Question

You are a CPA and have been asked to volunteer a few hours of your time to review the accounting records and procedures of a small nonprofit, charitable organization with an annual budget just under $5 million. During your review, you are surprised to find accounting records indicating that the CFO initiated and approved three non-payroll checks totaling $10,500 made out to one of the organization's employees. During the course of a private conversation with the CFO, you learn that she "loaned" the money to an employee with 15 years of service whose teenage son is fighting heroin addiction. The nonprofit's insurance does not provide any benefits to cover the cost of addiction treatment. The employee has promised to pay the money back over time after he gets back on his feet financially. What do you do

Answer 1

This starts getting into the question of morality, I don't believe it is right and just like if a child were brought to a daycare where I worked with bruises and symptoms of neglect, I would report it. you also have a legal obligation too and if it ended up coming out then you would be held accountable as well.