How Can My Board Practice Accountability?

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Thoughtful Boards can adopt far more useful policies and practices to ensure accountability, including:

  • Create of an independent audit committee with at least one financially expert member. Independent means that no staff members serve as voting members and that all committee members serve as uncompensated volunteers.
  • Have the audit committee select the auditor and communicate directly with the auditor before, during, and at the conclusion of the audit.
  • Require the Executive Director/CEO and the Fiscal Manager/CFO to take direct responsibility for the accuracy, completeness, and fairness of the financial statements and 990, and to state directly that the organization has adequate internal controls.
  • Establish procedures for staff and interested parties to report accountability concerns anonymously and ensure that all reports are fully investigated and resolved.
  • Pay close attention to auditor independence which requires that auditors not provide bookkeeping, financial systems implementation, appraisal, or certain other services for audit clients.
  • Adopt a conflict of interest policy for Board, management, and staff.
  • Review accounting and records retention policies
  • Let the public know about your commitment to accountability and the policies and practices you have adopted.