News & Insights

Financial misconduct in not-for-profits isn't usually the dramatic fraud that makes headlines. More often, it's a series of small lapses that compound over time; a missing receipt here, an informal approval there, or grant funds used for the "wrong" purpose during a cash flow crunch. These examples sound free of malice and ill intent, because they often are, as we explored in our previous article on unintentional misconduct. In resource-constrained environments where staff wear multiple hats and trust often substitutes for process, these risks multiply.

Trust, goodwill and a desire to help others sit at the heart of all NFP organisations. These values drive passionate teams to work long hours for causes they believe in, volunteers to give their time freely, and communities to support missions that matter.

Misconduct is often perceived as a single event that suddenly erupts. Although cases like these do occur, misconduct typically appears as a series of more subtle signs that are missed. They can be small oversights, minor assumptions that go unchecked, or grey areas that remain unchallenged. Within not-for-profits, where reputation and regulatory compliance are paramount, recognising these early warning signs isn't only good governance, it's essential to an organisation's longevity.

The NSW Auditor General released his Local Government 2024 report in March this year, and it highlighted some of the financial vulnerabilities that we know exist within the sector.

One of the key financial benchmarks used to track council performance by the NSW Auditor General and the NSW Office of Local Government is the operating performance ratio. This ratio provides an indication of whether the Council is carrying ongoing deficits, and the benchmark is a break even average over three years.

Many agencies and departments are now addressing the new reporting requirements for the November 2024 update to the Protective Security Policy Framework (PSPF) for the period to 30 June 2025.
The PSPF is the essential guideline for Australian Government agencies to safeguard their information, people, and assets. The update to the PSPF introduced new compliance requirements that aim to strengthen the security posture across various government entities. Previously, entities were reporting maturity, but those days are no longer.

Cyber threats are escalating at an unprecedented pace. From sophisticated ransomware campaigns that lock down entire networks to stealthy phishing attacks targeting users, no organisation is immune. For local councils, SMEs, and not-for-profits alike, a single breach can mean lost data, service disruptions – and a serious hit to public trust.  

Procurement and contract management have evolved far beyond simple business functions. Today, they serve as strategic levers – capable of driving measurable success and mitigating serious risks such as mismanagement, fraud and corruption. This dual focus is particularly vital for government bodies and small to medium-sized organisations, where budgets are finite and accountability is paramount.

For Not-for-Profits, where community trust and funding go hand-in-hand, the consequences of workplace misconduct can be long-lasting and potentially fatal. Thinking that "it won't happen to us" doesn't guarantee that your NFP is safe – no matter its size.  

Climate change is here, and its effects are increasingly shaping our world. For those of us in all levels of government, this isn't just a global issue; it's a reality we're grappling with every day. As communities look to us for leadership and resilience, how effectively we monitor and report on our climate adaptation efforts has never been more critical.