Inability to Practice Responsible and Resource Effective Financial Management

Inability to practice and demonstrate responsible financial management Challenges

  • Difficult to ensure prudent and effective budget utilization.
  • Ensuring operation within budget.
  • Running over budget or exceeding appropriations and consequences.
  • Tracking of budget status and any changes to it.
  • Reviewing of historical encumbrance information with ease.
  • Using of any encumbrance management system, and how well it works.
  • Integration of encumbrance management system with purchase order system.
  • Crossing of fiscal years in reporting on encumbrances and other aspects of finance management.
  • Maintenance of balanced accounts with confidence.
  • Occurrence of errors in interfund transactions and time taken to remedy them.
  • Use of one or more of chart of accounts.
  • Financial managers should know all related accounts.
  • Reflection of interfund transactions in the general ledger.
  • Ensure whether all information is correct.
  • Successful passed in audition.
  • Items pointed out as a result of audition.
  • Ensuring compliance with FASB regulations.
  • Taking or recommending financial decisions.
  • Information used for taking financial decision and how is it made available.
  • Researching of grant transaction detail.
  • Performing inquiries regarding encumbrances.
  • Reporting on committed purchases and their accuracy.
  • Managing payable control accounts.
  • Distributing accounts payable to multiple control accounts and need of manual intervention.
  • Need of manual intervention in distributing accounts.

Capabilities:

  • Ensure effective utilization of resources within your budget.
  • Need to reconcile fund information and balance accounts.
  • Organization needs to manage payables control accounts, assess financial status, and facilitate financial planning

Impact:

  • Lack of accountability of funds and expenses to board of directors
  • Organization at risk for non-compliance with FASB requirements
  • Difficulty managing cash flow
  • Difficulties meeting regulatory reporting requirements
  • Difficulty reconciling funds
  • Risk of going over budget
  • Auditing liabilities
  • Inefficient, unreliable payables control accounts management
  • Funds out of balance
  • Extensive and inefficient funds administration
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