A policy is not a procedure
By Performance Forensics ·
Most charities have a fraud policy. Far fewer can show that it works.
It is easy to see why. A policy is written, approved by the board and filed. The charity then gets on with its real work. Over time staff change, systems change and the policy ends up describing a charity that no longer exists.
Where the gaps appear: fundraising income arrives from events, legacies, online platforms and collections, often handled by people outside the finance team. Grants paid out need evidence of spending and checks on recipients. Shops and trading combine cash, stock and volunteers and need clear, simple controls. Overseas partners make oversight harder and assumptions easier.
Testing, not trusting. An independent review does not simply read the policy. It takes a sample and follows it through. A donation is traced from the donor to the bank and into the accounts. A grant is followed from approval to the evidence of how it was spent. Small samples tell you a great deal.
Why it matters now. Trustees who can show their controls have been tested are in a far stronger position, whether they are facing the Charity Commission, a funder or, for larger charities, the new failure to prevent fraud offence.
If you would like to know whether your procedures would stand up to scrutiny, we would be glad to help.