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Financial Management

Reducing the risk of fraud by staff and parents

money budgetBy Bevin Fitzsimons 
© ChildForum

 

Why internal control? 

  • Internal control systems are normal in business and society and will be expected of you by your staff, fellow owners, parents, board members, bankers and financiers.
  • They help establish a climate of good control which produces reliable financial records, good management and planning, and lead to successful Ministry of Educaiton and annual external audits.
  • They protect your service from the risks and stress of chaos, litigation or closure that can result from major errors or fraud.
  • They give you reliable regular management information.

Internal control systems are best practice systems where the people involved in the entity - the staff, managers, owner, trustees, and directors together agree on, establish and operate systems to achieve the results they desire through:

  • ensuring best practice in all aspects of their work (not just financial),
  • reducing the chances of errors and fraud, and
  • quickly picking up actions that might lead to less than best practice ways of working.

And, best practices required by law are also included, e.g. employment law, etc. 

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