This section will help you think about how well you manage your money.
HOW EFFECTIVE IS YOUR MONEY MANAGEMENT?
Legal requirements for financial management and auditing vary from country to country, but good financial planning, budgeting, management and accounting are important everywhere. A good budget spells out where you expect to get your money, and how you expect to spend it each year. Good financial management procedures and budget monitoring tell you if you are getting the money you expected when you need it, and if it is being spent on the things it was intended for. External audits reassure yourselves, your Board, your funders and the public that your organisation can be trusted to manage money properly.
STRENGTHENING YOUR MONEY MANAGEMENT
Use your assessment to determine your next steps. In all cases, you should:
- Discuss the results of this organisational strength map with IFEX. We may be able to connect you with relevant reference materials, external consultants, training opportunities or a skills exchange with another IFEX member
- Discuss the results with some of your most committed funders who may be able to support some areas of your organisational development.
HOW EFFECTIVE IS YOUR MONEY MANAGEMENT?
1. Our organisation has an annual budget that we monitor regularly.
Yes
Somewhat
No
2. We have written financial policies and procedures that are properly used, e.g., on budgeting, expense authorisation, purchasing, cheque signing.
Yes
Somewhat
No
3. Our organisation has financial systems that are understood and used, e.g., monitoring performance against budget, planning and monitoring cash flow, allocating expenditures.
Yes
Somewhat
No
4. Our financial management systems are overseen by a skilled financial manager.
Yes
Somewhat
No
5. Our financial management systems include internal controls to ensure that more than one person is involved in financial oversight.
Yes
Somewhat
No
6. Our organisation’s accounts are examined annually by an accredited external accounting body.
Yes
Somewhat
No
7. Our auditors and funders have raised no concerns about our financial management in the last three years.
Yes
Somewhat
No
If your assessment shows that you have answered mostly “No”
• Make sure that your budget reflects your strategic priorities and operational planning.
• Systematically review and assess all aspects of your financial management (e.g., monitoring expenses against budget, cash flow, bank accounts) and identify weaknesses.
• Write down and adopt clear financial policies (e.g., on expenditures, reserves, banking, per diems and petty cash) and identify decision makers at all levels.
If your assessment shows that you have answered mostly “Somewhat”
• Review the tips under “mostly no” to ensure that you have covered the basics.
• Identify a financial leader in the organisation (a department and/or a person).
• Develop clear financial policies and systems (e.g., for budget drafting and approval, per diem and petty cash guidelines). Review these policies and update them periodically.
• Develop cash flow projections annually and review them periodically.
• Share the results of this assessment with consultants in your community who can advise you on targeted ways forward.
If your assessment shows that you have answered mostly “Yes”
• Review the advice under “mostly no” and “mostly somewhat” to ensure that there are no gaps in your planning.
• Identify your financial best practices and record them as policy.
• Compile an organisational manual of financial procedures, practices and policies, and update it periodically.
• Keep current with financial trends, opportunities and benefits (e.g., tax cuts, special bank accounts).
• Make sure that your financial policies reflect your organisation’s values (e.g., the institution you bank with, where you invest any surplus).
• Develop a reserve fund for emergencies or other unplanned expenses, and a policy to govern its use.
• Share the results of this assessment with consultants in your community who can advise you on targeted ways forward.
Organisational Strength Map
Use this tool to identify your organisation’s strengths and explore areas for growth and development.
Chapters
Strategic Planning Toolkit
Build your strategic plan and improve your organisation’s effectiveness with these strategic planning tools and fact sheets. Not sure where to start? Check out the Starting Points page for advice tailored to your situation.
Communications Strategy Toolkit
Effective communications planning will enable you to raise your organisation’s voice on issues that matter.
Financial Sustainability Plan
Ensure that your organisation survives and thrives by strengthening its fiscal framework.
Social Media Strategy
This step-by-step tool will enable you to build an effective social media strategy and engage your online audiences.
Website Optimisation Plan
This 10-step plan will help you improve your website’s impact and usability.