Capacity Assessment

price plan

Table of Contents

Title	Page Number
General	1
Financial position	2
Governance	3
General policies	4
Accounting system	5
Internal controls	6
Internal Financial Reporting	7
Budget	8
Bank accounts	9
Bank reconciliations	10
Fixed assets	11
Revenue	12
In_kind donations	13
Cash receipts	14
Cash disbursements and purchases	15
Credit Cards	16
Payroll	17
Human resources	18
Grants and contracts	19
Governmental Generally Accepted Accounting Principles	20
Special events	21
Taxes	22
Licenses and registrations	23
Insurance	24
Audit	25
Records and filing	26

This information is for your use only and will not be shared with us unless you chose to do so at the end of the assessment.

You have selected

Yes

No

Unsure / Somewhat

N/A

General

Does the organization follow Generally Accepted Accounting Principles (GAAP)?

Yes No Unsure/Somewhat N/A

Is there a strategic plan in writing?

Yes No Unsure/Somewhat N/A

Does senior level accounting/finance person attend staff meetings?

Yes No Unsure/Somewhat N/A

Management does not take overly aggressive or noncompliant positions on recording financial transactions.

Yes No Unsure/Somewhat N/A

The organization is willing and able to make changes to accounting and financial procedures and systems to achieve better outcomes and/or to comply with rules and best practices.

Yes No Unsure/Somewhat N/A

Financial position

There is enough cash to pay bills on time.

Yes No Unsure/Somewhat N/A

There is a cash reserve of at least 6 months operating expense.

Yes No Unsure/Somewhat N/A

Governance

The Board is committed to sound financial management

Receives timely and accurate financial statements

Yes No Unsure/Somewhat N/A

Reads and understands financial reports, asks appropriate questions, and has appropriate comments at meetings

Yes No Unsure/Somewhat N/A

Has experience with accounting and financial management

Yes No Unsure/Somewhat N/A

Board approved accounting policies and procedures

Yes No Unsure/Somewhat N/A

Board reviews accounting policies and procedures every year

Yes No Unsure/Somewhat N/A

Board members understand their fiduciary responsibilities

Yes No Unsure/Somewhat N/A

Treasurer has more than 10 years of accounting, finance, or other business experience

Yes No Unsure/Somewhat N/A

There is a Finance Committee

Yes No Unsure/Somewhat N/A

There is an Audit Committee

Yes No Unsure/Somewhat N/A

General policies

Does the organization have the following policies in writing and approved by the Board of Directors?

Posting of transactions to the accounting system is limited to those individuals with the need for that access. Access is password protected.

Yes No Unsure/Somewhat N/A

No loans to employees or Board members.

Yes No Unsure/Somewhat N/A

Cash will not be advanced for expenses.

Yes No Unsure/Somewhat N/A

The Executive Director will notify the accounting department in writing of any related party transactions.

Yes No Unsure/Somewhat N/A

Employees will have adequate skills and training to adequately carry out their assigned tasks and responsibilities.

Yes No Unsure/Somewhat N/A

Capitalization policy

Yes No Unsure/Somewhat N/A

Credit card policy

Yes No Unsure/Somewhat N/A

Travel policy

Yes No Unsure/Somewhat N/A

Reserve fund policy

Yes No Unsure/Somewhat N/A

Investment policy

Yes No Unsure/Somewhat N/A

Document destruction policy

Yes No Unsure/Somewhat N/A

All costs paid for from federal funds are recorded in accordance with Title 2 CFR 230 Cost Principles for Non Profit Entities, and the administrative procedures from Title 22 CFR.

Yes No Unsure/Somewhat N/A

Accounting system

Major company accounting software is used; not including QuickBooks Online

Yes No N/A Unsure/Somewhat

Natural classification of revenue and expense, i.e. contributions, grants, wages, rent, are clearly and logically defined in the chart of accounts and consistently used when entering transactions in the accounting system.

Yes No N/A Unsure/Somewhat

Program tracking tools within the accounting software are used to track functional i.e. programs, administration, fundraising, classifications of revenue and expense.

Yes No N/A Unsure/Somewhat

Fund tracking tools within the accounting software are used to track restricted, designated, endowment, and unrestricted funds.

Yes No N/A Unsure/Somewhat

Internal controls

The Board and management communicate the importance of internal control throughout the organization."

Yes No N/A Unsure/Somewhat

Accounting procedures are defined in writing including step by step processes for receiving payments, depositing payments in the bank, recording payments in the accounting system, authorizing expenditures, entering expenditures in the accounting system, and filing document.

Yes No N/A Unsure/Somewhat

Exceptions to internal controls are documented and reviewed at least annually by management.

Yes No N/A Unsure/Somewhat

Internal Financial Reporting

Statement of Financial Position (Balance Sheet)

The Board and management receives regular, accurate, and timely financial reports.
Financial reports include:

Statement of Activities (Income Statement) Budget vs. actual

Yes No N/A Unsure/Somewhat

Statement of Activities By Program

Yes No N/A Unsure/Somewhat

Statement of Cash Flows

Yes No N/A Unsure/Somewhat

Report of restricted fund balances

Yes No N/A Unsure/Somewhat

Budget vs. actual narrative analysis is presented to management and the Board of Directors at least quarterly.

Yes No N/A Unsure/Somewhat

Financial reports are made available to and discussed with staff.

Yes No N/A Unsure/Somewhat

Budget

The budget is linked to clearly defined strategic goals and objectives.

Yes No N/A Unsure/Somewhat

The budget process begins with a review of the of the process and development of a timeline.

Yes No N/A Unsure/Somewhat

The current budget was adopted by the Board of Directors prior to the start of the fiscal year.

Yes No N/A Unsure/Somewhat

Program managers have responsibility for their budgets.

Yes No N/A Unsure/Somewhat

Budget writers have prior year budget and actual information available when writing budgets.

Yes No N/A Unsure/Somewhat

Performance to budget is monitored by program directors.

Yes No N/A Unsure/Somewhat

The budget is prepared by month.

Yes No N/A Unsure/Somewhat

The budget is prepared by functional area i.e. programs, administration, and fundraising.

Yes No N/A Unsure/Somewhat

Use and balances of restricted funds are budgeted.

Yes No N/A Unsure/Somewhat

The budget is integrated with the accounting system:

Uses the same chart of accounts and program descriptions

Yes No N/A Unsure/Somewhat

Entered in the accounting system and used for budget vs. actual reporting

Yes No N/A Unsure/Somewhat

The budget is updated when the organization becomes aware of significant changes to projected revenue and expense.

Yes No N/A Unsure/Somewhat

Bank accounts

There is one checking account.

Yes No N/A Unsure/Somewhat

There is one savings account.

Yes No N/A Unsure/Somewhat

There is one investment account.

Yes No N/A Unsure/Somewhat

Bank reconciliations

Bank statements are opened and review by a person that does not perform the bank reconciliation and who is familiar with the organizations financial transactions.

Yes No N/A Unsure/Somewhat

Bank accounts are reconciled timely at the end of each month.

Yes No N/A Unsure/Somewhat

Bank account reconciliations are reviewed by someone other than the person that performed the reconciliation.

Yes No N/A Unsure/Somewhat

Fixed assets

The list of capitalized asset is current:

Yes No N/A Unsure/Somewhat

All assets that meet the capitalization policy are on the list.

Yes No N/A Unsure/Somewhat

All retired assets have been removed from the list.

Yes No N/A Unsure/Somewhat

All assets are clearly identified via description or serial number.

Yes No N/A Unsure/Somewhat

Revenue

Contribution pledges are recorded when committed and receipt is certain.

Yes No N/A Unsure/Somewhat

Grants are recorded as revenue on the date the grant is awarded.

Yes No N/A Unsure/Somewhat

Program revenue is recorded as soon as services have been provided and not when payment is received.

Yes No N/A Unsure/Somewhat

Sales are recorded on the date the goods are provided and not when payment is received.

Yes No N/A Unsure/Somewhat

In-kind donations

Donations of goods and services are valued and recorded in the accounting system when they meet the requirements under GAAP.

Yes No N/A Unsure/Somewhat

Cash receipts

Cash and checks received via mail are:

Opened with two people present

Yes No N/A Unsure/Somewhat

Listed and the list is compared to the bank deposit receipt by someone other than the person making the bank deposit

Yes No N/A Unsure/Somewhat

Checks are restrictively endorsed

Yes No N/A Unsure/Somewhat

Deposited within 5 days

Yes No N/A Unsure/Somewhat

Stored in a secure location until deposited

Yes No N/A Unsure/Somewhat

Cash disbursements and purchases

Bills are entered in the accounting system on the bill date and not the payment date.

Yes No N/A Unsure/Somewhat

Bills are authorized by appropriate staff prior to sending to bookkeeping.

Yes No N/A Unsure/Somewhat

Bills are correctly coded to account, program, and funding source prior to sending to bookkeeping.

Yes No N/A Unsure/Somewhat

CLEAR ASSESSMENT

Credit cards

Credit card receipts for all credit card transactions are submitted to bookkeeping and are coded to account, program, and funding source.

Yes No N/A Unsure/Somewhat

Payroll is reviewed prior to processing by a person not involved in its preparation.

Yes No N/A Unsure/Somewhat

Employees use timesheets to track their time by functional category i.e. program, administration, fundraising.

Yes No N/A Unsure/Somewhat

Employees use timesheets to charge their time to restricted funds.

Yes No N/A Unsure/Somewhat

Employee wages, taxes, and benefits are entered in the accounting software by functional category i.e. program, administration, fundraising.

Yes No N/A Unsure/Somewhat

Administrative costs like rent, office supplies, and telephone are allocated to functional categories i.e. program, administration, fundraising using employee time or other basis that reasonably reflects the use of these resources.

Yes No N/A Unsure/Somewhat

Administrative costs are recorded by functional category i.e. program, administration, fundraising in the accounting system.

Yes No Unsure/Somewhat N/A

Human resources

There are written employee policies that have been updated within the past two years.

Yes No N/A Unsure/Somewhat

Finance, accounting, and bookkeeping personnel have adequate skills to carry out their assigned responsibilities.

Yes No N/A Unsure/Somewhat

Accurate job descriptions exist for all accounting and finance personnel.

Yes No N/A Unsure/Somewhat

All accounting and finance personnel have annual performance evaluations.

Yes No N/A Unsure/Somewhat

Annual performance evaluations include an objective analysis of the employee's ability to perform their assigned tasks, a discussion of their progress towards goals, summary of strengths and weakness, and goals for improvement and growth.

Yes No Unsure/Somewhat N/A

Hiring decisions are made solely on the candidates ability to meet the responsibilities and tasks of the position.

Yes No Unsure/Somewhat N/A

Grants and contracts

The organization is in compliance with the terms of all grants and contracts.

Yes No Unsure/Somewhat N/A

Cost reimbursement contracts are billed within one month after expenses are incurred.

Yes No Unsure/Somewhat N/A

Cost reimbursement contract billing is current.

Yes No Unsure/Somewhat N/A

CLEAR ASSESSMENT

Governmental Generally Accepted Accounting Principles

All expenses using federal funds are in compliance with Title 2 CFR 230 Cost Principles for Non Profit Entities and the administrative procedures from Title 22 CFR.

Yes No Unsure/Somewhat N/A

Special events

There are adequate controls over cash and checks received at special events.

Yes No Unsure/Somewhat N/A

Taxes

All federal, state, and local taxes are current.

Yes No Unsure/Somewhat N/A

All federal, state, and local tax exemptions are current.

Yes No Unsure/Somewhat N/A

CLEAR ASSESSMENT

Licenses and registrations

All licenses and registrations are current.

Yes No Unsure/Somewhat N/A

Insurance

Insurance coverage is adequate.

Yes No Unsure/Somewhat N/A

Insurance coverage is reviewed annually.

Yes No Unsure/Somewhat N/A

Audit

The organization has had a financial audit in the past year.

Yes No Unsure/Somewhat N/A

The auditors expressed an unqualified opinion in the most recent audit.

Yes No Unsure/Somewhat N/A

There were no internal control deficiencies or material weakness reported in the most recent audit.

Yes No Unsure/Somewhat N/A

All management letter comments from the most recent audit have been addressed.

Yes No Unsure/Somewhat N/A

There were no proposed adjusting journal entries from the auditors in the most recent audit.

Yes No Unsure/Somewhat N/A

At least one person in the organization has the skills, knowledge, or experience to understand GAAP and prepare financial statements in accordance with GAAP.

Yes No Unsure/Somewhat N/A

Records and filing

There is no backlog of unfiled documents.

Yes No Unsure/Somewhat N/A

Files and records can be quickly located when needed.

Yes No Unsure/Somewhat N/A

Files are logically organized and neat so someone unfamiliar with them can quickly find documents.

Yes No Unsure/Somewhat N/A

Documents have been archived or destroyed according to a document destruction policy.

Yes No Unsure/Somewhat N/A

Your email

Your mobile

Your message

Include the capacity assessment to help us get to know you better.

CLEAR ASSESSMENT