Outline
Over several years we have developed a detailed checklist which provides a basis for evaluating the financial controls and procedures of an organisation, and their effectiveness.
The checklist examines all areas of the organisation and allows us to build up a detailed understanding of what is working well, and what can be improved.
For example – ‘are regular management accounts prepared?’
As well as obtaining the answer to this basic question we would review the management accounts and evaluate their quality and usefulness – for example:
- How promptly after month end were they produced
- Were they distributed to the Finance Committee or Board or only operational management
- Are they reconciled to the accounting system and are journal adjustments available
- Do they contain a balance sheet, a cash flow forecast, an aged list of debtors and creditors etc.
- Do they contain comparison to budget
- Do they provide a narrative analysis or commentary
- Do they provide a summary of KPIs
- How useful do the recipients of the accounts find them – do they read them
Our Service
Using the information gathered from our meeting with senior staff and executive management, we will prepare a brief report which highlights those areas which can be improved, and makes recommendations for specific remedial action.
The report is set out in ‘traffic light’ format:
Red – an urgent priority for improvement
Amber – room for improvement
Green – working well
Please get in touch if you would like to obtain a quote for an independent financial health check.