Organizations go to great lengths to establish proper procedures and internal controls to prevent, detect and deter embezzlement or misuse of funds. To build a strong control environment, organizations establish clear segregation of duties among employees who are part of the financial operations and a system of “checks and balances” that foster an environment that safeguards the union’s assets. Other elements of a strong control environment include:
But for many small labor organizations, their size prevents the ideal separation of financial duties. Often, just one person is handling the finances. Diligence around internal controls is paramount and so alternative controls need to be established.
An accounting solution like NetSuite helps to automate internal controls and can assist management with simple, intuitive reports for help with:
NetSuite ERP’s functionality makes it simple for users to ensure compliance with accounting standards and government regulations. Furthermore, customizable user roles and permissions support segregation of duties with audit trail reporting. Even for small organizations, these system capabilities can be significant to establishing and maintaining a strong internal control environment.
No system or process is foolproof. However, establishing internal controls and utilizing a robust accounting system will certainly contribute significantly to deterring and restricting misuse of union funds. If you are interested in learning more about how NetSuite’s internal controls can help you to minimize your union’s risk of misuse or embezzlement of union funds, make arrangements to discuss with one of our consultants today.