Success Stories

P&L analysis leads to quick board action to address challenges

Two Bank of America finance and accounting managers, Katie Cumbaa and Debbie Frampton, found a project that would enable them to take advantage of their career backgrounds and enable them to work together during their busy work weeks. In partnership with the executive director of the Oxford Area Neighborhood Services in Southern Chester County (PA), they launched a high-level analysis of Oxford's P&L and other Quickbooks financial statements of the agency.

Their work was not intended to replace the detailed work of the bookkeeper, auditor, and treasurer but provided an outside look on ways to consider increasing income through fund-raising and other means, as well as finding opportunities to reduce expenses. They focused on expanding the way the agency looked at its books from a point-in-time profit and loss statement view to a cash-flow-statement view, which takes into account the timing of revenue and expenses as well as forecasted future cash flow needs (i.e., will there be sufficient funds given the pace of needs in the future?).

Another important thing they discussed, which all agencies should consider, is examining their investment policy - particularly in light of the tremendous volatility in the markets over recent months. Many agencies may be exposed to unprecedented market losses without sufficiently conservative investment vehicles for their endowments and other sources of funds.

With the guidance of executive director Cheryl McConnell, Katie and Debbie presented their observations to the board. Debbie says she found it interesting that the board had already been discussing some of their recommendations, but having an impartial outside opinion helped accelerate the decision to move forward. The result? The agency has made some staff and responsibility changes, is reworking its Quickbooks account mapping and reporting, made some board oversight changes, and is focusing on some specific revenue-enhancement and expense-management action items.

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