Operational Excellence

Transcription

1 Operational Excellence City & County of San Francisco Rebecca Coker, Lead Consultant, FMA Roxanne Hanson, Consultant, FMA May 22, 2017 GOVERNANCE PLANNING People People OPERATIONS Technology Process y MONITORING 1

2 What are some elements of success in financial operations? 3 Welcome & Overview (9:00am) Introduction to Operational Excellence People Accounting Software Workflow & Efficiencies Internal Controls Closing (1:00pm) 4 2

3 OPERATIONAL EXCELLENCE Operational excellence is an organizational culture that values learning, problem solving, and a strong commitment to continuous improvement Essential organizational capabilities that comprise operational excellence fall into three categories: Strategy Resources Practices 6 3

4 Strategy Resources Practices Mission alignment Adaptable strategy and plans Talent and teams performing at full potential Fund development capacity Organization-wide performance measurement Sound decisionmaking practices Robust governance & risk management Efficient and integrated workflows 7 Effective internal and external communications PEOPLE Talent and Teams Performing at Full Potential 4

5 What Factors Drive Fiscal Staffing Configuration? Business model Complexity of revenue streams Number of government grants & contracts Number of transactions Budget size Total number of employees 9 Strategic Lead and support organizational financial planning and monitoring Managerial Ensure finance is effectively carrying out its operational responsibilities Transactional Perform day-to-day accounting functions, data entry, and administrative tasks Adapted from Jeanne Bell Peters and Elizabeth Schaffer, Financial Leadership for Nonprofit Executives: Guiding Your Organization to Long-term 10 Success

6 Controllership General Ledger quality Transactions (AP, AR, Billing, Payroll) Production of financial reports Reconciliations Planning & Analysis Budgeting process Scenario planning Forecasting and budget-to-actuals monitoring Grants Management & Compliance Grant and contract monitoring Fiscal policies and procedures Funder reports External audit 11 Finance Information Technology Operations Human Resources Office Management Facilities 12 6

7 Question 1 13 ACCOUNTING SOFTWARE Efficient and Integrated Workflows 7

8 Commonly Used Accounting Software in the Nonprofit Sector 15 Basic Functionality Flexible Chart of Accounts Modules for Accounts Payable Accounts Receivable Reporting against budgets Customizable reports Ability to import/export data Advanced Functionality Fund accounting Automated allocations Dashboards View-only access for end-users Paperless document management Electronic workflow routing Cloud capability / Web-hosting Purchase requisitions 16 8

9 Fundraising Database Planning Software Client & Membership Tracking/ Billing Accounting and Reporting Software Travel & Expense Reporting Automated Bill Pay Payroll and HR Systems 17 Ease of Use Vendor Support Total Cost of Ownership Will it Grow with Us? Flow of Data 9

10 Questions EFFICIENCIES Efficient and Integrated Workflows 10

11 Sample Process Improvements Results Reduced cycle time Increased quality Elimination of redundant steps and errors Reduction in variability Cost reduction Additional capacity for higher level work

12 EFFICIENCIES: CASH DISBURSEMENTS Efficient and Integrated Workflows Banking Technology Electronic transfers Reduced need for check issuance Purchase cards Eliminates needs for handling cash Positive pay Ensures checks are only paid to verified vendors ACH block and filters Prevent unauthorized outsiders from accessing or removing funds from an account 24 12

13 Technology: Automated Travel and Expense Reporting Systems Web-based, mobile access Scan or take a picture of receipts/documentation Electronic approval routing Direct connections to: Credit Cards, Payroll, Accounting System 25 Electronic audit trail Community Used Systems 26 13

14 Automated Check Writing Services (such as Bill.com) provide Automated invoice approval workflow that be accessed via any computer or mobile device Integration with accounting software Elimination of the manual process of cutting and mailing checks Simplified deposit process 27 EFFICIENCIES: PAYROLL Efficient and Integrated Workflows 14

15 29 EFFICIENCIES: CASH RECEIPTS Efficient and Integrated Workflows 15

16 Cash Receipts: Technology Banking technology Remote deposit (check scanning) New technologies that facilitate fundraising: Donations via text message Mobile bidding at auctions Mobile payment solutions (for example: Square) 31 How do these systems connect? Online Giving Platform(s) Donor Database Accounting Software Merchant Account Bank Account 32 16

17 Questions INTERNAL CONTROLS Efficient and Integrated Workflows 17

18 35 Activity: Internal Controls 36 18

19 Influencing Culture Policies & Procedures Leveraging Technology Policies Resolutions adopted by the Board Procedures Specific tasks and measures developed and implemented by management 19

20 No one person should: 1. Perform all functions within an accounting cycle 2. Have the ability to cover up an intentional or unintentional accounting error 39 Questions

21 GROUP ACTIVITY What does your team do well that others could learn from? Why does it work well? What would you like to learn from others? Why would you like to learn about this? 21

22 RESOURCES Citywide Nonprofit Monitoring and Capacity Building Program Public Website: ofits Training Materials Resources for Nonprofits Laura Marshall Project Manager (415) Charity Espiritu (415) Jeff Pomrenke (415) Marnie Purciel-Hill (415)

23 Resources New Skills, Existing Talents: The new mandate for finance professionals in supporting longterm business success. July 2012 Report of the Chartered Institute of Management Accountants. Factors that set apart top-performing finance teams. CGMA Magazine July aspx? Nonprofit Risk Management Center. Maximizing Nonprofit Internal Controls. Nonprofit Quarterly. March NTEN: Membership organization of nonprofit professionals who put technology to use for their causes. TechSoup: Provides nonprofits and public libraries with learning resources as well as access to donated and discounted software services and products. Idealware: Provides researched, impartial and accessible resources about software to help nonprofits make smart software decisions. Achieving Operational Efficiency: A Means to Bridge the Gap Between Mission and Aspirations. Accenture/NYU Wagner School Roundtable White Paper, Nonprofit Accounting Software: Avoiding an Installation Epic Fail, Nonprofit Times Management/Pages/Nonprofit-Accounting-Software.aspx 46 23

24 StrongNonprofits.org In collaboration with the Wallace Foundation, FMA has created a library of tools and resources to help organizations become fiscally fit Four Topic Areas: Planning Monitoring Operations Governance 47 Online Tutorials for StrongNonprofits.org FMA is offering complimentary orientation one-hour webinars that will feature a high-level overview of the website and drill down on several resources housed on the site. Next webinar: September 12 th at 11am PT To register, or check for future webinar dates, see the following webpage: For a 15-minute, on-demand webinar tour of the site:

25 REFLECTION & QUESTIONS Established in 1999 to serve not-for-profit organizations around the country Provides customized financial management, accounting, software, organizational development, human resources, and other consulting services Works directly with organizations or through funder-supported management and technical assistance programs FMA's mission is to empower not-for-profit organizations with the knowledge and skills to successfully serve their constituents and fulfill their missions Rebecca Coker, MPA New York Chicago Oakland Los Angeles /FiscalManagementAssociates linkedin.com/company/fiscal-managementassociates-llc 25