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