Page 31 - Finances for Non-Finance People

INTERNAL CONTROLS

• Safeguard assets – should be tracked and protected for unauthorized use

• Controlling Cash/Equivalents – issue numbered receipts and use to reconcile bank
accounts (involve two people)

• Separation of duties – one person should not control all tasks

• Reconciliation of bank accounts – should be done by someone other than the one

that signs the checks

• Fidelity insurance – ensures that if embezzlement occurs the nonprofit can recover

• Payroll – separation of duty – Usually the Executive Director signs checks, but others

prepare the payroll

• Controlling Fake Invoices – the person ordering the supplies should not receive the
supplies