Controls
A control is the process through which managers regulate the activities of individuals and units so they are consistent with these.
the goals and standards of the organization
A ticketing and fundraising software is called this
Client/customer Relationship Management System (CRM)
A budget is just a what?
A Plan
The Financial Accounting Standards Board (FASB) oversees accounting practices and regularly updates what is referred to as these.
Generally Accepted Accounting Principles (GAAP)
The rule is defined as "a fiduciary and especially a trustee to manage another's affairs and invest another's money with such skill and care as a person of ordinary prudence and intelligence would use in managing his or her own affairs or investments"
The prudent person rule
"How much did sales increase?" is an example of this step in the control process
Measure and compare
SOS! A Management Information System is often born from staff members who can no longer handle this chaotic style of operation
Crisis Management
In this type of budget, no line-item amount carries over from the previous year, and everyone starts the new fiscal year at $0.
Zero based budget
Money put away for rainy days & crisis are put in this
Reserve Fund
This is something we experience both in arts organizations and every day with prices at grocery store- it reduces the value of money over time
Inflation
Evaluating work performance and providing feedback to help employees make performance adjustments and improvements is the core of this type of control process
Performance Appraisal
As an arts organization grows larger, it will become necessary that more sophisticated softwares and programs be utilized, even potentially hiring this kind of department
IT
This type of budget shows line items of various types of revenue (earned/donated/federal) without too much detail and different types of expenses, oftentimes by department
Summary Budget
Recognizing expenses when they incur AND when it has been promised (but not out of the bank yet) is this type of accounting system
Accrual System
Whether it be a short term investment or a long-game endowment, we want to maximize the return this
Interest rate
This time consuming process implements control systems that are established by a supervisor and employee setting specific goals for future, objectives to complete or accomplish, and procedures for reviewing results.
Management by Objectives
Slack, Trello, Basecamp, Zoho, and Asana are examples of these
Task management/project management/teamwork management
Adding a new wing on a building, renovating a gallery, replacing the seats in the theatre, or buying new equipment that will have a useful life of more than a year will require this type of budget
Capital budget
Cash, property, or resources owned by the organization that gives it value is called this
Assets
The fact that money available at the present time is worth more than money of the same amount in the future is called what?
Time Value of Money (TMV)
A lower one of these may lead to the investigation of what went wrong and in turn improve the input standard that caused it.
Output target
This is the popular (and pricey) system Ticket Philadelphia uses for ticketing, marketing, and fundraising development for their various associated organizations
Tessitura
This type of budget shows exactly how much money an organization has and will likely have on hand based on various revenue and expenses throughout the year
Cash Flow Projection
This is a financial snapshot of the current overall financial situation
Balance Sheet
A formula to find out this can be used to find out how much an investment will be worth over a period of time
Future Value