Sunday, February 7, 2010


Something that I hear all the time when I talk to nonprofit organisations is that they trust their employees. It is also interesting that in many instances, the organisation trusts employees more than volunteers.
While the majority of employees and volunteers are honest, there will always be some that are not. So what do you do? Here are some tips to help:
  • Don’t be concerned about implementing new controls. You are doing this for two reasons. Firstly to protect the organisation from fraud and secondly to protect employees and volunteers that do follow the rules.
  • If you can’t segregate duties, put other controls in place that will act as detection controls.
  • If someone has been doing the same role for a long time and it is difficult to suggest you need to change the way it is done, explain the risks – for example an employee would regularly take the cash takings to the bank in their her car every day. She was not concerned when we suggested a change to make sure the organisation was covered by insurance and she would not at risk of potentially being robbed.
While all organisations will ultimately have to place some level of trust in employees and volunteers, don’t ever be afraid to implement new controls or change controls already in place. You can’t put all of your trust in a person without the back up of some form of control. This is simply not acceptable.

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