Copyright © Texas Education Agency, All rights reserved. The Finance Department Statistics & Risk Management 1

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Copyright © Texas Education Agency, All rights reserved. Finance Management The CFO is primarily responsible for managing and growing an organization’s assets The CFO is primarily responsible for managing and growing an organization’s assets – Finance Department – Accounting Department 3

Copyright © Texas Education Agency, All rights reserved. Primary Goals Gather Raw Data Gather Raw Data Process Statistics Process Statistics Present Findings Present Findings 4

Copyright © Texas Education Agency, All rights reserved. Who is Interested? Executives and Management Executives and Management Stockholders Stockholders Lenders Lenders Taxing Bodies Taxing Bodies Governmental Agencies Governmental Agencies What do you think each of these groups would be interested in? What do you think each of these groups would be interested in? 5

Copyright © Texas Education Agency, All rights reserved. Interested in What? Industry Trends Industry Trends Past Sales/Profits (Losses) Past Sales/Profits (Losses) Assets (Including Cash) Assets (Including Cash) Liabilities Liabilities Innovations and Projections Innovations and Projections What do you think is the most important area to analyze? What do you think is the most important area to analyze? 6

Copyright © Texas Education Agency, All rights reserved. Truth, Nothing But the Truth. A loss in trust is hard to recover from. A loss in trust is hard to recover from. Customers want to buy from successful, honest firms. Customers want to buy from successful, honest firms. Supplier-Partners want to service reliable, honest firms. Supplier-Partners want to service reliable, honest firms. Why do you think that is true? Why do you think that is true? 7

Copyright © Texas Education Agency, All rights reserved. Rules in Business Finance Those who need financing the most will have the most difficult time acquiring financing. Those who need financing the most will have the most difficult time acquiring financing. Lenders already in for a “penny” will probably lend a “pound”. Lenders already in for a “penny” will probably lend a “pound”. Too Big to Fail……………….. Too Big to Fail……………….. 8