Finance and HR Flashcards
Who hires the auditor
The board
Who is responsible for the organizations financial reports
Management
What is the auditors role
To verify the amounts inclluded in the reports
What is designated net assets
Decision made by BOG to set aside funds for a specific project
What are the classes of funds in a 501c3
Unrestricted, temp restricted, and permanently restricted
What are unrestricted funds
funds that can be used at the discretion of the management within defined uses
What are permanently resticted funds
The donor has stipulated a specific use that do not expire with time and cannot be shiften by the org.
What is a common type of permanently restricted fund
Endowments
Temporary restricted funds
limited by donor-imposed stipulations that either expire or can be fulfilled and removed by actions of the organization
Which class of funds/assets are shown on the statement of financial position
Temporarily restricted funds
What is the statement of financial position
summarizes financial makeup of the org at a point in time
What assests are reflected on the statement of financial position
Assets owned, liabilities owed and residual net assets
What is the statement of activities
shows the orgs financial activity by the month and on a year to year basis (over a period of time)
What does the statement of activities report
revenue generated, expenses incurred, and results in net income or net loss
What is an example of Imprest system
Replenishing petty cash once a month
What is financial key indicators
selected by leaders, they are quantitative measurements of strategic importance that gives a fairly accurate picture of the orgs in relation to its strategic plan
What are some financial key indicators
number of new members, %retained members, number of new business starts, number of members participating in programs
What is a net asset
the residual value of the association after liabilities have been paid. =cash, prepaid expenses, accounts receivable, inventory and fixed assets
What is average tenure measure
measures how long a members stays with the org.
What is the formula for average tenure
1/(1-renewal rate)
What is renewal rate meausuring
measures the number of members that you keep form the previous year
What is the formula for renewal rate
total number of members now - members gained over the last 12 months/total number fo members last year
What does lifetime value of a member measure
measures the average anticipated revenue form a member
What is the formula to figure out the lifetime value of a member
(dues plus non dues revenue) x average tenure