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ACWA Conference 2010 Financial Literacy for Non Profit Boards;

ACWA Conference 2010 Financial Literacy for Non Profit Boards; Optional, Desirable or Prerequisite?. Morri Young Matrix on Board. Financial Literacy for Non Profit Boards. Due diligence Strategy Risk Management. Financial Literacy for Non Profit Boards. Due diligence.

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ACWA Conference 2010 Financial Literacy for Non Profit Boards;

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

  2. Financial Literacy for Non Profit Boards Due diligence Strategy Risk Management

  3. Financial Literacy for Non Profit Boards Due diligence Responsibility not to break the law

  4. Financial Literacy for Non Profit Boards Due diligence “Trading whilst insolvent” is against the law and it is the Board’s responsibility to prevent it

  5. Financial Literacy for Non Profit Boards Due diligence Every Board member has the same level of responsibility

  6. Financial Literacy for Non Profit Boards Due diligence Every member of the Board must be able to read and understand the Balance Sheet and Cashflow statement.

  7. Financial Literacy for Non Profit Boards Due diligence Balance Sheet. More assets than liabilities

  8. Financial Literacy for Non Profit Boards Due diligence Balance Sheet. Know the value of Assets and Liabilities

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

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

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

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

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

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

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

  16. Financial Literacy for Non Profit Boards Strategy Governance is stewardship

  17. Financial Literacy for Non Profit Boards Strategy Governance is stewardship

  18. Financial Literacy for Non Profit Boards Strategy The plan... and the means to achieve it

  19. Financial Literacy for Non Profit Boards Strategy The plan... and the means to achieve it

  20. Financial Literacy for Non Profit Boards Strategy The plan... and the means to achieve it

  21. Financial Literacy for Non Profit Boards Strategy The Budget is the cost of the plan

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

  23. Financial Literacy for Non Profit Boards Strategy Every Board member must be able to read, and understand the Income and Expenditure Report to Budget each month

  24. Financial Literacy for Non Profit Boards Strategy Implementation is not for Boards

  25. Financial Literacy for Non Profit Boards Strategy Implementation is not for Boards

  26. Financial Literacy for Non Profit Boards Strategy Ratios Reserves to Expenditure Ratio 25% 10%

  27. Financial Literacy for Non Profit Boards Strategy Ratios Working Capital Ratio 3.0 0.5

  28. Financial Literacy for Non Profit Boards Strategy Ratios Cash Reserve (in weeks) 12 3

  29. Financial Literacy for Non Profit Boards Risk Management “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. Financial Literacy for Non Profit Boards Risk Management Financial reports can reveal risks

  31. Financial Literacy for Non Profit Boards Risk Management Financial reports can reveal risks Fraud and theft

  32. Financial Literacy for Non Profit Boards Risk Management Financial reports can reveal risks Reduction in value of assets

  33. Financial Literacy for Non Profit Boards Risk Management Financial reports can reveal risks Mismanagement of resources

  34. Financial Literacy for Non Profit Boards Board Reports Readable Timely Accurate

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

  36. Financial Literacy for Non Profit Boards Board Reports Readable Balance Sheet

  37. Financial Literacy for Non Profit Boards Board Reports Readable PayablesReceivablesBank ReconciilationCashflow

  38. Financial Literacy for Non Profit Boards Board Reports Timely

  39. Financial Literacy for Non Profit Boards Board Reports Accurate

  40. Financial Literacy for Non Profit Boards Board Reports Timely End of the month is like end of the year

  41. Financial Literacy for Non Profit Boards

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