The organization’s Board of Directors should adopt a set of financial policies to ensure that bookkeeping and accounting functions are appropriately assigned, duties are separated, and responsibilities are understood. See Appendices\Financefor examples of financial policies adopted by other charity pharmacies.
In addition, the Board may choose to elect a treasurer or create a financial committee to review financial reporting and internal processes. The treasurer or financial committee may choose to review the organization’s financial statements routinely to offer a financial report that can be discussed and approved by the full Board of Directors on a scheduled basis. Financial oversight of the organization should not be taken lightly. In recent years, board members of charitable organizations have been held responsible when little or no oversight has been provided, and a fraudulent event has occurred. All board members should review the organization’s financial policies and understand their personal responsibility and risk exposure. The charity pharmacy may elect to purchase a directors and officers liability insurance policy that provides protection to individuals supporting the organization in those capacities.