Nonprofit Financial Management Self Assessment Form

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NONPROFIT FINANCIAL MANAGEMENT SELF
ASSESSMENT TOOL
I.
Financial Planning/Budget Systems
Don't
Inadequately
Partially
Fully
Know
Achieved
Achieved
Achieved
1. Organization has a comprehensive annual
budget which includes all sources and uses
of funds for all aspects of operations.
2. All grant or contract budget agreements
with funders are incorporated into the
comprehensive annual budget.
3. All grant or contract budget proposals are
reviewed by fiscal staff before submission
to funders.
4. Program managers play an active role in
the development of budgets for programs
under their direction.
5. A board committee has a detailed
understanding of the annual budget and
plays a significant role in directing the use
of unrestricted funds.
6. The full board formally authorizes the
annual budget and revisions to the
budget.
8. The organization has integrated
meaningful consideration of financial
issues into any strategic planning
processes it undertakes.
9. The organization has a capital budget and
multi-year plans for major maintenance
and replacement of facilities and
equipment.
© THE NONPROFIT ASSOCIATION OF OREGON / www.nonprofitoregon.org
SA 3
NONPROFIT FINANCIAL MANAGEMENT SELF
ASSESSMENT TOOL
I.
Financial Planning/Budget Systems
Don't
Inadequately
Partially
Fully
Know
Achieved
Achieved
Achieved
1. Organization has a comprehensive annual
budget which includes all sources and uses
of funds for all aspects of operations.
2. All grant or contract budget agreements
with funders are incorporated into the
comprehensive annual budget.
3. All grant or contract budget proposals are
reviewed by fiscal staff before submission
to funders.
4. Program managers play an active role in
the development of budgets for programs
under their direction.
5. A board committee has a detailed
understanding of the annual budget and
plays a significant role in directing the use
of unrestricted funds.
6. The full board formally authorizes the
annual budget and revisions to the
budget.
8. The organization has integrated
meaningful consideration of financial
issues into any strategic planning
processes it undertakes.
9. The organization has a capital budget and
multi-year plans for major maintenance
and replacement of facilities and
equipment.
© THE NONPROFIT ASSOCIATION OF OREGON / www.nonprofitoregon.org
SA 3
Don't
Inadequately
Partially
Fully
Know
Achieved
Achieved
Achieved
10. The fiscal planning process includes
continuous assessment of risks and
identification of insurance coverage
needs and appropriate risk management
procedures.
11. Risk assessment includes: general
liability, professional liability, product
liability, fire, theft, casualty, workers
compensation/occupational safety,
board and officer liability, vehicle
operation, fraud and dishonest acts.
II.
Execution
Don't
Inadequately
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Achieved
Achieved
Achieved
1. The organization has written policies and
procedures for fiscal operations including
procedures for processing payroll,
purchases, accounts payable, accounts
receivable, etc.
2. Written policies and procedures are
reviewed and revised regularly.
3. Actual processing activities are consistent
with written policies and procedures.
4. The concept of separation of duties is
implemented to the greatest extent
feasible within the limitations of the size of
the organization staff.
a. Authorization functions for
purchasing, signing checks, adjusting
accounts, and extending credit are
not performed by individuals who
also perform recording functions such
as disbursements and/or receipts,
maintaining accounts receivable
records, or cash handling functions
such as receiving and depositing
funds or preparing checks.
© THE NONPROFIT ASSOCIATION OF OREGON / www.nonprofitoregon.org
SA 3
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b. Review and verification functions
such as reconciliation of the bank
statement to the record of cash
receipts and disbursements are not
performed by individuals who also
prepare checks, record checks,
receive funds and prepare bank
deposits, and/or record receipts.
5. Payroll policies and procedures are clearly
documented and consistently followed.
a. Written authorization is required for
all new hires and pay rate changes.
b. Written timesheets are prepared by
all employees, signed by the
employee, and approved in writing by
the employee's direct supervisor.
c. Forms W-4 and I-9 are obtained and
retained for each employee.
d. Policies regarding overtime, vacation
time, sick leave, holiday pay, and
other leaves with or without pay are
written clearly, and reviewed
regularly for compliance with state
and federal law.
e. All fringe benefit plans are
documented and in compliance with
IRS and Department of Labor
requirements. The proper tax
treatment for all benefits and
compensation arrangements has
been determined and documented.
f. Responsibility for maintaining fringe
benefit records in accord with
governmental requirements has been
clearly assigned and records are
reviewed regularly.
© THE NONPROFIT ASSOCIATION OF OREGON / www.nonprofitoregon.org
SA 3
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6. Written purchasing policies clearly identify
the purchasing authority of each staff
position, and establish appropriate dollar
limits for purchasing authority at each
level.
7. There are clear procedures for review of
and authorization to pay all vendor
invoices.
8. Written policies and procedures for
charging and collecting fees are followed
consistently and reviewed regularly.
9. Cash handling policies and procedures are
well-documented and are tested
periodically.
a. All checks are restrictively endorsed
upon receipt.
b. Receipts are given for all cash
transactions and donors/clients are
informed that they should receive a
receipt for all cash payments. Pre-
numbered, multi-copy, customized
receipts are used.
c. A receipts log is maintained by the
person responsible for opening the
mail.
d. Cash reconciliation sheets are
maintained by all individuals
responsible for accepting cash. All
cash counts are initialed by the
individual preparing the initial count
and the individual receiving the cash
for further processing.
e. Post dated checks are not generally
accepted, and if accepted, are
secured carefully.
f. All disbursements are made by check
except for small purchases made
through a Petty Cash fund.
© THE NONPROFIT ASSOCIATION OF OREGON / www.nonprofitoregon.org
SA 3
Don't
Inadequately
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Achieved
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g. All unused check stock is carefully
secured.
h. Bank reconciliation is performed by
someone who neither makes bank
deposits nor prepares checks.
III.
Recording
Don't
Inadequately
Partially
Fully
Know
Achieved
Achieved
Achieved
1. A complete written chart of accounts
provides appropriate account titles and
numbers for Assets, Liabilities, Net
Assets, Revenues, and Expenses.
2. The Chart of Accounts clearly establishes
the programs or functions which will be
distinguished and the funding sources
and/or distinct funds which will be
tracked.
3. The Chart of Accounts utilizes the same
line item categories and the same
program or function distinctions which are
utilized in the comprehensive annual
budget and the budgets for individual
contracts or grants.
4. Accounting policies and recording
procedures are clearly documented in the
written fiscal policies and procedures.
5. Appropriate computer software and
hardware is utilized to perform recording
functions.
6. Appropriate electronic and physical
security procedures are utilized to protect
the integrity of computerized accounting
records.
7. All accounting records are backed up daily.
Back-up media are stored in a secure area
away from computer equipment.
© THE NONPROFIT ASSOCIATION OF OREGON / www.nonprofitoregon.org
SA 3

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