Dickinson State University has been making recently, and not for good reasons. The North Dakota attorney general, Wayne Stenehjem, announced that his office is filing a motion that would force the Dickinson State University Foundation into receivership. This could lead to a third party being appointed to oversee the assets of the Foundation. The Foundation has been accused of serious financial auditing problems and inappropriate use of restricted funds.
According to The Dickinson Press, Stenehjem said on most occasions, his office would issue subpoenas to get the information that they want, but he said the Foundation’s records are so shoddy that his office wouldn’t be able to get what they need.
The situation that the University is going through is a worst-case scenario for any accounting or business team. That’s why having the proper checks and balances and audit trail in place is crucial to avoiding situations such as Dickinson State is facing.
At , we work with nonprofits to ensure their financial system is secure and there is no chance for misuse of funds. In , we can set up security reports that are generated and distributed automatically. The reports, which identify changes by user, give administrators or board members the opportunity to spot suspicious activity immediately instead of having to comb through information during an audit.
By tracking each grant, donation or asset in Dynamics GP, you can see exactly where the funds originated and how each dollar was utilized. The encumbrance management component alerts users if budget limits have been exceeded, ensures funds are correctly allocated by reserving encumbrances when purchase orders are first entered, password protects encumbrance approvals and offers in-depth reporting options.
Take the time now to put systems in place that will help you during an audit, instead of risking the future of your organization after a bad financial review.
Give a call if you want to learn more.
