Page 57 - NCCAA Finance Board Accountability
P. 57

Internal Controls








                     The board should engage an independent auditor to conduct

                         annual financial audits to ensure the organization's financial
                         statements are accurate and reliable. Additionally, the board may

                         consider establishing an internal audit function or engaging external

                         consultants to conduct internal audits periodically.


                     The board should set the tone for a strong control environment by
                         fostering a culture of ethics, integrity, and accountability throughout

                         the organization. They should ensure that management and staff

                         are aware of the importance of internal controls and encourage
                         their adherence.


                     Board members should participate in training and educational

                         programs to enhance their understanding of internal controls,

                         governance best practices, and emerging risks in the nonprofit

                         sector. This will equip them with the knowledge necessary to fulfill
                         their oversight responsibilities effectively.
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