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Question: I am struggling with a new Executive Director and the internal controls. She believes she should have carte blanc over the financials and we as a charitable nonprofit need to make sure we are doing our fiduciary duties. If we have a policy in place shouldn't she follow this until we can discuss at an Executive Committee. I didn't see in the guide examples of these type of internal controls but I could have missed this!
Answer: Adequate internal controls are a key to exercising fiduciary responsibility, but CTB does not focus on internal fiscal administrative processes. Your best resources for resolving this disagreement probably are your Board's finance committee or executive committee, or the accounting firm that conducts your annual audit/financial review.
Question Date: Tue, 08/05/2008