Fiscal Management in the Strategic Planning Context Fiscal Management in the Strategic Planning Context The process of establishing proper procedures and fiscal policies is one that does not require as much money as it does attention to detail and time. There are various procedures and policies all of which vary and depend on the number of employees, budget and model of the organization. In this essay, I will examine, Identify and describe the basic elements of the fiscal structure of the public and the non-profit organizations (Rosen, 2005). I will also analyze the aspects of the strategic plan that are vulnerable to fiscal management and develop strategies to address those vulnerabilities.
When it comes to establishing proper procedures and fiscal policies, there is no one type that works for all organizations. I will, therefore, give recommendations for a structure for procedures and fiscal policies that I believe best suits public and the non-profit organizations. Procedures and fiscal policies are important because they help the organization maintain policies that are meaningful (Finkler, 2005). These structures are vital as they ensure that the financial management of the organization remains strong at all times.
A public or a non-profit organization is also able to establish proper internal controls which will help them comply with standards that are set to regulate the industry. The people or organizations that fund non-profit organizations are keen to ensure that the organizations they fund comply with these policy guidelines. The fiscal policies of an organization also help to clarify the responsibilities and roles of various individuals in the organization which ensure that the financial data can be relied upon to arrive at critical decisions (Weick K, 2007).
The fiscal structure of the public and the non-profit organizations contains six basic elements including the Financial Planning, Internal Controls, Accounting Procedures, Asset Management, Accounts/ Expense Payable, Accounts/ Revenue Receivable and Reporting. Public and the non-profit organizations need to have these six basic elements although some organizations may find it useful to add other policies depending on their unique circumstances. There are various aspects of the strategic plan that are vulnerable to fiscal management such as the financial, the human resource and the revenue aspects (Grobman, 2008).
A fiscal policy structure that is effective should allow for discussions into the potential areas that could arise in risks for the organization, proper decision making regarding the vulnerable areas of the strategic plan and the documentation of those decisions arrived at for future reference (Wyplosz, 1995). The public and non-profit organizations can employ certain strategies to ensure that these vulnerabilities are addressed. Proper fiscal structure will ensure that the assets of the organization are protected from any eventualities. The financial aspect of the strategic plan which is equally vulnerable can be addressed by making sure that the financial activities of the organization are accurately recorded at all times.
A proper fiscal structure also allows an organization to make informed financial decisions based on laid down procedures (Malamut, 2008). Other measures for addressing the vulnerability of these aspects of the strategic plan include adhering to established standards and expected behavior, constant training of staff and complying with the reporting requirements established by the local, state or federal government. Works Cited Finkler, S. A. (2005). Financial Management For Public, Health And Not-For-Profit Organizations.
London: Pearson Education. Grobman, G. M. (2008). The Nonprofit Handbook: Everything You Need to Know to Start and Run Your Nonprofit Organization. Ney York: White Hat Communications. Malamut, M. E. (2008). ABA Code Revision Raises Concerns for Democracy and Parliamentary Law in Nonprofits. National Parliamentarian, 23. Rosen, H. S. (2005). Public Finance. Hill Irwin: McGraw. Weick K, S. K. (2007). Managing the unexpected: Resilient performance in an age of uncertainty. San Francisco: CA: Jossey Bass. Wyplosz, M. B. (1995). European Macroeconomics. London: Oxford University Press.