Internal Controls Checklist

What are internal controls?

Internal controls are a set of policies and procedures to prevent deliberate or misguided use of funds for unauthorized purposes.

Why have them?

  • Internal controls help to provide reliable data by ensuring that information is recorded in a consistent way that will allow for useful financial reports
  • They also help prevent fraud and loss by safeguarding assets and essential records.
  • Internal controls promote operational efficiency by reducing unnecessary duplication of effort and guarding against misallocation of resources.
  • They encourage adherence to management policies and funding source requirements.

CompassPoint is pleased to share with the nonprofit community a sample internal controls checklist – we invite you to download and adapt any and all of these documents for your own use.

Please note that these materials are provided for informational purposes only and do not constitute legal advice. You should not rely upon this information for any purpose without seeking the advice of an attorney in your state taking into account applicable state and local laws as well as the facts of your specific situation. CompassPoint thus expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of the documents posted on this website.

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