The proper management of accounts payableÂ processesÂ is important to any company. But left unchecked, it’s possible that mistakes or even fraud can have a heavy impact on the bottom line.
According to The Bismarck Tribune, a trial date of September 17 or 18 has been set for David Mau, the former executive director of the Arc of Bismarck, who is accused of embezzling from the North Dakota nonprofit organization between 2011 and 2012. Â MauÂ allegedly made $7,525.14 in unauthorized purchases while working for the group, which provides advocacy, education and support for people with disabilities.
The news provider noted that the alleged thefts occurred when Mau used the Arc of Bismarck’s checkbooks and credit cards to make transactions. As part of his position’s responsibilities, Mau acted as one of two official signers for the group’s checking account.
In a presentation at the seventh annual Fraud & Forensic Accounting Conference in Atlanta, Georgia, one forensic accounting firm noted that for nonprofits, misappropriation can result in significant financial losses. The source cited data from the Association of Certified Fraud Examiners (ACFE) which revealed that among organizations, fraud results in the loss of between 5 percent and 7 percent of their revenues. In the nonprofit sector, the ACFE asserted that this amounts to more that $46 billion.
By using audit solutions, nonprofits may be able to preventÂ these problems, allowing them to avoid budgetary issues that might threaten their ability to performÂ successfully.