Cae: Domain 1 - Strategic Management

Front 1

4 Aspects of a Financial Transaction

Back 1

initiation (ck request), authorization, asset custody (keeping the ck book), &
recording the transaction (posting)

Front 2

Clean Audit

Back 2

opinion providing highest level of assurance that the Stmt of Financial Position fairly presents the orgs financial position, the Stmt of Activities fairly presents the results of the orgs ops, & the Stmt of Cash Flows farily presents its cash flows

Front 3

Unqualified Audit

Back 3

opinion providing highest level of assurance that an audit can provide with attn given to a particular matter & provides for disclosre of additioanl financial stmts provided or draws attn to an add important matter

Front 4

Strategic Program Budgeting

Back 4

allocates salaries & other overhead to know the true profitability of products & services

Front 5

Annual Audit

Back 5

Mgmt is responsible for financial reports. Auditors verify the amts in the reports. The BOD hires the auditors & receives the report. (Conflict of interest for CSE or CFO to hire auditor.)

Front 6

Sarbanes-Oxley

Back 6

2 provisions impact nonprofits: whistle-blower protection & the prohibtion of doc destruction upon the commencement of a federal investigation. Many moving to create an audit committee (w/ financially literate mbrs) & creating a code of ethics for BOD w/ BOD training & self evals.

Front 7

Essential Financial Controls

Back 7

Clear lines of authority, clear definition & acceptance of responsiblity, authority commensurate w/ responsibility, proper training

Front 8

Combined Cash & Accrual Statement

Back 8

records unpaid bills on accrual basis & uncollected income on a cash basis

Front 9

Management Letter

Back 9

issued by auditor, communicates areas that mgmt needs to address in order to comply w/ GAAP accting practices

Front 10

Reporting Capital Gains

Back 10

capitial gains or losses are reported in the unrestricted class unless there are explicit donor restrictions on the gains & an applicable state law judged by the orgs board to requre the rettention of some or all of the capital gains/ losses in the restricted class

Front 11

Stmt of Activities

Back 11

Shows orgs financial activity by the mo & on a ytd basis. Reports revenue generated, expenses incurred & results in net income or net loss.

Front 12

Stmt of Cash Flows

Back 12

Shows info re cash receipts & cash disbursements from ops, investments & financing activities during a pd of time. Helps others assess the orgs ability to generate positive future cash flow to meet obligations.

Front 13

Stmt of Financial Position (Balance Sheet)

Back 13

Summary of financial makeup at a specific pt in time. Reflects the assets, the liabilities owed by the org, & the residual net assets representing net worth.

Front 14

Accrual Accounting

Back 14

recognizes revenues when earned & expenses when incurred (gives better cash flow proj than cash basis acct)

Front 15

Cash Basis Accounting

Back 15

recognizes revenue when cash is received & expenses when cash is expended