ACCOUNTABILITY

The extent to which an organization is answerable for its processes and outcomes to a variety of relevant stakeholders including: consumers, community representatives, governing bodies, and governmental regulators.		  
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  MANAGEMENT

See ADMINISTRATION		  
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  PRACTICE

Established actions or ways of proceeding in the regular performance of organizational duties. Policies and procedures often guide practice.		  
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  GOVERNING BODY

A person or persons with the legal authority and responsibility to set policy and oversee the operations of an organization. Generally, the governing body is a group, such as a board of directors or board of trustees. While the exact responsibilities of the governing body depend on the nature and character of the organization, the governing body has minimum fiduciary responsibilities to the organization set by statute, regulation, and case law, and typically assume responsibilities for long term planning, risk management, and evaluation and effectiveness of management.		  
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  PROCEDURES

Written instructions that outline the steps for performing a task(s) or operationalizing an administrative or service delivery process. A procedure can be written as a step-by-step set of instructions or as a narrative description of a process. A procedure tells someone how to do something not just what to do.

Unlike policies, procedures do not need to be approved or reviewed by the governing body, and need not be associated with a specific policy. For example, whereas a broad anti-discrimination policy requires grievance or other procedures in order to be operationalized within an organization, assessment procedures do not require a governing body approved assessment policy.

Note: Procedures are sometimes referred to as administrative policies.

  
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  RISK MANAGEMENT

A systematic process of evaluating and reducing potential risks that may befall personnel, clients, an organization, or a facility. Risk management activities are directed toward reducing an organization's legal and financial exposure, especially to lawsuits.		  
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  ADMINISTRATION

The personnel responsible for management functions of the organization, including fiscal management, human resources, and service delivery. Such personnel determine organizational goals, acquire and allocate resources to carry out a program, coordinate activities toward goal achievement, and monitor, evaluate, and make needed changes in processes and procedures to improve the likelihood of goal achievement. The term is synonymously used with MANAGEMENT.		  
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  PLANNING

The process of specifying objectives, evaluating the means for their achievement, and exercising deliberate decision making about appropriate courses of action.		  
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  PERFORMANCE

A measure of how well an organizational system provides services to consumers. Performance is often based on key indicators, such as rates of service, cost per consumer, degree of satisfaction with services, and extent of consumer access to services.		  
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  UNIT COST

A calculation of the price or value of a fixed amount or unit of service that takes into account the sum of all organizational expenditures involved in the provision of that service.		  
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  PERSONNEL

The body of employees and/or volunteers that carries out the organization's tasks under the organization's administration and/or supervision. This definition does not include foster parents who are specifically referenced in relevant standards		  
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  AUDIT

See FINANCIAL AUDIT		  
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  MANAGEMENT LETTER

A letter addressed to an organization containing an auditor's conclusions regarding the organization's accounting policies and procedures, internal controls, and operating policies. The letter evaluates the organization's present system, identifies problems and recommends improvements. It is also referred to as a Letter of Recommendation.		  
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  CERTIFICATION

Assurance from a state or professional association that a person or organization possesses certain attributes, knowledge, or skills. 		 
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  SERVICE

One or more organization-operated programs or activities that have a common general objective and deploy the organization's material and human resources in a planned and systematic manner. An organization that publicly promotes or identifies itself in writing as offering a service, is licensed to deliver a service, assigns personnel and/or space to a service, or allocates financial resources to a service is considered to offer that service.		  
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Financial Management
  
Private Org Public Agency  
Administration and Management Narrative (FIN):
  

Update: Revised Table of Evidence - 12/15/11

The Administration and Management Narrative should provide an overview of key practices that contribute to the performance and productivity of your organization. The Narrative supports, but should not duplicate, evidence provided elsewhere in your self-study.

The Financial Management Administration and Management Narrative should provide the Peer Review Team with a clear, concise description of how your financial management practices help to shape, advance, and sustain your organization’s mission and strategic goals.

Purpose Standard: Financial Management (FIN)

The organization’s financial accountability and viability are achieved through the application of sound financial management practices that accord with legal and regulatory requirements.

Provide responses to the following questions that address your organization’s achievement of the Financial Management Purpose Standard. Highlight applicable obstacles and innovations, if any, in each of your responses.

1. Describe the overall health of your organization's finances.

  1. Include a description of significant factors that may have impacted your organization's finances

(e.g., enhanced or reduced program-specific funding streams, successful fundraising activities, new foundation support, etc.).

(e.g., state budget cuts have forced the organization to close one of its family counseling programs…)

2. Describe 2-3 actions that your governing body has taken to enhance your organization's financial viability.

(e.g., In response to recent recommendations of the organization's auditors, the board approved a plan to strengthen the organization's system of internal control…)

3. How does your organization's management and the governing body assure that its financial management systems are in accordance with Generally Accepted Accounting Principles?

4. How does your organization remain abreast of changing legal and regulatory requirements in relation to financial management practices?

5. Provide any additional information that would increase the Peer Team’s understanding of how the organization's financial practices contribute to the achievement of its mission.

Attachments:

  1. All COA-approved NA Requests.
  2. A list of all NAs applicable to your organization provided within the standards.

Note:

Organizations being accredited for the first time: Please provide information for the last year.

Organizations being reaccredited: Please provide information for the period since the last accreditation review.

    Self-Study Documents On-Site Documents On-Site Activities
FIN 1
Governing Body Financial Responsibilities
  • Budget (operating budget for current fiscal year)
 		  
  • Interview:
  1. Governing Body
  2. Treasurer/Finance Committee members
  3. CFO
 		  
FIN 2
Internal Control Environment*		  
  • Governing Body minutes
 
  • Interview:
  1. Governing Body
  2. Treasurer/Finance Committee Members
  3. CEO/CFO
 		  
FIN 3
Financial Risk Assessment*		  
  • Governing Body minutes
  • Long-term or strategic plan
  • Annual risk management review (RPM 2.01)
 
  • Interview:
  1. Governing Body
  2. CEO/CFO
 		  
FIN 4
Stable Predictable Revenue
  • Include description of funding in Financial Management Administration and Management Narrative Question 1
  • Budget
 
  • Governing Body minutes
 
  • Interview:
  1. Governing Body
  2. CEO/CFO
 		  
FIN 5
Financial Planning		  
  • See long-term or strategic plan
  • Chart of accounts
  • Relevant financial data
  • Monthly analysis of financial performance (FIN 5.04)
  • Unit cost analysis (FIN 5.06)
  • Documents and reports that demonstrate budget planning (FIN 5.02)
 
  • Interview:
  1. Governing Body
  2. CEO/CFO
  3. Finance personnel
 		  
FIN 6
Financial Accountability*		  
  • Governing Body minutes
  • Written certification by executive and financial officers (FIN 6.06)
  • List of AuditCommittee members and Finance Committee members
 
  • Interview:
  1. Governing Body
  2. CEO/CFO
 		  
FIN 7
Financial Management System

For Networks:

  • Procedures for verifying accuracy of services billed
  • Procedures for informing providers of possible delay in payment
  • Procedures regarding provider appeal of payment denials
 

For Networks:

  • Review financial records, as necessary
 
  • Interview:
  1. Governing Body
  2. CEO/CFO
  3. Personnel at all levels
  • Observe reporting and accounting system

For Networks:

  • Interview:
  1. Directors of subcontracted organizations
 		  
FIN 8
Payroll		    
  • Interview:
  1. Governing Body
  2. CEO/CFO
  3. Personnel at all levels
 		  
   
 
Fundamental Practice Standards:
  Essential Life and Safety Health and Welfare Client Rights
    FIN 7.09