early warning guide · there will be professional help available (at a cost!) from auditors,...
TRANSCRIPT
early warning guide
so you’ll never have to say...“I wish I’d said something sooner”
Author: Tina Winders Development Trusts Association Design: www.abrahams.uk.com Illustrations: Abrahams / Tien NguyenPrinted on 9 lives Offset manufactured from100% recycled fibre comprising 75% post consumer wasteas defined by NAPM and is TCF
Use the guide on a regular basis to see if progress is being made. If you get any red lights talk to…
A critical friendThe Development Trusts Association has a network of regional development managers experienced in giving business advice from a non-judgemental point of view and able to signpost you to other resources.
FundersDon’t keep your funders in the dark – they can’t help if they don’t know until the last minute.
SuppliersIf you are having cash flow difficulties talk to your major suppliers and HM Revenue and Customs; it can buy you time.
ProfessionalsThere will be professional help available (at a cost!) from auditors, bankers and solicitors.
Useful resourceswww.dta.org.ukwww.charity-commission.gov.ukwww.comm-alliance.orgAlternatively email us [email protected]
DEVELOPMENT TRUSTS ASSOCIATION
EARLY WARNING GUIDE
This guide is intended for use by board members and senior managers of third sector organisations - from the very small to the very large.
If you cannot answer some of the questions make sure that you find out the answer from someone who does know.
The guide is only meant to help you start to ask questions; it is not intended to be an exhaustive list. Not all the questions have obvious answers but they should stimulate discussions between staff and board that either reassure or warn you.
DEVELOPMENT TRUSTS ASSOCIATION
EARLY WARNING GUIDE
Do annoyed suppliers ring us chasing unpaid bills?
Nearly every day...
...not often
...at least once a week
DEVELOPMENT TRUSTS ASSOCIATION
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DEVELOPMENT TRUSTS ASSOCIATION
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NotesDo we use new funds or reserves to pay old debts?
Frequently
Occasionally
Never
Leading up to payday, do we chase every scrap of cash?
Always
Sometimes
Rarely or never
DEVELOPMENT TRUSTS ASSOCIATION
EARLY WARNING GUIDE
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How often do we use our overdraft facility?
Between once amonth and once a year
Less than once a year
DEVELOPMENT TRUSTS ASSOCIATION
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More than once a month
When are financial reports presented to us?
Late or not at all
Tabled
In advanceDEVELOPMENT TRUSTS ASSOCIATION
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Do we all understand the financial figures presented to us?
DEVELOPMENT TRUSTS ASSOCIATION
EARLY WARNING GUIDE
Notes
What proportion of our income is at risk in the next 12 months?
More than 50%
10 - 50%
Less than 10% DEVELOPMENT TRUSTS ASSOCIATION
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How many significant sources of income do we have?
One
Two or three
Four or moreDEVELOPMENT TRUSTS ASSOCIATION
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We considered it but rejected it
No, we always evaluate every opportunity against our mission
Have we ever sought an income-generating opportunity even though it was not central to our core mission and values?
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Yes, we’re always open to new opportunities
Has the chief executive ever cancelled a board meeting?
More than once
Once
NeverDEVELOPMENT TRUSTS ASSOCIATION
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Do our board members have a full range of business skills?
No or not sure
Mostly, but thereare some gaps
YesDEVELOPMENT TRUSTS ASSOCIATION
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Do the chair and chief executive have a constructive relationship?
DEVELOPMENT TRUSTS ASSOCIATION
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No
Most of the time
Yes
Are board vacancies filled quickly?
No, almost impossible
Yes, but have to work
hard to get the right people
Yes, good people are
always keen to join
DEVELOPMENT TRUSTS ASSOCIATION
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Are board members able to raise issues and resolve them?
No, issues are alwaysraised by the same one or two individuals
Issues are raised but not resolved
YesDEVELOPMENT TRUSTS ASSOCIATION
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When did we last review our organisation’s strategic objectives?
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Within six months
We’d carry on confidently
Within three months
If our chief executive left tomorrow would the organisation grind to a halt?
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Are visitors greeted by smiling, friendly staff?
Some of the time
Always
Not often
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What is the staff turnover?
Less than 15%
More than 25%
15 - 25%
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Summary / actions Summary / actions
DEVELOPMENT TRUSTS ASSOCIATION
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Date
Number of reds
Number of ambers
Number of greens
Date
Number of reds
Number of ambers
Number of greens
Development Trusts Association
33 Corsham Street, London N1 6DR
0845 458 8336
www.dta.org.uk
£2 or free to members© Development Trusts Association, 2008Company limited by guarantee registered in England no. 2787912 Registered charity no. 1036460