Tips tools for ngo financial management

Tips tools for ngo financial management

Tips & Tools for NGO Financial

NGO Financial

Management

 Mission-driven, not Financially-Driven Staff

 Small Purchaser of Goods & Services

NGO Financial Tools

 Policies & Procedures Manual

 Record Financial Transactions

 Monitor & Control Expenses

 Satisfy Reporting Requirements

 Ensure Timely & Accurate Reporting to

Donors and Grant-makers

NGO Financial Tools

 Revenues – all types

 Expenses – all types

 Assets – All things owned by NGO

 Liabilities – Money owed to others

spent and decide whether to give more

 Run trial balance

Cash Management

 Cash is deposited correctly

to disbursement

 Bank reconciliations are done timely

Bank Reconciliation

1 Record bank charges into cash book

2 Record any other debits or credits that are

not in the cash book

*Ensure they are all legitimate

Budgeting – Why?

 Most important part of Financial

Management

 Where do you want to go and how do you

want to get there?

 Gives a tool for checkpoints along the way

 Allows you to spot trouble areas and devise

plans to address them

 Provides a benchmark for donors to grade

your performance against projections

Budgeting – How?

budgets – expenses and income sources

 Look at last year and decide what will

stay the same and what will change

issues

 Income with date to be received

 Expenses with date to be paid

Budgeting Tips

 Once budget is created:

see if there would be any trouble areas created

trouble areas

 Gain necessary approval and record

Budget change

approvals

 Change in scope of project

 Change in key personnel to carry out project

 Need for additional funds, due to

unforeseeable events

 Transfer of funds from one line item to another

 Costs prohibited by the grant agreement are

incurred

Fixed Assets

 Ensure they are recorded on balance sheet

 Reflect any changes in them as soon as they

Fixed Assets

 Tag & Inventory all fixed assets

(Donor/Type/#)

Opening Balance

(cost-purchase/market-donate)+ Additions to asset category

(purchase/donated)

- Subtractions (depreciation/dispose/sell)

= Closing balance

Fixed Assets Tips

 Verify and inventory all fixed assets at the end

of the period

 Make sure you are personally seeing the

inventory at least once per year (vehicles,

laptops, etc.)

 Keep receipts of all fixed assets with any

applicable warranty information

 Decide whether to sell any assets that you are

not using or will need to use in the future

 Travel is planned for in advance for budget and

discount purposes

 Travel expenses are approved before incurred

 Travel expenses are accounted for with

receipts before paid

 Travel adheres to donor requirements

 Travel should be at lowest cost - economy

class, travel on non-holiday weekdays, etc

Goods & Services

Goods & Services

 Responsibilities/specifications/type of

service

 Minimum qualifications

 Terms of Service

 Deadline for submission

 Deadline for completion

Goods & Services Tips

 Collective buying opportunities

 Lock-in prices/contracts

Reporting

Requirements

separate – through bank accounts

Annual Reports

 Financial reports 90 days after end of

fiscal year

 Include impact reports, explanations, etc with financial statements

 Fixed Asset Register

 Comparative Quotation Chart

Thank you for participating today!

Contact information –

Denise Phelps dphelps@globalgiving.org