1. Copyright © Texas Education Agency, 2012. All rights reserved. The Finance Department Statistics & Risk Management 1

2. Copyright © Texas Education Agency, 2012. All rights reserved. “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

3. Copyright © Texas Education Agency, 2012. 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

4. Copyright © Texas Education Agency, 2012. All rights reserved. Primary Goals Gather Raw Data Gather Raw Data Process Statistics Process Statistics Present Findings Present Findings 4

5. Copyright © Texas Education Agency, 2012. 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

6. Copyright © Texas Education Agency, 2012. 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

7. Copyright © Texas Education Agency, 2012. 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

8. Copyright © Texas Education Agency, 2012. 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