Nonprofits receiving federal funds must comply with "the Code of Federal Regulations (CFR), Office of Management and Budget (OMB) cost principles, and the terms and conditions of your assistance agreement." The U.S.
Internal control
The segregation of duties essentially boils down to assigning different personnel to different steps in the processes of managing the nonprofit's money. The premise of this practice is that, the more people involved in the management of assets, the less likely for there to be instances of theft or fraud when compared to one individual possessing near complete control over a process.
Internal Controls to Help Deter Fraud is a video in the Nonprofit Accounting Basics educational webinar series, where CPA Shawn Miller (Calibre CPA Group) discusses the relationship between weak financial oversight and fraud, as well as deterrence and detection through strong internal controls. (