Key Results
- New thinking-understanding the importance of strengthening financial health
- New systems of reporting to board and management
- Better understanding of rules and requirements of public funding sources
- Deeper understanding by boards of fiduciary responsibility
- Greater transparency in finance and operations
Investment partners made significant progress in bolstering their financial capacity and, most importantly, increasing their financial accountability. Most investment partners have introduced more rigorous financial management as boards became more engaged and leaders gained a greater sense of the critical importance of sound financial practices and fiscal integrity. Six investment partners hired new chief financial officers or directors of finance and administration. Most importantly, almost all investment partner leaders are thinking differently about strengthening the financial health of their organizations for the long term.
Faced with cash flow challenges, the Center for Multicultural Human Services (CMHS) developed a program reporting methodology to determine the "revenue gap" for the delivery of each of its programs and services. This information highlighted the "mismatch" between revenues and expenses for each program. CMHS has initiated a strategic program committee, including representation from finance, development, and program areas, to evaluate each grant proposal. This discipline allows CMHS to make informed financial decisions and instills increased accountability and grant compliance organization-wide. CMHS has also outsourced its finance function to Langan & Associates to improve the core financial infrastructure of the organization. The outcome of these actions has been increased financial accountability-at the program, management, and board levels.