You simply have to ask these tough questions of your business manager and your auditor.
1. Does one person have control over all of your accounting functions?
2. Are two signatures required on checks over a pre-determined amount - say, $500?
3. Are checks ever pre-signed?
4. Are your bank accounts consolidated so that your bookkeeping accurately reflects the school's true financial position?
5. Is there petty cash lying around?
6. Are different people assigned to the deposit and account reconciliation functions?
7. Do you have a purchase order system?
8. Does your committee review expenses and supporting vouchers carefully and frequently?
9. Does an outside auditor review your books annually?
10. Do you run background checks and speak to references before you hire?
Insist that your school be run like a business
Some schools find it difficult to implement standard business practices. Even when they do, they can find it even more difficult to stick to those practices. Be careful of the trusted old employee who's been there forever and resists your updated business procedures.