🧾 Red Flags, Green Flags, and When to Ask for Help Strengthening Ethical Awareness and Internal Controls in Public and Nonprofit Sectors 📘 Introduction Public sector organizations and nonprofit institutions play a critical role in delivering services, stewarding public trust, and safeguarding community resources. However, their effectiveness can be severely compromised when unethical behavior, weak internal controls, or misaligned incentives are allowed to persist unchallenged. The case of Rita Crundwell and the City of Dixon, Illinois—in which over $53 million was embezzled over two decades—stands as a stark reminder of what can happen when warning signs are overlooked, documentation is bypassed, and whistleblowing is discouraged. In response to growing calls for ethical accountability and fraud prevention, this training program offers an applied framework to help employees, managers, auditors, and board members better recognize "red flags" (indicators of risk or misconduct), "green flags" (signals of strong governance), and the conditions under which it is both necessary and appropriate to ask for help or escalate concerns. Drawing from established best practices such as the GAO Yellow Book, GFOA guidelines, and empirical research on ethics and internal auditing, this program encourages participants to reflect critically, act responsibly, and contribute to a culture of accountability and learning. 📋 Executive Summary This report introduces a one-hour training module designed for public servants and nonprofit professionals. The core goal is to operationalize ethical awareness by equipping participants with: A shared vocabulary of red and green flags A simple decision-making heuristic (“The 3-Question Gut Check”) Scenario-based learning to simulate real-world risk decisions Concrete tools to support ethical escalation and documentation The kit is intended for use in onboarding, annual ethics training, audit readiness sessions, or internal control reviews. By integrating case-based learning with actionable tools, the training supports both preventative ethics and responsive risk management. 📑 Table of Contents Section Description 1. Introduction Contextual overview of ethics, risk, and control failures in the public and nonprofit sectors 2. Executive Summary Key takeaways, training purpose, and outcomes 3. Case Background: The Dixon Embezzlement A detailed review of the Rita Crundwell case and its implications for internal control systems 4. Theoretical Frameworks Ethics theory, internal control literature, and decision science supporting the training design 5. Learning Objectives Seven measurable goals aligned with public governance standards 6. Red and Green Flags Defined Categorized examples with explanations grounded in GFOA and GAO standards 7. The 3-Question Gut Check Model A practical heuristic for everyday ethical decision-making 8. Training Workshop Components Slide deck overview, visual aids, handouts, and facilitation notes 9. Assessment and Certification 20-question multiple-choice test with answer key and certificate template 10. Recommendations for Implementation How to integrate training into annual ethics reviews or audit readiness plans 11. Appendices Editable tools, escalation path templates, reference checklists 12. References Scholarly and professional sources cited throughout the training design