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

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

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

4. 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

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

6. 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.

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

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

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

10. ACWA Conference 2011|| 41 10 Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due.

11. ACWA Conference 2011|| 41 11 Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Rent

12. ACWA Conference 2011|| 41 12 Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Payroll

13. ACWA Conference 2011|| 41 13 Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. GST

14. ACWA Conference 2011|| 41 14 Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Program Costs

15. ACWA Conference 2011|| 41 15 Due diligence Financial Literacy for Non Profit Boards Cashflow Statement Be able to pay debts as when they fall due. Telephone

16. ACWA Conference 2011|| 41 16 Strategy Financial Literacy for Non Profit Boards Governance is stewardship

17. ACWA Conference 2011|| 41 17 Strategy Financial Literacy for Non Profit Boards Governance is stewardship

18. ACWA Conference 2011|| 41 18 Strategy Financial Literacy for Non Profit Boards The plan... and the means to achieve it

19. ACWA Conference 2011|| 41 19 Strategy Financial Literacy for Non Profit Boards The plan... and the means to achieve it

20. ACWA Conference 2011|| 41 20 Strategy Financial Literacy for Non Profit Boards The plan... and the means to achieve it

21. ACWA Conference 2011|| 41 21 Strategy Financial Literacy for Non Profit Boards The Budget is the cost of the plan

22. ACWA Conference 2011|| 41 22 Strategy Financial Literacy for Non Profit Boards Every Board member must be able to read, understand and approve the Budget

23. ACWA Conference 2011|| 41 23 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

24. ACWA Conference 2011|| 41 24 Strategy Financial Literacy for Non Profit Boards Implementation is not for Boards

25. ACWA Conference 2011|| 41 25 Strategy Financial Literacy for Non Profit Boards Implementation is not for Boards

26. ACWA Conference 2011|| 41 26 Strategy Financial Literacy for Non Profit Boards Ratios Reserves to Expenditure Ratio 25% 10%

27. ACWA Conference 2011|| 41 27 Strategy Financial Literacy for Non Profit Boards Ratios Working Capital Ratio 3.0 0.5

28. ACWA Conference 2011|| 41 28 Strategy Financial Literacy for Non Profit Boards Ratios Cash Reserve (in weeks) 12 3

29. ACWA Conference 2011|| 41 29 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

30. ACWA Conference 2011|| 41 30 Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks

31. ACWA Conference 2011|| 41 31 Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks Fraud and theft

32. ACWA Conference 2011|| 41 32 Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks Reduction in value of assets

33. ACWA Conference 2011|| 41 33 Risk Management Financial Literacy for Non Profit Boards Financial reports can reveal risks Mismanagement of resources

34. ACWA Conference 2011|| 41 34 Board Reports Financial Literacy for Non Profit Boards Readable Timely Accurate

35. ACWA Conference 2011|| 41 35 Board Reports Financial Literacy for Non Profit Boards Readable Clearly describes performance for the month comparing actual and budget, and for YTD

36. ACWA Conference 2011|| 41 36 Board Reports Financial Literacy for Non Profit Boards Readable Balance Sheet

37. ACWA Conference 2011|| 41 37 Board Reports Financial Literacy for Non Profit Boards Readable Payables Receivables Bank Reconciilation Cashflow

38. ACWA Conference 2011|| 41 38 Board Reports Financial Literacy for Non Profit Boards Timely

39. ACWA Conference 2011|| 41 39 Board Reports Financial Literacy for Non Profit Boards Accurate

40. ACWA Conference 2011|| 41 40 Board Reports Financial Literacy for Non Profit Boards Timely End of the month is like end of the year

41. ACWA Conference 2011|| 41 41 Financial Literacy for Non Profit Boards