Audit solutions can prevent embezzlement at nonprofits

No business wants to discover that an employee may have been stealing funds from company accounts, but these revelations can be especially devastating for nonprofits. Without the proper financial controls in place, including the frequent use of requiring two signatures on checks totaling more than $1,000, Stage stole the money in increments of $995 over the course of 14 years.

George Bauer, the former bookkeeper, aided Stage by agreeing to help him keep the crimes a secret.

Laura Bay, the secretary-treasurer for the National PTA, told The Express-Times having adequate financial controls is key, especially for nonprofits, but employees also need to go above and beyond at times. If individuals are suspicious that misappropriation may be happening, Bay recommended that instead of confronting anyone, they should approach board members. From there, audit solutions can be used to find the source of any discrepancies, such as unauthorized transactions, duplicate payments and more.

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