Internal Control

Internal control refers to the systems, policies, and procedures an organization implements to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. These controls include measures such as segregation of duties, authorization protocols, physical safeguards over assets, and accurate recordkeeping. For nonprofits, effective internal controls are critical in maintaining donor trust, ensuring compliance with laws and regulations, and supporting the overall mission. Internal controls help organizations achieve their objectives by minimizing errors or misuse of funds, and by providing reliable financial reporting that management and stakeholders can depend upon.