Sobering message to nonprofit board members 

I expect to deliver this message of my engagement findings to the CPA board member and treasurer of a nonprofit client over the weekend:

1) you are in a fiduciary environment with responsibility for other people’s money.

2) We all recognize there are weaknesses in the bookkeeping.

3) There is no evidence that the accounting system actually ties in to any controls (like bank statements).

4) Taken together, 1 + 2 + 3 above = a prescription for disaster.

Yet it is shocking how often I see this. It is easily corrected at little expense. IMO there is no excuse for any nonprofit board to tolerate poor basic accounting and financial controls.


One response to “Sobering message to nonprofit board members ”

  1. […] week I wrote that there are no excuses for an accounting system that does not reconcile with the bank and […]

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