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.