ACWA Conference 2011|| 41 1 ACWA Conference 2010 Financial Literacy for Non Profit Boards; Optional, Desirable or Prerequisite? Morri Young Matrix on Board

ACWA Conference 2011|| 41 2 Due diligence Strategy Risk Management Financial Literacy for Non Profit Boards

ACWA Conference 2011|| 41 3 Due diligence Financial Literacy for Non Profit Boards Responsibility not to break the law

ACWA Conference 2011|| 41 4 Due diligence Financial Literacy for Non Profit Boards “Trading whilst insolvent” is against the law and it is the Board’s responsibility to prevent it

ACWA Conference 2011|| 41 5 Due diligence Financial Literacy for Non Profit Boards Every Board member has the same level of responsibility

ACWA Conference 2011|| 41 6 Due diligence Financial Literacy for Non Profit Boards Every member of the Board must be able to read and understand the Balance Sheet and Cashflow statement.

ACWA Conference 2011|| 41 7 Due diligence Financial Literacy for Non Profit Boards Balance Sheet. More assets than liabilities

ACWA Conference 2011|| 41 8 Due diligence Financial Literacy for Non Profit Boards Balance Sheet. Know the value of Assets and Liabilities

ACWA Conference 2011|| 41 9 Due diligence Financial Literacy for Non Profit Boards Balance Sheet. Know the value of Assets and Liabilities Really

ACWA Conference 2011|| Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due.

ACWA Conference 2011|| Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Rent

ACWA Conference 2011|| Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Payroll

ACWA Conference 2011|| Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. GST

ACWA Conference 2011|| Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Program Costs

ACWA Conference 2011|| Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Telephone

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Governance is stewardship

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Governance is stewardship

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards The plan... and the means to achieve it

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards The plan... and the means to achieve it

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards The plan... and the means to achieve it

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards The Budget is the cost of the plan

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Every Board member must be able to read, understand and approve the Budget

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Every Board member must be able to read, and understand the Income and Expenditure Report to Budget each month

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Implementation is not for Boards

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Implementation is not for Boards

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Ratios Reserves to Expenditure Ratio 25% 10%

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Ratios Working Capital Ratio

ACWA Conference 2011|| Strategy Financial Literacy for Non Profit Boards Ratios Cash Reserve (in weeks) 12 3

ACWA Conference 2011|| Risk Management Financial Literacy for Non Profit Boards “Risk management is the process of managing an organisation’s potential exposure to liabilities, preventing them, or providing funds to meet the liability if it occurs.” David Fishel: The Book of the Board

ACWA Conference 2011|| Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks

ACWA Conference 2011|| Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks Fraud and theft

ACWA Conference 2011|| Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks Reduction in value of assets

ACWA Conference 2011|| Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks Mismanagement of resources

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Readable Timely Accurate

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Readable Clearly describes performance for the month comparing actual and budget, and for YTD

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Readable Balance Sheet

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Readable Payables Receivables Bank Reconciilation Cashflow

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Timely

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Accurate

ACWA Conference 2011|| Board Reports Financial Literacy for Non Profit Boards Timely End of the month is like end of the year

ACWA Conference 2011|| Financial Literacy for Non Profit Boards