How closely does your nonprofit’s board supervise financial transactions?
Last week, a woman who handled financial transactions for the Roman Catholic Archdiocese of New York was charged with embezzling more than $1 million over 7 years. She allegedly issued hundreds of checks in small amounts to her son under the guise of paying bills to legitimate vendors. Would your nonprofit have caught it?
The embezzlement has set off an additional review of financial procedures and oversight at the archdiocese. Although no disciplinary action is being considered against any of the archdiocese’s superiors at this time, it’s a good reminder that your organization needs to have reasonable and prudent procedures in place to provide appropriate financial oversight.
Talk to your legal and accounting advisors about whether your organization needs more than just the minimum and mandatory financial reviews. Remember, each director owes fiduciary duties to the organization that go beyond attendance at board meetings.
[…] good place to start is by reviewing the organization’s financial procedures, as we recently advised you to do. Then take whatever precautionary measures are necessary to ensure that there is no […]