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CAE - Domain 1 (Strategic Management) with 100% correct answers | verified | latest update 2024
CAE - Domain 1 (Strategic Management) with 100% correct answers | verified | latest update 2024
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CAE - Domain 1 (Strategic Management)Branding - ANS-A marketing process based in the concept of singularity that creates in
the mind of the prospect the perception that there is no product on the market quite like
yours. Its power is its ability to influence purchasing behavior. It incorporates a singular
look, feel, and message in building a belief about your association and its products.
Budget: Strategic Program Budgeting - ANS-Strategic Program Budgeting is allocating
salaries and other overhead to know the true profitability of its products and services.
This concept is a best practice in program budgeting. It is achieved through conducting
a systematic study of allocation of staff time to program categories, then applying the
calculated prorated share of overhead expense to the programs identified.
Definition: Mission - ANS-The focused energy that drives the organization; in effect
defining the business we are in.
Definition: Statement of Purpose - ANS-Statement of the reasons for an association's
existence that defines its underlying design and thrust. This is crucial in making
determinations such as whether the association can be a nonprofit corporation, is
exempt from paying taxes, has interests and activities consistent with this and can
attract prospective members who wish to support its objectives.
Financial Controls: Annual Audit - ANS-An official inspection of an organization's
accounts, typically by an independent body. Financial records must agree with the
financial report certified by the auditor; any changes the auditor deems necessary are
subject to acceptance by management. Sarbanes-Oxley has created regulatory
requirements for corporations related to the audit function.
Financial Controls: Annual Audit - clean - ANS-Provides the highest level of assurance
that the Statement of Financial Position fairly presents the organization's financial
position; the Statement of Activities fairly presents the results of the organization's
operations; and the Statement of Cash Flows fairly presents its cash flows.
Financial Controls: Annual Audit - unqualified - ANS-Provides the highest level of
assurance that an audit can provide with attention given to a particular matter and
provides for disclosure of additional financial statements provided or draws attention to
an additional important matter.
, Financial Controls: Annual Audit (Responsibilities) - ANS-Management is responsible
for the organization's financial reports and the information contained within; the auditor's
role is to verify the amounts included in the reports. In its fiduciary responsibility, it is the
Board's job to hire the external auditor and receive the report; it is a conflict of interest
for the CSE or CFO to hire the auditor.
Financial Controls: Factors essential - ANS-1. Clear lines of authority; 2. Clear definition
and acceptance of responsibility; 3. Authority commensurate with responsibility; 4.
Proper training.
Financial Controls: Sarbanes-Oxley - ANS-Requires compliance with a comprehensive
reform of accounting procedures to promote and improve the quality and transparency
of financial reporting internally and externally. While the initial law applies to publicly
held corporations, many of the requirements are being practiced in the non-profit
community in expectation of expansion of the law's outreach. Requires establishment of
an audit committee and: -Requires the audit committee to have a financial expert as a
member -Requires the audit committee to hire the auditor -Requires five-year audit
partner rotation -Requires audit committees to establish procedures for processing
whistle blower complaints by employees -Requires a code of ethics for financial officers
-Increases penalties for document destruction or alteration -Requires certifications by
the CEO and the chief financial officer regarding the financial condition of the company
and internal controls. Nonprofit recommendations include: -A code of ethics for the
board of directors -Regular board training -Regular board self-evaluations -Audit
committee members who are financially literate.
Financial Controls: Segregation of Duties (4 aspects) - ANS-No individual should control
all of these: Initiation (check requests); Authorization (approval to pay); Asset custody
(keeping the checkbook); Recording the transaction (posting)
Financial Key Indicators - ANS-Selected by leaders, they are quantitative
measurements of strategic importance that will indicate a fairly accurate picture of the
organization in relation to its strategic plan. Might include: # of new members, % of
retained members, # of new business starts, # of organizational members participating
in programs, # of accounts
Financial projections - ANS-Forecast future financial results. Usually presented in a
"pro-forma" statement, they are generally speculative, and investors are cautioned to
recognize the projections are not guarantees of performance. When they are sound,
they should be based on credible assumptions, a conservative projection of revenue
and an aggressive projection of expenses.
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