Armanino Case Study
Case Study

Social Services Nonprofit Implements Internal Controls to Maximize Resources

April 08, 2015

Updated June 26, 2023

At a Glance

Customer Profile

As a global nonprofit organization with thousands of retail stores, Goodwill relies on sales of donated goods for a significant portion of its total revenue. Armanino evaluated the internal control environment to maximize Goodwill’s resources for serving target clients and advancing the organization’s mission.


  • Armanino Internal Audit Services
  • Armanino CFO Advisory Services


Goodwill is a global social services organization in the United States and Canada that generates opportunities for people who face challenges finding employment. The organization aims to achieve economic stability and build strong families and communities through job training, career services and other community-based programs. To fund its programs, Goodwill sells donated clothes and other household items in more than 2,500 retail stores and online. With multiple retail stores, applying accurate and reliable controls over transactions and inventory is critically important. Each Goodwill location consistently evaluates their controls to better manage their retail sales and inventory which ultimately helps to advance their mission.


Goodwill collaborated with Armanino as part of the annual audits, taking a closer look at retail store controls over inventory and cash receipt cycles and recommending enhancements to improve these controls.

Armanino completed a detailed risk assessment and focused on several of the higher risk areas, including an inventory of controls around donated items, cash count, inventory systems and employee work habits. The approach was practical and was conducted in conjunction with the audit test work. By analyzing the organization’s situation and focusing on high-risk areas first, Armanino advisors delivered tailored recommendations that provide Goodwill with maximum return immediately as well as over the long term.


Based on Armanino’s insights and the organization’s input, Goodwill successfully implemented control enhancements in a number of key cash receipts and inventory process areas including:

  • Cash counts at the stores
  • Inventory skew/barcode tracking system
  • Use of cameras at donation sites
  • Analytical reviews of store margins
  • Analysis of inventory shrinkage from donation to sales point
  • Controls over the tracking of processing costs

Enhancing these controls has not only allowed each Goodwill location to better manage their retail stores, but it has also assisted Goodwill in better serving their constituents.

Don’t Let Weak Internal Controls Derail Your Progress

A strong control environment mitigates financial risks that could prevent your organization from fulfilling key goals. But developing effective controls on your own can be challenging. Whether you’re a small organization or a multinational enterprise, Armanino can help you strengthen your internal control system. Contact our experienced Internal Audit consultants to access customized solutions and expertise that help you protect your unique organization.

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