Benefits for Dioceses

The right financial management system should support and enhance the unique workflow processes of dioceses to help increase operational efficiency, manage cash flow and investments, and generate detailed financial reports. With one system installed across a diocese’s central offices, its parishes and schools, it can expect to realize these benefits:

Check back next week as we discuss more of the benefits for Dioceses.

Access the “Achieving Financial Transparency for Dioceses” FREE whitepaper.

Serenic offers multiple versions of its award-winning fund accounting software, and multiple ways to purchase our software – in fact, it can be a little overwhelming to determine what combination of offerings is the best fit.   In this article and the next, we’ll explore the two purchase models: License and Subscription.  First up, we’ll explore the benefits of following the License model and how it applies to a purchase of Serenic Navigator.

Under the traditional software model, you purchase a license that provides your organization with the perpetual right to use the software. You then install the product on your organization’s computers and servers.

Some nonprofits are most comfortable with their data stored locally and are willing and able to make a capital investment in the necessary servers.  Additionally, they may prefer to pay their costs upfront, rather than a monthly subscription fee.

An alternative under the traditional model is to purchase a license and contract with a 3^rd party to host the product on their servers and to provide access via the Internet.  Under this option, your nonprofit or NGO is spared the cost of purchasing and maintaining the servers.

With Serenic Navigator, you will purchase concurrent users – for example, if you have 20 users needing access to Navigator, but expect no more than 10 users accessing at any point in time, you would purchase 10 concurrent users.

One benefit to the License model is that should your nonprofit need specialized functionality, you can contract to have the product customized to meet your specific needs.

For example, a client outsources their Payroll to a 3^rd party, which provides a data file in a specific format.  The client would like to import this data into Serenic Navigator.  Without a customization, they would need to modify this file to match the standard import format required by Serenic Navigator.

However, because the client owns a license for Serenic Navigator, they can arrange for a customization to the import process so that the system uses the data layout defined by the 3^rd party Payroll provider.  When they receive a data file from their provider, they can seamlessly import their information with no manual steps by their staff.

With both of these options, maintenance of the financial software – for example, applying upgrades – is under your direction and control.

Next week we’ll discuss the subscription model, providing online accounting software in the cloud.

Financial controls are actually a subset of internal controls and typically refer to segregation of duties. The right financial controls ensure that the person entering invoices to be paid, for example, is not also able to mark the checks for payment or cut the checks without someone else’s involvement in the process. It is important that such processes are in place throughout a diocese, however, this becomes challenging in smaller parishes where there is only a part-time bookkeeper using a manual or moderately automated system. The financial controls need to be documented and monitored, especially if using a manual method. A computerized application through which these “duties” can be limited and the controls enforced with the system security, therefore, is an ideal solution. Dioceses might examine the economies of scale created by centralizing processes and – if possible – provide access for smaller parishes to computerized solutions that they may not be able to afford on their own.

Faced with the ultimate responsibility of the entire diocese, such a financial control system needs to possess certain attributes to ensure fiscal needs are met. Requirements for an enterprise-wide solution include:

• Effective and efficient processes – System should eliminate duplicate entry; automate manual processes; provide economies of scale; provide services from within the diocese finance department to all areas of the diocese (e.g., payroll). Investment is best in an application that can be rolled out and phased in over time to provide a costeffective solution with economies of scale. A vertically focused solution embedded within a leading mid-market application platform adds tremendous value, because it is
designed to be scalable to serve diverse needs while providing a set of industry-specific functionality (e.g. chart of accounts structure and adherence to key financial reporting standards).

• Reliable financial statements and accounting records – Software should provide a strong audit trail and reporting tools that enable easy ad-hoc as well as management-style report generation.

• Safeguard assets – A solution should provide the tools to manage investments and revolving loan funds as well as physical (fixed) assets; offer an audit trail and the ability to enforce financial controls.

• Adherence to management policy and procedures – System should, again, provide an audit trail and financial controls, as well as automated workflow and business rules to help prove that mandated procedures are being followed.

Check back next week as we discuss some of the benefits for Dioceses.

Access the “Achieving Financial Transparency for Dioceses” FREE whitepaper.

We’re excited to announce the expansion of our Serenic Navigator Online (NOL) product suite, which is now available in three offerings:

• Serenic NOL Basic
• Serenic NOL BE (Business Essentials)
• Serenic NOL AM (Advanced Management)

Serenic NOL is a Software as a Service (SaaS) version of our award-winning Navigator financial management system. The cloud-based subscription model leverages Internet streaming functionality with access to Serenic’s financial management software for the term of the subscription. The Serenic NOL product features are designed to meet specific needs of nonprofit and public sector organizations, which are increasingly connecting to the Internet to automate and simplify business processes “in the cloud.”

“Serenic Navigator Online offers NGOs and nonprofits financial management functionality coupled with the advantages of a decentralized software deployment model,” according to our CEO and President Randy Keith. “Organizations with multiple offices, remote workers and distributed workforces especially benefit from using a cloud-based solution. If their situation changes for any reason, NOL clients can easily and cost-effectively transition to the on-premise version of the Serenic Navigator financial management suite.”

NGOs and nonprofit organizations can download the Serenic Navigator Online Success Kit or informative white paper for more information.

Over the past few years especially, reports of financial scandals within the Catholic Church have flooded the media and prompted
new recommendations from church governing bodies. A widely publicized 2006 survey by researchers at Villanova University found
that 85 percent of Roman Catholic dioceses that responded had discovered embezzlement of church money in the last five years, with
11 percent reporting that more than $500,000 had been stolen.

The USCCB Accounting Practices Committee (APC) concluded that “the vast majority of the aforementioned frauds appear to be occurring at the parish level. At the APC meeting in January 2007, this topic was thoroughly studied and several recommendations were made to enhance the financial governance in the 19,000+ parishes.”  The group’s Accounting Report recommended the use of
the Financial Accounting Standards Board (FASB) standard financial presentation.

Previously in 1995, the United States Conference of Catholic Bishops (USCCB) created the Diocesan Internal Controls, making the Bishop
effectively responsible for the entire diocese. The forward stated that “all administrators are to perform their duties with the diligence of a good householder. The bishop can delegate the authority but not the responsibility. He has the duty to ensure that no abuses exist in the administration of church goods within the diocese.”

The Villanova study suggested that whether an organization is a Fortune 500 company or a diocese, the objectives of the internal control structure remain the same (2):
1. Provide reliable financial statements and accounting records
2. Safeguard the entity’s assets
3. Promote operational efficiency and effectiveness
4. Promote adherence to the mission of the Church or organization

Check back next week as we discuss the requirements of a financial management system.

Access the “Achieving Financial Transparency for Dioceses” FREE whitepaper.

Serenic recently sponsored a nonprofit accounting special report in The NonProfit Times titled, “Accounting Software – Audits and lawsuits and floods, oh my!”  We were pleased to sponsor the article and also provide some good insight into the importance of robust fund accounting software in today’s financial world.  As many know, accounting software is essential to the daily operations  of any nonprofit where audit trails, reporting and transparency are a must have.

In the report you’ll see our own David Abel, VP of client services, state the following:  “Clients often perceive adding document imaging to the procurement process as being cumbersome and electronic approvals as creating bottlenecks.  However, an automated system, implemented properly, will provide benefits that substantially outweigh the added steps. Without these tools, it is easier to lose the audit trail and avoid the approval chain since manual processes can be easily circumvented.”

Also included are wise tips from our CFO, Paul Johnston, “Ignoring due dates can be a total disaster, or thinking that you’re prepared but not checking and reviewing, having working papers that are poorly constructed, can cause problems and drive up your audit cost.”

And as Paul also points out, motivating your staff to use the tools correctly is vital.  “If you’ve got a dismissive attitude toward the audit or toward your backup plan you will have problems. If you have a good attitude you’re going to save money and time and the process will go more smoothly,” said Johnston.

Be sure to check out the full article which reminds us all, “Accurate financials are the cornerstone of a well run nonprofit.”

For all organizations in the nonprofit sector, financial transparency is synonymous with survival. Dependence on donors necessitates an ongoing demonstration of where money is spent and how funded activities and programs fulfill defined mission statements. While Catholic dioceses are not required by law to be transparent and accountable, there is a definite shift towards the production of financial reports that provide a complete picture of the financial health of the entire diocese from the bishop’s and archbishop’s office down to the parishioner donor level.

Recent events have emphasized the importance of financial transparency. From embezzled funds to extortion, indictments have been handed down within the Catholic Church and a strong case has been built for not only increased scrutiny, but for better safeguarding of a diocese’s assets.

Like any nonprofit group that constantly works to do more with less money and resources, it can be a daunting challenge for dioceses to provide a more holistic financial view of multiple, complex layers of the organizations in their areas of service. From schools and parishes to cemeteries, there exists a strong need for the chancery office to help each operating center succeed without adding a huge burden to its own management responsibilities.

Challenges at the organizational level include Catholic schools facing increased operational costs and a market in which many families cannot afford the expense of private schools. Nonprofits, in general, today are faced with declining donations in an uncertain economy.

Check back next week as we discuss the increased need for financial controls.

Access the “Achieving Financial Transparency for Dioceses” FREE whitepaper.

I’ve been working with Medair for the last couple of months on the requirements gathering, planning, and remote training sessions so we can implement Serenic AwardVision (nonprofit grants management) and Serenic Fixed Assets.  Both are replacing manual processes and providing the NGO with streamlined reporting.

Medair was previously tracking grants in Microsoft Excel or Word documents and entering them as funds into Serenic Navigator.  This process has been a bit challenging for the finance department and the grant writers with respect to reporting and tracking the status of the grants, etc.  In addition to the challenges with reporting, Medair was manually processing the admin booking (indirect costs) and revenue recognition each quarter.  During our onsite visit in Switzerland, we wrapped up setup items and procedures and provided training to the project team, finance staff, grant writers and International Operations.  The team is very enthused to now have the ability to maintain the grants and reporting all in one system, with visibility into the status of expenses, recognized revenue, indirect cost and the many other data tracking methods available.

We also met with the finance staff and logistics department on management of the assets.  This is a manual tracking process (asset master record information, depreciation and disposals) that has been rather cumbersome for the team, especially with getting field office asset changes back to HQ or logistics.  Along with the Medair staff, we set forth the requirements to implement the Serenic Fixed Assets granule in February.

During my onsite visit, I was able tour the beautiful city of Lausanne, the second largest city on Lake Geneva and the location of the headquarters of the International Olympic Committee.  I experienced hot wine, real French crepes, authentic Swiss fondue and, of course, Swiss chocolates!  I probably gained about 5 lbs from over-indulging in the cheese and chocolates J.  Geert from Medair showed me some museums and the beautiful Lausanne Cathedral (originally built in the 12^th century), on his day off…how sweet!  The Medair finance department also invited me to experience a traditional Swiss dinner with raclette cheese, smoked meat and potatoes.   Thomas made a killer tiramisu (I know, this is Italian instead of French, but it was too good to leave out)!  The hospitality of the Medair team was incredible!

Of course, I had to add some excitement to the visit by setting a bowl of potato chips on fire, during apero (sort of like a happy hour/gathering).  Luckily, the Medair staff was well equipped with fire safety training to stomp it out. I was grateful nothing was damaged and nobody was hurt.  The Medair staff got a good laugh and snapped pictures during the fiasco (which I am not posting)!

All in all, it was a great visit and we made some major progress with the project.

Quiana Willard, Senior Application Consultant

We’re excited to announce Rye Barcott as the keynote speaker for our next accounting software user conference.  Rye brings varying experiences from working with nonprofits, serving as a Marine, and authoring a new book.  We look forward to him sharing his story and hope his mission to spark change from within will inspire our nonprofit and NGO accounting software users.

It Happened on the Way to War, a Marine’s Path to Peace, recently authored by Rye, tells how his NGO, Carolina for Kibera (CFK), was started with the help of two local people.  Kibera is a slum in Nairobi, Kenya, where Rey spent part of a summer living in ten-by-ten-foot shacks, learning Swahili, and listening to stories of survival amidst poverty.  Friendships in the slum turned into the creation of their inspiring NGO.

Rye served in the U.S. Marine Corps for five years in Iraq, Bosnia, and the Horn of Africa, and then earned a master’s degrees in business and public administration from Harvard University.  He was recently named to the World Economic Forum’s Class of Young Global Leaders, along with other notable young leaders like Leonardo DiCaprio, and Mark Zuckerberg.

According to Rye, “Talent is universal; opportunity is not.”

We’re really looking forward to this opportunity to meet Rye and to hear more about his experiences!

(Follow Rye on Twitter)

The Government of the Republic of Malawi

The Malawi Government moved to a decentralized model through 40 Local Assemblies across the country created to enhance service delivery for education, health, agriculture and other areas.  The central government office needed to help its local authorities become more accountable and overcome the challenges of a financial management system based on manual operations that lacked standardization and created multiple problems with budget execution and implementation.  The Malawi Government implemented Serenic Navigator Advanced Management Edition – certified for Microsoft Dynamics NAV for 300 trained users across the country. The features that helped them benefit include:

• Configured system to meet government requirements.
• Streamlined financial reporting, accuracy in revenue collection and reconciliation and expenditure control.
• Organizational improvements such as improved efficiencies avoided process delays and decreased costs.
• Revenue and property billing was automated and collection efficiency improved.