This session will highlight how to use the tools in The Financial Edge™ for fast, accurate reporting to your board of directors. Learn how dashboards increase your productivity and reports make answering your board members’ questions easier than ever!

1. t Dashboards and Reports for Your Board and executive Team David Kilmer

2. Communicating Financial Information Three key questions Understanding Financial Responsibilities Role of the board Other financial duties How is Financial Information Utilized Compliance, evaluation, planning or action Presentation of Information The basics Good Financial Reports Above and beyond Agenda

3. Three Key Questions Who is consuming the information? Board, CEO, CFO, Program Manager, etc… What information needs to be communicated? Actual vs. Budget Days of unrestricted cash on hand Unrestricted revenue vs. salary Number of new donors Etc… What action must the reader take Act, monitor, celebrate, etc… ”One size fits all” does not apply to financial reports! Communicating Financial Information

4. What Type of Board Do You Have? Operating Board Organizations with small staffs or no staff Involved in management of organization Board members may be responsible for accounting, account reconciliations, preparing reports Governance Board Organizations with sufficient staff, professional management Involved in policy and planning Separation of responsibility between management function and governance function Combination Boards that are in transition, or with some combination of responsibility Understanding Financial Responsibilities

5. Understanding Financial Responsibilities Other Financial Duties

6. Compliance Provides assurance and verification of use of resources Accountability to funders and the public for use of funds Assure operational efficiency and controls Evaluation Measuring progress toward organizational, program, and financial goals Considering financial information in relation to mission of organization Assessing effectiveness of activities and use of resources Assessing administrative systems, controls, and performance How will Financial Information Utilized

7. Planning Using financial information to project future needs Considering trends, changes, and prospects for the future Making decisions about organizational direction Developing assumptions for use in future plans Action Determining the cause of variances from plans Responding to changes from original plans – opportunities and problems Responding to changes in external environment Addressing problems How will Financial Information Utilized

8. The Basics Financial reports should be: Accurate and consistent Available soon enough to be of use in monitoring and planning Understood in context of the organization’s history and external environment Understood in relationship to program activities Easily Repeatable Basic financial report set should contain: Organizational budget Monthly or quarterly financial reports Income Statement Comparison of actual income and expenses to budget Balance Sheet Verification of required reports IRS Form 990 and other required forms Presentation of Information

9. Good Financial Reports Should: Monitor achievement of major goals Measure outcome or goals, not just activities or means Identify where the "red flags“ are in the report Show historical context...data today, 1 year ago, 5 years ago Show comparisons to similar organizations Use graphics whenever possible Be checked for accuracy before being issued Leverage work of preparing reports for other purposes, i.e., newsletter, donor reports, annual report Evaluated and refined on a regular basis based on needs Be archived for future reference Published on your web page for the general public (not all) Be used to inform and train staff Presentation of Information

10. Going Beyond the Basic Financial Statement and Considering Dashboards Fast reporting on program metrics A dashboard for “the greatest asset“ …employees Using a dashboard for board accountability Fundraising Dashboard Dashboard for easily overlooked compliance and risk management The Engineering The Financial Edge F9 Excel (Conditional Formatting) Business Intelligence and Scorecards Presentation of Information