of Business Process Outsourcing 45% increase in one year from 2005 45% increase in one year from 2005 - - 2006 (1) 2006 (1) Rationale for Outsourcing Rationale for Outsourcing Focus on core competencies Focus on core competencies Cost savings Cost savings Access to consistent and high quality services Access to consistent and high quality services (1) Everest Research Institute FAO Annual Report Dec. 2006 (1) Everest Research Institute FAO Annual Report Dec. 2006 Fiscal & Accounting Services Fiscal & Accounting Services Management Processes Management Processes Transactional Processes Transactional Processes Budgeting & Forecasting Budgeting & Forecasting Reporting & Analysis Reporting & Analysis Internal Controls Internal Controls Audits Audits Payroll Payroll Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable Grants Accounting & Vouchering Grants Accounting & Vouchering General Accounting General Accounting The FAO Process The FAO Process 3 3 Financial Financial Data Data Input Input Data Data Reports Reports & analysis & analysis Processing Processing Case Study Case Study 3 3 BTQ Financial BTQ Financial 2001: Partnership of non 2001: Partnership of non - - profits and financial professionals profits and financial professionals initiated an experiment in initiated an experiment in c c Shared Services Shared Services d d Over $1 million in development capital from government, Over $1 million in development capital from government, foundations, and individuals foundations, and individuals Purpose to provide high quality, cost effective fiscal and Purpose to provide high quality, cost effective fiscal and accounting services on an outsourced basis to the non accounting services on an outsourced basis to the non - - profit profit sector.<br><br> sector. Structured as a social enterprise with majority stake held by no Structured as a social enterprise with majority stake held by no n n - - profits profits Mission and Operational Goals Mission and Operational Goals of BTQ of BTQ Develop new approaches and improve existing fiscal processes and Develop new approaches and improve existing fiscal processes and reporting for non reporting for non - - profits profits Achieve efficiencies and lower the costs of the services to the Achieve efficiencies and lower the costs of the services to the non non - - profits profits 3 3 goal of 75 goal of 75 - - 80% price point of in 80% price point of in - - house model house model Provide opportunities for fiscal staff for advancement, training Provide opportunities for fiscal staff for advancement, training and and increased compensation increased compensation Demonstrate the adaptive & entrepreneurial capacity of non Demonstrate the adaptive & entrepreneurial capacity of non - - profits profits Mission is to provide high quality, affordable fiscal Mission is to provide high quality, affordable fiscal management to non management to non - - profits profits BTQ BTQ 9 9 s Current Operations s Current Operations 26 Clients 26 Clients 4 clients located outside of NYC 4 clients located outside of NYC Broad array of organizations: Broad array of organizations: Health, housing & human services organizations Health, housing & human services organizations Arts and cultural groups Arts and cultural groups Public policy groups Public policy groups Close to $300 million in client revenues Close to $300 million in client revenues Approximately $7.0 million in BTQ fees Approximately $7.0 million in BTQ fees 60 Employees 60 Employees Services Provided Services Provided Full Outsourcing Full Outsourcing On On - - site fiscal management and supervision site fiscal management and supervision Consulting Consulting Client Focused Teams Client Focused Teams Client Teams led by Client Managers (CFOs) Client Teams led by Client Managers (CFOs) Staff work with multiple clients Staff work with multiple clients Ability to match skill and FTE level to needs of clients Ability to match skill and FTE level to needs of clients Structured communication Structured communication Weekly Fiscal Meetings Weekly Fiscal Meetings Frequent review of spending, particularly on grants Frequent review of spending, particularly on grants In depth reports and analysis In depth reports and analysis Technology Driven Technology Driven Paperless accounts payable Paperless accounts payable Remote access to data, reports & analysis Remote access to data, reports & analysis Real Real - - time financials time financials

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