Tom, one of Jane’s co-workers, walked down the hall. Jane peered into the office but could barely see anything around the towering piles of paper stacked on every surface. Jane knocked on the door, which slowly creaked open. After purchasing some supplies for an after-school program, she walked over to the accounting office to submit her receipts. Jane had recently been authorized to use her organization’s credit card for expenses. A second set of eyes is the best prevention against fraud. The person who prepares the check should be different from the person who signs the check. By splitting up each step of the process, this ensures that no single person controls a transaction from beginning to end.
Dave’s horrified scream echoed in in the dark.Īll nonprofit organizations – no matter how small – should segregate financial duties. Thunder crashed, and the lights went out. Isn’t it great? He pulls all the strings, so we call him…the Puppet Master.” “So…you mean Jonathan has control over everything? He prepares the check, he approves the expense, and he signs the check too?” “But I thought Jonathan signed checks too?”ĭave began to shake with fear. “Who do I talk to about getting this bill paid?” Just one thing was left on his list: pay the electric bill. Dave, the new office manager, was wrapping up his day. It was a dark and stormy afternoon, and the fluorescent lights flickered with every roll of thunder.
