ACCOUNTABILITY AND GOVERNANCE IN NOT-FOR-PROFIT ORGANIZATIONS

GET A SIMILAR PAPER FROM; TALENTEDESSAYWRITERS.COM
Name:
Course:
Tutor:
Date:
ISSUES
The first issue is about sustainability accounting. The IFAC developed a sustainability framework aimed at proving guidance for the professional accountants working in the various industries and sectors, and this includes the not-for-profit sectors. The framework largely considers the accountants as agents of change whereby they could influence the companies to integrate sustainability at all levels of the organization. The framework also recognizes that the creation of a sustainable organization is a multi-functional endeavor (Lusher, 2012).
I consider sustainability accounting to be a key issue in the not-for-profit organizations because it is being taken up by the organizations, and it has been established that it can make a core competency for a company once incorporated or integrated into the overall operations of the company. Considering that organizations, even the not-for-profit one, do compete, it is then logical to undertake all actions that will add to the competitiveness of an organization.
In sustainability accounting, the role of the accountant in the finance function is to influence the behavior and outcomes by providing insight and analysis to the management for decision making as pertains to risk management and performance measurement the implication of this for the accounting profession is that the accountants would participate in corporate governance at an extended scale (Reynolds, 2014). The community will benefit from the CSR practices of the organization that will be streamlined as a result of the accountants' input onto the decision-making processes.
The second issue in the not-for-profit organizations is internal controls. Internal controls can be defined as policies and procedures put in place for the protection of an organization's assets, creation of reliable financial reporting, promotion of compliance with laws and regulations, and achievement of effective and efficient operations (Cuomo, 2010). As such, there are various procedures and practices aimed at monitoring the organization's assets. I consider this as a key issue because the practices of the accountants are also part of the program- that is, their input is vital, and their output is under scrutiny. It would imply, therefore, that the accountants have to be more careful especially with the financial reporting because if not well handled, it would land many accountants into trouble and consistent lawsuits with their organizations. More often, better practices of a company are also reflected in the society and community in terms of better services, better prices, and the CSR programs of the organizations. For the not-for-profit organizations, the society would largely benefit from the protection of the assets of a company.
FACTORS AFFECTING ORGANIZATIONS' WORK PRACTICE
One factor affecting an organization's work practice is the cultural background and cultural aspects. Cultural aspects include religion, norms and belies, and the issue of ethics. The expectations of an accounting professional in the not-for-profit organizations are that he or she will face challenges in trying to cope with the organizational norms and practices due to cultural differences. The professional will expect that he or she will ethically be viewed differently by the different people because the term ethical implies what the culture deems acceptable. Cultures are different and what is acceptable in one culture may be unacceptable in another. For example, the Whiddon Group Company is a not-for-profit organization caring for the aged (Mamarelis, 2015). These people come from various regions meaning different cultures. The workers also come from various regions meaning culturally diversified workplace. The accountant, in the financial reporting practices and handling of financial matters, will have to consider the cultural implications.
The level of training is another factor that affects an organization's work practice. It is expected the best practices will be recorded from the best-trained personnel in an organization. Training increases the efficiency and thus performance of an employee. The expectation of the accounting professional would be that his or her level of training will be considered during selection, and once hired, the accountant would be expected to further his or her training to remain fit for employment. Training is key in handling the not-for-profit organizations like The Whiddon Group Company mainly because of the wide scope of accounting practices. The Whiddon Group Company is a big one that entails massive and numerous cash flows and financial movements that all need to be monitored and accurately recorded and reported. The same applied to other not-for-profit organizations.

GET A SIMILAR PAPER FROM; TALENTEDESSAYWRITERS.COM