• BDO NEW ZEALAND - Not for Profit Survey 2016

BDO Not-for-Profit Survey 2016

16 May 2016

Original content provided by BDO New Zealand.

By Bernard Lamusse, Audit, Assurance & Advisory Partner, BDO New Zealand

We are pleased to present the sixth BDO New Zealand Not-for-Profit Survey, covering 12 years of trends in fraud, in the sector.

The 2016 survey revealed two significant concerns. The first was a gap in the perception of fraud amongst Not-for Profit organisations.

Most respondents identified fraud as a significant problem for the sector overall, however, few believed it was a significant problem for their own organisation.

The second major concern was that the overall awareness of fraud as an issue seems to have reduced since the previous survey in 2014.

These findings perhaps explain why respondents also reported a low level of recent or planned fraud prevention activities. Many also reported a level of uncertainty about the potential impact of fraud on
their organisation and the likelihood of it becoming a greater issue in the future.

The survey results may indicate a level of complacency amongst Not-for-Profits that ‘it won’t happen to us.’ That complacency means they may not be doing enough to actively prevent fraud and protect themselves against potential threats.

This report focuses predominantly on fraud prevention within Not-For-Profits. The report identifies what measures survey respondents currently have in place, the strengths and weaknesses of current approaches and potential gaps and issues that may need to be addressed. We hope you find it useful.

The impact of fraud can be immense, particularly for smaller organisations who have minimal cash reserves. It is the smaller organisations which make up the majority of Not-for-Profits. In the worst cases, fraud can threaten their continued existence.