2.6 Financial Statements and Reporting Subsection Objectives: Assess the policies, procedures, and practices for generating financial statements that meet the needs of the organization and comply with government and donor financial reporting requirements Resources: Financial statements, financial staff questionnaires or interviews Low Capacity Basic Capacity Moderate Capacity Strong Capacity 1 2 3 4 2.6 Internal financial statements Internal financial statements are Internal financial statements Internal financial Financial are not regularly produced produced less than once a quarter are produced at least once a statements are produced Statements quarter at once a month Internal financial statements Financial statements are incomplete are inadequate or lack or insufficiently documented with Financial statements are Financial statements are adequate explanatory notes explanatory notes reasonably complete and complete, reliable, and reliable, but may need better well documented with 2.11) Managers do not regularly Managers do not regularly review explanatory notes good explanatory notes review financial statements financial statements Managers usually review Managers consistently Managers who review Managers review financial financial statements review financial financial statements, but statements, but rarely take corrective statements rarely take corrective actions actions based on the review Managers usually take based on the review corrective actions based on Managers consistently Financial reports on donor projects reviewed financial statements take corrective actions Financial reports on donor are: based on reviewed projects are: mostly accurate, but incomplete; Financial reports on donor financial statements not prepared; or projects are: weakly documented; they are prepared, but not accurate and reasonably Financial reports on donor not usually timely; accurate, complete, projects are: complete; prepared with significant external adequately, or timely accurate and adequately documented; assistance; documented; complete; usually timely; do not meet donor standards only prepared with well documented; prepared without external without much revision; substantial external consistently timely; assistance; prepared by designated but assistance; prepared without meet donor standards with not approved by others not produced to donor external assistance; few significant revisions; standards; meet donor standards prepared and approved by not prepared and with little or no separate designated staff approved by separate revision; designated prepared and approved by separate designated
2.6 Financial Statements and Reporting Subsection Objectives: Assess the policies, procedures, and practices for generating financial statements that meet the needs of the organization and comply with government and donor financial reporting requirements Resources: Financial statements, financial staff questionnaires or interviews Low Capacity Basic Capacity Moderate Capacity Strong Capacity 2.6 Financial Statements 2.11) 1 2 3 4 Internal financial statements are not regularly produced Internal financial statements are inadequate or lack adequate explanatory notes Managers do not regularly review financial statements Managers who review financial statements, but rarely take corrective actions based on the review Financial reports on donor projects are: not prepared; or they are prepared, but not accurate, complete, adequately, or timely documented; only prepared with substantial external assistance; not produced to donor standards; not prepared and approved by separate designated Internal financial statements are produced less than once a quarter Financial statements are incomplete or insufficiently documented with explanatory notes Managers do not regularly review financial statements Managers review financial statements, but rarely take corrective actions based on the review Financial reports on donor projects are: mostly accurate, but incomplete; weakly documented; not usually timely; prepared with significant external assistance; do not meet donor standards without much revision; prepared by designated but not approved by others Internal financial statements are produced at least once a quarter Financial statements are reasonably complete and reliable, but may need better explanatory notes Managers usually review financial statements Managers usually take corrective actions based on reviewed financial statements Financial reports on donor projects are: accurate and reasonably complete; adequately documented; usually timely; prepared without external assistance; meet donor standards with few significant revisions; prepared and approved by separate designated staff Internal financial statements are produced at once a month Financial statements are complete, reliable, and well documented with good explanatory notes Managers consistently review financial statements Managers consistently take corrective actions based on reviewed financial statements Financial reports on donor projects are: accurate and complete; well documented; consistently timely; prepared without external assistance; meet donor standards with little or no revision; prepared and approved by separate designated