10/26/2026
This is one of the uncomfortable truths nonprofit leaders need to hear:
Trust is not an internal control.
Even in mission-driven organizations, financial processes need safeguards that reduce the opportunity for error or fraud.
Start with three questions:
1. Who can approve a payment?
Approval authority should be clearly defined — and ideally separated from other financial responsibilities.
2. Who records the transaction?
The person entering or reconciling financial activity shouldn't necessarily have complete control over the entire process.
3. Who reviews the financial activity?
Independent review creates another layer of accountability and can help catch unusual transactions, errors, or inconsistencies.
Other areas worth reviewing:
→ Bank reconciliation procedures
→ Credit card controls
→ Vendor setup and payment processes
→ Segregation of duties
→ Supporting documentation
→ Access to accounting systems
→ Regular financial reporting to leadership or the board
The goal isn't to create bureaucracy.
It's to protect the mission, the organization, and the people entrusted with its resources.
MMR CPA's bookkeeping services include monthly reconciliations, financial reporting, and structured month-end close processes, while CFO services can provide broader oversight and financial guidance.
If you're not sure whether your current controls would hold up under scrutiny, that uncertainty is worth addressing.
Book a consultation with MMR CPA: https://mmrcpa.as.me/Consult
When was the last time your organization reviewed its segregation of duties and fraud-prevention procedures?