My proposition is for prevention of future fraud. There are internal audit reviews on policies and procedures for acquisition of grants / donations that I believe now will become a good safeguard if any EA org is assessing where the money is coming from. Requiring regular Audited Financial Statements from donors and be assessed by management doesn’t seem illegal or needing government approval.
Investigations after issues have taken place seems like too much of a late reaction in my opinion. Prevention through regular checks and balance is still the best approach in my opinion.
If a charity asks a donor for financial audits, the response is going to be: We don’t do paperwork for you. You do paperwork for us. Followed by giving the donation to someone else.
No Jim, financial audits are done quarterly, semi-annual or annual. Non-profit orgs doesn’t need to request financial audits for them—if the donor is complying with IFRS or American Standards, they just need to submit or share the most recent copy of the Audited Financial Statements. If they do not have it, that is a major red flag.
My proposition is for prevention of future fraud. There are internal audit reviews on policies and procedures for acquisition of grants / donations that I believe now will become a good safeguard if any EA org is assessing where the money is coming from. Requiring regular Audited Financial Statements from donors and be assessed by management doesn’t seem illegal or needing government approval.
Investigations after issues have taken place seems like too much of a late reaction in my opinion. Prevention through regular checks and balance is still the best approach in my opinion.
If a charity asks a donor for financial audits, the response is going to be: We don’t do paperwork for you. You do paperwork for us. Followed by giving the donation to someone else.
No Jim, financial audits are done quarterly, semi-annual or annual. Non-profit orgs doesn’t need to request financial audits for them—if the donor is complying with IFRS or American Standards, they just need to submit or share the most recent copy of the Audited Financial Statements. If they do not have it, that is a major red flag.