A Manager's Financial Management Checklist
This “A Manager’s Financial Management Checklist” is part of Mango’s guide to financial management for NGOs (available at www.mango.org.uk).
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Accounting records
- Are the books of account up to date, reconciled and in good order?
- Are the supporting documents filed and complete?
- Could you follow a complete transaction from start to finish through the accounting records?
- Does the bank reconciliation show any unusual or unexplained items or activities - e.g. old cheques, delayed banking of cash?
- Is the Chart of Accounts up-to-date, user-friendly and available to everyone who needs it?
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Financial Statements
- Is income broadly in line with expenditure, or as planned?
- Is there enough cash available to pay off immediate debts?
- How long ago since the last external audit was conducted?
- What was the auditor's opinion? If it was a qualified opinion, what action has been taken?
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Budget Monitoring Reports
- Are reports circulated regularly and promptly?
- Is income and expenditure broadly in line with the budget?
- Are there any unusual variances? Are they properly explained?
- Are linked budget items behaving consistently?
- Do the figures match the narrative progress reports?
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Internal Control
- Is there adequate separation of duties in practice?
- Comple a spot check on the cash - are there any 'IOUs' or unexplained shortages?
- Is there a higher than usual use of cash?
- Complete a spot check on the salaries records - look for 'ghost workers' and check that tax has been paid to the authorities.
- Is there one supplier who suddenly seems to be used more often than others?
- Check the assets register - is all equipment listen and where it is supposed to be?
- Are insurance policies up to date?
- Are the safe, stock room and cash box keys kept secure at all times?
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Behavioural change
- Does anyone display lifestyle changes - such as new spending patterns (e.g. new car/clothes?) or signs of alcohol/drug abuse?
- Is there anyone who is always the first in and last out of the office and takes no holidays?
