Following a recent investigation by the Office of the Inspector General, the Global Fund to Fight AIDs, Tuberculosis and Malaria announced findings from its funding audits. The organization discovered that 3 percent of funds were either improperly accounted for, spent on activities that weren't in line with grant requirements or were used fraudulently.

"We do not tolerate any misuse of funds, no matter how minor," said Cees Klumper, chief risk officer at the Global Fund, who conducted the analysis. "Although some of these funds were misspent, and are just ineligible expenses, a small percentage of funds are misappropriated through fraud. We actively pursue and expose all such cases."

Global Fund, which is a public-private partnership and worldwide financial resource, has approved funding of $22.6 billion as of December 2011. The organization expressed plans to tighten up grant management practices to reduce further oversight and ensure funds are being used in the most effective ways possible.

Nonprofits and other programs that want to apply for grant opportunities might consider using fund accounting programs when submitting applications. The software will allow them to generate reports demonstrating their financial needs and identify ways in which the money will be spent.