Organizational Sustainability


Elements of a Sustainable Financial System

  • The organization has an operational and auditable financial system appropriate to its size and scope of operations. A big and complex organization definitely needs a more sophisticated financial system.
  • Whether large or small, an organization must have books of accounts.

Common Financial Tools

  1. Books of Accounts
    • Ledger
    • General Journal
    • Cash Receipts
    • Cash Disbursement
  2. Receipts
  3. Income and Expense Statement
  4. Statement of Assets and Liabilities
  5. Profit and Loss Statement
  6. Balance Sheet
  7. Financial Report
  8. Financial Statement

  • It observes separation of functions.

What is Separation of Functions?

  1. The disbursing officer is different from the cashier.
  2. The bookkeeper is different from the cashier.

  • It conducts internal and external audits.
  • It has a mechanism for disclosing fund-raising activities.
  • It prepares annual financial reports and submits them to a regulatory agency.
  • It has adequate and competent staff to operate its financial system.
  • Financial operations are reported regularly and reviewed by a Board Finance Committee
  • The Board has an audit committee.

In a word, accountability and transparency simply refers to stewardship.

Having satisfied the need for accountability and transparency, it is much easier for the organization to embark on sustainability. Many organizations call this process resource generation or mobilization. This is embodied in its Resource Generation Plan.