Verified Document

NGO Boards Financial Continuity Strategies Essay

Related Topics:

Financial continuity Strategies for NGO Boards Non-governmental organizations are often caught up in financial woes that make it difficult for their operation despite having a strong mission program. Discussed are professional financial continuity strategies for NGO boards to control the financial performance of their organizations in a timely manner. Firstly, ensuring an effective operation of the board. Their functions are executed through complementary and supervisory operations, and legal obligations on their performance in the organizations structure (Finkler et al., 2016). The board’s primary role is to represent the interests of the stakeholders and those of the organization. Their functions include administration of the organization, financial oversight, and making decisions on policy.

Their governance responsibilities includes approval of annual budgets, preparation of business plans, policy formulation and implementation, strategic planning, and other administrative controls. Internal controls should be exercised not give room for fraudulent activities. Boards should ensure the organization abides to the contractual and legal conditions provided by donors. Performing and reporting on financial audits facilitate organizational accountability.

Fund accountancy

The approach in fund accounting is to keep records of resources that donors, governing boards, legal entities or granting agencies provide limited ways in which...

Parts of this document are hidden

View Full Document
svg-one

Every fund has inherent balancing of the liabilities, revenue, expense account, and assets. Net assets and the fund balances are classified as unrestricted, permanently restricted or temporarily restricted in the financial position statement depending in the donor’s restrictions and the net assets base. Therefore, fund accounting is associated with segregation of the funds available towards the current projects and the financial resources that are dedicated to donor specified causes.
Fund accounting also makes the audit process easier since one can follow the trail of resources (Lekaj, 2011). Spending is restricted to the specified purpose Payables and receivables of fund groups are neither organizational liabilities nor organizational assets. Financial statements must clearly categorize the inter-funds accordingly to avoid reflecting their worth in the organization’s total liabilities and assets. Consequently, for of external financial reporting, the classification of net assets may have to be categorized into different classes.

Assets Management

Assets in nonprofit organizations are managed in a going perspective which implies there are no limitations to the organization’s existence in the future. Therefore, the management must ensure there are sufficient liquid financial resources for current operations. The objective of this approach is to make sure there is an optimum balance between the…

Cite this Document:
Copy Bibliography Citation

Related Documents

City Diplomacy: The Increasing Role
Words: 18927 Length: 69 Document Type: Research Proposal

The goals at which this process is aimed can concentrate on creating benefits primarily for one party or on creating benefits for both parties.' (van der Pluijm and Melissen, 2007, p.1) Multiple-sided city diplomacy is a "diplomatic process in which more than two parties are involved, representing various cities." (van der Pluijm and Melissen, 2007, p.1) van der Pluijm and Melissen state that associations of municipalities "such as United Cities

Chad Guinea Promises Superior Transparency
Words: 6550 Length: 20 Document Type: Research Paper

S., France and publicity, Chad was able to renegotiate more favorable contracts with the Bank, expropriate over $450 million in taxes from the private Consortium firms which they claim they had already paid, under the threat of replacement with Chinese firms. Global oil prices spiked, and Chad cleared over $1 billion in revenues in the last year of the Bank's project in 2008. Much of this increased income coincided at

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now