Evaluation of Nonprofit Financial Management Activities

(for Board members and the Executive Director only)

This questionnaire that can conveniently be used to get a quick impression of the quality of your nonprofit's financial activities.

The results of the assessment can be used by your nonprofit, e.g.: 1) to do an internal scan as part of strategic planning, 2) to identify the causes of any recurring financial issues in your nonprofit, 3) and to identify priorities to address in your financial practices over the coming year.

Use of the tool is quick - it typically takes about 10 minutes to complete it. It need not be printed out to complete it.

The tool includes various questions/statements. Each statement is about a particular important activity in financial management.

Next to each statement are four choices in regard to how well your nonprofit performs the activity described in that statement, including choices of “Met,” “Needs Work,” “Not Applicable,” and “Don’t Know.”

After reading each statement, place an on-line check mark by clicking the computer mouse under the one choice that indicates how well the nonprofit performs that activity.

When you are finished, DONE at the end of the tool.

Question Title

* 1. Please identify yourself. (Your information will NOT be shared with anyone.)

Your name:

Your position with CADA:

Time in your position:

Your phone number:

Your e-mail address:

Question Title

* 2. The following indicators are in regard to ensuring high-quality financial transactions, analysis and management.

	Met	Needs Work	Not Applicable	Don't Know
a. The organization follows accounting practices which conform to generally accepted standards. (E)	a. The organization follows accounting practices which conform to generally accepted standards. (E) Met	a. The organization follows accounting practices which conform to generally accepted standards. (E) Needs Work	a. The organization follows accounting practices which conform to generally accepted standards. (E) Not Applicable	a. The organization follows accounting practices which conform to generally accepted standards. (E) Don't Know
b. The organization has systems in place to provide the appropriate information needed by staff and Board to make sound financial decisions and to fulfill government requirements (for example, the requirements of the Internal Revenue Service in the USA). (E)	b. The organization has systems in place to provide the appropriate information needed by staff and Board to make sound financial decisions and to fulfill government requirements (for example, the requirements of the Internal Revenue Service in the USA). (E) Met	b. The organization has systems in place to provide the appropriate information needed by staff and Board to make sound financial decisions and to fulfill government requirements (for example, the requirements of the Internal Revenue Service in the USA). (E) Needs Work	b. The organization has systems in place to provide the appropriate information needed by staff and Board to make sound financial decisions and to fulfill government requirements (for example, the requirements of the Internal Revenue Service in the USA). (E) Not Applicable	b. The organization has systems in place to provide the appropriate information needed by staff and Board to make sound financial decisions and to fulfill government requirements (for example, the requirements of the Internal Revenue Service in the USA). (E) Don't Know
c. The organization prepares timely financial statements including the balance sheet, income statement and cash flow statement which are clearly stated and useful for the Board and staff. (R)	c. The organization prepares timely financial statements including the balance sheet, income statement and cash flow statement which are clearly stated and useful for the Board and staff. (R) Met	c. The organization prepares timely financial statements including the balance sheet, income statement and cash flow statement which are clearly stated and useful for the Board and staff. (R) Needs Work	c. The organization prepares timely financial statements including the balance sheet, income statement and cash flow statement which are clearly stated and useful for the Board and staff. (R) Not Applicable	c. The organization prepares timely financial statements including the balance sheet, income statement and cash flow statement which are clearly stated and useful for the Board and staff. (R) Don't Know
d. The organization prepares financial statements on a budget-versus-actual (comparative basis) to achieve a better understanding of their finances. (R)	d. The organization prepares financial statements on a budget-versus-actual (comparative basis) to achieve a better understanding of their finances. (R) Met	d. The organization prepares financial statements on a budget-versus-actual (comparative basis) to achieve a better understanding of their finances. (R) Needs Work	d. The organization prepares financial statements on a budget-versus-actual (comparative basis) to achieve a better understanding of their finances. (R) Not Applicable	d. The organization prepares financial statements on a budget-versus-actual (comparative basis) to achieve a better understanding of their finances. (R) Don't Know
e. The organization develops an annual comprehensive operating budget which includes costs for all programs, management and fundraising and all sources of funding. This budget is reviewed and approved by the Board of Directors. (E)	e. The organization develops an annual comprehensive operating budget which includes costs for all programs, management and fundraising and all sources of funding. This budget is reviewed and approved by the Board of Directors. (E) Met	e. The organization develops an annual comprehensive operating budget which includes costs for all programs, management and fundraising and all sources of funding. This budget is reviewed and approved by the Board of Directors. (E) Needs Work	e. The organization develops an annual comprehensive operating budget which includes costs for all programs, management and fundraising and all sources of funding. This budget is reviewed and approved by the Board of Directors. (E) Not Applicable	e. The organization develops an annual comprehensive operating budget which includes costs for all programs, management and fundraising and all sources of funding. This budget is reviewed and approved by the Board of Directors. (E) Don't Know
f. The organization monitors unit costs of programs and services through the documentation of staff time and direct expenses and using a process for allocation of management, general and fundraising expenses. (R)	f. The organization monitors unit costs of programs and services through the documentation of staff time and direct expenses and using a process for allocation of management, general and fundraising expenses. (R) Met	f. The organization monitors unit costs of programs and services through the documentation of staff time and direct expenses and using a process for allocation of management, general and fundraising expenses. (R) Needs Work	f. The organization monitors unit costs of programs and services through the documentation of staff time and direct expenses and using a process for allocation of management, general and fundraising expenses. (R) Not Applicable	f. The organization monitors unit costs of programs and services through the documentation of staff time and direct expenses and using a process for allocation of management, general and fundraising expenses. (R) Don't Know
g. The organization prepares cash flow projections. (E)	g. The organization prepares cash flow projections. (E) Met	g. The organization prepares cash flow projections. (E) Needs Work	g. The organization prepares cash flow projections. (E) Not Applicable	g. The organization prepares cash flow projections. (E) Don't Know
h. The organization periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year. (R)	h. The organization periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year. (R) Met	h. The organization periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year. (R) Needs Work	h. The organization periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year. (R) Not Applicable	h. The organization periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year. (R) Don't Know
i. The organization reconciles all cash accounts monthly. (E)	i. The organization reconciles all cash accounts monthly. (E) Met	i. The organization reconciles all cash accounts monthly. (E) Needs Work	i. The organization reconciles all cash accounts monthly. (E) Not Applicable	i. The organization reconciles all cash accounts monthly. (E) Don't Know
j. The organization has a review process to monitor that they are receiving appropriate and accurate financial information, whether from a contracted service or internal processing. (E)	j. The organization has a review process to monitor that they are receiving appropriate and accurate financial information, whether from a contracted service or internal processing. (E) Met	j. The organization has a review process to monitor that they are receiving appropriate and accurate financial information, whether from a contracted service or internal processing. (E) Needs Work	j. The organization has a review process to monitor that they are receiving appropriate and accurate financial information, whether from a contracted service or internal processing. (E) Not Applicable	j. The organization has a review process to monitor that they are receiving appropriate and accurate financial information, whether from a contracted service or internal processing. (E) Don't Know
k. If the organization has billable contracts or other service income, procedures are established for the periodic billing, follow-up and collection of all accounts, with documentation to substantiate all billings. (E)	k. If the organization has billable contracts or other service income, procedures are established for the periodic billing, follow-up and collection of all accounts, with documentation to substantiate all billings. (E) Met	k. If the organization has billable contracts or other service income, procedures are established for the periodic billing, follow-up and collection of all accounts, with documentation to substantiate all billings. (E) Needs Work	k. If the organization has billable contracts or other service income, procedures are established for the periodic billing, follow-up and collection of all accounts, with documentation to substantiate all billings. (E) Not Applicable	k. If the organization has billable contracts or other service income, procedures are established for the periodic billing, follow-up and collection of all accounts, with documentation to substantiate all billings. (E) Don't Know
l. Government contracts, purchase of service agreements and grant agreements are in writing and are reviewed by a staff member of the organization to monitor compliance with all stated conditions. (E)	l. Government contracts, purchase of service agreements and grant agreements are in writing and are reviewed by a staff member of the organization to monitor compliance with all stated conditions. (E) Met	l. Government contracts, purchase of service agreements and grant agreements are in writing and are reviewed by a staff member of the organization to monitor compliance with all stated conditions. (E) Needs Work	l. Government contracts, purchase of service agreements and grant agreements are in writing and are reviewed by a staff member of the organization to monitor compliance with all stated conditions. (E) Not Applicable	l. Government contracts, purchase of service agreements and grant agreements are in writing and are reviewed by a staff member of the organization to monitor compliance with all stated conditions. (E) Don't Know
m. Payroll is prepared following appropriate federal and state/provincial regulations and organizational policy. (E)	m. Payroll is prepared following appropriate federal and state/provincial regulations and organizational policy. (E) Met	m. Payroll is prepared following appropriate federal and state/provincial regulations and organizational policy. (E) Needs Work	m. Payroll is prepared following appropriate federal and state/provincial regulations and organizational policy. (E) Not Applicable	m. Payroll is prepared following appropriate federal and state/provincial regulations and organizational policy. (E) Don't Know
n. Persons employed on a contract basis meet all federal and state/provincial requirements for this form of employment. (In the USA, disbursement records are kept so 1099’s can be issued at year end.) (E)	n. Persons employed on a contract basis meet all federal and state/provincial requirements for this form of employment. (In the USA, disbursement records are kept so 1099’s can be issued at year end.) (E) Met	n. Persons employed on a contract basis meet all federal and state/provincial requirements for this form of employment. (In the USA, disbursement records are kept so 1099’s can be issued at year end.) (E) Needs Work	n. Persons employed on a contract basis meet all federal and state/provincial requirements for this form of employment. (In the USA, disbursement records are kept so 1099’s can be issued at year end.) (E) Not Applicable	n. Persons employed on a contract basis meet all federal and state/provincial requirements for this form of employment. (In the USA, disbursement records are kept so 1099’s can be issued at year end.) (E) Don't Know
o. Organizations that purchase and sell merchandise take periodic inventories to monitor the inventory against theft, to reconcile general ledger inventory information and to maintain an adequate inventory level. (E)	o. Organizations that purchase and sell merchandise take periodic inventories to monitor the inventory against theft, to reconcile general ledger inventory information and to maintain an adequate inventory level. (E) Met	o. Organizations that purchase and sell merchandise take periodic inventories to monitor the inventory against theft, to reconcile general ledger inventory information and to maintain an adequate inventory level. (E) Needs Work	o. Organizations that purchase and sell merchandise take periodic inventories to monitor the inventory against theft, to reconcile general ledger inventory information and to maintain an adequate inventory level. (E) Not Applicable	o. Organizations that purchase and sell merchandise take periodic inventories to monitor the inventory against theft, to reconcile general ledger inventory information and to maintain an adequate inventory level. (E) Don't Know
p. The organization has a Board-approved written fiscal policy and procedures manual and follows it. (R)	p. The organization has a Board-approved written fiscal policy and procedures manual and follows it. (R) Met	p. The organization has a Board-approved written fiscal policy and procedures manual and follows it. (R) Needs Work	p. The organization has a Board-approved written fiscal policy and procedures manual and follows it. (R) Not Applicable	p. The organization has a Board-approved written fiscal policy and procedures manual and follows it. (R) Don't Know
q. The organization has documented a set of internal controls, including handling of cash and deposits and approval over spending and disbursements. (E)	q. The organization has documented a set of internal controls, including handling of cash and deposits and approval over spending and disbursements. (E) Met	q. The organization has documented a set of internal controls, including handling of cash and deposits and approval over spending and disbursements. (E) Needs Work	q. The organization has documented a set of internal controls, including handling of cash and deposits and approval over spending and disbursements. (E) Not Applicable	q. The organization has documented a set of internal controls, including handling of cash and deposits and approval over spending and disbursements. (E) Don't Know
r. The organization has a policy identifying authorized check signers and the number of signatures required on checks in excess of specified dollar amounts. (E)	r. The organization has a policy identifying authorized check signers and the number of signatures required on checks in excess of specified dollar amounts. (E) Met	r. The organization has a policy identifying authorized check signers and the number of signatures required on checks in excess of specified dollar amounts. (E) Needs Work	r. The organization has a policy identifying authorized check signers and the number of signatures required on checks in excess of specified dollar amounts. (E) Not Applicable	r. The organization has a policy identifying authorized check signers and the number of signatures required on checks in excess of specified dollar amounts. (E) Don't Know
s. All expenses of the organization are approved by a designated person before payment is made. (E)	s. All expenses of the organization are approved by a designated person before payment is made. (E) Met	s. All expenses of the organization are approved by a designated person before payment is made. (E) Needs Work	s. All expenses of the organization are approved by a designated person before payment is made. (E) Not Applicable	s. All expenses of the organization are approved by a designated person before payment is made. (E) Don't Know
t. The organization has a written policy related to investments. (R)	t. The organization has a written policy related to investments. (R) Met	t. The organization has a written policy related to investments. (R) Needs Work	t. The organization has a written policy related to investments. (R) Not Applicable	t. The organization has a written policy related to investments. (R) Don't Know
u. Capital needs are reviewed annually and priorities are established. (R)	u. Capital needs are reviewed annually and priorities are established. (R) Met	u. Capital needs are reviewed annually and priorities are established. (R) Needs Work	u. Capital needs are reviewed annually and priorities are established. (R) Not Applicable	u. Capital needs are reviewed annually and priorities are established. (R) Don't Know
v. The organization has established a plan identifying actions to take in the event of a reduction or loss in funding. (R)	v. The organization has established a plan identifying actions to take in the event of a reduction or loss in funding. (R) Met	v. The organization has established a plan identifying actions to take in the event of a reduction or loss in funding. (R) Needs Work	v. The organization has established a plan identifying actions to take in the event of a reduction or loss in funding. (R) Not Applicable	v. The organization has established a plan identifying actions to take in the event of a reduction or loss in funding. (R) Don't Know
w. The organization has established, or is actively trying to develop, a reserve of funds to cover at least three months of operating expenses. (R)	w. The organization has established, or is actively trying to develop, a reserve of funds to cover at least three months of operating expenses. (R) Met	w. The organization has established, or is actively trying to develop, a reserve of funds to cover at least three months of operating expenses. (R) Needs Work	w. The organization has established, or is actively trying to develop, a reserve of funds to cover at least three months of operating expenses. (R) Not Applicable	w. The organization has established, or is actively trying to develop, a reserve of funds to cover at least three months of operating expenses. (R) Don't Know
x. The organization has suitable insurance coverage which is periodically reviewed to ensure the appropriate levels and types of coverage are in place. (E)	x. The organization has suitable insurance coverage which is periodically reviewed to ensure the appropriate levels and types of coverage are in place. (E) Met	x. The organization has suitable insurance coverage which is periodically reviewed to ensure the appropriate levels and types of coverage are in place. (E) Needs Work	x. The organization has suitable insurance coverage which is periodically reviewed to ensure the appropriate levels and types of coverage are in place. (E) Not Applicable	x. The organization has suitable insurance coverage which is periodically reviewed to ensure the appropriate levels and types of coverage are in place. (E) Don't Know
y. Employees, Board members and volunteers who handle cash and investments are bonded to help assure the safeguarding of assets. (E)	y. Employees, Board members and volunteers who handle cash and investments are bonded to help assure the safeguarding of assets. (E) Met	y. Employees, Board members and volunteers who handle cash and investments are bonded to help assure the safeguarding of assets. (E) Needs Work	y. Employees, Board members and volunteers who handle cash and investments are bonded to help assure the safeguarding of assets. (E) Not Applicable	y. Employees, Board members and volunteers who handle cash and investments are bonded to help assure the safeguarding of assets. (E) Don't Know
z. The organization files forms in regard to tax-exempt and/or tax-deductible (charity) status in a timely basis within prescribed time lines. (E)	z. The organization files forms in regard to tax-exempt and/or tax-deductible (charity) status in a timely basis within prescribed time lines. (E) Met	z. The organization files forms in regard to tax-exempt and/or tax-deductible (charity) status in a timely basis within prescribed time lines. (E) Needs Work	z. The organization files forms in regard to tax-exempt and/or tax-deductible (charity) status in a timely basis within prescribed time lines. (E) Not Applicable	z. The organization files forms in regard to tax-exempt and/or tax-deductible (charity) status in a timely basis within prescribed time lines. (E) Don't Know
aa. The organization reviews income annually to determine and report unrelated business income to the necessary government agency (for example, to the IRS in the USA). (R)	aa. The organization reviews income annually to determine and report unrelated business income to the necessary government agency (for example, to the IRS in the USA). (R) Met	aa. The organization reviews income annually to determine and report unrelated business income to the necessary government agency (for example, to the IRS in the USA). (R) Needs Work	aa. The organization reviews income annually to determine and report unrelated business income to the necessary government agency (for example, to the IRS in the USA). (R) Not Applicable	aa. The organization reviews income annually to determine and report unrelated business income to the necessary government agency (for example, to the IRS in the USA). (R) Don't Know
bb. The organization has an annual, independent audit of their financial statements, prepared by a certified public accountant. (R)	bb. The organization has an annual, independent audit of their financial statements, prepared by a certified public accountant. (R) Met	bb. The organization has an annual, independent audit of their financial statements, prepared by a certified public accountant. (R) Needs Work	bb. The organization has an annual, independent audit of their financial statements, prepared by a certified public accountant. (R) Not Applicable	bb. The organization has an annual, independent audit of their financial statements, prepared by a certified public accountant. (R) Don't Know
cc. In addition to the audit, the auditor prepares a management letter containing recommendations for improvements in the financial operations of the organization. (R)	cc. In addition to the audit, the auditor prepares a management letter containing recommendations for improvements in the financial operations of the organization. (R) Met	cc. In addition to the audit, the auditor prepares a management letter containing recommendations for improvements in the financial operations of the organization. (R) Needs Work	cc. In addition to the audit, the auditor prepares a management letter containing recommendations for improvements in the financial operations of the organization. (R) Not Applicable	cc. In addition to the audit, the auditor prepares a management letter containing recommendations for improvements in the financial operations of the organization. (R) Don't Know
dd. The Board of Directors, or an appropriate committee, is responsible for soliciting bids, interviewing auditors and hiring an auditor for the organization. (R)	dd. The Board of Directors, or an appropriate committee, is responsible for soliciting bids, interviewing auditors and hiring an auditor for the organization. (R) Met	dd. The Board of Directors, or an appropriate committee, is responsible for soliciting bids, interviewing auditors and hiring an auditor for the organization. (R) Needs Work	dd. The Board of Directors, or an appropriate committee, is responsible for soliciting bids, interviewing auditors and hiring an auditor for the organization. (R) Not Applicable	dd. The Board of Directors, or an appropriate committee, is responsible for soliciting bids, interviewing auditors and hiring an auditor for the organization. (R) Don't Know
ee. The Board of Directors, or an appropriate committee, reviews and approves the audit report and management letter and with staff input and support, institutes any necessary changes. (R)	ee. The Board of Directors, or an appropriate committee, reviews and approves the audit report and management letter and with staff input and support, institutes any necessary changes. (R) Met	ee. The Board of Directors, or an appropriate committee, reviews and approves the audit report and management letter and with staff input and support, institutes any necessary changes. (R) Needs Work	ee. The Board of Directors, or an appropriate committee, reviews and approves the audit report and management letter and with staff input and support, institutes any necessary changes. (R) Not Applicable	ee. The Board of Directors, or an appropriate committee, reviews and approves the audit report and management letter and with staff input and support, institutes any necessary changes. (R) Don't Know
ff. The audit, or an organization-prepared annual report which includes financial statements, is made available to service recipients, volunteers, contributors, funders and other interested parties. (E)	ff. The audit, or an organization-prepared annual report which includes financial statements, is made available to service recipients, volunteers, contributors, funders and other interested parties. (E) Met	ff. The audit, or an organization-prepared annual report which includes financial statements, is made available to service recipients, volunteers, contributors, funders and other interested parties. (E) Needs Work	ff. The audit, or an organization-prepared annual report which includes financial statements, is made available to service recipients, volunteers, contributors, funders and other interested parties. (E) Not Applicable	ff. The audit, or an organization-prepared annual report which includes financial statements, is made available to service recipients, volunteers, contributors, funders and other interested parties. (E) Don't Know
gg. All Board members are trained how to analyze the nonprofit's financial information and how to make useful decisions based on the finances. (A)	gg. All Board members are trained how to analyze the nonprofit's financial information and how to make useful decisions based on the finances. (A) Met	gg. All Board members are trained how to analyze the nonprofit's financial information and how to make useful decisions based on the finances. (A) Needs Work	gg. All Board members are trained how to analyze the nonprofit's financial information and how to make useful decisions based on the finances. (A) Not Applicable	gg. All Board members are trained how to analyze the nonprofit's financial information and how to make useful decisions based on the finances. (A) Don't Know