Not for Profit Organization

The entity is a not-for-profit organization that collects funds from its members for the achievement of its stated collective objectives.

Most of the activities of the Organization were being managed by a third-party vendor, based on and supported by a contract, entered into by the Organization, with periodic reporting to and oversight by the Trustees.

The Trustees believed there were issues related to statutory compliances which needed to be addressed and streamlined and they needed a process implemented which will minimize the challenges of identifying instances of over-invoicing from its vendors.

Pain points

1. The clauses in the contract were liable to contradicting interpretations.
2. This provided the vendor with enough flexibility to bypass certain checks and balances which, in the normal course, would have helped highlight matters which required specific attention by the Trustees.
3. The Trustees were not aware of the statutory compliances that their Organization was liable to comply with.
4. They did not possess the time or resources to look at all the transactions and identify the ones which required their specific attention.

Transformation and Solution

1. The entire scope was segregated into various domains with each partner owning up and delivering on his area and leverage his expertise and experience.
2. Each area of the review was referenced to the contract and instances highlighted, which led to Standard Operating Procedures being formulated for all significant areas.
3. Automation was utilized to ensure periodic reporting of key transactions to the Trustees.
4. Application controls were implemented to ensure the segregation of duties to mitigate the risk of financial fraud.
5. Existing functionalities within the application were utilized and the process was streamlined to facilitate better control. The above automation and controls implementation was done with no additional investment or cost to the Organization.
6. A statutory compliance calendar was created, and technology utilized, to ensure that relevant details were made available to select individuals, about obligation and fulfillment.
7. A continuous review plan was implemented for significant areas, which ensured that the key and high-risk areas were under continuous oversight of the Trustees.
8. The contract was re-negotiated to minimize interpretation complexities and a revised contract which included specifics about the implemented processes and their compliance included therein.

Since the Organization is up against a dynamic environment as a result of the change in people, changing statutory laws, various sources of income, and expanding objectives, Thynkfinn continues to support the Organization through periodic pieces of training and seminars.