You hear it time and time again, from an auditor, about implementing internal controls in your nonprofit. They aren’t guaranteed to prevent fraud, but they will minimize any given opportunity for fraudulent activity to occur and protect the assets of the organization.
Sometimes it’s hard to know where to even start, so here’s a list of our top ten internal controls to provide you with some guidance for creating them in your nonprofit. If you already have them in place, take a look at the list anyway and consider if there are any your organization may be missing.
Top 10 Internal Controls for Nonprofits
1. Your nonprofit’s accessibility to cash
Who has access and who has the authority to spend? There should be controls in place where purchases are being monitored and approved by an executive team member or a Board member. [Read more…]