Internal Controls

Background and Key Elements of the Case
The executive director CSJ Kidogo and his wife Hitaji Kidogo, the assistant executive director of the Little People's World, a non-profit foster care agency, have been charged with embezzlement in 2014. They have embezzled more than $460,000 from a taxpayer-funded nonprofit agency hired by Los Angeles County to help abused and neglected foster children. The executive director and his wife, the assistant executive director of the Little People's World, a non-profit foster care agency, have been charged with embezzlement in 2014. They have embezzled more than $460,000 from a taxpayer-funded nonprofit agency hired by Los Angeles County to help abused and neglected foster children. The executive director and his wife, the assistant executive director of the Little People's World, a non-profit foster care agency, have been charged with embezzlement in 2014. They have embezzled more than $460,000 from a taxpayer-funded nonprofit agency hired by Los Angeles County to help abused and neglected foster children.They used agency money to purchase personal real estate in Northern California and Oklahoma. The couple also allegedly borrowed agency money without repaying it, funded personal vacations and collected salaries totaling $269,000. (Therolf, 2014)

Situation of Little People’s World
The nonprofit operated two group homes in Compton and two in Riverside County that normally care for a total of 28 children. In all, the agency received about $2.5 million annually from the two county governments. Money was offered for direct service work or prevention and community education. So investments dollars in what matters most, services that supported children and families to heal, build resiliency and thrive. And also maintained an active outreach program to make sure kids and adults can identify abuse and got help. However, the truth was organization’s buildings in disrepair and insufficient planning to ensure children's needs were...