fraud

If you run a club that relates to a sporting or a community group then this report on fraud within the clubs sector is worth reading.  This report was prepared by the accounting firm BDO and is titled:  Not-For-Profit Fraud Survey 2012 Clubs Sectors.  Click on the link to the access the publication.

There were some interesting outcomes from the survey and in particular:

  • 10% of organisations suffered fraud
  • 28 organisations experienced 92 frauds in the past two years
  • A total of $393,101 of fraud was reported over the past two years, with the average fraud being $4,273
  • 21% of respondents indicated that the fraud suffered in the past two years was not the first occurrence
  • Fraud amongst respondents increased as turnover increased
  • 14% of respondents who experienced fraud believe that fraud is still undetected
  • The main factors contributing to the fraud were that the perpetrator breached a position of trust and the overriding of controls
  • Only 1% of respondents detected money laundering in the past two years.

These certainly provide some interesting insights and also highlight the impact that fraud can have on your organisation – if you can detect it.  This places particular importance on your internal controls.  Click on this link that will take you to the first of a series of posts dealing with Internal Controls that we have previously posted.