Automating Financial Processes to Improve Performance for your Not-for-Profit Business

Automating Financial Processes to Improve Performance for your Not-for-Profit Business

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Today’s webinar presentation

Hosted by Prophix Software

Presented by Feeding America

Automating Financial Processes to Improve Performance for your Not-for-Profit Business Tim McCarthy

Finance Manager

Feeding America

Event Notes

• Duration: 45 minutes, with 10 minutes Q&A (optional).

• Please ask questions on today’s topic via the

“Questions” box in your GoToWebinar control panel.

• Link to today’s presentation and recording of this

webinar will be sent out to all attendees within 48 hours.

INTRODUCTION

FEEDING AMERICA + PROPHIX SOFTW ARE INC.

Feeding America

Feeding America is the

nationwide network of

200 food banks that leads the fight against hunger

in the United States.

Operating since 1973

Website: www.feedingamerica.com

Head office: Chicago, Illinois

Annual revenue: $2.1 billion

Number of employees: >200

ERP: Microsoft Dynamics NAV

VISION

A hunger-free America

MISSION

To feed America's hungry through a nationwide network of member food banks and engage our country in the fight to end hunger.


Feeding America’s Impact

46 MILLION AMERICANS served annually, including 14

million children and 3 million

seniors.

3.3 BILLION MEALS sourced annually.

202 FOOD BANKS in our network, 61,000 agencies.

10 MEALS sourced and distributed for each

dollar donated.

1 BILLION POUNDS of fresh fruits and vegetables

sourced by our network in 2014.

650,000 VOLUNTEERS help carry out our vision for a

hunger-free America.


FOOD IS DISTRIBUTED AND STORED Member food banks ensure the safe storage and reliable distribution of donated goods to local charitable agencies.

DONATIONS ARE MADE Feeding America secures donations from the food and grocery industries, government agencies, individuals and other organizations.

How the Network Operates

FOOD REACHES THOSE IN NEED Donations are provided to people in need at food pantries, soup kitchens, youth programs, seniors centers and emergency shelters.

FOOD IS MOVED Feeding America moves donated food and grocery products through member food banks to where they are needed most.


TIM MCCARTHY Finance Manager

Feeding America

Previously worked as a technology consultant

specializing in CPM software deployment –

focused on financial planning and reporting.

Responsibilities at Feeding America:

Budgeting/forecasting

Financial reporting

Data analysis

System development and administration

Financial process improvement

Product valuation

CHALLENGES


Symptom:

Difficulty projecting future performance, producing an accurate revenue forecast.

Underlying problem:

Budgeting and forecasting in our

space involve unknowns. Our

data analysis doesn’t allow us to

evaluate future scenarios.

Challenges


Questions: Operating revenue:

5%

95%

Predictable operating revenue

All other operating revenue

Will we receive the

gift?

When will we receive the

gift?

Will the gift be restricted?

What happens if we lose a major

donor?

Which programs are

fundable?


Symptom:

Wasted time beyond Finance,

across the organization.

Underlying problem:

Heavy reliance on Excel, and manual data

entry and review.

Those aren’t my budget numbers!

Can I just divide by

12?

Finance changed my

budget!


The organization’s growth meant we

could no longer operate like this.

Analysis

Spreadsheet

budget entry

Spreadsheet

aggregation

Report

creation

Data

validation


Business

process flow

chart

Evaluation Process

Recognized the need for Corporate Performance Management (CPM) software as a

centralized reporting/planning solution. Still needed to prepare internally.

Internal pre-work to set out needs helped to define the evaluation process.

Business

process

assessment

Individual

responsibilities RFP

issued

Vendor

evaluations

Vendor

demos

Contract

negotiation Reference

checks


Deciding Factors

Intuitive look

and feel Cost

Robust

reporting

capabilities

Minimal IT

support

requirements

Finance-

focused

admin, not IT-

focused admin

Future product

development

Based on vendor

proposals and demonstrations,

we selected Prophix

RESULTS


Implementation Process

Internal deadlines required us to create an aggressive implementation plan.

Perform on-site

needs analysis

Conduct Prophix

admin. training

Implement and

configure system

End user

system training

End user

manuals

10 DAYS

4 DAYS

15 DAYS

15 DAYS ONGOING

Implementation

included

Microsoft

Dynamics Nav

integration


IMMEDIATE BENEFITS FOR THE ORGANIZATION

First 100 Days

Less reliance

on Excel!

Sense of

ownership

Data integrity and

transparency

Intuitive – short

learning curve

Easy access to data

as needed

Simplified

budgeting inputs

Reports on-demand

vs. on-request

Minimal IT

support


Automated and streamlined processes

Budgeting Simplified, no longer relying on

distributing/collecting 40+

workbooks

Financial reporting Additional development of

financial reports

Ad hoc reporting Utilized Ad Hoc Analysis to

streamline PowerPoint reporting

Financial reviews Enhanced Board and

Management reporting

Strategic planning Development of a strategic

planning model with a 10-year

outlook

Software upgrade Upgraded versions of Prophix with

no problems and minimal effort


Improved Analysis

Feeding America produces analytics showing:

• Financial trends

• Year-to-date against plan

• Average expense per headcount

• Average revenue generated per headcount

Helps to track performance and better manage resources: • In 2014, Feeding America had a large surplus

– If this happened again, donors could misperceive this as Feeding America mismanaging investments (and donate less)

Enables Feeding America to identify where donor dollars go: • Tracking and showing donors how donations led to a specific

number of meals served or pounds of food/produce delivered


Data-Driven Decision Making

Feeding America’s executives use planning

information to make/justify their decisions

‘WHAT IF’ ANALYSIS ANSWERS QUESTIONS LIKE…

• What do we have to invest to get the results we want?

• Which channels (e.g., retail, manufacturing, produce) have

the best opportunity to secure inventory to distribute to the

food banks?

• Where can we best invest our money?

• How do we obtain the highest ROI for our fundraising?

– Conduct scenario planning for various outcomes

– This is the key to the financial forecast and longer term projections


Core question: Can Feeding America distribute Springwire’s inventory (effectively acquiring their business)?

Using Prophix to evaluate viability across an 18-month R&D program through December of 2015

Data-Driven Decision Making in Action

Springwire offers free access to tailored communication tools, like cell phones.

http://www.springwire.us/


Data-Driven Decision Making in Action

PRODUCE PILOT

At 5 food banks across the United

States

Goal: evaluate the viability of running

food banks with far more produce

Stock levels at an all-time high

Seeking to understand why produce

doesn’t move at regular locations

Problems with distribution? Lack of

interest? Inventory levels?

Prophix helps analyze

the financial viability

of running their

locations this way

KEY LESSONS


Symptoms to Watch for

Difficulty

projecting

future

performance,

producing an

accurate

forecast

Overreliance on

Microsoft Excel

+ wasted time

across and

beyond the

finance

department

Inability to use

all of your

valuable

information


Preparing for the Software Solution

Review and document

your budgeting process

Map out your existing

financial processes

Assess individual

responsibilities in Finance

Evaluate CPM vendors

and request demos


Getting the Most out of the Software

Automate your

financial

processes with

an eye toward

better use of

your

information

Ask yourself:

“What could

we accomplish

with improved

analysis and

insight into our

numbers?”

Build Executive

or Board

reporting that

allows senior

stakeholders to

leverage

insights

Your

imagination is

your only

limitation. If you

can measure it,

you can model

it with CPM

software

Feeding the Nation, Leading the Movement and Strengthening the System

Together, We Will Solve Hunger

Thank You

• Link to today’s presentation and recording of this

webinar will sent out to all attendees within 48 hours.

• Provide us your feedback in the exit survey.

• To learn more about how CPM software can help your

organization, feel free to contact me directly at

[email protected] or visit our website at

www.prophix.com.

mailto:[email protected]

http://www.prophix.com/

Automating Financial Processes to Improve Performance for your Not-for-Profit Business

Economy & Finance

donated food

feeding americas impact

food pantries

hungerfree america mission

food reaches

america event notes

stored member food banks

prophix software