notes from 1-20-10

notes from 1-20-10 - F inancial Management Class Notes...

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Financial Management Class Notes 1/20/10 Accounting is necessary because Kings were to provide food for people during famine. They had to account for the storage of grain supplies. Chapter 2 Accounting is foundation for financial management systems and is defined as the recording, classifying, and summarizing of financial transactions. Its best to have accounting activities centralized in one office. Capital Budget – involve capital goods, buildings, and computers. These may depreciate. Operating Budget – Day to day things. Goods and Services- Non-profits do not typically borrow. If so u need to some fixed assets such as land or owning your won building. You probably would want to have a banker on your board. Risk Management – You do not deal with it much in non-profits. Fairly low level insurance policies. Liability insurance on the place you are located is pretty much what you are only going to have to deal with. The Directors are going to want to know if there is liability insurance because of Sarbanes/Oxley Act. Preparing Annual Budget – Basic function of the executive director. Very rare a non-profit will have to file a 990. Accounting firms can do this for you, pay role maybe administered by an outside private company. They prepare a lot of the data for 990. Every organization with 501 C3 statuses has to file a 990. Evaluating Programs – Are you achieving the mission? Are you moving towards the
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notes from 1-20-10 - F inancial Management Class Notes...

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