How do U get an audit on a treasurer that you think is taking money from a nonprofit children's organization?

Question

persons is closed to communcation with other officers and has not provided a treasury report since Dec. 2006.

Answer 1

Several suggestions:

1. The Board of Directors/Trustees should request financial statements at every meeting. If they fail to do so, they are not exercising adequate duty of care, and could be held liable.



2. The organization should have an annual financial audit conducted by an independent auditor. A good auditor will also review internal systems and controls. Most funding sources require audited financial statements anyway.



3. Have the Board develop and adopt financial procedures that provide adequate internal controls to prevent this from happening.



4. If this person is closed to communication with the other officers, he/she should be removed.

Answer 2

How often does the charter require financial reports? Are there any rules concerning officers who not not execute their duties?



When is the org's usual audit date? Can the board vote to call for an audit?



It's a complex issue and the answer is probably in your charter.

Answer 3

What is your role? The audit is not on the person, it's on the finances of the organization. If it includes the use of government funds then an automatic audit is conducted at least annually.

Answer 4

If you believe this person is embezzling funds from the non-profit, you will have to have evidence to support your claim.



i would suggest that you bring it up or find a way, to have it discussed at the next board meeting.

Answer 5

I'd probably start with the Attorney General's office for your state.