Tate & Tryon’s professionals were recently called upon to assist a client with improving the organization’s financial governance practices. Financial oversight responsibilities were unclear and misunderstood, resulting in increasing frustration between the board of directors and senior management. An outdated committee structure had the finance team running in circles to accommodate the constant informational requests coming from the board, and its finance, audit, and investment committees, as well as senior management. Ad hoc financial reporting had become the norm and managing the many volunteer committees had become a full time job.
Having observed hundreds financial governance practices, Tate & Tryon performed a top to bottom review of the organization’s financial reporting and board committee structure. Tate & Tryon revised and condensed financial reports emphasizing key strategic priorities and KPIs using dashboards and non-technical commentary comprehensible by a Board with limited financial expertise. We recommended committee restructuring by combining the finance, audit, and investment committees and helped identify a respected chairperson with financial and accounting experience. Along with the finance committee chair and CFO, Tate & Tryon facilitated a financial orientation for the board and committee members.
Tate & Tryon’s perspective helped the board and committees have a better understanding of their high-level financial governance responsibilities while creating a roadmap to effective communication between volunteers and senior management. Strategic decision-making is now more collaborative and with a better understanding of risks, opportunities and financial consequences. Trust has replaced skepticism and doubt.