Risk management is as critical in the not-for-profit sector as it is in the for-profit world. The more common definition of risk is the chance that events prevent an organization from achieving its objectives. In reality, risk is the possibility that events will affect the achievement of objectives.
Segregation of duties strengthens internal controls. Accounts payable or AP is one of the easiest channels for an organization to lose money if internal controls are weak. The AP department’s responsibility to monitor, process, and control payments to creditors is essential to avoiding improper payments. If there is no segregation of duties, internal controls are likely to be weak. If internal controls are weak, the risk of errors and improper payments increases.
Electronic signatures are widely accepted in Canada and many other countries. Each Canadian jurisdiction has general electronic commerce statutes that deem electronic signatures acceptable and equivalent to “wet” or handwritten ones, with certain exceptions, and if they meet stated requirements.