Expenses rising faster than income, combined with increased revenue instability and uncertainty, are dual pressures making it harder for publicly funded and non-profit organizations to manage delivering against their missions and plan for the future.

The first step in addressing these related challenges is to analyze and understand at a more granular level both income and expense trends and projections. Only once this has been completed is it possible to identify options to mitigate, address, or eliminate the key issues identified.

After completing multiple similar client engagements for publicly funded and non-profit organizations, Core Catalysts has developed a rapid methodology that enables us to complete “Financial Futures” assessments that arm leaders with objective information that dissects expense and funding structures and key financial management processes to highlight the greatest risks to financial sustainability. From this, we also provide an action plan for leaders to balance budgets and position their organizations for future success.

In just four to six weeks, senior experts from Core Catalysts with specific experience and subject-matter-expertise, working directly with client finance, leadership, and operations teams, can deliver:

A Current Financial Health Assessment

• Analysis of budget to actuals and implications for future surplus / deficit
• Balance sheet evaluation to determine current “runway” and risk posture
• Spend review and assessment of ability to support future objectives
• Funding formulas and methodologies review to identify risks to long-term sustainability
• Budget process and financial systems review

Financial Scenario Planning

• Three to five-year financial forecasts, including projections with and without identified cost-saving opportunities, to illustrate their impact on surpluses, deficits and overarching financial position
• Fund balance trend and vulnerability assessment
• Sensitivity analyses

Action Plan for Sustainability

• Prioritized list of cost-saving initiatives for further investigation, with initial (directionally accurate) quantified savings, feasibility, risks, and potential impacts to organizational stakeholders
• Initial understanding of opportunities to increase revenue
• High-level roadmap for executing cost-saving initiatives

At the conclusion of a Core Catalysts Financial Futures Assessment, organizational decision makers will have a clear picture of the current and future financial position, including budget accuracy and budget-to-actual reporting, forecasted financials, and a roadmap to a balanced budget through potential cost-saving initiatives.  Clients can also be led through a prioritization process that engages leadership in defining what can be tackled first, second and third given other pressing priorities in the organization.

If you would like to find out more about our rapid Financial Futures Assessment for publicly funded and non-profit organizations, reach out to us today!

–Mark Jacobs, Client Service and Delivery