Fraud and Abuse in Nonprofit Organizations

Gerard M. Zack, CPA, CFE, MBA, is a director (partner) with Williams Young, LLC, a CPA and consulting firm. Founder of the Nonprofit Resource Center, a training, publishing, and resource center serving CFOs and external auditors of nonprofits, Zack is a certified fraud examiner and has worked almost exclusively with nonprofit organizations for over two decades and has consulted on fraud prevention with a variety of organizations. He is a frequent lecturer and seminar instructor who has trained more than 10,000 accountants and auditors, and is the author of three comprehensive textbooks as well as the monthly newsletter The Tax-Exempt Organization Alert! Mr. Zack can be contacted at the Nonprofit Resource Center Web site at www.nonprofitresource.com.

• PART I. INTRODUCTION TO THE PREVENTION AND DETECTION OF FRAUD AND ABUSE. Chapter 1. An Introduction to Fraud in the Nonprofit Sector.Chapter 2. Overview of a Model for the Prevention and Detection of Fraud and Abuse.PART II. FINANCIAL CONTROLS ASSOCIATED WITH SPECIFIC CATEGORIES OF FRAUD AND ABUSE.Chapter 3. Revenue and Cash Receipts.Chapter 4. Purchasing and Cash Disbursements.Chapter 5. Payroll and Expense Reimbursements.Chapter 6. Other Asset Misappropriations and Misuse.Chapter 7. External Frauds.PART III. FRAUDS COMMITTED BY, FOR, OR THROUGH NONPROFIT ORGANIZATIONS.Chapter 8. Fundraising Fraud and Abuse.Chapter 9. Fraudulent Reporting.Chapter 10. Other Acts Attributable to Nonprofit Organizations.PART IV. THE ROLES OF NON-FINANCIAL SYSTEMS.Chapter 11. Human Resource Policies and Procedures.Chapter 12. Administrative Systems and Policies.PART V. THE ROLE OF MANAGEMENT AND THE BOARD OF DIRECTORS.Chapter 13. Day-to-Day Management Activities.Chapter 14. The Role of the Board of Directors.Chapter 15. Financial Oversight and Analysis.Appendix. Example Policies and Checklists.