Compare all check logs for cash receipts to the amounts applied to receivables. This will be done by an individual separate from those processing cash receipts and accounts receiva
Establish a policy for fixed assets detailing which fixed assets are capital (depreciated rather than expensed) assets. This will be included in the organization's footnote disclosures t
The internal control system needs to be documented (the expected results or outcomes of the system and what everyone does need to be put in writing) and constantly evaluated. A con
An organization’s capital budget is different from a capital campaign budget, which is usually for bricks-and-mortar or other finite project(s). Annual capital budgets accompany annual operating budgets and include non-operating cash requirements for items such as equipment, improvements, and other financial goals such as building operating reserves and other special purpose funds.
After allocating each line item across the organization’s mission and support activities, each line item should also be spread across the months of the fiscal year. To be truly useful, this should not be just a universal “divide by 12” exercise, especially for revenue line items.
Personnel costs are often the largest portion of the budget for most small and midsize nonprofits. Folks who work for small and midsize nonprofit organizations generally are intensely devoted to mission accomplishment, sometimes working longer hours at lower pay than their for-profit counterparts. They deserve good tools and ongoing professional development opportunities and skills training. Budgeting to provide equitable pay and benefits for staffers is also a way to keep those well-trained folks with you.
