Many nonprofits are considering how to make do with increasingly limited resources and, as a result, struggle to have sufficient internal controls. With pressures to cut costs, internal control and specifically segregation of duties suffers.
The concept of segregation of duties is quite simple – having more than one person required to complete a task or process. In other words, more than one individual should be responsible for initiating, approving and recording transactions. Simply allowing one person to handle all of the financial and accounting duties creates an opportunity for fraud that may prove too tempting to resist.
For more information and examples read the full article here.