Organizational risk in the nonprofit world is a huge issue every organization must prepare for and have policies in place to handle when it occurs. To say fraud will never happen in your organization is shortsighted, and having critical internal controls in place is essential to preventing chaos from erupting in case of an emergency. In this episode, Chyla talks about creating processes, procedures, and laws for your organization to make sure you are prepared to handle any financial risk that may come to your non-profit. Tune in!

Highlights:

• Determining your organization's internal controls

Resources:

• Learn more about internal controls HERE

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/ 

In this episode, we are looking at a New Orleans nonprofit who must answer questions on its financial makeup, regarding the services they provide, how they make money, and how much they have made. What makes the story even more interesting is that the founder of the nonprofit and the President of a for profit company that works with them are married, thus creating confusion and raising eyebrows into their financial standing. This also raises questions regarding potential conflict of interest and how funds are being allocated and spent with both organizations. 

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/

• Like us on Facebook: https://www.facebook.com/cnrgadvisory/

• Follow us on Twitter: https://twitter.com/cnrgadvisory

• Connect with us on LinkedIn: https://www.linkedin.com/in/chyla-graham-cpa-94a30280/

This Week’s Story

• https://www.wdsu.com/article/wdsu-investigates-few-records-available-for-nyx-subsidiaries-travel-spending/33586507

Podcast Resources

• https://www.cnrgaccountingadvisory.com/About/

• https://nonprofitnuggets.podbean.com/

DIY 990

• https://www.cnrgaccountingadvisory.com/990/

This week, we turn our focus to Georgia, and the Companions for Heroes foundation that works to pair veterans with service animals. There had been inconsistency in the number of veterans and animals paired together, which has led to mistrust in the program and has led to an investigation. It is important to be consistent with the data your agency reports in order to maintain trust in the public and the community you are serving. This also calls for consistent data reporting from your organization’s accounting and communications department in order to provide transparency for all parties involved. Thanks for listening!

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/

• Like us on Facebook: https://www.facebook.com/cnrgadvisory/

• Follow us on Twitter: https://twitter.com/cnrgadvisory

• Connect with us on LinkedIn: https://www.linkedin.com/in/chyla-graham-cpa-94a30280/

This Week’s Story

• https://www.newsbreak.com/news/1613976621045/georgia-nonprofit-companions-for-heroes-under-state-investigation

Podcast Resources

• https://www.cnrgaccountingadvisory.com/About/

• https://nonprofitnuggets.podbean.com/

DIY 990

• https://www.cnrgaccountingadvisory.com/990/

This week, we highlight a story about the Mississippi Department of Human Services dispersing funds to organizations long after the retirement of a former director. It is not uncommon for the government to give funds to agencies to disperse to nonprofits. 

However, it is important to establish milestones and deadlines in order to maintain control over how and when these funds are spent. It’s critical to outline expectations for these agencies up front in order to maintain authority and create accountability for all parties. 

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/

• Like us on Facebook: https://www.facebook.com/cnrgadvisory/

• Follow us on Twitter: https://twitter.com/cnrgadvisory

• Connect with us on LinkedIn: https://www.linkedin.com/in/chyla-graham-cpa-94a30280/

This Week’s Story

• https://www.gwcommonwealth.com/news/html_c51fd892-cc8d-11ea-b875-5f472ce29a90.html

Podcast Resources

• https://www.cnrgaccountingadvisory.com/About/

• https://nonprofitnuggets.podbean.com/

DIY 990

• https://www.cnrgaccountingadvisory.com/990/

This week, we discuss how fiscal sponsorship can go wrong and damage an organization's reputation and financial standing if you select the wrong firm. Fiscal sponsorship is when an organization outsources their financial management to a third party. If you decide to employ an outside firm to handle your money, make sure you do your due diligence when selecting one. Hiring a firm capable of managing all your financial needs will help you prevent any hiccups down the road. It is imperative to interview several firms and not only those referred to you in order to find the best fit and ensure your finances are handled properly and soundly. 

Thanks for tuning into this episode of the Nonprofit Nuggets Podcast! If you liked what you heard, please leave a review and share this episode! 

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/

• Like us on Facebook: https://www.facebook.com/cnrgadvisory/

• Follow us on Twitter: https://twitter.com/cnrgadvisory

• Connect with us on LinkedIn: https://www.linkedin.com/in/chyla-graham-cpa-94a30280/

This Week’s Story

• https://baltimorebrew.com/2020/08/20/inspector-general-opens-investigation-into-strong-citys-handling-of-grantee-money/

Podcast Resources

• https://www.cnrgaccountingadvisory.com/About/

• https://nonprofitnuggets.podbean.com/

DIY 990

• https://www.cnrgaccountingadvisory.com/990/

This season on Nonprofit Nuggets, we will focus on recent stories about various nonprofits missteps and how to avoid some of these mistakes. 

In this episode, we head to Monterey County and discuss an embezzlement scandal of over $700,000 by founder and director of Central Coast Kids and Families, Lolita Garcia. While many of the employees overbuilt their work and could fraudulently alter timesheets and had too much financial leeway, the onus of keeping such activity in check falls on the board of directors. This speaks to the need for the board to build out a compensation committee in order to regulate salaries among staff.

There is also a need for performance evaluations for staff, and a conflict of interest documentation to keep everyone accountable and separate any business and personal interests.

Thanks for tuning into this episode of the Nonprofit Nuggets Podcast! If you liked what you heard, please leave a review and share this episode! 

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/

This Week’s Story

• https://sanfrancisco.cbslocal.com/2020/12/03/director-of-monterey-county-nonprofit-sentenced-for-embezzlement/

Podcast Resources

• https://www.cnrgaccountingadvisory.com/About/

• https://nonprofitnuggets.podbean.com/

Impact Basics

• https://cnrg-school.thinkific.com/courses/impact-basics

This season on Nonprofit Nuggets, we will focus on recent stories about various nonprofits missteps and how to avoid some of these mistakes. 

On today’s episode, we are discussing a story out of Austin, TX around an accountant found guilty of stealing 1.3 million dollars from his organization. This Rodeo Austin accountant subsequently lost his accounting license and left his former employer in financial strife, as they used the proceeds from their annual Rodeo to fund scholarships and other community initiatives. 

In order to prevent situations like this from occurring, it is of utmost importance to file consistent expense reports and audit those reports in order to track any suspicious spending. It is also important to limit access for employees to financial resources. This will also help corral any outlandish and curious spending and help keep all parties accountable. 

Thanks for tuning into this episode of the Nonprofit Nuggets Podcast! If you liked what you heard, please leave a review and share this episode! 

Podcast Resources

• https://www.cnrgaccountingadvisory.com/About/

• https://nonprofitnuggets.podbean.com/

Impact Basics

• https://cnrg-school.thinkific.com/courses/impact-basics

This Week’s Story

• https://www.kxan.com/news/former-rodeo-austin-accountant-pleads-guilty-to-theft-sentenced-to-probation/

This season on Nonprofit Nuggets, we will focus on recent stories about various nonprofits' missteps and how to avoid some of these mistakes. 

In this episode of NNP, we discuss severance misappropriation from the Maryland Environmental Service.

A severe miscommunication between a former MES CEO, board members, and the Governor of Maryland has left all parties in a lurch, as they debate over who knew what regarding the severance payout arrangement that was (supposedly) in place. We highlight the importance of documentation in everything that you do in order to create a paper trail to hold all involved parties accountable and have enough proof to cover yourself in case there are questions.

Thanks for tuning in to this episode of the Nonprofit Nuggets Podcast! If you liked what you heard, please leave a review and share this episode! 

Resources

• https://www.cnrgaccountingadvisory.com/About/

• Impact Basics Course: https://cnrg-school.thinkific.com/courses/impact-basics

Connect with Chyla and CNRG Accounting Advisory:

• Follow us on Instagram: https://www.instagram.com/cnrgadvisory/

Thanks for tuning into this episode of the Nonprofit Nuggets Podcast! If you liked what you heard, please leave a review and share.

This week we focus on an article about East Central Illinois Community Action Agency misusing federal grant funds. We offer several ways to remedy these problems to help your nonprofit avoid running afoul of the government. We highlight particular mistakes that they made and what you can do in your nonprofit to ensure you do not do the same. Tune in! 

Highlights:

• Failure to adhere to submission guidelines

Resources:

• https://www.cnrgaccountingadvisory.com/About/

Register for Ready, Set, Process

Sign-up for Six Week Course: Impact Basics

This week, we focus on how small accounting errors can rock the foundation of your business.  We focus on the importance of staffing your accounting department with proper and highly trained personnel in order to make sure there are no accounting snafus. Tune in!

Highlights

• Having Right People in Right Roles

Thanks for tuning into this episode of the Nonprofit Nuggets Podcast! If you liked what you heard, please leave a review and share this episode! 

Resources

• https://www.cnrgaccountingadvisory.com/About/