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Sarbanes-Oxley and Implications for Nonprofits
Created to rebuild public trust in the corporate community in the wake of corporate and accounting scandals, the American Competitiveness and Corporate Accountability Act, or Sarbanes-Oxley Act, requires that publicly traded companies conform to new standards in financial transactions and audit procedures. As state officials explore ways to apply elements of the law to the nonprofit sector, BoardSource and Independent Sector offer the publication, The Sarbanes-Oxley Act and Implications for Nonprofit Organizations, which provides nonprofit leaders practical recommendations on promoting effective oversight of their organizations.
A checklist for foundations includes the following general headings:
1. Insider Transactions and Conflicts of Interest
2. Independent and Competent Audit Committee
3. Responsibilities of Auditors
4. Certified Financial Statements
5. Disclosure
6. Whistle-Blower Protection
7. Document Destruction
For more information please refer to: http://www.independentsector.org/issues/sarbanesoxley.html
