Vision:A strong and capable civil society, cooperating and responsive to Cambodias development challenges

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

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Vision:

A strong and capable civil society, cooperating and responsive to Cambodia

s 摥v敬潰m敮琠捨慬汥湧敳



1


CONTENTS


2





Introduction of Financial Management


Important
of Financial Management


Effective of Financial Management


Responsible
Personnel


Sustainable Financial Strategies


Internal Vs. External Audit


Why External Audit Important?










3






INTRODUCTION
OF FINANCIAL
MANAGEMENT








INTRODUCTION
OF FINANCIAL
MANAGEMENT


4




Profit Vs. Non Profit
Organization


Concept
of
Financial Management
:



Planning



Organizing



Directing/Leading and



Controlling










INTRODUCTION
OF FINANCIAL
MANAGEMENT


5




Group Discussion


“ What is the important of Financial
Management?”


Divide into 4 Groups


15 Minutes for Group Discussion


10 Minutes for Presentation Per Group


IMPORTANT OF FINANCIAL MANAGEMENT


6




Important of Good Financial Management


Decision
making: revising, seeking for new funding,
expanding the activities


Manage proactively rather then reactively


Manage short
-
term cash flow effectively


Comply with Government law and regulation


Sustainability of positive cash
flow


Safeguard of asset and record


Make operation more efficient









IMPORTANT
OF FINANCIAL MANAGEMENT


7




Important of Good Financial
Management (
Con’t
.)


Creditability
from donors


Plan
ahead of employee’s benefits


Operated with acceptable
risks


Promote operational efficiency and
effectiveness


Provide reliable financial information


Encourage adherence to prescribed policies; and


Reducing and preventing errors in a cost
-
effective
manner.








IMPORTANT
OF FINANCIAL MANAGEMENT


8




Important of Good Financial Management (
Con’t
.)


Ensuring
priority issues are identified and addressed.


Protecting employee and resources
.


Having more efficient audit, resulting shorter timeline,
less testing and fewer demands on staffs.











9






EFFECTIVE OF FINANCIAL
MANAGEMENT








EFFECTIVE FINANCIAL MANAGEMENT


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Financial
Planning
:
Budgeting


Controlling and
Monitoring Financial Activities
:


Control over recording financial transactions


Control over cash expenditure


Comply with accounting standards, law and
regulation



Risk management


Timely and accurately financial reports to the
donors


EFFECTIVE FINANCIAL MANAGEMENT


11





Controlling and Monitoring Financial
Activities
(
Con’t
.)


Effective control over resource of the
Organization


Effective control over grant funds


sustainability


Internal Audit


EFFECTIVE FINANCIAL MANAGEMENT


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Some Element Should be Focused

1.
Policy and Procedure Manual

2.
Accounting Policies

3.
Grants
Receipts

4.
Cash
on Hand (Petty Cash or
Imprest

Account)

5.
Banking

6.
Security

7.
Expenditure
/
payment

8.
Fixed
assets (equipment and property)

9.
Cash advance

10.
Internal Control
of
Purchasing





EFFECTIVE FINANCIAL MANAGEMENT


13




Some Element Should be
Focused (
Con’t
.)

11. Travels

12.
Payroll

13.
Financial Statement

14.
Budget Control

15.
Audit

16.
Related Policy



14







RESPONSIBLE
PERSONNEL







RESPONSIBLE
PERSONNEL


15





Board of Directors:
Transparency and
accountability


Executive Director:
Used 3Es of resources to
achieve plan


Program Manager:
Project budget management
and uses it wisely


Finance Manager:
Overall responsibilities of
finance management and ensure that financial
transactions comply with accounting standards.





RESPONSIBLE
PERSONNEL


16





Accountant:
Recording and prepare accurate and
timely financial statement and in compliance with
accounting
policies


Cashier
:
Safeguard of the organization’s
cash


Other staff






17







SUSTAINABILE
FINANCE
STRATEGIES







SUSTAINABILE FINANCE STRATEGIES


18




Group Discussion


“ What
is the strategies for NGOs to be
sustainable?”


Divide into 4 Groups


15 Minutes for Group Discussion


10 Minutes for Presentation Per Group


SUSTAINABILE FINANCE STRATEGIES


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Variety of fund sources


Multiple ways of seeking funds


Up to date of financial planning


Good
reputation and recognition


Adhere to the vision and mission of the Organization


Transparency and accountability over the financial
activities


Reserve funds


Strong networks with sponsors





21







INTERNAL VS.
EXTERNAL
AUDIT







INTERNAL
VS.
EXTERNAL AUDIT


22




Internal Audit:
is an independent, objective
assurance

and
consulting

activity designed to add value and improve
an organization's operations. It helps an organization
accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the
effectiveness

of
risk management
,
control
, and
governance

processes.

External Audit:
ISA 200 states the objective of an audit
of financial statements is to enable the auditor to express
an opinion whether the financial statements are prepared,
in all material respects, in accordance with an identified
financial reporting framework.



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WHY
EXTERNAL AUDIT
IMPORTANT?







WHY EXTERNAL AUDIT IMPORTANT?


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Ensure the entity is complied with the provided
financial policies and procedure


Provide creditability of the organization to the donors


Independent opinion on the financial statements


Critique on the internal control procedure and enhance
its effectiveness, efficiency and economy


Double check on the work of internal audit



25







Q & A








26







Thanks!!!