Effective Internal Controls for Not-For Profit Entities

The importance of internal control is clear. Effective internal control makes sure non-profit organizations to carried out their mission and objectives, such as proper use of funds and provide professional services to the public without any risk of fraud and mismanagement or breach of ethics. Through continuous monitoring of non-profit’s performance and activities, internal controls dispose of the behaviors of non-profit organizations with their objectives. Internal controls also engaged in good management and make sure to provide appropriate financial reporting by providing accurate and complete reports to the management in a timely manner and make sure the sources are correctly allocated. Internal control is also the tool to safeguard assets that make sure the organizations physical and intangible assets are protected from fraud, misused, and error. Internal control is not only able to deter and detect fraud and error but also is able to reduce the chance to risks.

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Fraud at the Public Park Community School District

AIS Educator Journal ◽

10.3194/1935-8156-15.1.90 ◽

2020 ◽

Vol 15 (1) ◽

pp. 90-100

Author(s):

Rania Mousa

Keyword(s):

School District ◽

Internal Control ◽

Internal Controls ◽

Public School Districts ◽

Community School ◽

Public Park ◽

The Public ◽

For Profit ◽

Not For Profit

ABSTRACT This case study examines potentially fraudulent activities that took place in the Public Park Community School District. Students start their investigations by reading each section and answering case questions. Students analyze potentially fraudulent incidents, identify red flags, calculate potential losses, examine deficiencies in internal controls and suggest effective internal controls. Student feedback indicates the case increased their understanding of fraudulent activities, internal control weaknesses, and effective internal controls in the specific context of public school districts. The findings also highlight the importance of cultivating a strong internal control environment in not-for-profit organizations engaging in fundraising activities.

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Sunshine Center: An Instructional Case Evaluating Internal Controls in a Small Organization

Issues in Accounting Education ◽

10.2308/iace.2010.25.4.709 ◽

2010 ◽

Vol 25 (4) ◽

pp. 709-720 ◽

Cited By ~ 8

Author(s):

Sandra K. Fleak ◽

Keith E. Harrison ◽

Laurie A. Turner

Keyword(s):

Child Care ◽

Financial Reporting ◽

Internal Control ◽

Care Center ◽

Internal Controls ◽

Fraud Triangle ◽

For Profit ◽

Not For Profit ◽

Control Framework ◽

Internal Control Weaknesses

ABSTRACT: Management and auditors face increased responsibilities to evaluate internal control and assess the risk of fraud. This case provides the opportunity to evaluate internal controls and the possibility of fraud in a very small not-for-profit child care center, a setting that is easy to understand. The first goal of the case is to identify internal control weaknesses by applying the COSO internal control framework in an environment that lacks many aspects of internal control. Interactions among the five components of the COSO framework provide the basis for analyzing internal control. The case requires students to consider possible misappropriation of funds using the fraud triangle. A secondary goal of the case is to introduce financial reporting for a not-for-profit organization as a means of accountability.

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Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool

Issues in Accounting Education ◽

10.2308/iace-52375 ◽

2019 ◽

Vol 34 (2) ◽

pp. 23-39 ◽

Cited By ~ 1

Author(s):

Elizabeth V. Grace ◽

Ashley Davis

Keyword(s):

Internal Control ◽

Business Processes ◽

Practical Experience ◽

Auditor Independence ◽

Internal Controls ◽

Control Environment ◽

For Profit ◽

Not For Profit ◽

Analytical Thinking ◽

Financial Transactions

ABSTRACT This instructional case encourages analytical thinking about internal controls in both the operations and audit of a small, not-for-profit organization. Students examine a control environment characterized by unauthorized expenditures, lack of documentation, and missing documents. Using the COSO (2013) framework, students demonstrate understanding of business processes as they identify internal control risks and deficiencies, and recommend control improvements. Auditing students additionally apply management assertions about financial transactions and assess auditor independence. Students gain practical experience in developing flowcharts of accounting processes and writing a management letter for a familiar organization: a preschool.

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The need for specific accounting principles for non-profit organisations’ assets without economic benefits, restricted donations and funds

Journal of Economic and Financial Sciences ◽

10.4102/jef.v6i2.270 ◽

2013 ◽

Vol 6 (2) ◽

pp. 459-478 ◽

Cited By ~ 1

Author(s):

Cobus Rossouw

Keyword(s):

South African ◽

Financial Reporting ◽

Economic Benefits ◽

Non Profit ◽

For Profit ◽

Financial Reporting Standards ◽

Not For Profit ◽

Fund Accounting ◽

Accounting Practitioners ◽

Business Entities

Non-profit (or “not-for-profit”) organisations are faced with specific challenges in their financial reporting when they are required to or chose to apply formal financial reporting standards. The IFRSs or the IFRS for SMEs are meant for business entities and are not specifically developed to be applicable to non-profit organisations. Prior research suggested that the main problems of nonprofit accounting centre on the recognition of assets with no future economic benefits, but with service potential, the recognition of restricted income and the so-called fund accounting. This research analyses the requirements of IFRSs, IFRS for SMEs and the Australian accounting standards for non-profit organisation relating to these aspects. The article then presents the views of South African accounting practitioners who are involved in the financial reporting of non-profit organisations on these issues.

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The ethics of crowdsourcing

Linguistica Antverpiensia, New Series – Themes in Translation Studies ◽

10.52034/lanstts.v10i.279 ◽

2021 ◽

Vol 10 ◽

Author(s):

Julie McDonough Dolmaya

Keyword(s):

Occupational Status ◽

Minority Languages ◽

Translation Process ◽

Non Profit ◽

The Public ◽

For Profit ◽

Not For Profit ◽

For Profit Organizations

Because crowdsourced translation initiatives rely on volunteer labour to support both for-profit and not-for-profit activities, they lead to questions about how participants are remunerated, how the perception of translation is affected, and how minority languages are impacted. Using examples of crowdsourced translation initiatives at non-profit and for-profit organizations, this paper explores various ethical questions that apply to translation performed by people who are not necessarily trained as translators or financially remunerated for their work. It argues that the ethics of a crowd-sourced translation initiative depend not just on whether the initiative is part of a not-for profit or a for-profit effort, but also on how the project is organized and described to the public. While some initiatives do enhance the visibility of translation, showcase its value to society, and help minor languages become more visible online, others devalue the work involved in the translation process, which in turn lowers the occupational status of professional translators.

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FASB's Not-for-Profit Financial Reporting Project: Analysis of Letters to ASU 2016-14 Exposure Draft

Journal of Governmental & Nonprofit Accounting ◽

10.2308/jogna-19-006 ◽

2020 ◽

Vol 9 (1) ◽

pp. 45-75

Author(s):

Donald R. Deis ◽

Arpita Shroff

Keyword(s):

Financial Reporting ◽

Phase 1 ◽

Accounting Standards ◽

Data Availability ◽

Financial Accounting ◽

Financial Accounting Standards Board ◽

Accounting Standard ◽

The Public ◽

For Profit ◽

Not For Profit

ABSTRACT In 2015, the Financial Accounting Standards Board (FASB) issued an Exposure Draft (ED) as part of its first significant project in over 20 years on financial reporting by Not-for-Profit organizations (NFP). In this study, we categorize the 264 letters received on the ED by the type of respondent and analyze the responses using ANOVA, multiple comparisons tests, and multidimensional scaling. Ultimately, as Phase 1 of its NFP project, FASB issued accounting standards update (ASU) 2016-14 containing proposed changes supported by a majority of the respondents to the ED. The Board deferred recommended changes with less support from respondents to Phase 2 of the project. Although constituents often accuse accounting standard setters of standards-overload and for being unresponsive to their comments (Herz 2003), our findings indicate otherwise. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G00; L31; M40.

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PENYAJIAN LAPORAN KEUANGAN ENTITAS BERORIENTASI NONLABA BERDASARKAN ISAK 35 PADA MASJID BAITUL HAADI

Akuntansi dan Manajemen ◽

10.30630/jam.v15i2.20 ◽

2020 ◽

Vol 15 (2) ◽

pp. 113-132

Author(s):

Sukma Diviana ◽

Rangga Putra Ananto ◽

Wiwik Andriani ◽

Roni Putra ◽

Armel Yentifa ◽

...

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

Microsoft Excel ◽

Financial Reports ◽

Non Profit ◽

For Profit ◽

Financial Position ◽

Not For Profit

Mosque is an entity that aims not for profit (non-profit entity), so that financial accountability becomes an important aspect for mosques. Good accountability can be realized by presenting the mosque's financial reports in accordance with generally accepted accounting standards. The standard governing the financial reporting of non-profit entities is the Interpretation of Financial Accounting Standards No. 35 (ISAK 35). By implementing ISAK 35 in the presentation of mosque financial reports, interested parties will be able to assess the financial performance of the mosque. The object of this research is Mosque Baitul Haadi. Data were collected through a series of interviews and observations. Until now, Mosque Baitul Haadi only presented financial reports as far as cash in and cash out. This study aims to compile the financial statements of Mosque Baitul Haadi based on ISAK 35 using Microsoft Excel application tools. The financial statements that will be produced are the statements of financial position, comprehensive income statements, cash flow statements and notes to financial reports.

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Sources of Property Formation of a Public Law Company

Actual Problems of Russian Law ◽

10.17803/1994-1471.2019.109.12.081-091 ◽

2020 ◽

Vol 1 (12) ◽

pp. 81-91

Author(s):

Yu. A. Zaitseva

Keyword(s):

Public Law ◽

The State ◽

Public Authority ◽

Public Interests ◽

Non Profit ◽

The Public ◽

For Profit ◽

Not For Profit ◽

Independent Form ◽

Public Nature

As part of the civil legislation reform, a public not-for-profit company is recognized as an independent form of non-profit organizations. Its intermediate position between a legal entity as a subject of private law and a public authority shows the existence of features in the methods of its property formation. In the article the author has analyzed the sources of formation of the property of the public not-for-profit company, investigated doctrinal approaches to understanding the essence of the sources of formation of the property of the organization under consideration. The peculiarities of property formation of public law companies operating in Russia have also been determined. According to the results of the analysis, the author has drawn the conclusion about a predominantly public nature of the property component of public not-for-profit companies, the main source of formation of which is the state property or funds received under statutory provisions. The author makes the interest of the founder in the property component of a public not-for-profit company conditional upon implementation of the state and public interests and public law functions imposed on it. On the basis of the study, the author has determined a conflict in the legislation regulating the investment of temporarily free funds of a public not-for-profit company as a revenue-producing activity and has made proposals to resolve it.

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Using Business Models beyond Business

World Journal of Business and Management ◽

10.5296/wjbm.v7i1.18137 ◽

2021 ◽

Vol 7 (1) ◽

pp. 27

Author(s):

Helen Kavvadia

Keyword(s):

Policy Making ◽

Business Models ◽

The Political ◽

Organizational Analysis ◽

Economic Governance ◽

Non Profit ◽

For Profit ◽

Not For Profit ◽

Non Profit Organizations ◽

Dot Com

Business models describe the way organizations create and deliver value necessary for their existence. In the mid-1990s, they arose as a buzzword relating to the development of “dot-com” firms and their hunt for capital. The theory and application of business models have focused on business.Consequently, the definitions and archetypes of business models proposed in the extant literature have addressed profit-making organizations. This paper argues that business models are equally useful in the establishment, evolution, and analysis of non-profit organizations. Moreover, there is a real need for these models, as non-profit organizations are part of the national and international economic governance. Thus, the paper reframes business models through a non-entrepreneurial lens and proposes a new archetype with generalized applicability to all organizations, whether for-profit, non-profit, public, or private. A “hybrid” archetype is developed, synthesizing existing business model archetypes while extending their reach to better embrace the overarching core logic of organizations, reflecting the political mandate of not-for-profit entities and the business remit of firms. The validity of the proffered archetype is tested on two international not-for-profit organizations and serves well as a conceptual map of their decision-making and policy-making activity. Furthermore, the testing process demonstrates that business models, when devised externally and retrospectively, can be equally well used in hindsight as organizational analysis tools, possibly conjointly with other methods.

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Castle Hall Academy: A Case Study In Non-Profit Accounting Mismanagement

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v22i2.1439 ◽

2011 ◽

Vol 22 (2) ◽

Author(s):

Frank J. Grippo ◽

Noah P. Barsky ◽

Joel Siegel ◽

William Matthews

Keyword(s):

Financial Reporting ◽

Font Size ◽

Non Profit ◽

Audit Firm ◽

For Profit ◽

Not For Profit ◽

Actual Experience ◽

Accounting Courses ◽

Private High School

This case requires you to resolve financial reporting deficiencies that arise in the audit of a not-for-profit entity, a prestigious private high school.  This case is based on the actual experience that an audit firm had with a not-for-profit client.  The primary reporting issues in the case relate to investments, contributions, severance packages, and leases that arise due to school management’s failure to consider recent accounting pronouncements.  By completing this case, you will learn about standards that affect not-for-profit entities and how auditors resolve differences with clients.  The decisions that you make require an understanding of technical knowledge of topics covered in typical intermediate accounting courses.  In addition, the case requires you to integrate accounting theory with the practice of auditing.  The premise for the case is that in order to be a successful auditor, you will need a good understanding of your client’s business as well as technical accounting issues.

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