The threat of fraud looms over every business and charities are no exception. In fact according to The Annual Fraud Indicator published by the UK National Fraud Authority in 2013, 9% of Not-for-Profit entities have been victims of fraud costing those entities an incredible £147million. The losses are not only financial, but your charity's reputation and donor trust and confidence may also suffer as a result.
There are several things you may want to do to make sure your charity doesn’t find itself a victim of fraud, these include:
-Provide anti-fraud training to all employees and volunteers
-Put an effective fraud reporting mechanism in place
-Increase your employees’ and volunteers’ awareness of detection by publicising the measures you’ll be putting in place
-Ensure the management of your charity is recognised as embodying honesty and integrity
-Perform regular fraud risk assessments to identify and mitigate your charity’s exposure to internal and external fraud
-Ensure strong anti-fraud controls are in place and operating effectively
-Ensure your finance team has adequate resources and authority to operate effectively and without undue influence from senior management or your trustees
-Ensure your recruitment policy is sufficiently robust
-Put support/assistance programs in place to assist employees struggling with addictions, mental/emotional health, family or financial problems
-Adopt an open-door policy that allows your employees to speak freely about pressures so you can alleviate those pressures before they become acute
-Conduct anonymous surveys to assess employee morale
We work with Charities and Not for Profit organisations helping them to identify areas of vulnerability, to implement a plan of action to plug any gaps and if needed to investigate where there may be a suspicion of fraudulent activity.
Alliotts partner and chartered accountant Peter Edwards, is also a certified fraud examiner. His expertise is invaluable to our charity clients, not only in the prevention and investigation of fraud, but in providing reviews and reports that give Trustees the reassurance of knowing that they have done all within their power to ensure that their Charity is being run with minimum exposure to risk of fraud.
If you would like an initial conversation with Peter Edwards to discuss areas where your organisation may be vulnerable, please contact me.
If you have any questions regarding your organisation's risk to fraud, or suspect that you may have an issue please email me at firstname.lastname@example.org or call me on +44(0)1483 533119 or +44(0)20 7240 9971 to discuss your situation in complete confidence.