The theme for the next few blog articles is internal control, a critical component of an organization’s financial infrastructure that must be constantly reviewed and revised as an organization grows and evolves. As this wheel has been re-invented many times I will borrow generously from other sources for guidance and tools and draw on our own experience in providing outsourced accounting services to nonprofits.
One of the better resources for practical nonprofit financial management guidance is Accounting Basic$, a website sponsored by a group of CPAs in the Washington DC area. Included are comprehensive lists of internal controls organized by functional area for medium-sized and smaller nonprofit organizations. In subsequent articles we will explore the controls in each area and provide additional guidance and tools.