RISKY BUSINESS - SAS 99 - A NONPROFIT CASE STUDY
A Nonprofit Closes after being labeled High Risk: SAS 99 - A Nonprofit Case Study by pam ashlund “The worst lies are the lies we tell ourselves” Richard Bach Looking for how auditors assess risk? On July 31, 2006, The Washington Times reported that the Arlington Community Action Program (ACAP) was shutting its doors . Community Action Agencies have been providing poverty prevention programs since 1964 and Arlington was no exception, having just celebrated it's 40th anniversary and being awarded a commendation from Congress. What do we feel when one of our fellow nonprofits goes down? Worried that the situation will cast its dark shadow upon us? Sad that maybe it was unfair; or that they did good work; or that they didn’t know any better? In the end the best we can do is a careful post-mortem and then…learn from their mistakes…and hope that history won’t repeat itself. What happened at ACAP? First ask yourself “ what makes you feel safe ”? How about “ We’ve been in business for ove...