Nonprofits Count August

 


 






     

August 2007

This month, NAF joined many others to celebrate National Health Center Week. Continue reading to learn about the importance of community health centers, upcoming NAF workshops and a brand new resource.
This issue of Nonprofits Count:
  • Have you talked with your auditor lately?
  • Helping Nonprofits Thrive - Payne-Phalen Block Nurse
  • Upcoming Workshops
  • NAF Celebrates National Health Center Week

Have You Talked With Your Auditor Lately?

While many audits are now in progress, it is important to talk to your auditor about SAS 112 – a recent change in auditing standards that will affect audits of nonprofits. SAS 112 establishes new definitions and standards for Communicating Internal Control Related Matters Identified in an Audit.

Auditors have always considered the quality and sufficiency of internal controls as a component of the audit. If weaknesses in internal controls are observed, the auditors submit a management letter to the board describing the weaknesses and recommending further attention to these controls.

Read Kate Barr’s Blog entry to learn more about SAS 112 and how it will affect you.

 

Helping Nonprofits Thrive - Payne-Phalen Block Nurse Program

“How will Mom be able to stay at home if she can’t drive?”

The Payne-Phalen LAH/Block Nurse Program community service organization helps older adults living on St. Paul’s East Side remain in their homes as long as possible. Using a combination of neighborhood volunteers and health professionals, the program provides information, support services and health care to residents over the age of 65.

In April 2006, Executive Director, Barbara La Valleur read reports forecasting a slow-down in receiving state funding for the year. Expecting to receive about $30,000 in July, she knew she would have to find alternative resources to meet payroll and cover operating expenses until the money came though.

She called NAF and worked with loan officer, Phil Hatlie to determine the best course of action for solving this problem and ensuring she’d be able to keep all of her employees. After looking through the organization’s financial statements and budget, NAF was able to provide a $20,000 loan to help the organization with cash flow until state funding came through.

Instead of shutting its doors, the Payne-Phalen LAH/Block Nurse Program did the exact opposite – it created new programs, served a record number of seniors and saved taxpayers $2.5 million in nursing home costs.

“Nonprofits Assistance Fund was great to work with,” said La Valleur. “Phil and the rest of the staff really understood how we operated and were able to give us the resources necessary to keep our doors open and continue to be advocates for our seniors.”

This inspiring story can be found, along with many others, on the NAF Web site



Upcoming Workshops

Need to brush up on your financial management skills? Below is an overview of the workshops offered in September and October, for the complete fall lineup, please visit the NAF Web site.

Financial Management Fundamentals I (September 25) and Financial Management Fundamentals II (October 2)
This two-session workshop provides an overview of nonprofit financial management, including budgeting, bookkeeping best practices, financial reporting and working with the board. These two 3 ½ hour workshops will cover:

• Budget and Planning
• Responsibilities and roles in financial management
• Record keeping and bookkeeping
• Financial reports
• Managing and controlling cash flow
• Management practices for financial stability
• Internal controls and financial policies

October 23 – Measuring Your Financial Health
The next step after understanding financial statements is to use them as a tool to assess and monitor the financial health of nonprofit organizations. What are the key measurements to assess and monitor the financial health of a nonprofit? The workshop uses ratios, comparisons, goals, and self-assessment for financial health. This 3 hour workshop is geared for those with some knowledge and experience with financial reports and will cover:

• Financial statement and reporting practices
• Monitoring unrestricted and temporarily restricted funds
• Calculating financial ratios
• Developing financial monitoring reports
In addition, don’t forget to check out our free brown bag lunches on the fourth Thursday of every month. Upcoming topics include: Annual Budget Planning and Using Loans and Lines of Credit.

Click here for more information on upcoming workshops.

Nonprofits Assistance Fund Celebrates National Health Center Week

The work we do at Nonprofits Assistance Fund (NAF) is rich in variety since we work with Minnesota nonprofits in all fields – social services, housing, arts, education, and on and on. A few months ago I wrote about our experience working with charter schools and the expertise we have developed in that part of the nonprofit world. Through our Minnesota Primary Care loan fund, we have also developed expertise in working with community health centers.

Most of our work with clinics has been for lending to help with cash flow shortfalls caused by processing time and delays of reimbursements from a web of public programs and the high costs of facilities, equipment and medical supplies. When most nonprofits prepare cash flow projections – which we always encourage – they have a pretty good idea of when their grants and contract funds will be received. Some of the payments received by clinics have been delayed for more than a year while they work through reporting, documentation and reconciling overlapping programs and their requirements. That has made cash flow management more challenging then ever.

Click here to learn how NAF works with CHCs to help ease their financial stress.

Nonprofits Assistance Fund is a nonprofit community development organization that fosters community development and vitality by building financially healthy nonprofits. Nonprofits Assistance Fund provides financing for working capital, cash flow, equipment and facilities projects with a focus on strengthening the operation and mission of nonprofits. We also offer financial management workshops and advice that improve nonprofits' capacity to carry out their mission.