Protect Your Charity’s Money – Internal Financial Controls

Fraud Top TipsAs a trustee you must take steps to make sure that your charity’s money is safe, properly used and accounted for. Every trustee has to do this. Even if your charity has an expert to manage its finances, you are still responsible for overseeing your charity’s money.

Protect your charity’s money

Make sure that money is only spent on what is allowed by the charity’s governing document and policies. If it is not, you and the other trustees need to put it right.

Use the Internal financial controls checklist (MS Word Document, 31.6KB) to help you know you are doing this properly. This will help you make sure that money coming into the charity is:

  • secure and recorded
  • only spent on your charitable purposes
  • at less risk of theft, fraud or cyber crime

Advice on Whistleblowing from the Charity Commission

Whistleblowing and defamationAdvice on Whistleblowing from the Charity Commission

The Charity Commission is a ‘prescribed person’ under the Public Interest Disclosure Act 1998 (PIDA), which provides the statutory framework for employment protections for charity workers who make a qualifying disclosure (or ‘blow the whistle’) to them about suspected wrongdoing, including crimes and regulatory breaches by their employer.

“Our aim is to make it straightforward for charity workers to bring concerns covered in PIDA to our attention. It is important that they feel able to speak up about a serious wrongdoing they have identified.

We understand how difficult it may have been for them to bring a matter to our attention, and its importance to them. We recognise the value of this information, as workers will have a unique insight into how a charity is operating on a day to day basis.

These disclosures provide us with information that will help us fulfil our regulatory duties.

When opening a case we record the nature of the issue that is raised with us. The most reported issue categories were governance issues, safeguarding, fraud and money laundering.

Whistleblowing disclosures help us detect and prevent concerns within the sector and take steps to put these right. They help create more effective and efficient charities and more generally assist in raising the public’s trust and confidence in charities and the charitable sector.”

You can also report issues to your employer – check your charity’s whistleblowing policy (a Whistleblowing Policy Template can be found here: Whistleblowing-Policy__fraud_site_)

What to report to the Charity Commission

You can report things that have happened, are happening or are likely to happen. Only report issues to them that could seriously harm:

  • the people a charity helps
  • the charity’s staff or volunteers
  • services the charity provides
  • the charity’s assets
  • the charity’s reputation