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University of Wollongong Thesis Collections University of Wollongong Thesis Collection University of Wollongong Year The development of financial management practices as a necessary rationalisation for the support of mission in an Australian nonprofit organisation Anne Abraham University of Wollongong Abraham, Anne, The development of financial management practices as a necessary rationalisation for the support of mission in an Australian nonprofit organisation, PhD thesis, Department of Accounting Finance, University of Wollongong, 1999. http:/ro.uow.edu.au/theses/865 This paper is posted at Research Online. http://ro.uow.edu.au/theses/865 The Development of Financial Management Practices as a Necessary Ratíonalisation for the Support of Mission in an Austraiian Nonprofit Organisatíon A thesis submitted in fulfilment of the requirements for the award of the degree: DOCTOR OF PHILOSOPHY from the UNIVERSITY OF WOLLONGONG by ANNE ABRAHAM Bachelor of Science (University of Sydney), Graduate Diploma in Education (Sydney Teachers' College), Master of Accountancy (Charles Sturt University), Master of Commerce (University of Wollongong), Graduate Certiíîcate in Higher Education (University of New South Wales) Department of Accounting and Finance 1999 Certlficate I, Anne Abraham, certiíy that this thesis has not been submitted previously as part of the requirements of another degree and that it is the product of my own independent research. Dedication For Ross Two are hetter than one ... and a threefold cord is not quickly broken Ecclesiastes 4:9,12 m Acknowledgement It is with a heart overwhelming with gratitude that I acknowledge the love, patience, understanding and encouragement of my husband Ross and my children, Raewyn, Michael, David and Peter. I wish to thank my superviser, Michael Gaff kin, for his willingess to allow me the freedom of discovery as I stumbled through the maze of research. I thank him for helping and encouraging me during the low times and rejoicing with me in the highs. The Girl Guides Assocation has played a major part in various stages of my life, none less than in allowing me the access that made this thesis possible. In particular I would like to thank Barbara, Liz, Mil and Roger of Guides NSW and Margaret Courtney, archivist of Guides UK. IV Note As far as possible, I have used the original spelling, grammar, punctation, abbreviations and formatting in my quotations from documents. On 14 February 1966, Australia changed its currency base. Before that date, money is recorded in Pounds (£), Shiliings (s) and Pence (d) where 12d = Isorl/- and 20/- = £1. After that date, money is recorded in Dollars ($) and Cents (c) where $1 = lOOc. At the time of the currency change, £1 = $2 1/- = lOc Id = lc Abstract This study concems the development of fînancial management practices in a nonprofît organisation, Guides NSW, an organisation which has its mission as its central focus, and, like other nonprofit organisations, is permeated by its history, its culture and its traditions. In particular, the study addresses the two phenomena of the organisational attitude to fînancial matters and the dichotomy between short term and long term fînancial management. As organisational phenomena, it is appropriate to investigate them in their social context. Although contemporary phenomena, their roots are deeply entrenched in history. Thus, this case study involves both fîeldwork in terms of participant observation and engagement, and also historical analysis of archival records and artifacts. The members and management of the Association view its mission as sacred, but money as secular. Consequently, the consideration of fînances can only be rationalised when the mission is endangered. Guides can be viewed as a game of life built on the foundation of the Boy Scouts, and influenced by the preferences and predilections of the Founder of both, with players, spectators and umpires all endeavouring to maintain the essential ethos of the game. VI Table of Contents Page CERTIFICATE ii DEDICATION iii ACKNOWLEDGEMENTS iv NOTE V ABSTRACT Vi TABLE OF FlGURES XÍ TABLE OF TABLES xii CHAPTER1 mXRODUCTION 1 1.1 OBJECTIVES 1 1.2 SIGNIFICANCE 4 1.3 METHOD 11 1.4 RESEARCHSITE 12 1.4.1 THE ORGANISATION 12 1.4.2 ACCESS 16 1.5 THEMES 19 1.5.1 ACCOUNTING IN CONTEXT 19 1.5.2 SACRED-SECULAR CONFLICT 19 1.5.3 EMBEDDED ORGANISATIONAL MODEL 21 1.5.3.1 Financial Control System 21 1.5.3.2 Organisational Structure 23 1.5.3.3 Organisational Culture 24 1.5.4 SPORTING METAPHOR 25 1.6 ORGANISATION OF THE THESIS 26 CHAPTER2 RESEARCH METHOD 30 2.1 INTRODUCTION 30 2.2 QUALITATIVE RESEARCH THEMES 31 2.2.1 NATURALISTICINQUIRY 31 2.2.2 INDUCTIVE ANALYSIS 33 2.2.3 DlRECT PERSONAL CONTACT 33 2.2.4 A HOLISTIC PERSPECTIVE 34 2.2.5 A DYNAMIC, DEVELOPMENTAL PERSPECTIVE 35 2.2.6 UNIQUE CASE ORIENTATION 35 2.2.7 EMPATHIC NEUTRALITY 37 2.2.8 CONTEXT SENSITIVITY 39 2.2.9 DESIGN FLEXIBILITY 39 2.3 ETHNOGRAPHY, CASE STUDY, FIELDWORK OR HISTORY? 40 2.3.1 DEFINING THE TYPE OF RESEARCH 40 2.3.2 EXAMINING THE MAJOR FEATURES OF THE RESEARCH 42 2.3.2.1 Contemporary phenomena 42 2.3.2.1 Detailed examination in real-life context 43 2.3.2.3 Phenomena embedded incontext 45 2.3.2.4 Multiple sources of data 46 2.3.2.5 Longitudinal analysis 47 2.3.2.6 Triangulation 47 2.4 THEORY-METHOD LlNKAGE 49 2.4.1 GROUNDED THEORY 50 2.4.2 THEME DEVELOPMENT 51 vn 2.4.3 HERMENEUTICS 52 2.4.4 ETHNOMETHODOLOGY 53 2.5 CONCLUDING COMMENT 54 CHAPTER 3 PROLOGUE: THE BEGINNING OF THE RESEARCH 56 3.1 INTRODUCTION 56 3.1.1 DAY-TO-DAY FINANCIAL MANAGEMENT 57 3.1.2 BROADERFINANCIAL MANAGEMENT 58 3.2 ASSOCIATION MANAGEMENT SESSIONS 62 3.2.1 SESSION 1: IDENTIFYING CONCERNS 61 3.2.1.1 Consideration of thetrend chart 62 3.2.1.2 Consideration of current cash assets 63 3.2.1.3 Considerationofexpenditurechart 64 3.2.1.4 Consequences of cash decline 65 3.2.2 SESSI0N2: IDENTIFYING SlGNIFICANT COSTDRIVERS 65 3.2.2.1 Identifícation of expenditure items 65 3.2.2.2 Division of items into "musts" &"wants" 66 3.2.3 SESSI0N3:GENERATINGALTERNATIVES 67 3.2.4 SESSI0N4: EVALUATING ALTERNATIVES 68 2.2.5 SESSI0N5:MAKINGDECISI0NS 70 3.3 PROPOSED ACTIONS REVISITED 74 3.3.1 EXPENDITURE REDUCTION 74 3.3.2 INCOMEGENERATION 76 3.4 THE OPEN DOOR 80 3.5 CONCLUDING COMMENT 81 CHAPTER 4: THE HISTORY OF THE ORGANISATION 83 4.1 SCOUTS 84 4.1.1 THEFOUNDER 84 4.1.2 THE FOUNDATION 90 4.1.3 CONCLUSION 94 4.2 GUIDES IN ENGLAND 96 4.2.1 BEGINNINGS 96 4.2.2 CRYSTAL PALACE RALLY 97 4.2.3 EARLYDAYS 99 4.2.4 CONCLUSION 105 4.3 GUIDES Dí AUSTRALIA 107 4.3.1 NEWZEALAND 111 4.3.2 TASMANIA 112 4.3.3 QUEENSLAND 114 4.3.4 SOUTH AUSTRALIA 116 4.3.5 VICTORIA 117 4.3.6 WESTERN AUSTRALIA 120 4.3.7 NEW SOUTH WALES 121 4.3.8 CONCLUSION 126 4.4 GUIDES IN NSW 127 4.4.1 THEBEGINNING 127 4.4.2 EARLY MEETINGS 128 4.4.3 CONCLUSION 131 4.5 CONCLUDING COMMENT 132 CHAPTER 5 THE CONTRIBUTION OF THE EARLY LEADERS 133 5.1 INTRODUCTION 133 5.2 FIRST FINANCIAL DECISIONS 137 viu 5.3 THE FIRST WOMEN 139 5.3.1 BRITISH HERITAGE 139 5.3.2 FlNANCIAL AND BUSINESS EXPOSURE 141 5.3.3 FEMINIST ISSUES 144 5.3.4 CONCLUSION 147 5.4 THE FIRST CHAIRPERSONS 148 5.4.1 LADY MARGARET DAVIDSON 148 5.4.2 LADY LlLY CULLEN 150 5.4.3 LADY ALICIA KELSO KlNG 152 5.4.4 LADY CAROLE^E DAVID 153 5.4.5 LADYEVA JULIUS 157 5.4.6 CONCLUSION 160 5.5 THE FIRST TREASURERS 160 5.5.1 MISS M ETHEL TROUTON 161 5.5.2 MISS JESSIE HELLICAR 163 5.5.3 MRSNOELLE E. BRENNAN 165 5.5.4 MlSSMAUDE F. WATSON 167 5.5.5 MRS L. O'MALLEY WOOD 175 5.5.6 CONCLUSION 189 5.6 CONCLUDING COMMENT 190 CHAPTER 6 ACCOUNTS, ACCOUNTING AND ACCOUNTABILITY: 192 6.1 INTRODUCTION 192 6.2 THE INTERNAL NEED FOR ACCOUNTABILITY 194 6.2.1 BY ORGANISATIONS IN GENERAL 194 6.2.2 BYNONPROFITORGANISATIONSINPARTICULAR 196 6.3 THE EXTERNAL DEMAND FOR ACCOUNTABILITY 199 6.4 THE DEVELOPMENT OF ACCOUNTABILITY MEASURES 201 6.4.1 BANKACCOUNTS 202 6.4.1.1 State Headquarters Accounts 203 6.4.1.2 CampAccount 209 6.4.1.3 Glengarry Account 210 6.4.1.4 Unit and District Accounts 214 6.4.2 INSURANCE 215 6.4.2.1 Property Insurance 216 6.4.2.2 Employees Insurance 217 6.4.2.3 Public Risk Insurance 218 6.4.2.4 Accidentand Sickness Insurance 219 6.4.3 CONTROL OF CASH 220 6.4.3.1 Receipts 221 6.4.3.2 PettyCash 222 6.4.3.3 OrderBooks and Accounts 223 6.4.3.4 Daily Banking and Mail Clearance 225 6.4.4 INVESTMENT ININVENTORIES 226 6.4.5 AUDITORS 232 6.4.6 FlRST FlNANCIAL CRISIS 234 6.4.7 ANNUAL REPORTS 236 6.4.7.1 First Annual Report 237 6.4.7.2 First Financial Report 238 6.5 CONCLUDING COMMENT 241 CHAPTER7: MISSION AND FEVANCIAL VULNERABILITY 244 7.1 INTRODUCTION 244 7.2 MISSION 245 IX 7.2.1 CHANGING EXPRESSIONS OF MISSION 245 7.2.2 FlNANCIAL SUPPORT FOR MISSION 248 7.3 OVERVIEW OF ANNUAL FINANCIAL RESULTS 257 7.4 A MODEL OF FlNANCIAL VULNERABILITY 263 7.4.1 EQUITY BALANCES 266 7.4.2 REVENUE CONCENTRATION 268 7.4.3 ADMINISTRATIVE COSTS 269 7.4.4 OPERATING MARGINS 271 7.5 APPLICATION OF THE MODEL 272 7.5.1 VALUES FOR OPERATIONAL CRITERIA 275 7.5.1.1 Equity Balances 275 7.5.1.2 Revenue Concentration 276 7.5.1.3 Administrative Costs 279 7.5.1.4 Operating Margins 281 7.5.1.5 Conclusion 284 7.5.2 COMPARISON WITH "AT RISK" NONPROFITS 286 7.6 CONCLUDING COMMENT 288 CHAPTER 8 FINANCIAL PERFORMANCE AND THE SUPPORT OF MISSION 289 8.1 INTRODUCTION 289 8.2 FINANCIAL RATIO ANALYSIS AND MISSION 292 8.3 LlMITATIONS OF FlNANCUL RATIO ANALYSIS 294 8.4 A MODEL OF FINANCL\L PERFORMANCE ANALYSIS 298 8.4.1 ARE FINANCIAL RESOURCES SUFFICIENT TO SUPPORT THE MISSION? 300 8.4.2 WHAT FINANCIAL RESOURCES ARE AVAILABLETO SUPPORT THE MISSION?...
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    O CHEFE: A VIDA DE ROBERT BADEN- POWELL Do original: THE CHIEF: THE LIFE STORY OF ROBERT BADEN- POWELL. London: Wolfe Publishing Ltd., 1975 (edição revisada). Primeira publicação em 1924, sob o título The Piper of Pax, pela casa C. Arthur Pearson Ltd. Eileen Kirkpatrick Wade Versão para o português (Brasil) de Fernando Antônio Lucas Camargo ESTA É UMA OBRA INDEPENDENTE; NÃO É UMA OBRA OFICIAL DA UNIÃO DOS ESCOTEIROS DO BRASIL OU POR ELA AUTORIZADA. Aos Escoteiros de hoje Para a rua o flautista caminhou, Sorrindo, de início um leve sorriso, Como se soubesse que mágica dormia Naquele momento, em sua flauta silente. E o flautista avançou, E as crianças o seguiram. (Robert Browning, tradução livre) Esta é epígrafe do livro original. DEDICATÓRIA Dedico este trabalho aos Grupos Escoteiros a que pertenci/pertenço: Grupo Escoteiro São Francisco de Assis (17º/MG – São Lourenço), Grupo Escoteiro Duque de Caxias (52º/MG – Belo Horizonte) e Grupo Escoteiro do Ar Padre Eustáquio (7º/MG – Belo Horizonte). O TRADUTOR Fernando Antônio Lucas Camargo ingressou no Movimento Escoteiro em 1983. Conquistou o Nível Avançado como Escotista (Ramo Pioneiro) em 1991, como Dirigente de Formação em 2007 e como Dirigente Institucional em 2012. Atua na Equipe Regional de Formação de Minas Gerais desde 1991, com direção e participação em cursos, elaboração e revisão de manuais de treinamento de recursos adultos. É graduado em Pedagogia (Universidade Federal de Minas Gerais), pós- graduado em Gestão de Recursos Humanos e Mestre em Educação. Credenciado no Exército Brasileiro como proficiente nos idiomas inglês e italiano. Habilitado pelo Exército Brasileiro como gestor de Comunicações militares, montanhista (11º Batalhão de Infantaria de Montanha) e Assessoria ao Comando e Estado-Maior (U.S.