nonprofit internal fical contols

Nonprofit Internal Controls – Are They Being Properly Reviewed?

Nonprofit Internal Controls – Are They Being Properly Reviewed?

By Eugene Fram

One of the responsibilities of either a nonprofit or a for-profit board is to make certain that internal controls in place are adequate.  This task is usually delegated to an audit committee and/or a finance committee.  However, what is meant by internal controls can vary greatly depending of the type of nonprofit and the clients that it services.

Fortunately, De La Rosa Nonprofit Consulting has developed a comprehensive checklist that directors can use to frame internal control questions for the auditors.  ( Using the list, the committee can chose the relevant questions before meeting with the auditors and then be able to delve more deeply into significant topics for their organization. 

Limits on President/CEO’s Fiscal Discretion

Do boards set a dollar limit on the president/CEO’s fiscal discretion?

The chief executive should have  complete discretion as long as he or she works within the budget and budgetary  guidelines.  However, if any major changes are needed, the board must approve them.  For example, (more…)