Six questions every trustee should ask about fraud
By Performance Forensics ·
Fraud rarely announces itself. In charities it tends to sit quietly where nobody looks too closely, often because everyone trusts each other.
Trustees do not need to be accountants to hold their charity to account. They need to ask the right questions and expect clear answers.
1. When did we last assess our fraud risks? A risk register with fraud as a single line is not an assessment. Ask where fraud could actually happen and who could commit it.
2. Who can change supplier bank details? Payment diversion is one of the most common frauds. Any change should be checked by phone using a number already held on file.
3. How is income reconciled? Shops, events, collections and online giving all need regular reconciliation by someone other than the person handling the money.
4. Does anyone check Gift Aid claims? Errors or inflated claims can create a liability with HMRC and damage the charity's reputation.
5. Can anyone approve their own expenses? It happens more often than you might think, particularly at senior level.
6. How would someone raise a concern? A whistleblowing route only works if staff know it exists and trust that it will be taken seriously.
A good finance team will welcome these questions. If the answers are vague or slow to arrive, it may be time for an independent look.