1 March 24, 2015 YWCA USA Financial Leadership & Management Program Financial Leadership for every woman 1 Join us on

2 We’re Launching!  FMLP…a significant new YWCA USA capacity- building initiative!  Our hopes and dreams  We have great participation  A few logistics

3 WELCOME

4 Why this matters  Lead Proactively: No Money, No Mission  Board/CEO responsibilities for financial vitality ―Duty of Care, ―Duty of Loyalty ―Duty of Compliance ―Stewardship and Legacy  YWCA Assets: Our legacy, our future

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7 Today’s Conversation Tenets of Financial Leadership Staffing -The Staff / Board Role Internal Controls Accounting Policies & Procedures

8 Who’s Your Audience? Funders? Board? IRS? State? Management

9 Authoritative Guidelines

10 Financial Leadership The financial leader of your organization is

11 Tenets of Financial Leadership 1.Move beyond mission vs. money thinking.

12 Mission and Money

13 Who is involved?

14 Who is involved? Everyone

15 Cultivate Leadership Leaders like & invest in company Valuing financial literacy in ALL staff Executive responsibility for board/staff exposure and training

16 Tenets of Financial Leadership 1.Move beyond mission vs. money thinking. 2.Cultivate financial leadership on the staff and board. 3.Understand your business model.

17 Impact Strategy Financial Strategy

18 Understand Your Business Model A nonprofit business model is leadership’s hypothesis of how impact drives human and financial participation. $

19 Tenets of Financial Leadership 1.Move beyond mission vs. money thinking. 2.Cultivate financial leadership on the staff and board. 3.Understand your business model. 4.Recognize the relationship between strong infrastructure and strong programs.

20 Invest in Infrastructure Strong InfrastructureStrong Programs

21 Tenets of Financial Leadership 1.Move beyond mission vs. money thinking. 2.Cultivate financial leadership on the staff and board. 3.Understand your business model. 4.Recognize the relationship between strong infrastructure and strong programs. 5.Set the tone of accountability and sustainability.

22 The Age of Accountability IRS Form 990 Website Annual Report Board review of internal controls Audit

23 Tenets of Financial Leadership 1.Move beyond mission vs. money thinking. 2.Cultivate financial leadership on the staff and board. 3.Understand your business model. 4.Recognize the relationship between strong infrastructure and strong programs. 5.Set the tone of accountability and sustainability.

24 Financial Leadership Model

25 Financial Leadership Model a)Staffing b)Internal Controls

26 Staffing

27 Staffing

28 Areas of Focus Internal Budgeting Reporting Cash flow External Focus on funders –Grant budget –Tracking / Invoicing –Grant reporting Audit Regulatory reporting

29 Staffing Role Strategic Planning & Analysis Operational Accumulation & Reporting Transactional Inputting & Filing Skills Needed –Big picture thinking –Communication –Accounting rules and regulations –Attention to detail

30 The Hiring Spectrum Outsource to contract bookkeeper Admin. Asst. does bookkeeping with review by CPA Hire bookkeeper with review by ED? Hire Controller / Accountant / Fiscal Manager Where you are depends on: Budget size and complexity of funding.

31 Hiring a Bookkeeper Involve your board. Test for fit with the organization, ability to explain and work with you as well as technical knowledge.

32 Board vs. Staff Board ResponsibilityStaff Responsibility Approval of strategic plan Providing accurate and timely financial information Approval of budget Recommending and enacting internal controls Approval of internal controls Maintaining and reviewing financial reports Review of interim financial statements Using finances in strategic decision making Set up finance committee and/or audit committee Hiring an auditor and reviewing the audit Review Form 990

33 Internal Controls

34 Influences on Internal Controls Your Culture Your Environment Your Procedures Your Monitoring

35 Who is involved? Everyone Board: Approve and monitor Management: Design Staff: Implement

36 Simple Steps to Take More than one check signer Payroll service Board review Think about your processes and define responsibilities – process map?

37 Segregation of Duties Invoice received and approved. Entered into system. Payables reviewed with cash flow forecast. Checks printed. Check signed. Check Mailed. Invoice stamped paid and filed. Bank Statement received and reconciled.

38 Personnel Policy Accounting Policies and Procedures Training / Professional Development Encourage Vacations Additional Steps for Internal Controls

39 Accounting Policies & Procedures Internal controls Reporting Accrual Basis of Accounting Cash Management General Ledger Payroll Expense Allocations Detailed Procedures

40 Recap Staff the position correctly Internal controls: Build a strong foundation Good procedures lead to good analysis You’re the financial leader!

41 YWCA FLM: Discussion Site

42 Next Webinar: April 21 Understanding & Assessing Financial Health Cash vs. Accrual Accounting Monitoring cash flow Reading financial statements Calculating key ratios

43 Steve Zimmerman Spectrum Nonprofit Services