E113- Shared Accounting Finance Impact Department, BSA

Transcription

1 Optimizing Council Operations through Shared Services Accounting May 23, 2013 Agenda Considerations for Shared Services/Outsourcing Shared Services / Outsourcing in the Nonprofit Sector Insights from a Local Council Shared Services/Outsourcing of Finance & Accounting Functions Jitasa Overview & BSA Partnership Industry Examples of Outsourcing/Shared Services GE Healthcare - Engineering Services Hospital / Healthcare Industry Core mission: Patient care Outsourced service: Clinical/diagnostic equipment Outsourcing objective: Operational focus on patient care Pharmaceutical / Biotech Industry Core mission: Drug discovery & development Outsourced service: Scientific research instrumentation Outsourcing objective: Optimizing resource utilization Annual Meeting

2 Considerations for Shared Services/Outsourcing Controlling labor and operating costs Increased realization from economies of scale Tapping in to a knowledge base for greater expertise and innovation Overcoming talent shortages Increasing speed and the quality of delivery of outsourced activities Optimizing resource utilization Freeing up management time, enabling organization to focus on core competencies, functions and mission Outsourcing / Shared Service in the Nonprofit Sector Annual Meeting

3 Nonprofit industry thought leaders have identified the following set of market trends with the potential to impact the nonprofit landscape 1.Nonprofits are pressured to do more with less as they face funding challenges due to economic, social and political conditions. 2.Nonprofits are facing increasing pressure from the donor communities to measure, report, and communicate outcomes and social impact of their services. 3.Nonprofits are looking for opportunities to scale to better impact community wide issues through collaboration, social networks, and shared resources. 4.Nonprofits are struggling to keep up with and to better leverage the rapidly evolving technology for the purpose of capacity building, fundraising and donor communication. 5.Nonprofits need to succession plan for the next generation as tenured employees approach retirement. Sources: Industry Interviews and Industry Publications Nonprofit Shared Services / Outsourcing Nonprofit Outsourcing Solutions Accenture, 2013 Nonprofit organizations are continuing a strategic trendto industrialize, adopting business practices used in both the public sector and business sector. This trend means standardizing for increased productivity, economies of scale and quality while reducing cost. Nonprofit organizations can transform existing operations through outsourcing, making them smarter, faster and more cost effective. In these challenging times, outsourcing services can help nonprofit organizations improve performance in core operational functions while reducing material costs. The Value Proposition Top Reasons Non-Profits choose to outsource back-office services? Reduce operating costs ($$) Gain access to needed skills Focus time and energy on programs 0% 10% 20% 30% 40% Annual Meeting

4 Outsourcing / Shared Service Insights from a Local Council Outsourcing / Shared Service of Finance & Accounting Annual Meeting

5 Optimizing Council Operations via Shared Accounting Services Jitasa Who We Are Social venture, and certified B-Corp founded expressly to assist non-profits with accounting services Founded in 2007 by The Momentum Group (501c3), and a team of Yale MBAs and CPAs A staff of over 70 accounting professionals and CPAs, working with over 200 clients in 30 states throughout the country Do What You Do Best The Jitasa Solution We are 100% focused on non-profits and churches accounting Standards based best practices using the leading research from IU Center for Philanthropy, Yale Program on Social Enterprise, Stanford Center for Philanthropy, etc. Team-Based Model CPAs, Accountants and Bookkeepers working together Efficiency gains through economies of scale Enhanced controls through better segregation of duties Cross-trained for continuity of service and high availability Annual Meeting

6 Jitasa& BSA BSA National Introduction January councils as of May 2013 Council & Jitasa Roles & Responsibilities BSA Council Team Scout Executive Monthly Calls Approved Personnel Approvals Coordinator Code info Get info to Jitasa Help facilitate process No accounting knowledge required VP Finance / Treasurer Monthly contact Books & Accounting Team Daily, Weekly, Monthly Communication Month End Close Bank Reconciliations Update Monthly Balance Sheet and Operating Statements Audit Preparation Coordinate Payroll Accounts Payable Reconcile Trading Post and Sellwise entries Financial Analysis Team B&A Oversight Capital Fund Reconciliations Endowment Fund Reconciliations Monthly Budget vs Actual Analysis Cash Flow Analysis and Projections Audit Support Monthly Financial Statement Analysis BSA Delivery Model Annual Meeting

7 How We Think About It Build Run Report Build it correctly, run it consistently, and the reporting falls into place On-boarding: Defining Roles, Responsibilities & Schedules On-Boarding Process We will develop a Council specific document that outlines the roles, responsibilities on both sides. We will also establish a calendar of activities that shows deadlines and expected turnaround times. 3-day On-site visit from a Jitasa BSA Specialist to review processes and procedures. BSA Accounting Software In 2012, having exceeded the BSA National Finance Impact Department s standards for the security of client financial information, Jitasabecame the first BSA vendor to be granted full access through the BSA Firewall. In September 2012, the entire JitasaBSA accounting team was trained on PeopleSoft, with most client councils having since been converted. Annual Meeting

8 The BSA Systems $$$$ IN $$$$ Out Sellwise Fundraising Registration GL AP Checks Invoices Approvals Payroll Approvals Time Sheets & Changes Jitasa BSA Pricing Factors Services include combined work performed by Jitasa team members: Books & Accounting services performed by BSA Accounting Associates Financial Services performed by BSA Specialists Monthly hours vary based on size of Council and scope of services related to factors including: # of Scout Shops and Scout Shop set-up (i.e. Local or BSA National), # of Camps, # of Bank and Investment Accounts, Council staff skillsets/capabilities, etc. A Jitasa BSA Specialist will also conduct a 3-day on-site visit as part of the onboarding process, at $3,000 + expenses. Questions? Steve Doud Director of Sales 1750 W Front St., STE 200 Boise, ID Phone: x135 steve.doud@jitasa.is Annual Meeting