Stronger internal controls needed to prevent fraud as in the SDCC

http://www.nwprogressive.org/weblog/2013/09/michael-kings-embezzlement-demonstrates-why-progressive-and-democratic-organizations-need-strong-internal-controls.html

But sadly, it seems nobody thought to provide this oversight. Senators took a hands-off approach to day-to-day operations. They gave King flexibility but they didn’t couple it with supervision; as a result, King was able to conceal his stealing for months. Had he been caught and stopped, and replaced with a competent executive director ahead of November 2012, Probst might have won his race.

Jason Bennett, who served as the SDCC’s compliance officer and treasurer, was required under his contract to file timely and properly prepared reports with the Public Disclosure Commission, but the accuracy of the information he was submitting was not his responsibility – nor should it have been.

Remember, the segregation of duties principle calls for different individuals to be responsible for related activities.

I have no doubt the WSDC, the successor to the SDCC, has given serious thought to putting sensible internal controls in place to negate and prevent a repeat of the King embezzlement. But I wonder: how many other progressive and Democratic organizations have done the same?

Many clubs, associations, and grassroots political organizations are run by volunteers, including a volunteer treasurer and chair. Such organizations look and operate very differently than for-profit businesses.

They still need internal controls, though.

Therein lies the challenge: How can organizations within our movement instill confidence in donors that the money they’re giving will be managed with care? Perhaps we need to develop a guide to best practices that is especially tailored for progressive nonprofits and campaigns, which provides tailored guidance and practical ideas for internal controls that they can realistically implement given their personnel constraints and resource limitations.