Lesson 4 – Examples



  • A policy that requires two signatures on a check.
  • Segregation of duties requiring that there person who enters checks received in the mail is not the same person who is responsible for depositing checks.
  • Also, the person who prepares the payroll timesheets should not prepare the payroll and distribute the payroll checks.
  • Periodic review of the list of vendors receiving fees/checks from the nonprofit to the payment of expenses to fictitious vendors.
  • Policy to keep all cash in locked drawer and deposit cash and checks in the bank as soon as they are received.

A top priority for any nonprofit is to address who has access to the nonprofit’s bank accounts and who has the authority to spend money on the nonprofit’s behalf, whether through check, cash, credit card, or some other means.