Challenges Faced By The Leadership And The Board Of Directors

1838 Words8 Pages
AAbstract Strategic financial management calls attention to financial matters that encompass an organization’s mission, objectives and goals. When working in the nonprofit sector, there are many financial challenges faced by the leadership and the board of directors. An effective board of directors, along with the organizations’ finance committee will work together to develop an annual operating budget, in addition to monitoring internal controls. These internal controls include the process of achieving financial goals and objectives, producing reliable reports and remaining compliant with rules, regulations and policies that have been established. The oversight and guidance provided by the board and finance committee provides transparency and accountability to the nonprofit and should be a strong indication that the organization is committed to good stewardship. Introduction The general purpose of creating financial reports are to assist board members and other stakeholders in decision making, in addition to providing accountability and transparency in organizational leadership. Taking internal control measures are an integral part of organizational health and wellbeing. For all intensive purposes, “boards of directors should know the true cost of services as part of their fiduciary responsibility” (McLaughlin, 2009, p. 99). There is great value in supplying detailed information in an attempt to simplify the financial statements when conducting a board meeting.
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