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?
A warning if your not-for-profit organization is looking for expenses to cut: Don’t skimp on insurance. Should your not-for-profit experience a fire, major theft or other calamity, you’ll be glad you have the coverage. Of course, you may also be required by your state, certain funders, lenders and your own bylaws to carry adequate insurance. Donors certainly expect you to protect their investment in your not-for-profit by managing risk with insurance.
But to ensure you’re not wasting money, consider what you need — and what you might not.
It’s important to schedule internal audits. Fraud doesn’t simply take a vacation during crises, such as the COVID-19 pandemic. If your not-for-profit’s internal controls aren’t effective, crooked individuals can find ways to exploit them and steal from your organization — even if they’re working remotely. Other threats, such as financial shortfalls, might also loom.
Comprehensive independent audits help assure stakeholders that your not-for-profit is ready for anything that might come its way — including opportunities.
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Carlos Gomez, an audit manager and one of the faces of the PKF Texas Contract Compliance Services team. Carlos, will come back to the Playbook.
Carlos: Thanks, Jen.
Jen: Carlos, in previous editions we’ve talked about vendor management audits. What are those and how do those help a company in this type of situation?
Carlos: Typically, our clients benefit from having some visibility into their vendors with a vendor audit. It will help you identify any key issues and maybe recover some expenses that you happened to lose that weren’t in line with the agreement.
Jen: So, how does a vendor audit actually work?
Do you associate enterprise risk management (ERM) with for-profit businesses? This systemic approach to risk reduction can be just as effective when adopted by not-for-profit organizations.
Even organizations with limited resources can — and should — use an ERM process to combat threats.
Not-for-profits that direct and benefit from the actions of their volunteers can be held accountable if those individuals are harmed or harm others on the job. Lawsuits involving volunteers often arise from allegations of negligence or intentional misconduct, even when volunteers act outside the scope of their prescribed duties. Your organization needs to take steps…
Insurance is the cornerstone of any not-for-profit’s comprehensive risk management plan. It can’t protect your organization from every contingency, but it’s critical to protecting the people, property, funds and support you depend on.
Many kinds of coverage are available, but it’s unlikely your organization needs all of them. One type you do need…
Russ: This is the PKF Texas Entrepreneur’s Playbook. I’m Russ Capper, this week’s guest host, and I’m here with Denise Patrick, managing director of Energy Markets Access and lead researcher of the Profit and Peril Report. Welcome to the Playbook, Denise.…
Continue Reading Denise Patrick of Energy Markets Access Discusses Approaching International Business