Ma3 Rauf - - MANAGEMENT ACCOUNTING 3 -Coursework Assignment...

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------------- MANAGEMENT ACCOUNTING 3 ------------- Coursework Assignment ~ 2009/10 ‘… not for profit organizations’ management control system alternatives and challenges are often quite different than those faced by for-profit organizations.’ Required What is a "Nonprofit"? A not-for-profit organisation does not distribute any surpluses made from its activities to owners or shareholders. Indeed, it does not have 'owners' in the normal sense of the word. Instead, all surpluses are put back into the business or reinvested in the local community. The term 'not-for-profit' is not a formal legal structure however, but refers only to the aims and ethos of the organisation. Not-for-profit organisations with a community focus have become increasingly common. They aim to fulfil a social purpose, often to improve the quality of life for a section of the community in some of the most deprived areas of society. Organisations in sectors including charities, the arts, education and healthcare often operate in this way. Talk about our company Three Major Aspects of Nonprofit Structure (STRUCTURE ABOUT OUR COMPANY) Utilising examples pertinent to a not-for-profit organisation of your choice, prepare a report in which you: 1. critically discuss the alternatives/challenges faced by not-for- profit organisations Alternatives Budgets Budgeting and managing cash are two areas of Fnancial management that are essential exercises for non-proFt making organizations. The organization must pay close attention to whether it has adequate cash reserves to continue providing services to its regulars. Cashflow can be really difficult to forecast, because an organization relies on revenue from resource providers that do not expect to receive the service provided. In reality, an increase in demand for a not-for-proFt’s services can lead to a management crisis. It is difFcult to forecast contribution revenue in a reliable manner from year to year. ±or that reason, the control of expenses is an area of increased emphasis. Budgeting thus becomes a critical activity for a not-for-proFt.
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Asset Management Non profit organisations’ (NHS) assets are best dealt with from the going concern point of view, which presuppose no restrictions on the organization’s future continuation. Management must be sure that the organization has adequate liquid assets available to Fnance current operations. The goal is to maintain an optimum balance between on hand assets and invested or increasing assets. Operating in a Fscally solvent manner means that the organization must be able to pay its debts in a timely manner and meet other Fnancial responsibilities. After the budget is developed, the not-for-proFt must focus on efficiently
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This note was uploaded on 10/24/2010 for the course ACCOUNTING INFS2005 taught by Professor Steven during the Three '10 term at Australian National University.

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Ma3 Rauf - - MANAGEMENT ACCOUNTING 3 -Coursework Assignment...

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