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TrueHeart Inc. Financial Risk Assessment
TrueHeart Inc. is a registered charity with the Australian Charities and Non-Profits Commission ABN 23625852066.
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RisksSTEP ONE:STEP TWO:STEP THREE:STEP FOUR:
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Likelihood (L)Consequence (C)Inherent risk rating L + C = IRRExisting controlsControl gapsActions and Action Owners
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CorruptionConflicts of Interest123All board members must declare conflicts of interests and take appropriate action to always act in the best interest of the charityN/AN/A
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Bribery134All board members have a legal obligation to act in the best interest of the charity, direct and anonymous complaint contact forms are available to ensure any suspicions are detected and investigated early.
All financial authorisation and action require at least two people to perform and the treasurer regularly monitors financial transactions and policies.
N/AN/A
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Economic extortion156All financial authorisation and action require at least two people to perform and the treasurer regularly monitors financial transactions and policies and the treasurer regularly monitors financial transactions and policies.
Keep all financial credentials, logins and passwords safe.
Can happen if board members who have access to TrueHeart Inc.'s bank account is forced by a criminal or if board memebrs colude with each otherTrueHeart Centre is monitored by CCTV and all volunteers are aware of the number for police/emergencies
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Asset misappropriationTheft of cash213Donation boxes are locked and the keys are in the authority of two assigned volunteers who deposit the cash weekly to TrueHeart Inc. bank accountIf the two volunteers colude and steal the cashTrueHeart Centre is monitored by CCTV and all volunteers are actively monitoring the safety of the cash
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Theft of inventory and other assets213Volunteers log the use of perishable goods and regularly do stocktake for other inventoryN/ATrueHeart Centre is monitored by CCTV and all volunteers are actively monitoring the safety of all inventory
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Remuneration fraud112All volunteers, including board members contribute their time and effort pro bono without any remuneration. N/AShould we have paid volunteers/staff in the future, we will review our policy
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For example, ghost employees, fraudulent timesheets
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Procurement fraud112Only the approved expenses below $100 or regular expenses such as cleaning below $500 may be expended without prior approval. All other necessary expenses must be evaluated, compared and receive authorisation from the treasurer and secretary to be expensed.
If board members coludeFor every non-regular expenses above $500, a discussion will take place during regular board meetings
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Including from vendors, suppliers, contractors and consultants
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Expenses fraud112Only the approved expenses below $100 or regular expenses such as cleaning below $500 may be expended without prior approval. All other necessary expenses must be evaluated, compared and receive authorisation from the treasurer and secretary to be expensed.If board members colude to create fradulent expensesFor every non-regular expenses above $500, a discussion will take place during regular board meetings
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Tampering with cheques000We do not use chequesN/AN/A
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Other external fraud or theft112Do proper due diligence on partners, do not give access to accounts or cash to people other than the assigned volunteers, secure all financial credentials, logins and passwordsN/AN/A
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Including perpetrated by partners
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Financial statement fraudIncorrect amounts recorded in financial statements336The treasurer regularly cross checks financial statements against receipts. Periodical monitoring is also doneN/AN/A
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Fraudulent employee credentials134Reference checks are made, due diligence is done on referees and referencesN/AN/A
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Other fraudulent non-financial statements
For example, fraudulent forecasts or performance evaluations
134The board oversees all performance evaluations and forecasts. The treasurer provides recommendations on budgeting, forecast and cash flowHuman errorConsult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
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OtherTerrorist financing, diversion or sanctions breaches112Due diligence on all partners, consultants, contractorsHuman errorConsult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
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Involvement in money-laundering112Due diligence on all partners, consultants, contractorsHuman errorConsult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
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Deceptive fundraising112Clear & stringent financial controlsHuman errorConsult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
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Completed by:Kim Iskandar (Chairperson), Lyon Iskandar (Treasurer)
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Date:22 November 2019
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