Author: Wehle, Mary M.

Publication Year: 1974

Media Type: Book

Summary:

Financial Management for Arts Organizations had its genesis in the first Management Development Program of the Harvard Institute in Arts Administration. In the course of planning for that first program, it became clear that little directly-relevant material in the financial and accounting areas existed for the use of practicing art administrators. This relative dearth provided the challenge which over the succeeding years led first to the development of teaching notes, and later to the preparation of a skeleton version of this book. In turn, further revisions grew into this volume, which aims to present a coherent and comprehensive distillation of these evolving ideas.

Abstract:

Financial Management for Arts Organizations had its genesis in the first Management Development Program of the Harvard Institute in Arts Administration. In the course of planning for that first program, it became clear that little directly-relevant material in the financial and accounting areas existed for the use of practicing art administrators. This relative dearth provided the challenge which over the succeeding years led first to the development of teaching notes, and later to the preparation of a skeleton version of this book. In turn, further revisions grew into this volume, which aims to present a coherent and comprehensive distillation of these evolving ideas.

The precepts presented in this book represent the results of a long process of investigation, experimentaton, adaptation, application, and revision. In the area of financial reporting, they are a codification of the current practice which the author considers preferable. Thus there is considerable emphasis upon the accrual basis of accounting, and on the informational content of financial reports.

The former point is particularly reflected in Part I of the volume. The latter point pervades Part II of the volume. Here, the section on the internal use of financial information represents adaptation of techniques used by profit-seeking organizations to the needs of arts organizations.

Part III encompasses three special areas. The first chapter in this part synthesizes relevant and specialized information about Federal regulatory requirements bearing on the arts. The following chapter reflects experience with the special problems of particular types of arts organizations, e.g., in the performing vs. the exhibiting arts. The final chapter suggests, for the first time in written form, how financial data might be used in analyzing and understanding the financial situation of any given arts organization. (p. xi)

CONTENTS
Foreword.
Preface.
Introduction.

Part I. Reporting financial results. 

  1. Financial management and financial reporting. 
  2. Financial reports: Balance sheet and income statement. 
  3. Fund accounting, funds flow statements, and endowment policy. 
  4. Accounting processes and mechanics.

Part II. Management control and decision making. 

  5. The management control process. 
  6. Role of cost information.
  7. Budgeting, and cash planning.
  8. Internal control and organizational structure.

Part III. Special issues.

  9. Reporting requirements for retention of non-profit status.
10. Arts organizations: Similarities and differences.
11. Using financial data.

Arts & Intersections:

Categories: Financial Management