Fraud and unauthorised payments

Fraud involving unauthorised payments has been in the news a lot lately. Therefore, it is a good time to review your entity’s payment and approval process. We have prepared a few tips for you to consider:

  1. Have two or more people approving payments (whether by cheque, electronic, or automatic payment)
  2. Ensure all payments and accruals have supporting documentation. This documentation should include approvals, both authorising the invoice and authorising the payment
  3. If purchases are made where purpose is difficult to determine (eg. cafe purchases), ensure the purpose of the expense is noted
  4. Do not allow those with the ability to approve invoices to pay them
  5. Regularly review electronic banking systems to check people have appropriate levels of access
  6. Ensure petty cash and bank accounts are regularly reconciled
  7. The governing body, or the finance subcommittee, must review and be aware of payments made
  8. Double check bank account numbers in online banking payments
  9. Check appropriate segregation of duties are in place.


If you think you may be affected by fraud or have any questions, please get in touch.

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