TrueHeart Inc. Financial Risk Assessment Module

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1	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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7	Risks		STEP ONE:			STEP TWO:	STEP THREE:	STEP FOUR:
8			Likelihood (L)	Consequence (C)	Inherent risk rating L + C = IRR	Existing controls	Control gaps	Actions and Action Owners
9			Likelihood (L)	Consequence (C)	Inherent risk rating L + C = IRR	Existing controls	Control gaps	Actions and Action Owners
10	Corruption	Conflicts of Interest	1	2	3	All board members must declare conflicts of interests and take appropriate action to always act in the best interest of the charity	N/A	N/A
11		Bribery	1	3	4	All 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/A	N/A
12		Economic extortion	1	5	6	All 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 other	TrueHeart Centre is monitored by CCTV and all volunteers are aware of the number for police/emergencies
13	Asset misappropriation	Theft of cash	2	1	3	Donation boxes are locked and the keys are in the authority of two assigned volunteers who deposit the cash weekly to TrueHeart Inc. bank account	If the two volunteers colude and steal the cash	TrueHeart Centre is monitored by CCTV and all volunteers are actively monitoring the safety of the cash
14		Theft of inventory and other assets	2	1	3	Volunteers log the use of perishable goods and regularly do stocktake for other inventory	N/A	TrueHeart Centre is monitored by CCTV and all volunteers are actively monitoring the safety of all inventory
15		Remuneration fraud	1	1	2	All volunteers, including board members contribute their time and effort pro bono without any remuneration.	N/A	Should we have paid volunteers/staff in the future, we will review our policy
16		For example, ghost employees, fraudulent timesheets	1	1	2		N/A
17		Procurement fraud	1	1	2	Only 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	For every non-regular expenses above $500, a discussion will take place during regular board meetings
18		Including from vendors, suppliers, contractors and consultants	1	1	2		If board members colude
19		Expenses fraud	1	1	2	Only 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 expenses	For every non-regular expenses above $500, a discussion will take place during regular board meetings
20		Tampering with cheques	0	0	0	We do not use cheques	N/A	N/A
21		Other external fraud or theft	1	1	2	Do 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 passwords	N/A	N/A
22		Including perpetrated by partners	1	1	2		N/A	N/A
23	Financial statement fraud	Incorrect amounts recorded in financial statements	3	3	6	The treasurer regularly cross checks financial statements against receipts. Periodical monitoring is also done	N/A	N/A
24		Fraudulent employee credentials	1	3	4	Reference checks are made, due diligence is done on referees and references	N/A	N/A
25		Other fraudulent non-financial statements For example, fraudulent forecasts or performance evaluations	1	3	4	The board oversees all performance evaluations and forecasts. The treasurer provides recommendations on budgeting, forecast and cash flow	Human error	Consult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
26	Other	Terrorist financing, diversion or sanctions breaches	1	1	2	Due diligence on all partners, consultants, contractors	Human error	Consult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
27		Involvement in money-laundering	1	1	2	Due diligence on all partners, consultants, contractors	Human error	Consult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
28		Deceptive fundraising	1	1	2	Clear & stringent financial controls	Human error	Consult with a professional accounting/financier to check forecasts, ledgers, cash flow reports to ensure everything is logical
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31	Completed by:	Kim Iskandar (Chairperson), Lyon Iskandar (Treasurer)
32	Date:	22 November 2019
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