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Fraud Risk Assessments for Non-Profits

FREE preliminary fraud risk assessment AND fraud prevention check-up

 

One of the services that Revelatus Specialized Accounting & Consulting, LLC offers is a fraud risk assessment. In chatting with my team, we agreed to provide this service to non-profits and religious organizations for free.


Here are some Frequently Asked Questions:


What are some examples of fraud in a non-profit?

  • There are many different types of fraud. Here are (just) a few that I noticed recently.
  • Office Supply & Petty Cash misuse or theft
  • Misuse or misrepresentation of the use of grant funds
  • Funds distributed to board members (depends on reason, bylaws, and state/commonwealth laws)
  • Charity/Donor fraud – essential to consider when partnering with other organizations
  • Contribution Fraud – ex: people who pretend to be donors
  • Check/Bank Fraud – internal and external to the organization
  • Imposter Fraud – people posing as your organization (similar to identity theft).
  • Vendor & Contractor Fraud
  • Employee Expense Fraud
  • Payroll Fraud
  • Fraud within affiliates (member organizations)
  • Various forms of fraud exist in churches and religious organizations.

What is a fraud risk assessment?

  • Fraud risk – the potential for fraud and the identification (if necessary) of current fraud
  • Fraud risk assessments are done by fraud examiners to help identify and address vulnerabilities to internal fraud. Fraud risk professionals can use a standard or industry-approved tool to assist businesses and organizations with identifying fraud risks and developing a fraud risk response.

Why is it important for non-profits to have a fraud risk assessment?

  • Preparation. Fraud risk assessments and fraud prevention check-ups are a great step to prepare for the organization’s formal audits
  • Oversight. Whether initiated by the Board. Executive Director, or Chief Financial Officer, the assessment provides an opportunity for informed oversight.
  • Fiscal Responsibility. Though an organization may claim to be fiscally responsible, if it has never assessed itself for risk of fraud, theft, embezzlement, etc. there are lingering trust-related questions.
  • Reassurance. Membership, donors, funding sources, and other stakeholders can feel at ease in knowing that the organization is doing its all to protect funds and ensure proper use of funds.
  • Deterrence. The assessment process, whether in done in the open or on a "need to know" basis, creates a higher likelihood of deterring staff, volunteers, and others with fiduciary duties from committing fraud in the future.
  • Education & Awareness. The process opens the door for educating board members and staff on proper internal control, whistleblower policies, and more
  • Unexpected Information. Often during the process, other organizational strengths, weaknesses, opportunities, and threats are revealed. 

Is this the same as an audit?

How long does a fraud risk assessment take?

  • The free offer is for a preliminary fraud risk assessment. The on-site process takes 1-3hours – most approximately 90mins. There are also free pre- and post-assessment calls (15-20mins each). The results can take one to three weeks, depending on the size of the organization and the amount of information provided during the assessment.

Will you report to our Board of Directors or Board of Trustees?

  • You will receive a written report to the individual, Board, or committee that requested the assessment. If you would like me to meet for a presentation and discussion, there may be fees. Keep in mind, the assessment includes free pre- and post-assessment calls (15 minutes each).

Are your findings confidential?

  • The easy answer, yes. Information is held in confidence to the extent that local, state, and federal laws allow. 
  • I am willing to sign a confidentiality agreement.

Which states do you service?

  • The free offer is for states within 75 miles of Worcester, MA. There is a nominal fee for organizations over 75 miles. 

What if our organization or conflict of interest does not allow us to accept free services?

  • Ethical decision-making is especially important to me. As such, I can offer you options that allow you (and me) to stay within any conflict of interest rules and policies.

How long does a fraud risk assessment take?

  • The free offer is for a preliminary fraud risk assessment. The on-site process takes 1-3 hours – most approximately 90 mins. There are also free pre- and post-assessment calls (15 mins each). The results can take one to three weeks, depending on the size of the organization and the amount of information provided during the assessment.

Will you report to our Board of Directors or Board of Trustees?

  • You will receive a written report given directly to the individual, Board, or committee that requested the assessment. If you would like me to meet for a verbal report and discussion, there are fees. Keep in mind, the assessment includes free pre- and post-assessment calls (15 minutes each).

Are your findings confidential?

  • The easy answer, yes. Information is held in confidence to the extent that local, state, and federal laws allow. 
  • I am willing to sign a confidentiality agreement.

Which states do you service?

  • The free offer is for states within 75 miles of Worcester, MA. There is a nominal fee for organizations over 75 miles. 

What if our organization or conflict of interest does not allow us to accept free services?

  • Ethical decision-making is especially important to me. As such, I can offer you options that will enable you (and me) to stay within any conflict of interest rule and policies.

Contact Us

Drop us a line!

Revelatus Specialized Accounting & Consulting, LLC

978-856-8730

Hours

Mon

10:00 am – 04:00 pm

Tue

10:00 am – 04:00 pm

Wed

03:00 pm – 08:00 pm

Thu

10:00 am – 04:00 pm

Fri

03:00 pm – 06:00 pm

Sat

By Appointment

Sun

Closed