Has your nonprofit’s finance department ever undergone an independent assessment of its operations? An independent assessment brings a fresh set of eyes that reviews your finance department operations critically and provides recommendations for improvements. An assessment can correct issues your organization is having and identify those that have not yet been detected.
An independent assessment is essential due to the prevalence of cyberattacks, the advent of remote working and the increased risk of fraudulent activity. Implementing efficient and effective operating procedures is critical for ensuring the sustainability of the organization and its ability to successfully carry out its mission, whether your finance department uses automated or manual systems.
An independent assessment of your finance department’s operating procedures can identify:
- Weaknesses in internal controls
- Workflow inefficiencies within roles and between roles
- Insufficient staff training in using automated systems
- Manual processes that need to be replaced with automated systems
Some Issues My Assessments Have Identified
Finding
Inefficient process for receiving vendor invoices
Negative Impact
Lost invoices resulting in late payments to vendors causing a delay in receipt of goods and services
Finding
Inadequate process for vetting new vendors and entering them in the accounting system
Negative Impact
Payment of invoices to unauthorized vendors
Finding
Approval of employee expenses by staff who do not have direct knowledge of the employee’s job activities
Negative Impact
Approval and payment of expenses that do not have a valid business purpose
Finding
Failure to compare invoices submitted by vendors to their contracts prior to payment
Negative Impact
Invoice amounts submitted and paid in excess of negotiated contract prices
Finding
Staff not properly trained on the automated systems used for processing billing to government funders
Negative Impact
Billing not submitted to government funders for all services performed
At the conclusion of the assessment, I present a written report with my findings and recommendations. I also provide guidance and tools that assist in implementing my recommendations.
Roberta Katz Consulting is working with many nonprofits in improving the operations of their finance function. Schedule a complimentary consultation today to discuss how I can provide your organization with an impartial evaluation of its finance department.
Leave a Reply