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NFP Fraud Risks and Effective Internal Controls - 1 CPE Credit

Not for profit entities face numerous fraud risks. Occupational fraud, or internal fraud, is committed under a variety of circumstances. Employees may try to circumvent rules, policies and controls to simply get the job done or to receive bonuses, recognition or promotions. Employees may succumb to financial pressures and see an opportunity to use their position of trust to solve a financial problem with a low risk of getting caught. Vendors may take advantage of agency employees who are focusing on the agency’s core mission and who are not fully versed in appropriate control activities. This presentation will provide statistics detailing how fraud schemes are initially detected and the duration of various fraud schemes. Fraud risks facing organizations, including NFP’s, will be discussed in detail. The presentation will also discuss situations that lead people to commit fraud and behavioral red flags that may be exhibited by potentially unscrupulous employees.