Fraud prevention – The buck stops at your board
Abstract: Approximately 14% of all frauds in the United States occur at nonprofit organizations, for a median loss of $109,000. In some circumstances, boards are partly responsible. Many board members are volunteers who have little involvement with the organization’s day-to-day activities and don’t necessarily understand their role in preventing fraud. It’s essential that they learn to work closely with auditors and take responsibility for reviewing not only financial statements, but also the highest levels of executive management.