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Catch the warning signs of fraud in NPOs.

Publication: Journal of Accountancy
Publication Date: 01-JAN-04
Format: Online - approximately 678 words
Delivery: Immediate Online Access
Full Article Title: Catch the warning signs of fraud in NPOs.(nonprofit organizations)

Article Excerpt
With their high fund-raising and performance goals and with volunteers often handling money and keeping accounting records, nonprofit organizations can be prime targets for fraud, Here are some of the red flags CPAs can advise NPO employers and clients to watch for:

[] Budget cutbacks. Whenever any organization--especially an NPO operating on fund-raising dollars and volunteer leadership--cuts back by reducing its paid workforce, financial controls usually suffer. Remaining employees or unpaid volunteers must pick up the slack. This can lower morale and increase the likelihood of fraud among unhappy workers.

[] High turnover. When NPO volunteers and employees turn over...

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