Page 685 - ACFE Fraud Reports 2009_2020

OUR STUDY COVERED

Nonprofit organizations can be more susceptible to fraud TOP 3 CONTROL WEAKNESSES
Fraud in Nonprofits due to having fewer resources available to help prevent and Nonprofit
organizations have
recover from a fraud loss. This sector is particularly vulnerable
because of less oversight and lack of certain internal controls.
fewer anti-fraud 35% LACK OF INTERNAL CONTROLS

controls in place,
Nonprofit schemes Percent of cases leaving them 19% LACK OF MANAGEMENT REVIEW

Corruption 41%
191 Billing 30% MORE

NONPROFIT OVERRIDE OF EXISTING
CASES Expense reimbursements 23% 14% INTERNAL CONTROLS

Cash on hand 17% vulnerable
Noncash 16% to fraud

Skimming 15%
MEDIAN LOSS AVERAGE LOSS
$75,000 $639,000 Check and payment tampering 14% 76%
Cash larceny 12% 68%
Payroll 12% 57%

Financial statement fraud 11% 44%
40% 43% Nonprofit
Register disbursements 3% organizations
Other
21% 24% organizations

Owner/executive
39% Surprise audits Formal fraud risk Management review Internal audit

of cases MEDIAN $250,000 assessments department
LOSS
Perpetrators CONTROLS

AT NONPROFITS

Detection AT NONPROFITS
Manager/supervisor
35%

of cases MEDIAN $95,000 TIP OR INTERNAL MANAGEMENT BY EXAMINATION
LOSS
COMPLAINT AUDIT REVIEW ACCIDENT OF DOCUMENTS
40% 17% 13% 7% 6%

Employee
23%
of cases MEDIAN $21,000
LOSS

Victim Organizations Report to the Nations 29