About Financial Reporting
Financial reporting includes the process of preparing and distributing information on funding requirements. Time-limited sources of funding typically contain clear expectations and requirements for:
- How the money can be spent.
- The timeframe in which the money must be spent.
- What outcomes and deliverables are expected.
- How progress should be reported.
Completing financial reporting requirements is important to:
- Help you effectively manage current grants.
- Obtain future funding opportunities.
- Support future resource development.
- Increase the likelihood that the funder will continue to provide ongoing funding.
- Developing a strong financial reporting system positions statewide afterschool networks to build strong relationships with funders. Always check with funders to verify their communication preferences and customize your approach accordingly.
- Networks whose fiscal sponsor takes a lead role in financial reporting tasks can still approach that entity to discuss how the system works and whether there are opportunities to make adjustments to better suit the network’s needs.
Strategies to Support Financial Reporting
- Your reporting system should ensure that you can meet the unique set of requirements for each grant or contract. Streamline your data collection and reporting wherever possible. Reporting done for one funder may also meet the requirements of another.
Keep funders informed regarding any changes in the project plan, delays in implementation or other issues. Create a system to keep track of all communications with funders.