Tuesday, January 8, 2013
Are You Protecting Your Nonprofit from Fraud?
According to the most recent Fraud study conducted by the Association of Certified Fraud Examiners, nonprofits reported a median loss of $100,000 along with an even greater potential cost for reputational damage. It may be surprising, but the external audit is only likely to detect fraud just over 3% of the time. The top fraud detection methods include tips from staff or others (43%); management review (15%); internal audit (14%); and accident (7%). Nonprofits of all sizes have limited back office resources and the lack of staffing and controls makes them vulnerable to employees who see an opportunity. High staff turnover makes segregation of duties and training more difficult which increases likelihood of fraud.
Billing schemes are one common fraud scheme. Typically, these billings schemes involve billing organizations for personal items or marking up goods or services excessively. Nonprofits have large numbers of checks and cash from numerous sources, including handling by many volunteers, making them vulnerable to Skimming and Cash Larceny Schemes.
Read the full article to answer these questions:
- What types of fraud schemes are most common?
- What kinds of anti-fraud policies should your organization have in place?
- How do you support and protect your finance and accounting staff?
- What is a Fraud Risk Assessment?
- What role can a Certified Fraud Examiner play in preventing fraud?
Since 1999, Financial Technologies & Management (FTM) has provided accounting and financial solutions exclusively to nonprofits. James Simpson, CPA, founder and President of FTM, recently obtained his Certified Fraud Examiner or CFE designation and FTM is excited to announce the addition of fraud prevention and forensic accounting services to their comprehensive accounting and financial solutions for nonprofits.
FTMs next nonprofit forum will focus on Preventing Fraud and will be held on Thursday, January 31st at 12:30 EST.
To read the full article or learn more about the January 31st training opportunity.