Interim Report on Financial System Progress

June 2005
Robert Burns

I have simplified the original report I sent out.  At Shape-Up, we have completed the defining of what, when, who and how we do our database, financial systems and reporting and are now beginning the options and possibilities being presented.  This whole process was initially met with resistance last week, and is being embraced with enthusiasm now.  The redundancy and inefficiency found in just a few short days is remarkable.  Maybe the most important part of this process is that everyone finally had a real idea what other key people were doing and in some cases weren't doing. 

I am sure most of this, even in this highly abbreviated piece I have edited below, will not be required by our organization.  I would recommend those on this list to take those things they think are important.  If just a few ideas are implemented, it can have a positive impact on the efficient running of our organization.

I hope this is of some help,

Robert Burns

Financial System, Database and Reporting

OVERVIEW

Identify Key personnel involved in:  

· Annual Planning Process

· POS (receiving income) and Database input management

· Accounting Financial Report system

· Member Activity and tracking

· Management Team - and (Who reports to whom)

· Tracking of Activity

Define Current State

· Review system/organization layout.  Review key persons responsible for systems and the process

· Obtain clear understanding of "back office" operations vs "front line" and key people involved

· Understand how reports and systems are interrelated, and how they are tied to the organizations main database or financial system

· Understand what information is critical for Flash Reports (reports critical to efficient operation of the organization) and to whom.  (Information like number of donations or donors, collected year-to-date, number of members, expenses by department year-to-date, number of people requesting information, books or products sold year-to-date, etc)

Define Current State

ANNUAL PLANNING PROCESS

· Budget

· Treatment of current actual and budget data

· level of detail required and for whom

· Define report structure (current and what it could be)

FINACIAL REPORTING SYSTEM

· How does the current accounting system work and how is information accumulated

· How is the information processed on daily, weekly, monthly, quarterly and/or yearly basis

· List all the databases and tables used in the organization.

· Outline how financial data gets from various databases to the accounting system or vice versa.

· What checks and balances exist and what is required

MEMBERSHIP ACTIVITY

· Identify all reports and systems related to membership or people affiliated with the organization.

· List who (persons and/or departments) is responsible for maintaining contact with members, how this is accomplished, databased and reported.

· Who tracks those who have stopped donating or are not participating?  How is this information databased and reported?

DEFINE THE FUTURE STATE

   Define the desired state of each item to create optimal tracking and reporting.  The key is systems and processes that are flexible enough for future expansion.

Item                         Existing                Desired                    Gaps

Annual Planning      Describe each    Describe desired       Describe

Process                   system and         result                         the gap

                                process

POS or receiving

revenue

Accounting system

& proceedures

Reports to Management

and/or Chair persons

Databased information

mapping between process and system

PROVIDE FOR ALTERNATE SOLUTIONS

Gaps        Option 1        Option 2       Option 3

· List gaps and provide optional course of actions and all known implications

· Identify the timing required to implement any changes

· Note any interdependencies associated with changes required

· Identify any operations or functions impacted by any change

· NOTE: Some changes may require short-term manual solutions to bridge the change

· Ensure that all processes and systems are easily replicated and teachable