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Program Value Contribution Article by Cade
The article covers the topic of the determination of program value contribution. Michael F. Cade (2017) discusses the theme of data interpretation related to non-for-profit programs and presents recommendations for transforming financial data into actionable information (p. 1). The articles central message is that the clear interpretation of data on program value contribution is essential for informed decision-making and the effective functioning of organizations. According to the author, program value and impact are critical considerations, as they provide leadership with adequate data for program portfolio management.
The topic of determination of program value contribution is important in accounting, as it provides guidance for organizations managing non-for-profit programs. The traditional methods of revenue determination do not apply to such programs, so the analysis of value contribution might help managers and accountants make conclusions about their missions progress and outcomes. Moreover, the topic reflects the need for clear and concise data interpretation in non-for-profit organizations accounting. The recommendations listed in the article offer valuable insights into the process of determining program value contribution and might be applied in accounting.
I support the conclusion concerning the critical role of program value contribution as a non-for-profit metric because CPAs of non-profit organizations often lack the instruments to measure their programs progress and outcomes. I also agree with the authors opinion that non-profit CPAs need to contact senior leadership on the risks of negative value programs. A proactive approach might help to ensure the organizations long-term fiscal sustainability. However, I disagree that negative value programs should be retained. Despite the benefits described by the expert, negative value programs connected with other programs may undermine their outcomes and negatively impact the allocation of resources, so they should be removed.
Reference
Cade, M. F. (2017). Determining a programs value contribution, and what to do once you know it. Pennsylvania CPA Journal, 1-3.
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