Good financial management ensures that charity trustees meet their legal duties to safeguard the charity’s assets. It enables staff and trustees to manage the charity’s finances and assets in a way that identifies and manages risk. Good financial management is vital to attracting funds and maximising a charity’s impact.

Below are some questions to prompt you in your organisation’s review focusing on your charity’s financial management:

Financial management:

  • Are robust systems and procedures in place for internal financial control and the protection of funds in accordance with charity commission guidelines?
  • Are financial planning and budgeting processes in place and communicated to Board and staff who will input into and review these processes?
  • What financial planning and budgeting processes are in place and how are these agreed?
  • How often are Management Accounts or cash flow forecasts prepared, what do they contain, who sees them and how are they acted upon?
  • Is income adequate to allow realistic forward planning and investment?
  • Is flexible planning and capacity in place to work within income variations?
  • Is there an appropriate and realistic reserves policy?
  • Are investment policies articulated, followed and reviewed regularly?
  • How well presented are the latest set of annual accounts? What do they tell you about the health of the organisation?
  • Is the organisation aware of SORP requirements?
  • Is the organisation aware of and using full-cost recovery to ensure in-direct costs are met?
  • Is there a suitable Fundraising and Administration as a percentage of Charitable Expenditure (FACE) ratio?
  • Is there a clear audit report?
  • Are budgets prepared and monitored by those responsible for spending or raising them?
  • Are regular monthly reports on activity and variances on budget provided to budget holders in a format which facilitates effective management?
  • How many cheque signatories are there (normally minimum of two) and who are they?

If you would like to find out more about how we can assist and support you with an organisation review then contact us