Executive Roundtable
Getting Through the Recession with Your Controls Intact:
A focus on how to strengthen internal controls during tough times
and emerge with a stronger, healthier organization
February 20, 2009
Faith Noble, CPA
Why Focus on Internal Controls Now?
o Staff Restructuring and lay-offs require duties to be
reassigned
o Board attention to detail is higher in difficult times
o Possibility of merger and/or collaboration requires
your financial house to be in order
o Increased Fraud Risk
o Increased scrutiny from Funders and the Public
o Your organization can’t afford a loss due to
inadequate controls
o Controls are something you can control
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Staff Restructuring
o Where are the opportunities?
o Improve segregation of duties during staff restructuring
o Involve every member of your Senior Staff in Budget
preparation and budget monitoring
o Increase frequency and consistency of monitoring
o Require budget narratives and variance reports from Senior
Staff in a format that roles up to your board reporting
o Involve every member of your administrative and clerical
staff in routine financial tasks
o Deposits, disbursements, travel documentation
o Report preparation – get your best PR or development person
involved, think of your reporting package as a marketing tool
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Board Engagement
o Where are the opportunities?
o Engage your Finance Committee and/or Treasurer in
regular, monthly tasks
o Bank account monitoring
o Payroll report review
o Investment account reconciliation
o Training opportunities for you and your Board have never
been better
o Are you using a Dashboard format for reporting? GOOD
o Are you or your staff reconciling the Dashboard to the
source documents? EVEN BETTER
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Mergers and Collaborations
o Where are the opportunities?
o The strongest organizations financially will take the lead
role in the collaborations increasingly mandated by funders
o Transparent, easy to read Financial Statements make the
difference in communicating to partners
o Do your due diligence now
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Increased Fraud Risk
o What are the Risks?
o Incentive and Pressure has increased for your employees,
volunteers, and Board members
o Take 5 minutes to review who has access to your financial
assets and how their situation has changed
o Evaluate the opportunity for fraud at your organization
with your auditors
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Increased Scrutiny from Funders and the Public
o What are the Risks?
o Don’t be caught off-guard (or on the front page) like the
Auto Company execs
o Make sure your organization gets credit for being a leader
in transparency and accountability
o Ohio Center for Nonprofits
o Narrative in 990
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