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If your computers are hacked, data is leaked online, or you lose a laptop, your business could be
liable for the loss of confidential and protected information. Even if your business has a firewall
and secure software, a careless mistake by an employee could accidentally expose a client's
confidential information. Cyber Liability Insurance can cover the cost of data breaches, helping
you pay for IT repairs, crisis management, and credit monitoring for affected clients.
From sitting at their desk or hammering away at the keyboard, employees can develop carpal
tunnel or other repetitive motion injuries. While your accounting firm or finance company isn't
exposed to extreme workplace hazards, common employee injuries like falls, back injuries, and
repetitive stress injuries could lead to expensive medical bills and legal costs.
Say a client visits your office, but trips over a power cord and breaks her hip. Your business
could be liable for treatment costs, physical therapy, and pain and suffering your client
endures. General Liability Insurance protects you from these costs if face a third-party injury
lawsuit. Many General Liability policies also have coverage that will pay for a client's immediate
medical costs. If someone is injured on your property, your insurance will cover their ambulance
and medical care, potentially preventing a lawsuit.
Property damage.
A fire at your business could cost thousands in repairs and lost income. Whether you work from
home or rent a commercial office space, Property Insurance can reimburse your business for
losses due to fire, theft, vandalism, and certain weather events. Property Insurance covers the
items your accounting firm owns, including computers, office furniture, supplies, and even the
old-fashioned printing calculators you never use.
In terms of business accounting, risk management is the process of assessing the risks involved
with a company or firms business practices. The overall goal of this process is to minimize or
eliminate these risks. Risk can include any basic damages that happen to a companys resources.
This can be quite an extensive list. In fact, throughout the course of normal business operations
most companies will encounter many different types of risk. These can include:
Employee Liability
Losses on investments
In accounting school, students can learn that some risk is acceptable. This is a concept known as
risk tolerance. Tradeoffs and opportunity costs must be weighed when deciding what types of
risk should be eliminated.
To help identify acceptable risk, accounting practices call for it to be broken into categories.
Some of these categories include:
Financial: This category includes business practices that may result in financial instability. In
essence, financial risk is related to management practices. Poor management practices, such as
bad investments and misallocations of resources, can greatly affect the level of a companys
financial risk.
Human Risk: This type of risk is associated with the human element of the company. This
includes risks associated with the possibility of human error and judgment. It also can include
how a company would be affected by incurring the loss of key employees.
Environmental Risk: This category will include external factors that are outside the companys
control, such as natural disasters or power outages. While a company cannot control these
outside influences, they can control potential damages by implementing emergency disaster
plans and protocol.
Physical Risk: In accounting, this refers to the loss of any physical resources. This includes the
loss of land, buildings or equipment.
The Most Common Financial, Management Risks Facing Nonprofits
The risks in financial management are any actions that contribute to the
reduction in value or loss of any of the organization's financial assets.
The decrease can be from the actions of an internal source such as an
employee or volunteer, or someone outside of the organization can
perpetrate the loss -- a burglar, "con man," or client defrauding the
organization. Every organization should be aware of the possibility of a
financial loss and take the appropriate protective actions.
Categories of Risk
Fraud
Investments
The size and types of investments will vary with each organization. For
the smaller organizations, investments might be cash on hand while
large hospitals, colleges and universities may have sizable endowment
funds. Regardless of the size of the investment funds, every nonprofit
needs to control and monitor its investments. Many organizations lost
money in the savings and loan crisis when banks and lending institutions
closed. Another danger is that the organization may make poor
investment decisions such as the purchase of junk bonds by Orange
County, California that resulted in its bankruptcy.
Misuse of Funds
All nonprofits exist for a specific purpose with a defined mission. The
board is responsible for ensuring that the organization stays focused on
its mission. An excellent way to monitor an organization's progress is
through its use of funds. Many nonprofits receive gifts or funding with
restrictions or limitations on its use. The improper use of these funds can
cause the funder to withdraw the money, require repayment of the
expended funds, and refuse to provide future funding.
A similar risk is the use of funds for purposes other than serving the
organization's mission. Funds inappropriately expended can lead to the
loss of the organization's tax exempt status or other legal actions. As
pressures continue to mount for nonprofits to meet social needs, it is
often easy to lose sight of the organization's mission.
Tax Liabilities
A nonprofit may also be responsible for charging and remitting sales tax
on items sold. Also, unrelated business income is becoming a significant
concern as nonprofits seek creative ways to raise funds. Every nonprofit
is responsible for knowing and paying its tax liabilities.
Tax-Exempt Status
The IRS's approval of tax-exempt status is not a right but a privilege that
it can easily revoke. One possible challenge to the status is that the
organization is not meeting the charitable purpose guideline. If the
nonprofit uses its funds for reasons not related to its charitable purpose,
it can lose its tax-exempt status.
Private inurement is another cause for losing the exemption. In one case,
the IRS revoked the tax-exempt status for a child care center. The board,
whose members were parents of the children in the center, set a fee
structure substantially below market rates. The board made up the short-
fall with tax-deductible "contributions." The IRS ruled that it was unlawful
private inurement, revoked its exemption and is investigating prior
years.
Fundraising
The financial risks for fundraising are two-fold and extend beyond the
theft of the money raised. First, an organization must protect itself from
unscrupulous fundraising. Many organizations have discovered fictitious
groups raising funds on their behalf. However, the organization never
receives any of the money. An organization may also suffer losses
stemming from injuries at a fundraising event staged by the fictitious
group. Every nonprofit must guard against improper use of its name and
logo, especially in regard to fundraising. The organization should respond
quickly whenever it discovers someone using its name and logo without
authorization.
The second issue concerns the selection and use of sponsors and cause-
related marketing partners. An organization may spend hours and many
dollars to negotiate a sponsorship arrangement only to later discover a
flaw with the new partner. Although it did not involve a nonprofit, the
Kathie Lee Gifford controversy regarding the use of child labor had a
negative impact on sales. Imagine if your organization had been a
partner in that deal. The potential damage to an organization's
reputation and goodwill could have a lasting impact. A nonprofit need to
evaluate carefully its sponsors and partners to avoid a press relations
incident and other losses.
Physical Assets
When discussing financial risks, most of the attention focuses on the loss
of money or funds. However, all nonprofits have physical assets at risk.
Every organization owns office furniture and other fixtures and
equipment used to meet its mission that is subject to loss. A fire or flood
can damage or destroy the office contents. Also, an employee, volunteer,
computer hacker, or other person wanting to harm the organization can
steal or damage its assets. In addition, some nonprofits may have
warehouses of supplies whether it is a food bank, soup kitchen, sports
organization, or mentoring program. The loss of the supplies could have
a devastating effect on the organization's mission.
The best protection is systems and procedures that limit the access to
these assets. Computers contain not only a wealth of information but
also confidential data. Control and limit access to the people with the
"need to know." Also, protect the organization's supplies and
merchandise. Although every employee "borrows" a pen or pad of paper,
what about the merchandise (sweatshirts, briefcases, coffee mugs,
books) that the organization sells to raise money? Many organizations
lose money on merchandise sales due to the lack of inventory and access
controls.
Accounting Controls
Company Overview
Fundline Finance Corporation (FFC) was registered with Securities and Exchange Commission
through SEC Registration No. CS200810228 on June 30, 2008. It started its full operation in October
with head office located in Makati City.
Through the years, FFC has shown its commitment to be a fast growing lending company in the
country by taking care of the financial needs of its deserving customers. The organization is making
significant steps toward client satisfaction by providing the best quality of service through its products
and services. This is reflected in the organization's vision and mission:
Our vision is to be the leading financing company that best addresses the business capital needs of
the right kind of clients thereby becoming an active agent in the economic development of the
Philippines.
We strive to be the best choice in financing for honest entrepreneurs and business owners in the
country. Anchored by our key principles, we will provide highest quality service to our valued
customers by meeting the financial needs of their growing business and more.
The essence of the company's identity roots in its set of values that highlights the collective pursuit of
the management and its people for success. These corporate values are:
P-assion N-ationalism
R-espect A-ltruism
I-ntegrity M-otivation
D-ependability E-quity
E-xcellence
The organization aims to be responsive to the needs of its customers by providing quality service at
all times. Areas in Marketing, Finance, People and Customers Care are given emphasis.
FFC covers areas in many parts of Metro Manila,Bulacan, Regions I, II, CAR, III, IV & V. At present,
it has one hundred sixty-seven (167) branches and still expanding. Its manpower today is composed
of more than 2,000 employees and still growing.
FFC continues to innovate its products and services to better cater to the demands of its growing
market. It remains true to its commitment to help its customers by vigorously pursuing its mission.
Why join us?
We live by The Fundline brand tells a story encompassing everything that sets it apart and different
from other companies. We ensure a sustainable competitive advantage in the marketplace. Fundline
is not just about the logo, products or services it offer, or the taglines or campaigns. It rather anchors
its institutional values on the foregoing principles which every young men and women of this
company lives his/her life on a daily basis. Everyone at Fundline is conscious that these values are
not just ideals or concepts but as a whole, is its own way of life. Everyone is a role model, a
testimony of these core principles. Because we take P-R-I-D-E in our N-A-M-E.
Fundlite
Fundlite was primarily designed to assist micro and small scale entrepreneurs grow their
existing business. FFC Fundlite program provides very affordable and convenient rates.
Fundlife
Fundlife was designed to assist micro and small scale entrepreneurs grow their existing
business. FFC Fundlite program provides very affordable and convenient rates.
Fundcycle
Fundcycle was tailored to provide affordable financing options for buyers of
motorcycle units from accredited affiliates and partner dealers.
Vision
Our vision is to be the leading financing company that best addresses the business
capital needs of the right kind of clients thereby becoming an active agent in the
economic development of the Philippines.
Mission
We Strive to be the best choice in financing for honest entrepreneurs and business
owners in the country. Anchored by our key principles, we will provide highest quality
service to our valued customers by meeting the financial needs of their growing
business and more. We aim to expand and create a stable multi-division corporation
under the fundline Group of Companies:
CORPORATE VALUES
PRINCIPLES we live by
The Fundline brand tells a story encompassing everything that sets it apart and different
from other companies. We ensure a sustainable competitive advantage in the
marketplace.
Fundline is not just about the logo, product or services it offer, or the taglines or
cappaigns. It rather anchors its institutional values on the foregoing principles which
every young men and women of this country lives his/ her life on a daily basis. Everyone
at Fundline is conscious that these values are not just ideals or concepts but as a whole,
is its own way of life. Everyone is a role model, a testimony of these core principles.
Because we take PRIDE in our NAME:
Passion : is about having that powerful emotion and boundless enthusiasm for
something that is desired deeply.
Dependability : means doing what we will do. When we area given a task or
project, we take responsibility for the following through and ensuring that the job
gets done.
Altruism : means we always consider the greater good and welfare of the entire
organization and its stakeholders and not our alone.
Motivation : is what drives us to get things done. We have clear ideas of what
motivates us to perform beyond what is expected of us.
Equity : implies that we provide fair access to financial assistance to the right
kind of clients so they can use it for productive business capital needs.
Family Day Special events and activities will be conducted to allow employees
to bond with their families.
For Clients
Medical and dental mission. Fundline booths manned with doctors, medical
practitioners and volunteers shall be placed in certain areas where clients can
avail of free medical and dental services.
Product giveaways and freebies. Valued clients will receive Fundline items
and giveaways that they can use to improve their respective businesses.
For Communities
Event Sponsorship. Fundline will sponsor relevant events and activities for the
youth by donating items, food and/or lifestyle and sports equipment.
Tree planting. Tree planting activities will be conducted in key areas every year
in partnership with local government units.
Corporate Build for housing. Fundline will actively send off volunteers to
assist partner- organizations in their housing projects for the poor.