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| How good are your organization's financial controls? https://www.rypn.org/forums/viewtopic.php?f=1&t=45216 |
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| Author: | wilkinsd [ Sun Jan 24, 2021 3:13 pm ] |
| Post subject: | How good are your organization's financial controls? |
A recent story from the Port Huron Times Herald highlights a constant danger most non-profits face, financial impropriety at the hands of those entrusted to handle funds for the organization: https://www.thetimesherald.com/story/ne ... 142625001/ Now, there have been no charges yet, and the person named in the article is innocent until proven guilty, but the story highlights a good learning lesson for other organizations. How good are your financial controls? Do you have annual audits conducted? Do you periodically review financial controls and make sure they are up to industry standard? |
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| Author: | ctjacks [ Sun Jan 24, 2021 6:43 pm ] |
| Post subject: | Re: How good are your organization's financial controls? |
The name of the subject of this story - Steve Harvey - has been attached to other ventures discussed in this forum. Is it the same person? |
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| Author: | wilkinsd [ Sun Jan 24, 2021 6:48 pm ] |
| Post subject: | Re: How good are your organization's financial controls? |
I believe so. But it’s import to realize there are allegations. No charges have been filed and there hasn’t been a legal adjudication. I think, while the process plays out, we should discuss what your institution can do to prevent this from happening in the first place. |
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| Author: | Crescent-Zephyr [ Sun Jan 24, 2021 6:59 pm ] |
| Post subject: | Re: How good are your organization's financial controls? |
In the year 2021, it’s very easy to keep track of finances. Ideally there should be a system and a process so that it’s not only 1 person that is handling all of the finances. Numbers aren’t complex or confusing, if the financials are being guarded and kept secret by one person... that’s a potential red flag. |
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| Author: | wesp [ Tue Jan 26, 2021 5:52 pm ] |
| Post subject: | Re: How good are your organization's financial controls? |
David, This is a great topic. We have good internal control at National Capital Trolley Museum.
The bookkeeper cannot sign checks. The treasurer (me) does not make deposits. The treasurer and the bookkeeper do not run the cash register on the Museum store. We use the bank billpay service as much as possible. This means the checks go directly from the bank to the vendor. We have an annual review of our financial statements prepared by a CPA firm. Wesley |
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