Fraud case highlights need for audit committees, diligence

Abstract

While most larger nonprofits have audit committees in place that provide oversight of the organization's finances—making financial fraud more difficult to pull off unnoticed—many smaller organizations don't. Instead, these groups typically just depend on the treasurer to keep tabs on finances and report out to the rest of the board and executive leadership where things stand. Experts have long cautioned against having that much responsibility under one role, with no other oversight, and with good reason: it makes the organization much more vulnerable to theft and embezzlement.