fraudThis series of posts has highlighted some interesting issues relating to fraud and the best way to manage and respond to it.

While each organisation is different it also emphasises the need to maintain strong internal controls, practices and procedures that are reviewed on a regular basis.  This also includes the levels of authority, delegations, spending limits, access to records, files and documents just to name a few.

There are some important steps that can be followed that will help manage these issues.  For example:

  • Ensure there are a clear set of policies and procedures
  • With any new Board Members, staff or volunteers ensure they are made aware of them as part of any induction process
  • A board report should be prepared at least quarterly that indicates compliance to the policies and whether there have been any breaches.
  • A clear process about the steps to be undertaken if fraud is suspected.
  • A confidential process that details how any board member, staff or volunteer can report potential fraud.

An important issue with fraud is that no organisation is immune from it and any person in the organisation can commit the fraud from board members; Chief Executive Officer, other staff or volunteers.

In addition, fraud is not just something large organisations need to worry about as often the small organisations such as clubs or community groups that have very small turnover over are just as likely to encounter fraud.

Trust and goodwill is often a factor that leads to the initial fraud that then can build up over time.  After all, no one really expects a team member to commit fraud, do they?

Hence the need to have strong internal controls, practices and procedures that are actively monitored, managed, reported against and reviewed on a regular basis.

While this may not the stop fraud from occurring it will go a long way to decreasing the likelihood and the opportunity for it to occur.

Remember that the Admin Bandit system helps keep your organisation’s transactions transparent and that is an important part of keeping fraud at bay.