Practice Tip of the Week | Show Me the Money: The Value of Checks and Balances

By Gloria M. Loera, DNP, RN, NEA-BC and Siobhan Abraham MBA, MN, RN 

Participation in the TNA Audit/Finance Committee presents an opportunity for professional development and growth beyond clinical practice. Even with limited finance experience, members can over time develop valuable skills in financial management and
budget oversight. These highly transferable skills are valuable for nurses who are interested in leadership roles in healthcare organizations, non-profits, and the corporate sector.  

Members contribute by providing
financial oversight – making sure that money is being spent wisely, identifying risks, ensuring that financial reports are correct, and laws are being followed. The group works closely with TNA leadership and the TNA controller, who is able to explain
financial terms in everyday language. The group is responsible for approving financials before they are presented to the TNA Board of Directors. 

Members review the budget, financial statements, and required
non-profit tax filings to make sure these are in order. Moreover, the committee charge is to ensure TNA, as a non-profit professional membership organization, adheres to the fiduciary responsibilities of integrity, honesty, and trust. Members representing
various sectors of nursing practice bring an independent perspective and collectively perform an objective, internal audit. This task is vital, ensures accountability of the organization, and maintains transparency. Prior to each meeting, each member
receives a packet that includes the current TNA Balance Sheet (a snapshot of current finances) and the Income or Profit and Loss Statement (a report that tracks the financial performance of the organization over time). The group also reviews and suggests
changes to the annual proposed budget. TNA’s controller presents these documents to the group and answers any questions.

The usefulness of the concepts and practice gained through committee work goes beyond the work
environment. The processes followed are applicable to your own personal budget. Take for example the upcoming holiday planning for gatherings and gifting. Generating a list of intended purchases with an estimated cost per expense provides granular
information. This level of detail guides your decision-making. For example, shifting expenses, if necessary, to meet your overall budget. Additionally, using the audit process, you can reconcile expenses against your established budget to identify
potential under and over expenditures to identify areas of opportunities for future planning. 

The benefits of membership include the opportunity for professional networking with TNA leadership and other professionals.
Nurses can develop skills in financial literacy and contribute to high level strategic planning and decision making. By taking part in this committee, nurses can learn how to interpret financial statements and gain a holistic view of how the TNA operates.
Please consider joining this committee to gain critical financial literacy skills and support the TNA.   

 References American Nurses Association. (n.d.). Financial management
skills for nurse managers. Nursing World. Retrieved November 19, 2024, from https://www.nursingworld.org/content-hub/resources/nursing-leadership/nursing-financial-management/ Operation HOPE. (n.d.). Operation HOPE. Retrieved November
19, 2024, from https://operationhope.org/

Financial Literacy for All. (n.d.). Financial literacy for all. Retrieved November 19, 2024, from https://www.fl4a.org/