Management Checklist, page 3











In

Planning







Yes Part No Corrective Actions?

1.

Does

the Center have an organization chart that

shows lines of responsibility & accountability?





2.

Does the Center periodically evaluate its

organizational and management requirements?





3.

Does the Center compare actual results with its

annual budget on a m
onthly or quarterly basis?





4. Does the Center plan for inflation?







5. Has the Center reviewed the pricing and profitability

of its fees to see if changes should be made?





6. Does the Center perform adequate financial & needs

a
ssessments prior to adding new service locations?





7.

Does the Center have methods of evaluating the


scope & effectiveness of its fundraising programs?





8.

Has the board established an endowment and are


funds for the endowment being actively
pursued?





9.

Does the Center have a policy & procedure for

building a reserve fund?





10.

Is the Center large enough to afford a development

officer for fundraising and public relations?





11.

Is the Center’s external audit/financial review

presented an
d interpreted to the board of directors?







Follow Up

1.

Has this exercise uncovered important difficulties or gaps in the financial management system
of the Center? What are they?








2.

What corrective actions are most pressing?








3.

Whose responsibi
lity will it be to implement the agreed upon corrective actions?