Several of our clients have inquired about a fraud checklist they can use for their retirement plans, so we’ve developed a handy tool for companies to reference. The goal for using PKF Texas’ Fiduciary Fraud Checklist is to help mitigate fraud, risk and errors and avoid negative consequences, such as money being stolen. Audit Senior
Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m here with Kristin Ryan, an Audit Senior Manager and one of the faces of the PKF Texas Employee Benefit Plan Team. Kristin, welcome back to The Playbook.
Kristin: Thanks. Good to be back.
Jen: So, in the past, we’ve talked about fiduciaries, risk, that kind of thing, and I’ve heard that there’s been some litigation against fiduciaries. What kind of issues are you seeing in this space right now?
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Kristin Ryan, an audit senior manager and one of the faces of PKF Texas’ Employee Benefit Plan team. Kristin, welcome back to the playbook.
Kristin: Good to be here.
Jen: So, we’ve talked about fiduciary responsibilities, but…
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Nicole Riley, an Audit Senior Manager and one of the faces of the PKF Texas Not-for-Profit team. Nicole, welcome back to The Playbook.
Nicole: Thank you. Glad to be here.
Jen: You know, we’ve been covering topics relevant to not-for-profit organizations, and one thing I noticed that you’ve talked about with clients are the fiduciary responsibilities of a board member. Can you elaborate on that a little bit?
Nicole: A lot of board members don’t realize that they do have a fiduciary duty, and it’s really important that they understand that, because they could be held financially responsible for the financial harm they do to an organization.
Jen: Wow, interesting. So, are there certain steps that they need to be mindful of?
Not-for-profit board members — whether compensated or not — have a fiduciary duty to the organization. Some states have laws governing the activities of not-for-profit boards and other fiduciaries.
But not all board members are aware of their responsibilities. To protect your not-for-profit’s financial health and integrity, it’s important that you help them understand.