Financial literacy needed!
Dear Governance Matters,
I have a few board members who seem uncomfortable reading and understanding financial statement, and they have difficulty grasping the differences between accrued and cash flow bases.
In these difficult economic times, I'd like every one of the board members to understand, value, and ask questions about the information that's in the monthly financial reports. Are you aware of any publications/resources that explain, in non-financial language, about profit-and-loss statements, balance sheets, cash flow analysis, etc.?
You're right: It's very important that all board members understand financial reports. Some consultants specialize in just this training; you may want to consider the value of investing in such training or applying for a capacity-building grant for such training. However, you can also get some do-it-yourself material from BoardSource. FMAInstitute offers online courses.
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