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Employee Fidelity

10 best practices to help prevent workplace fraud

1

Perform Background and Credit Checks

Review/investigate the backgrounds of:

  • All new staff
  • Volunteers
  • Persons handling any form of payment

2

Develop and disseminate a Code of Conduct

  • Create policies, processes and controls to prevent fraudulent behaviour
  • Have each person read the code and sign a form that they have read and agreed to your protocols

3

Institute employee/volunteer Training

  • Encourage everyone to be watchful and vigilant
  • Establish a mechanism for ‘anonymous’ reporting of violations or suspicions of fraud

4

Minimize access

  • Minimize the number of people who have access to funds and financial matters

5

Implement a “Two-Person” rule

  • Establish a two-person system for handling funds e.g. counting
    and depositing donations
  • Implement a policy requiring two signatories for all outgoing cheques

6

Establish policies for handling donations

  • Deposit donations as soon as possible, no later than next business day
  • Ask regular donors to use electronic funds transfer, if possible

7

Conduct regular audits

  • Inform all concerned that audits are undertaken routinely
  • Undertake surprise audits as well
  • Reconcile financial records on a regular basis

8

Assess all vendors and suppliers

  • Vet all suppliers to avoid phony invoices and other billing schemes

9

Create a formal approval process

  • Set dollar limits for employees and volunteers who order products or services
  • Institute an approval process if these limits must be exceeded

10

Keep financial records in a safe place

  • Implement computer backups and use cloud or off-site storage

This advice or information is provided in good faith and is based upon our understanding of current law and practice. Neither Ecclesiastical Insurance Office plc nor its subsidiaries accepts any liability whatsoever for any errors or omissions which may result in injury, loss or damage, including consequential or financial loss. It is the responsibility of the Insured or any other person to ensure that they comply with their statutory obligations and any interpretation or implementation of the above is at the sole discretion of the Insured or other party who may read these notes.


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