Management & Discussion Analysis (MD&A)

Management Discussion & Analysis (MD&A) is a narrative section included in financial reports where an organization’s management provides context for the financial statements, discussing results, trends, risks, and future outlook. This section aims to give stakeholders insights into the organization’s financial health, strategic direction, and significant changes that may not be immediately evident from the numbers alone. MD&A covers topics such as operational highlights, challenges, liquidity, capital resources, and future plans. For nonprofits, it often addresses program effectiveness, funding sources, sustainability, and any events or circumstances that impacted financial results. Including MD&A in reports helps enhance transparency, accountability, and informed decision-making by providing a fuller picture beyond the financial statements themselves.