Review the Financial Statements of the Association

As part of its responsibility for financial supervision, a nonprofit board should review the organization’s audited financial statements regularly. These statements include:

Statement of Financial Position (Balance Sheet)
Activity statement (Income Statement)
Cash Flow Statement
Statement of operating costs
Notes (notes)

The creation of states is the responsibility of management and usually are produced every month. The monthly statements are presented for the month just ended, and for the year to date provide valuable benchmarks and to allow the board to see how well the actual results are the cases provided. At the end of year year’s figures to date reflect the accumulation of the past 12 months from operating activities is applied to the balance sheet and income statement.

Here are some tips for board members to review the financial statements

  •      Request that the money shows the handling of the plate in a format of a monthly trend (preferably in graphic form) to highlight the movement of cash balances of the organization.
  •      If the accounts receivable or promises to give are an important part of the balance of your organization, ask for the finance division of the organization to resume its efforts to maximize cash collections and minimize bad debts and penalties. We also request that the policy provide for the classification of capital goods purchases and depreciation of them.
  •      Discuss with senior management of the benefits and costs of adopting procedures similar to those described in the Sarbanes-Oxley. Discuss with the auditors the changes to be made in adoption.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s