Reporting & Monitoring

Finance Committee responsibilities relating to reporting and monitoring include:

1. Develop useful and readable report formats with staff.
2. Work with staff to develop a list of desired reports noting the level of detail, frequency, deadlines, and recipients of these reports.
3. Work with staff to understand the implications of the reports.
4. Present the financial reports and communicate the implications to the full board.
5. Monitor cash flow and ensure adequate resources are available for day-to-day operations (working capital) and mission accomplishment.

Effective finance committees require staff to provide highly contextual reports that clearly communicate the organization’s financial and cash position, its adherence to the budget including frequently updated year-end projections for income and expenses, its allocation of resources toward the accomplishment of its mission, and its compliance with any donor-imposed restrictions on contributions. Having a predetermined list of reporting expectations permits staff to allow enough time to produce accurate, high-quality reports and not be caught off guard by ad hoc requests. In addition, these reports should help to focus the board’s discussion on expected financial outcomes and development of strategies for overcoming any setbacks or changes in the financial environment.