How often should you review your organization's internal controls policy?
Why? We should do so for the following reasons:
Remember, the nonprofit's President or CEO has a responsibility to implement, follow and regularly test her or his organization's internal controls.
- Following organizational changes, such as a new E.D. hire
- Following a restructuring of organizational programs
- When there's an increase in revenue or additional monthly transactions
- Whenever you gain new contracts or grants that have more stringent requirements
Also note: A Policy and Procedures Manual should outline the internal controls of the organization; and the relevant parties should be trained on those controls and procedures on an annual basis as well.
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