Internal Control Issues

For

Non-profits

1) Small organization issues & segregation of duties go hand-in-hand.

· Any organization tries to avoid errors and irregularities (Fraud).

· Small organizations are “ripe” for a perpetrator to embezzle funds as it can be hard to detect.

· Segregation of duties provides checks and balances to avoid fraud. In a small organization you typically have one person doing everything.

· When fraud is involved it is usually the last person that you would expect. That is why they are so successful

· The manager is the first line of defense. Know the general ledger.