WhistleBlower Tracking Report (April 2013)
PURPOSE OF THIS TOOL: A key defense against fraud occurring in an organization is the availability of a means for employees and other constituents to anonymously report suspected wrongdoing (whistle-blowing). Respondents to a 2004 survey by the Association of Certified Fraud Examiners (ACFE) revealed that various forms of fraud are detected 40 percent of the time by tips, the leading method for detecting fraud. Also, ACFE recommends opening the system to suppliers, customers, and others, which can increase the number of reports by approximately 50 percent.
While whistle-blower programs are not required of not-for-profit organizations, many agree that it is a prudent practice to follow. In addition, some states have adopted whistle-blower provisions, and federal law prohibits retaliation against anyone “blowing the whistle” with respect to a violation of a federal law or regulation.
If a not-for-profit organization chooses to institute a whistle-blower program this tool could be used by the audit committee and management to implement an appropriate policy and process, to review any complaints received regarding internal accounting controls or auditing matters, and to track complaints received to an appropriate resolution.