Case Studies
J.S. Held Releases Insights on Risks & Opportunities Expected to Impact Organizations in 2025
Read MoreNon-profit entities can be particularly susceptible to potential fraud. These organizations are mission-focused and often have fewer resources to design and implement effective internal controls and processes to prevent and detect fraud compared to other for-profit businesses. While some larger non-profit entities have internal audit functions and more formalized internal controls and risk assessments, many non-profit entities do not have the resources (both financial and people) to develop and support a comprehensive anti-fraud program.
In this situation, certain members of the Board of Directors suspected that an executive was mismanaging the financial resources of the non-profit organization for personal gain. Suspicions were raised when the entity began to experience unexpected cash flow issues. Certain members of the Board of Directors performed a preliminary review and discovered that significant amounts of the entity’s assets were unaccounted for, and the financial viability of the entity was in question.
J.S. Held was engaged by external counsel of the non-profit organization to perform an internal investigation and quantify the economic harm due to the alleged fraud and misuse of assets. Our team performed an initial assessment to understand the financial accounts of the entity and relevant internal policies and procedures, and to review and analyze a subset of financial records. Based on this assessment, we then developed a detailed work plan.
Our team interviewed key personnel and reviewed relevant records such as board meeting minutes, financial and accounting records, email communications, and vendor contracts. This included analysis of transaction-level financial records, including bank accounts, investment accounts, credit card statements, and payroll records for the period the employee had control of financial accounts. We reviewed available supporting documentation to understand the nature of the disbursements, determine whether they were compliant with applicable internal policies, and identify potential fraudulent or other questionable transactions. To support our investigation, our team utilized forensic technology to image select computers and tablets and collect emails and other documents to perform targeted document reviews to support the investigation.
At the conclusion of our investigation, we prepared a report for the Board of Directors documenting the procedures performed, findings from such, and quantification of economic harm. We also supported the remediation efforts of the entity by providing recommendations for new policies, procedures, and internal controls and updates to those already in place. As a result, the entity is better equipped to mitigate, detect, and deter potential fraud in the future.
Amy Yurish, CPA, CFF, CFE
Managing Director
Global Investigations
+1 703 654 1453
[email protected]
> Fraud & Investigations
We deliver strategic guidance regarding investigations of fraud and misconduct, corruption, accounting irregularities, regulatory inquiries, and whistleblower allegations. As a market leader in dispute and investigative consulting, J.S. Held advises clients on a wide range of contentious situations including litigation and arbitration, fraud and corruption, asset tracing, and enforcement.
> Investigations / Compliance Consulting
J.S. Held’s global investigations team provides companies, legal counsel, financial institutions, government agencies, and high-profile individuals with the information required to make well-informed business and legal decisions. Our team is retained to advise in multijurisdictional regulatory inquiries and investigations, compliance issues, business transactions, and legal proceedings.