Question

in what ways can nonprofit organizations avoid waste, fraud, and financial abuse

Answer 1

Eliminating waste and fraud is to prevent public trust which also helps in running the organization efficiently.

• Try to find and eliminate the occurrence of any internal control issues, this can be done by proper auditioning of annual management work. The corrective actions should be reviewed and appreciated by the board members before it is implemented.
• Make them accountable for checks and balances, this will develop a sense of ownership, once found any corrective action plans must be prior reviewed at board and individual level before implementation
• Our employees should be trained for issues they handle, this may prevent abuse which can occur due to ignorance, they should know their role in handling waste and fraud, they should report if the come across any ill activities and behaviour.
• A written policy should be at core and must outline all fraud cases with suitable penalties for those who try to violate them. These penalties must include suspension, contract termination and equal actions.
• Keep proper tracking of inventories on a periodic manner, if possible try to add bar code into the product for their easy identification and calculation
• One product inventory is performed try to store them digitally with limited access only to concerned authorities

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