Financial News and Updates

News and Updates From Chief Financial Officer, Shawn Bromley

Thank you for the opportunity to share news from the Finance department.

I started my position as chief financial officer at the end of July and end of fiscal year (FY) 2022. The last four months have been very busy, and learning both sides of business (mental health and developmental disabilities) has had challenges, but this has been a great start to a new role. And getting to know the finance team and management team has been very positive. I appreciate the dedication and focus of these team members.

My role as CFO for Northern Human Services (NHS) is to provide leadership to our finance department while supporting our organization to achieve financial success. The finance department consists of 16 team members; two of which are open positions within account receivables. The finance department includes account payable, account receivable, and payroll.

The department has been working on the following tasks to close FY2022 and move forward into FY2023:

Annual Audit

The finance team has been working with the auditors, Leone, McDonnell & Roberts, P.A. to complete our annual financial audit. The annual audit needs to be completed for state and federal requirements. There are several reasons why it is important for NHS and Shallow River Properties, the business entity that supports NHS properties/locations, to complete the annual financial audit.

New Hampshire Statute and Description

A charitable organization with revenue, gains, and other support totaling $2 million or more must file an audited financial statement prepared by an independent certified public accountant; nonprofits receiving support of $500,000 or more must submit “the organization’s latest financial statement prepared in accordance with generally accepted accounting principles.” Northern Human Services annual revenue exceeds $2 million.

Federal Audit Requirements

If a charitable nonprofit receives money from the federal government and expends more than $750,000 of federal dollars in a single fiscal year, the organization is most likely required to have an independent financial audit referred to as a “single audit.”

• Audits are used as a method of supporting assurance that the financial statements of the organization are correct.
• An audit is important as it provides credibility to a set of financial statements and gives the shareholders confidence that the accounts are true and fair. It can also help to improve a company’s internal controls and systems.
• Audits are useful to show that the organization’s financial statements are accurate and to give an unbiased view of the organizations financial status.
• Audits can be beneficial in determining if the nonprofit organization has expended funds on activities not allowed.

Northern Human Services annual financials will be shared with the organization once completed.

New Financial System

The finance department changed financial systems in early 2022 due to the sun-setting of Essentia. The team spent time researching multiple financial systems and decided to move to Sage Intacct to support accounting and financial management. The financial data from Essentia has been transferred to Sage and all financial data as of FY2023 has been driven by Sage. The finance team is still improving their knowledge of the system and plan to spend time in early 2023 learning more about Sage including:

• Report development.
• Automating certain accounting tasks.
• Building visual dashboards to better understand data.
• Streamlining data collection to support business decisions.

Our team has been working with all NHS departments and locations to develop an understanding of revenue and expenses. This work supports our state and federal reporting while offering a solid understanding of the organizations financial performance for both mental health and developmental disability programs. Without an accurate picture of our financials, we would not be able to implement strategic goals for Northern Human Services or plan for future growth.

New Committees for Better Strategic and Financial Planning

This January 2023 two new committees will kick-off to help support the organizations future success and strategic planning goals. These committees will be focused on financial management and additional funding opportunities that will support business growth and stability. The following provide additional detail:

Capital Budget Committee

The capital budget committee will support the review and recommendations to any proposed expenditure of funds for capital projects. A capital project is generally considered a physical betterment or item of equipment having a substantial useful life (in excess of five years), the total cost of which exceeds $5,000. Capital projects may be the construction, reconstruction, replacement, major repair, extension or other improvement, vehicle, and equipment. The committee consists of seven members and will meet on a quarterly basis. Updates and approval process implementation will be shared with the organization in early 2023.

Grant Writing Committee

The grant writing committee will work to research various types of non-profit grant opportunities to achieve the goals of the organizations strategic plan. This will include project support, program support, employee retention support, capital budget projects, educational support, and client support. The committee consists of six members and will meet on a bi-monthly basis. Updates will be shared in future newsletters.