Operational Misconduct Generates Significant Financial Loss for a Canadian Nonprofit – Fiduciary Implications (updated)
An accounting audit of a leading non-profit in Canada with revenues in excess of $100 million recently uncovered a scheme by which a group of employees achieved a significant and continuing theft of operating revenues over a number of years.
It might seem odd that there is a similarity between the speech by Henry V at the Battle of Agincourt and proper fiduciary governance.
A company’s long-term survival depends on paying attention to both financial and social metrics. As fiduciaries, we need to keep in mind the importance of demonstrating not only WHAT we do, but WHY we do it.
As stated in the prudent man rule, found in ERISA Section 404(a)(1)(B), fiduciaries must act: “with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with […]