This document discusses fraud prevention strategies for nonprofits. It recommends conducting regular fraud risk assessments to identify vulnerabilities. The best prevention measures include establishing strong internal controls, such as segregating financial duties and conducting background checks on employees. Organizations should also implement a formal fraud prevention program with anti-fraud policies and training, and mechanisms for anonymous reporting of issues. Setting an ethical tone from leadership and maintaining vigilance over finances are emphasized as critical to mitigating fraud risks.
This document summarizes key points from Part III of a three-part series on preventing fraud in nonprofits. It discusses conducting fraud risk assessments and implementing preventative controls and programs. The best preventative measure is hiring honest employees and implementing strong internal controls that separate financial duties. A fraud prevention program includes risk assessments, training, whistleblower policies, and independent oversight. Conducting fraud risk assessments and implementing robust internal controls and prevention programs are essential to reducing fraud in nonprofits.
This document discusses best practices for conducting financial investigations in a cash-based economy. It covers topics such as corruption, cash-based economies, black markets, challenges with unreliable data, forensic accounting techniques, and the roles of forensic accountants. Conducting investigations in cash-based economies can be difficult as accurate financial data may be missing, incomplete or unreliable. Forensic accountants must employ techniques like tracing indirect evidence of unrecorded transactions and sales to overcome these challenges.
Discovering and Preventing Employee Dishonesty and FraudSikich LLP
The document discusses different types of employee fraud such as embezzlement, theft, and occupational dishonesty. It provides statistics on fraud including who commits it and how it is typically detected. The presentation also outlines common fraud schemes and recommendations for organizations to implement strong prevention controls and conduct effective fraud investigations.
Weygandt kieso kimmel_ch08_fraud_internal control and cashTanjina Rahman
The document discusses internal controls over cash, including defining fraud and internal controls, principles of internal controls, and applications of internal controls to cash receipts and disbursements. It describes operating a petty cash fund and control features of a bank account, and explains reporting cash.
Be prepared to deal with fraud for webKatie Farrow
The median fraud loss according to the document was $145,000, with 24% of fraud cases involving losses of at least $1 million. The median duration to uncover a fraud scheme was 11 months. Tips were the most common detection method, accounting for 42% of detections. Targeted fraud awareness training and procedures like reviewing bank statements and mandating vacations can help prevent and detect fraud.
IBM Cognos - Kombinera BI med prediktiv analys för att minimera risker och nå...IBM Sverige
Vi visar hur du kan öka värdet på IBM Cognos lösningarna genom integration med IBM SPSS lösning för prediktiv analys. Detta ger användare på olika nivåer möjligheten att agera mer proaktivt genom att integrera intelligent underbyggda resultat som föutsäger och ger en djupare insikt till existerande IBM Cognos BI och Performance Management lösning. Denna presentation hölls på IBM Cognos Performance 2010 av Robert Moberg, Solution Architect, IBM
IBM Cognos - Vad handlar egentligen prediktiv analys om?IBM Sverige
This document provides a 3-paragraph summary of an IBM performance event about predictive analytics:
Paragraph 1 introduces predictive analytics and how it can help decision makers predict things like infection in newborns, credit line adjustments, customer purchases, and social relationships to prevent customer churn.
Paragraph 2 describes how predictive analytics can optimize transactions, processes, and decisions in real-time using data and predictive models, and how it helps everyone make better decisions rather than just analytical experts.
Paragraph 3 gives examples of how a telecommunications company uses predictive analytics to proactively target at-risk customers and determine the best retention offers to reduce churn.
2 Fraud- Prevention, Detection and Management 072512.pptJoWeeiPOllam
This document discusses fraud prevention, detection, and management for microfinance. It defines fraud as deception to secure unfair gain or cause loss. Fraud can originate from employees or clients and can occur at any stage of the loan process. The document outlines workshops and best practices for microfinance institutions to identify common fraud types, prevent fraud, encourage client feedback, validate accounts, analyze MIS reports, investigate fraud, recover losses, and manage public relations regarding fraud. The overall message is that while fraud cannot be eliminated, it can be prevented, detected, and managed through proper internal controls, policies, audits, and creating a culture of honesty and compliance.
This document summarizes key points from Part III of a three-part series on preventing fraud in nonprofits. It discusses conducting fraud risk assessments and implementing preventative controls and programs. The best preventative measure is hiring honest employees and implementing strong internal controls that separate financial duties. A fraud prevention program includes risk assessments, training, whistleblower policies, and independent oversight. Conducting fraud risk assessments and implementing robust internal controls and prevention programs are essential to reducing fraud in nonprofits.
This document discusses best practices for conducting financial investigations in a cash-based economy. It covers topics such as corruption, cash-based economies, black markets, challenges with unreliable data, forensic accounting techniques, and the roles of forensic accountants. Conducting investigations in cash-based economies can be difficult as accurate financial data may be missing, incomplete or unreliable. Forensic accountants must employ techniques like tracing indirect evidence of unrecorded transactions and sales to overcome these challenges.
Discovering and Preventing Employee Dishonesty and FraudSikich LLP
The document discusses different types of employee fraud such as embezzlement, theft, and occupational dishonesty. It provides statistics on fraud including who commits it and how it is typically detected. The presentation also outlines common fraud schemes and recommendations for organizations to implement strong prevention controls and conduct effective fraud investigations.
Weygandt kieso kimmel_ch08_fraud_internal control and cashTanjina Rahman
The document discusses internal controls over cash, including defining fraud and internal controls, principles of internal controls, and applications of internal controls to cash receipts and disbursements. It describes operating a petty cash fund and control features of a bank account, and explains reporting cash.
Be prepared to deal with fraud for webKatie Farrow
The median fraud loss according to the document was $145,000, with 24% of fraud cases involving losses of at least $1 million. The median duration to uncover a fraud scheme was 11 months. Tips were the most common detection method, accounting for 42% of detections. Targeted fraud awareness training and procedures like reviewing bank statements and mandating vacations can help prevent and detect fraud.
IBM Cognos - Kombinera BI med prediktiv analys för att minimera risker och nå...IBM Sverige
Vi visar hur du kan öka värdet på IBM Cognos lösningarna genom integration med IBM SPSS lösning för prediktiv analys. Detta ger användare på olika nivåer möjligheten att agera mer proaktivt genom att integrera intelligent underbyggda resultat som föutsäger och ger en djupare insikt till existerande IBM Cognos BI och Performance Management lösning. Denna presentation hölls på IBM Cognos Performance 2010 av Robert Moberg, Solution Architect, IBM
IBM Cognos - Vad handlar egentligen prediktiv analys om?IBM Sverige
This document provides a 3-paragraph summary of an IBM performance event about predictive analytics:
Paragraph 1 introduces predictive analytics and how it can help decision makers predict things like infection in newborns, credit line adjustments, customer purchases, and social relationships to prevent customer churn.
Paragraph 2 describes how predictive analytics can optimize transactions, processes, and decisions in real-time using data and predictive models, and how it helps everyone make better decisions rather than just analytical experts.
Paragraph 3 gives examples of how a telecommunications company uses predictive analytics to proactively target at-risk customers and determine the best retention offers to reduce churn.
2 Fraud- Prevention, Detection and Management 072512.pptJoWeeiPOllam
This document discusses fraud prevention, detection, and management for microfinance. It defines fraud as deception to secure unfair gain or cause loss. Fraud can originate from employees or clients and can occur at any stage of the loan process. The document outlines workshops and best practices for microfinance institutions to identify common fraud types, prevent fraud, encourage client feedback, validate accounts, analyze MIS reports, investigate fraud, recover losses, and manage public relations regarding fraud. The overall message is that while fraud cannot be eliminated, it can be prevented, detected, and managed through proper internal controls, policies, audits, and creating a culture of honesty and compliance.
The Association of Certified Fraud Examiners (ACFE) described forensic accounting as “the application of accounting skills to provide quantitative financial information about matters before the courts.”
Management training assignment 3 advanced accounting bayo caryBayo Cary
This is a management training slide show, for a post certificate master's degree program, in a business administration, with a specialization, in advanced accounting. The slide show is power point, timed, and about Fraud Prevention and Evidence Collection.
This document discusses various ethical issues that can arise in the finance sector. It covers frauds like credit card and check fraud, securities fraud, and computer fraud. It also discusses types of bank frauds such as unauthorized credit extensions and deposit account fraud. Regarding the insurance sector, it identifies three types of fraud and notes fraud can occur during the proposal, contract, or claims stages. It also provides measures to combat fraud in banking like anti-money laundering acts and for insurance like regulation, transparency, and legislation. The document closes by discussing creative accounting, abusive tax shelters, insider trading, and the role of ethics codes.
The document provides details about a case study on forensic audit. It discusses what forensic audit is, types of fraud, the fraud triangle model, and the Satyam fraud case. The Satyam case involved falsified financial statements, inflated revenues and profits, fake bank balances and fixed deposits totaling Rs. 7,800 crores. Weak internal controls and governance failures at Satyam such as unethical conduct, false books, dubious roles of directors, auditors and banks allowed the fraud to occur and go undetected for years.
Preventing Invoice Fraud with Intelligent Document ProcessingInfrrdInc
Learn how to detect and prevent invoice fraud using IDP. Implement fraud detection measures, analyze invoice data for discrepancies, and safeguard your finances and reputation.
Auditors have responsibility for detecting material misstatements in financial statements caused by either fraud or error. Fraud involves intentional deception, while error is unintentional. The auditor must maintain an attitude of professional skepticism and consider the risk of fraud when planning and performing the audit. If fraud is identified, the auditor communicates this to management or those charged with governance as appropriate. The auditor also considers any legal duty to report suspicions of fraud to outside parties.
This document provides an overview of forensic auditing. It defines a forensic audit as an examination of financial information to be used as evidence in court. The objectives of a forensic audit are to facilitate settlements, avoid fraud, restore confidence, and establish corporate governance policies. Forensic audit services typically include financial statement reviews, computer forensics, and calculating economic losses. The document outlines the methodology, procedures, fraudster profiles, fraud triangle, pressure/opportunity/rationalization factors, and types of fraud that may be investigated in a forensic audit.
Learn over a dozen unique accounting, HR, and managerial anti-fraud alternative considerations that businesses, governmental and not-for-profit organizations can implement to reduce the risk of internal embezzlement and asset misappropriation. In addition to discussing the fraud prevention measures, this course will incorporate some real-life examples of frauds perpetrated, what lead to their discovery and what steps could have been taken to prevent them from occurring.
Forensic accounting refers to accounting work performed for legal purposes, such as investigating potential fraud. Forensic accountants use auditing techniques as well as investigative skills to conduct detailed analyses of financial records to detect issues like embezzlement, insurance fraud, or tax evasion. Their work is often used in litigation to quantify economic damages or losses. Key areas forensic accountants work in include fraud investigation, bankruptcy, insurance claims, and criminal or civil court cases.
Fraud Protection Final 2 hour CPE- Hazan 122815 Steve Hazan
This document provides an overview of fraud risks facing small businesses and recommendations for protection. It begins by defining who pays the costs of fraud, such as higher prices and lost revenues. Small businesses are particularly vulnerable due to lack of security and preparation. Common fraud risks include check fraud, credit card fraud, cybercrime like phishing, and internal fraud. The document recommends proactive measures like employee background checks, account segregation, cybersecurity practices, and training to combat these fraud risks. Resources for small businesses to learn more are also provided.
Manufacturers often fail to detect employee fraud until several years and tens of thousands of dollars after the fact. And unfortunately, when it comes to embezzling funds, fraudsters do not discriminate based on the size of the company, tenure or their relationship with management.
The secret to detecting and preventing employee fraud is knowing common fraud schemes to watch out for and the red flags that could mean trouble ahead.
In this webinar, you'll learn:
(1) Why some employees commit fraud
(2) How to spot employee behavioral "red flags"
(3) What to do if you discover fraud in your organization
(4) Common fraud schemes to watch for … and more!
We had another great webinar presented by Dave Hammarberg (Director of IT and Consulting Senior Manager) and Jim Shellenberger (Senior Manager) with McKonly & Asbury! Thank you to everyone that attended and received CPE credit.
We discussed what skimming is and went into a discussion of several examples and how to detect and prevent your organization from becoming a victim of skimming.
Check out our Upcoming Events page for news and updates on our future seminars and webinars.
For more information on this topic or to submit a question for Dave or Jim, use our contact page at www.macpas.com/contact.
www.macpas.com/webinar-recap-skimming-what-the-auditors-miss
The document provides an overview of audit, investigation, and forensic accounting. It defines each term and discusses their similarities and differences. Audit involves evaluating processes, records, or organizations to determine validity and reliability, while investigations are inquiries into specific issues. Forensic accounting utilizes skills from both audit and investigation to uncover fraud in a manner that can stand up in court. The document also covers topics like the role of auditors, when investigations are needed, interview techniques, government agencies involved in fraud cases, and the qualifications and skills of a forensic accountant.
This document provides an introduction to fraud, including definitions, types of fraud, who can commit fraud, potential triggers of fraud, reasons for fraud, and impacts of fraud. It defines fraud as any dishonest act or omission intended to gain advantage. Common types of fraud include cheating, forgery, misappropriation, and fraudulent transactions. Employees, customers, and outsiders can all perpetrate fraud. Triggers may include lifestyle changes or high-risk transactions. Fraud is often committed due to financial problems, knowledge of weaknesses, and rationalization. Impacts include financial, regulatory, and reputational risks for institutions, as well as punishments for individuals.
The document outlines the general 6-step process of forensic accounting:
1. Initialization which involves meeting the client, clarifying the assignment, and conducting a preliminary investigation.
2. Developing a detailed plan of action based on the initial findings.
3. Obtaining relevant evidence through techniques like document review, interviews, and computer analysis.
4. Performing an analysis of the evidence including calculating damages.
5. Reporting the findings in a written report including how the fraud occurred and controls to prevent recurrence.
6. Participating in any potential court proceedings by presenting the evidence gathered and explaining it to non-accountants.
The document provides an agenda for a session on forensic accounting fundamentals. It begins with background on recent fraud cases and emerging challenges. It then defines key terms like accounting, auditing, forensic accounting, fraud, and investigation. It discusses the different roles of auditors, forensic accountants, and investigators. It provides an overview of the Forensic Accounting and Investigation Standards, covering standards, basic principles, and key concepts. It concludes with a reminder that one must be clear on their assigned domain and role to avoid role confusion.
This presentation explains how you can prevent and deter fraud in your nonprofit organization, why some employees commit fraud and how to spot behavioral "red flags," what to do if you discover fraud in your organization, and common fraud schemes to watch for.
The document provides an agenda and overview for a presentation on Sage Intacct financial management and accounting software for nonprofits. It discusses challenges nonprofits face with grant management, field offices, and federal reporting compliance. It then introduces Sage Intacct and demonstrates its capabilities for grant management, reporting, billing, and other financial processes to address nonprofit needs.
Kerry Mickelson from Marcum LLP presented on the importance of conducting regular IT assessments. The presentation covered topics such as industry best practices, network infrastructure, security, disaster recovery, budget reviews, and compliance. Mickelson emphasized that assessments help identify risks, ensure compliance, and improve business processes. Regular assessments also benefit IT staff by providing coaching to help address any issues.
More Related Content
Similar to 2014-06-11 Nonprofit Fraud - What You Need to Know Part III - The Prevention
The Association of Certified Fraud Examiners (ACFE) described forensic accounting as “the application of accounting skills to provide quantitative financial information about matters before the courts.”
Management training assignment 3 advanced accounting bayo caryBayo Cary
This is a management training slide show, for a post certificate master's degree program, in a business administration, with a specialization, in advanced accounting. The slide show is power point, timed, and about Fraud Prevention and Evidence Collection.
This document discusses various ethical issues that can arise in the finance sector. It covers frauds like credit card and check fraud, securities fraud, and computer fraud. It also discusses types of bank frauds such as unauthorized credit extensions and deposit account fraud. Regarding the insurance sector, it identifies three types of fraud and notes fraud can occur during the proposal, contract, or claims stages. It also provides measures to combat fraud in banking like anti-money laundering acts and for insurance like regulation, transparency, and legislation. The document closes by discussing creative accounting, abusive tax shelters, insider trading, and the role of ethics codes.
The document provides details about a case study on forensic audit. It discusses what forensic audit is, types of fraud, the fraud triangle model, and the Satyam fraud case. The Satyam case involved falsified financial statements, inflated revenues and profits, fake bank balances and fixed deposits totaling Rs. 7,800 crores. Weak internal controls and governance failures at Satyam such as unethical conduct, false books, dubious roles of directors, auditors and banks allowed the fraud to occur and go undetected for years.
Preventing Invoice Fraud with Intelligent Document ProcessingInfrrdInc
Learn how to detect and prevent invoice fraud using IDP. Implement fraud detection measures, analyze invoice data for discrepancies, and safeguard your finances and reputation.
Auditors have responsibility for detecting material misstatements in financial statements caused by either fraud or error. Fraud involves intentional deception, while error is unintentional. The auditor must maintain an attitude of professional skepticism and consider the risk of fraud when planning and performing the audit. If fraud is identified, the auditor communicates this to management or those charged with governance as appropriate. The auditor also considers any legal duty to report suspicions of fraud to outside parties.
This document provides an overview of forensic auditing. It defines a forensic audit as an examination of financial information to be used as evidence in court. The objectives of a forensic audit are to facilitate settlements, avoid fraud, restore confidence, and establish corporate governance policies. Forensic audit services typically include financial statement reviews, computer forensics, and calculating economic losses. The document outlines the methodology, procedures, fraudster profiles, fraud triangle, pressure/opportunity/rationalization factors, and types of fraud that may be investigated in a forensic audit.
Learn over a dozen unique accounting, HR, and managerial anti-fraud alternative considerations that businesses, governmental and not-for-profit organizations can implement to reduce the risk of internal embezzlement and asset misappropriation. In addition to discussing the fraud prevention measures, this course will incorporate some real-life examples of frauds perpetrated, what lead to their discovery and what steps could have been taken to prevent them from occurring.
Forensic accounting refers to accounting work performed for legal purposes, such as investigating potential fraud. Forensic accountants use auditing techniques as well as investigative skills to conduct detailed analyses of financial records to detect issues like embezzlement, insurance fraud, or tax evasion. Their work is often used in litigation to quantify economic damages or losses. Key areas forensic accountants work in include fraud investigation, bankruptcy, insurance claims, and criminal or civil court cases.
Fraud Protection Final 2 hour CPE- Hazan 122815 Steve Hazan
This document provides an overview of fraud risks facing small businesses and recommendations for protection. It begins by defining who pays the costs of fraud, such as higher prices and lost revenues. Small businesses are particularly vulnerable due to lack of security and preparation. Common fraud risks include check fraud, credit card fraud, cybercrime like phishing, and internal fraud. The document recommends proactive measures like employee background checks, account segregation, cybersecurity practices, and training to combat these fraud risks. Resources for small businesses to learn more are also provided.
Manufacturers often fail to detect employee fraud until several years and tens of thousands of dollars after the fact. And unfortunately, when it comes to embezzling funds, fraudsters do not discriminate based on the size of the company, tenure or their relationship with management.
The secret to detecting and preventing employee fraud is knowing common fraud schemes to watch out for and the red flags that could mean trouble ahead.
In this webinar, you'll learn:
(1) Why some employees commit fraud
(2) How to spot employee behavioral "red flags"
(3) What to do if you discover fraud in your organization
(4) Common fraud schemes to watch for … and more!
We had another great webinar presented by Dave Hammarberg (Director of IT and Consulting Senior Manager) and Jim Shellenberger (Senior Manager) with McKonly & Asbury! Thank you to everyone that attended and received CPE credit.
We discussed what skimming is and went into a discussion of several examples and how to detect and prevent your organization from becoming a victim of skimming.
Check out our Upcoming Events page for news and updates on our future seminars and webinars.
For more information on this topic or to submit a question for Dave or Jim, use our contact page at www.macpas.com/contact.
www.macpas.com/webinar-recap-skimming-what-the-auditors-miss
The document provides an overview of audit, investigation, and forensic accounting. It defines each term and discusses their similarities and differences. Audit involves evaluating processes, records, or organizations to determine validity and reliability, while investigations are inquiries into specific issues. Forensic accounting utilizes skills from both audit and investigation to uncover fraud in a manner that can stand up in court. The document also covers topics like the role of auditors, when investigations are needed, interview techniques, government agencies involved in fraud cases, and the qualifications and skills of a forensic accountant.
This document provides an introduction to fraud, including definitions, types of fraud, who can commit fraud, potential triggers of fraud, reasons for fraud, and impacts of fraud. It defines fraud as any dishonest act or omission intended to gain advantage. Common types of fraud include cheating, forgery, misappropriation, and fraudulent transactions. Employees, customers, and outsiders can all perpetrate fraud. Triggers may include lifestyle changes or high-risk transactions. Fraud is often committed due to financial problems, knowledge of weaknesses, and rationalization. Impacts include financial, regulatory, and reputational risks for institutions, as well as punishments for individuals.
The document outlines the general 6-step process of forensic accounting:
1. Initialization which involves meeting the client, clarifying the assignment, and conducting a preliminary investigation.
2. Developing a detailed plan of action based on the initial findings.
3. Obtaining relevant evidence through techniques like document review, interviews, and computer analysis.
4. Performing an analysis of the evidence including calculating damages.
5. Reporting the findings in a written report including how the fraud occurred and controls to prevent recurrence.
6. Participating in any potential court proceedings by presenting the evidence gathered and explaining it to non-accountants.
The document provides an agenda for a session on forensic accounting fundamentals. It begins with background on recent fraud cases and emerging challenges. It then defines key terms like accounting, auditing, forensic accounting, fraud, and investigation. It discusses the different roles of auditors, forensic accountants, and investigators. It provides an overview of the Forensic Accounting and Investigation Standards, covering standards, basic principles, and key concepts. It concludes with a reminder that one must be clear on their assigned domain and role to avoid role confusion.
This presentation explains how you can prevent and deter fraud in your nonprofit organization, why some employees commit fraud and how to spot behavioral "red flags," what to do if you discover fraud in your organization, and common fraud schemes to watch for.
The document provides an agenda and overview for a presentation on Sage Intacct financial management and accounting software for nonprofits. It discusses challenges nonprofits face with grant management, field offices, and federal reporting compliance. It then introduces Sage Intacct and demonstrates its capabilities for grant management, reporting, billing, and other financial processes to address nonprofit needs.
Kerry Mickelson from Marcum LLP presented on the importance of conducting regular IT assessments. The presentation covered topics such as industry best practices, network infrastructure, security, disaster recovery, budget reviews, and compliance. Mickelson emphasized that assessments help identify risks, ensure compliance, and improve business processes. Regular assessments also benefit IT staff by providing coaching to help address any issues.
This document summarizes a presentation about high risk compliance issues for non-profits and how to avoid them. It discusses recent regulatory updates to procurement standards, subrecipient monitoring requirements, and time and effort reporting. It provides an overview of common pitfalls organizations experience with these topics. Best practices are presented for procurement workflows, identifying subawards versus contracts, and implementing compliant time tracking systems. The role of accounting systems in supporting compliance with these areas is also addressed.
- A CIO aligns an organization's technology with its business goals by assessing what technology the organization currently has and can do, compared to what it should have and be able to do, in order to close any gaps.
- A CIO looks at people, services, software, hardware, data processing and storage, and ensures compliance, accuracy, security and opportunities from technology.
- For some organizations, a CIO role is not needed full-time but provides value during times of major change or for addressing new initiatives and business needs. A CIO helps manage technology better through reporting, planning, governance and identifying opportunities.
This document provides an overview of a presentation on systems requirements for organizations receiving federal grants and awards. The presentation covers the changing landscape of working with the federal government, system compliance requirements, requirements for foreign operations, desired features of an accounting system for non-profits, and indicators that it's time to replace an legacy system. The presenters are from Raffa, an accounting and consulting firm that works with non-profit clients.
The document discusses a presentation about accounting software for nonprofits featuring Sage Intacct. It includes an agenda covering grant management requirements, field office accounting challenges, federal reporting and compliance, and a demo of Intacct. The presentation objectives are to identify challenges for nonprofits and how Intacct can help with grant management and accounting. Attendees are polled on their organization size, current systems, and desired improvements. Raffa is introduced as a consulting firm that supports over 1,600 nonprofits with accounting systems and other services.
This document discusses disaster recovery and business continuity planning. It begins by noting some key compliance regulations and then defines the key differences between disaster recovery and business continuity. Disaster recovery focuses on recovering data in the event of data loss, while business continuity aims to ensure continuous business operations despite system failures or disasters. The document provides guidance on identifying critical systems, acceptable downtimes, and appropriate disaster recovery and business continuity solutions. It also stresses the importance of testing plans before disasters occur.
The document describes an ERP and accounting systems comparison seminar hosted by Raffa, P.C. on September 20, 2018. The seminar will provide an overview of key ERP software options for mid-market organizations, including Microsoft Dynamics 365 Business Central, Sage Intacct, and JAMIS. Attendees will learn best practices for software evaluation and implementation, capabilities of leading ERP systems, and gain an understanding of the mid-market ERP landscape. The document also provides information about Raffa and their services in ERP implementations, accounting, technology solutions and more.
2018-07 Systems Integration Best Practices for Integrating Your Business Appl...Raffa Learning Community
How much time does your organizations spend getting data to and from critical business systems such as your donor management, association management, membership and accounting applications? What about time sheets, expense reports and payroll data? Have you made customizations to your systems that make packaged integrations difficult to work with? In this session we will share considerations, best practices and use cases from actual customer integrations that may help you tackle your next integration project.
Join Raffa Technology & BI360 for an informative session on best practice approaches to managing your budget process beyond Microsoft Excel. Come learn how you can help your organization increase productivity, insight and decision making while decreasing the manual keying and inaccuracies inherent with Microsoft Excel. This seminar includes a presentation of the BI360 budgeting and reporting software.
In today’s accounting environment, there is mounting pressure to run leaner while becoming more effective than ever. Meeting deadlines, reviewing or preparing reconciliations and providing support requires new approaches to mitigating errors and compromising the integrity of your SOFP and SOA. It doesn’t have to be that way.
Join nonprofit industry leader Raffa, PC and BlackLine to discover a simpler way to perform your reconciliation process that allows you to focus on analysis, risk mitigation, and value creation for your organization.
Not every organization can afford to have a full time CIO on staff. But someone will be fulfilling the role, even without the title. This seminar will help you understand the role a CIO fulfills within your organization, the areas you may not be addressing without a CIO, the risks and opportunities mitigated by the presence of a CIO, and the new world of outsourced IT.
Additionally, we will discuss if your organization can thrive without the latest technology, whether your IT team is doing what they should be, how your IT infrastructure measures up to best practices, and what technology you may be missing out on.
This document provides an overview and agenda for an upcoming course on the new accounting standards under FASB ASU 2016-14 for nonprofit financial statement presentation. The course will cover key changes such as consolidating net asset classes, requiring analysis of expenses by both nature and function, enhanced liquidity and investment return disclosures, and transition guidance. It outlines the objectives of the new standards to improve usefulness of nonprofit financial statements and compares current requirements to the new guidance. The document concludes with contact information for the course presenters.
With the ever-increasing threat of viruses, security breaches, and cyber theft, it is important to understand the basics of network and internet security. In this session, you will learn how to pass the security portion of your audit and how to protect your hardware. We will also discuss security in the cloud and Privacy Laws.
This class is beneficial to IT, Operations, and Administrative professionals.
Adam Grant, in a recent Atlantic article, says it best: “People Don’t Actually Know Themselves Very Well.” Do you agree? He argues that your coworkers are much better at rating aspects of your personality than you are. Studying thousands of people at work show that coworkers are more than twice as accurate when asked to assess how stable, dependable, friendly, outgoing and curious you are. In this workshop, we will give you an opportunity to solicit feedback in advance of the workshop, reflect on feedback you’ve received, and provide a safe and confidential environment to explore your blind spots. Those blind spots may be related to the way you see yourself as a manager or leader or perhaps how you think about intergenerational differences. We’ll discuss the importance of self-awareness and provide some tools to help you integrate new knowledge about yourself in practical ways at work.
Not every organization can afford to have a full time CIO on staff. But someone will be fulfilling the role, even without the title. This seminar will help you understand the role a CIO fulfills within your organization, the areas you may not be addressing without a CIO, the risks and opportunities mitigated by the presence of a CIO, and the new world of outsourced IT.
Additionally, we will discuss if your organization can thrive without the latest technology, whether your IT team is doing what they should be, how your IT infrastructure measures up to best practices, and what technology you may be missing out on.
Keeping reserves for a “rainy day” is a good practice for all nonprofit institutions, but how much should your organization set aside? A percentage of annual budget? Three-to-six months? Our answer is: it depends. Each nonprofit is unique and can experience distinct unexpected circumstances that may affect its long-term financial health.
This session, led by mark Murphy of Raffa Wealth Management, will focus on how to conduct a risk assessment that will assist your nonprofit in quantifying financial risks and opportunities. Once completed, this risk assessment aims to assist in finding the appropriate reserve level for your unique organization.
Whether you are in the initial phases of creating your nest egg or revaluating longstanding reserve levels, this session is for you.
Help your organization make better informed decisions. Join the Raffa Technology team and Prophix to discover how best in class organizations are using financial automation to drive improved budgeting, strategic financial analysis and better business decision making.
Learn how organizations are automating the financial budget process to deliver more accurate and timely information in the financial planning process.
Not every organization can afford to have a full time CIO on staff. But someone will be fulfilling the role, even without the title. This seminar will help you understand the role a CIO fulfills within your organization, the areas you may not be addressing without a CIO, the risks and opportunities mitigated by the presence of a CIO, and the new world of outsourced IT.
Additionally, we will discuss if your organization can thrive without the latest technology, whether your IT team is doing what they should be, how your IT infrastructure measures up to best practices, and what technology you may be missing out on.
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Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
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2014-06-11 Nonprofit Fraud - What You Need to Know Part III - The Prevention
1. NONPROFIT FRAUD: WHAT
YOU NEED TO KNOW
PART III: THE PREVENTION
June 11, 2014
Lawrence J. Hoffman, CPA/CFF, CVA, CFE
Senior Partner and Director of Forensic
Consulting Services
Leslie C. Kirsch, CFE
Manager, Forensic Accounting Services
2. OBJECTIVES
NONPROFIT FRAUD: THREE-PART SERIES
PART I: THE FRAUD
• Why it is important that you are educated in fraud
• The magnitude of fraud in nonprofits
• The types of frauds in nonprofits
• Why does fraud occur in nonprofits
• Some important fraud prevention takeaways
PART II: THE DETECTION
• Who are the fraud perpetrators?
• Why do people commit fraud?
• How is fraud detected?
• What are fraud red flags?
• Fraud detection techniques
• What do you do when you uncover fraud?
PART III: THE PREVENTION
• What are the primary factors contributing to fraud in nonprofits?
• Detective versus preventative controls
• What are the best preventative measures?
• The five critical takeaways!
Part III: The Prevention* Page 2
3. AGENDA
• What are the best preventative measures and controls?
• Key internal controls
• Conducting a fraud risk assessment
• Implementing a fraud prevention program
• The five critical takeaways!
3Part III: The Prevention* Page
4. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
THE COMMON ELEMENT IN EVERY
FRAUD!
4Part III: The Prevention* Page
5. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
THE BEST PREVENTIVE MEASURE!
HIRE ONLY HONEST, ETHICAL
AND MORAL PEOPLE!
5Part III: The Prevention* Page
6. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
FRAUD IS A PEOPLE PROBLEM!
• Are you hiring fraudsters?
• Are you enabling someone predisposed to commit
fraud?
• Is your organization’s environment promoting fraud?
• Does your organization’s system of internal controls
provide the opportunity to commit fraud?
• Is your organization educated and aware of fraud
schemes and red flags?
• Do you have a process that provides your employees
and others to report possible fraud and abuse?
• Does your organization tolerate fraud? Do you have a
zero tolerance policy for fraud?
6Part III: The Prevention* Page
7. REVIEW OF COMMON PREVENTIVE
CONTROLS
PREVENTIVE CONTROLS
Preventive controls attempt to deter or prevent
undesirable events from occurring. They are proactive
controls that help prevent a loss.
DETECTIVE CONTROLS
Detective controls, on the other hand, attempt to detect
undesirable acts. The provide evidence that a loss has
occurred but do not prevent a loss from occurring.
Detective techniques should be used to uncover fraud
events when preventive measures fail or unmitigated risks
are realized.
Effective Preventive Measures Serve as
Strong Deterrents
Part III: The Prevention* Page 7
8. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
1. Internal Controls
•design your system and procedures so you do not have to
rely on trust as a control!
•remember any person is capable of committing fraud!
•keep in mind the persons role and access to commit fraud!
•you must segregate the recordkeeping and the custody of
the assets!
•do you have adequate oversight controls?
REMEMBER
TRUST IS NOT AN INTERNAL CONTROL!
8Part III: The Prevention* Page
9. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
2. Tone from the Top!
•What is your “control environment”?
•Do you have a strong internal control system?
•Directors and officers need to set the tone for ethical
behavior
•How effective is your Audit Committee?
•If unethical behavior is tolerated at the top you can be
assured it is happening in the rest of the organization!
9Part III: The Prevention* Page
10. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
3. Know Your Employees!
•Background checks and investigations-know who
you are hiring!
– how well do you know that person?
– what due diligence are you doing?
– do you believe their resume?
– not just a one-time occurrence!
•Know your employees and what they are doing
– executives and managers need to pay attention
and spend time with their employees-be engaged!
– establish that baseline!
•Perform exit interviews
– what do employees leaving tell you?
– what do you ask them?
10Part III: The Prevention* Page
11. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
TRUST BUT VERIFY EMPLOYEE BACKGROUNDS...
11Part III: The Prevention* Page
12. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
4. Fraud Prevention Program
• Fraud risk assessment
• Fraud awareness and ongoing training for all levels of the
organization
• Reporting mechanisms and whistle-blower protections
• Investigation / response process
• Board and audit committee oversight
• Conflict resolution
• Communications
• Continuous monitoring
• Employer-provided employee assistance services (financial
counselors etc.)
• Evaluate performance and compensation programs
– do they promote fraud and abuse?
– are they fair and provide incentive for performers and hard
work?
12Part III: The Prevention* Page
13. WHAT ARE THE BEST PREVENTIVE
MEASURES AND CONTROLS?
5. Your Employees’ Eyes and Ears!
• tips are number one method for detecting fraud!
• establish a formal written whistleblower policy
-procedures for receiving complaints
-procedures for investigating complaints
-policy for protecting whistleblowers
-confidentiality polices for whistleblowers
-role and responsibilities of audit committee
-educating employees on the policy
• establish independent hotline for tips!
13Part III: The Prevention* Page
You must create the impression that
someone is watching!
14. KEY INTERNAL CONTROLS
SEGREGATION OF DUTIES
• Must segregate the recordkeeping and the custody of the
assets!
• Cash receipts-no single person should
−receive the money,
−deposit the money,
−record the receipts and
−reconcile the receipts to the books and records
• Cash disbursements-no single person should
−authorize payments,
−disburse funds (write checks, ACH, wires etc) and
−reconcile the bank accounts.
14Part III: The Prevention* Page
16. KEY INTERNAL CONTROLS
SEGREGATION OF DUTIES
• Use a board member or volunteer if there is not enough
internal staff to achieve the segregation of duties
• Require accounting and finance personnel to take vacations
and not to take work home
16Part III: The Prevention* Page
17. KEY INTERNAL CONTROLS
ACCOUNTS RECEIVABLE/CASH RECEIPTS
• Restrictively endorse checks “for deposit only” immediately
• Keep a permanent cash receipts log
• Make and reconcile deposits daily
• Ask donors and others to write out full name of organization on
checks
• Use a bank lockbox service
• Cash should be counted with two people present
• Publish donor names
• Review accounts receivable aging
• Independent approval of all accounts receivable write-offs and
refunds
17Part III: The Prevention* Page
18. KEY INTERNAL CONTROLS
ACCOUNTS PAYABLE/DISBURSEMENTS
• Have a formal purchase requisition system
• Understand procurement process between goods and services
(3 way match for goods!)
• Only original invoices and documents-no photocopies
• Require dual signatures for expenditures over a certain dollar
amount (no signature stamps or electronic signatures!)
• Mail all checks after approval and signature promptly
• No pre-signed checks!
• No checks made payable to “cash”
• Keep blank check stock locked up
• Have independent reviews of management expense reports
(even if a board members must do this!) (check calendars!)
18Part III: The Prevention* Page
20. KEY INTERNAL CONTROLS
ACCOUNTS PAYABLE/DISBURSEMENTS
• Have preauthorized set limits on corporate credit cards and limit
on who receives them
• Have a written policy on use of corporate credit cards-no
personal use!
• Independent review credit card statements as soon as they
arrive
• Review vendor lists and have approval process for new
vendors-know your vendors Identify any related-party
transactions (watch for P.O. boxes!) (Google suspected names)
• Contracts for services and goods should be competitive bid (at
least 3) and approved by someone independent of person
requisitioning
• No hand delivery of checks by person requesting the check
• Investigate vendor complaints promptly!
20Part III: The Prevention* Page
21. KEY INTERNAL CONTROLS
PAYROLL
• Independent approval of employees added to payroll including
pay rate
• Independent review of payroll register from payroll processing
firm
• Verify that payroll taxes and other withholdings are being
deposited timely
• Use a separate bank account for payroll
• Timely reporting of time of effort by employees with proper
supervisory approval
• Use outside payroll processing service
21Part III: The Prevention* Page
23. KEY INTERNAL CONTROLS
FINANICAL REPORTING
• Have a well defined and time lined financial reporting checklist
• Financial statements should be timely and complete
• Have a detailed annual/monthly budget-zero based
• Budget versus actual analysis with detailed explanations (are
explanations in line with expectations?)
• Review journal entries at the end of each reporting period
• Reconciliations, including bank reconciliations, should be
prepared promptly after reporting period and independently
reviewed
23Part III: The Prevention* Page
24. KEY INTERNAL CONTROLS
OTHER CONTROLS
• Notification and alert services with your bank
– Wire notifications
– ACH Fraud Filters
– Balance threshold
– Positive Pay exceptions
– Credit card transactions
– Authorization limits
• Conduct fixed asset inventories at least annually
• Close inactive bank accounts immediately
• Update bank authorized signatures promptly when
changes in personnel
• Job rotation and mandatory vacations
• Fidelity bond coverage
• Surveillance
24Part III: The Prevention* Page
25. CONDUCTING A FRAUD RISK ASSESSMENT
THE FRAUD RISK ASSESSMENT PROCESS
• Purpose is to identify where fraud may occur and how it may
be perpetrated
• The organization chart-the map of the people and processes
presents a picture and starting point
• Remember to overlay macro elements such as industry and
organizational changes, economic climate, government
regulations and climate, technology changes and
advancements
• Brainstorming the possible threats and schemes
• Are there any current warning flags?
• Where are you most vulnerable?
25Part III: The Prevention* Page
26. CONDUCTING A FRAUD RISK ASSESSMENT
THE FRAUD RISK ASSESSMENT PROCESS
• Are there serious weaknesses in internal controls?
• Are there any mitigating controls?
• Do you have physical security breach threats?
• What do you need to do to secure significant threats?
26Part III: The Prevention* Page
27. CONDUCTING A FRAUD RISK ASSESSMENT
FACTORS THAT CREATE ENVIRONMENT AND
OPPORTUNITIES FOR FRAUD
• Lack of awareness of fraud risk factors and warning signs
• Inadequate control activities to mitigate identified fraud risk
• Inadequate screening practices (for employees, vendors,
customers, and / or business partners)
• Insufficient understanding of ethical duties at all levels
• Ineffective mechanisms for reporting and investigating fraud
• Ineffective board and audit committee oversight
• Situational (internal and external) pressures that encourage
fraud
27Part III: The Prevention* Page
28. CONDUCTING A FRAUD RISK ASSESSMENT
Source: Association of Certified Fraud Examiners, Report to the Nations on Occupational Fraud
and Abuse: 2014 Global Fraud Study
28Part III: The Prevention* Page
29. CONDUCTING A FRAUD RISK ASSESSMENT
A PRACTICAL EXERCISE
29Part III: The Prevention* Page
31. CONDUCTING A FRAUD RISK ASSESSMENT
KEY ASSESSMENT QUESTIONS
(RATE YOUR ORGANIZATION FROM 1 (POOR) TO 10 (GREAT)
• What is your “tone at the top”? ______
• What is the level of your certainty that people in your
organization will do the right thing? ______
• Are people in your organization made to fell that they are
part of a team and have a vested interest in the value of
the organization? ______
• Do people in your organization act with good moral/ethical
character without much force? ______
• How is your organization’s current financial health? ______
* How timely is your organization’s financial reporting? ______
31Part III: The Prevention* Page
32. CONDUCTING A FRAUD RISK ASSESSMENT
KEY ASSESSMENT QUESTIONS
(RATE YOUR ORGANIZATION FROM 1 (POOR) TO 10 (GREAT)
• Is your key management hands on and visible? ______
• Is key management “connected” with their staff/baseline? ______
• How effective is your board of directors? ______
• How effective is your audit committee? ______
• Do you effective internal controls? ______
• How do you view the importance of your independent
audit and process? ______
32Part III: The Prevention* Page
33. IMPLEMENTING A FRAUD PREVENTION
PROGRAM
KEY ELEMENTS AND OBJECTIVES
OBJECTIVES
• Opportunity – removing or lessening the opportunity to commit
fraud
• Detection – ensuring fraud and abuse can be timely detected
ELEMENTS
• Policies – implement clear and concise written polices for fraud,
code of conduct, and conflict of interest and be affirmed by all
employees in writing
• Communicated-continually communicated and reinforced
• Tone from Top – Board-appointed high-level executive responsible
for coordinating fraud-risk management and directly reporting to the
Board. Must lead by example.
• Leadership – executives and managers must lead by example
33Part III: The Prevention* Page
34. IMPLEMENTING A FRAUD PREVENTION
PROGRAM
KEY ELEMENTS AND OBJECTIVES
• Training – ethical conduct and fraud prevention training is needed
on at least an annual basis for all employees
• Accountability-must make all people accountable in detecting
fraud
• Reporting – must have a means for employees to report potential
violations and issues, such as whistleblower process and hotlines
• No Retaliation – employees need to be encouraged to report
suspicious behavior and be reassured that any reports are made in
strict confidence and that the organization prohibits retaliation of
any type
• Communicate the Risks – All employees should be told whenever
any employee or others doing business with the organization are
arrested or discharged for fraudulent activity
34Part III: The Prevention* Page
35. IMPLEMENTING A FRAUD PREVENTION
PROGRAM
KEY ELEMENTS AND OBJECTIVES
• Enforcement-you must prosecute fraud. An organization that does
not prosecute sends a message that encourages fraud.
• Zero Tolerance – you must have a zero tolerance for fraud and
must apply to ALL employees. As soon as a high-level executive
who commits any kind of fraud is not held accountable, the entire
program has lost credibility
• Surprise Audits – conduct surprise audits in high risk areas. Put
in policy that random tests may be performed to ensure that the
organization’s controls are not being circumvented (keep fraudsters
guessing!)
• Monitoring – you should conduct a periodic assessment and
ensure the process is working
• Remediation-all weaknesses in controls must be fixed
immediately. Always be strengthening controls.
35Part III: The Prevention* Page
36. THE FIVE TAKEAWAYS!
THE FIVE MOST IMPORTANT TAKEAWAYS – AGAIN!
1. Trust is not an internal control!
– Establish, to the extent possible, controls and procedures that eliminate
the element of trust
– Always segregate the custody of the asset with the recordkeeping for the
asset
2. Set the tone from the top!
– “If you are stealing, your employees are stealing!”
– E.g., office supplies, expense reports, etc.
3. Know your employees!
– Background investigations and public records checks before hiring
– Meet and establish a baseline relationship
4. Institute a fraud policy
– No tolerance
–Will prosecute
5. Establish a hotline for tips
– Number one method for detecting fraud!
– Can outsource
Part III: The Prevention* Page 36
38. HOW CAN RAFFA ASSIST YOU IN
PREVENTING AND DETECTING FRAUD?
A resource for the nonprofit community to help
organizations effectively manage risk and better ensure the
prevention and detection of fraud.
VISIT US AT WWW.RAFFA.COM/FRAUD
Part III: The Prevention* Page 38
39. HOW CAN RAFFA ASSIST YOU IN
PREVENTING AND DETECTING FRAUD?
OUR WEEKLY NEWSLETTER
OU
Part III: The Prevention* Page 39
40. HOW CAN RAFFA ASSIST YOU IN
PREVENTING AND DETECTING FRAUD?
Are you threatened by fraud, litigation or
insolvency?
Are you selling your business, transferring
assets or structuring a new venture?
Raffa forensic accounting experts will do more to
assist you in these challenging circumstances.
Part III: The Prevention* Page 40
Forensic Accounting Services Group
Our Team’s Services:
• Fraud Investigations & Prevention
• Litigation Support & Expert Testimony
• Business Valuation & Due Diligence
• Insolvency & Reorganization
41. HOW CAN RAFFA ASSIST YOU IN
PREVENTING AND DETECTING FRAUD?
How We Empower You
• We identify and mitigate fraud risk by performing a fraud risk
assessment
• We provide fraud investigations if you are, or suspect you are,
a victim of fraud
• We provide litigation support, expert testimony and forensic
accounting services in business disputes, financial
investigations, bankruptcies, arbitrations and mediations
• We analyze, investigate and interpret complex transactions to
provide an understandable, well-researched and unbiased
valuation of your business or organization
• We have expertise in restructuring and turnaround
management for underperforming organizations
Part III: The Prevention* Page 41
Forensic Accounting Services Group
42. HOW CAN RAFFA ASSIST YOU IN
PREVENTING AND DETECTING FRAUD?
Part III: The Prevention* Page 42
Fraud Investigations &
Prevention
• Fraud examinations and internal
investigations
• Fraud risk assessments
• Review of internal controls and
management practices
• Financial statement
misrepresentations
• Background and workplace
investigations
• Computer forensic analysis,
imaging, data mining and
recovery
• Reconstruction of accounting
records
• Continuous audit services
• Anti-fraud consulting and training
Forensic Accounting Services Group
Litigation Support & Expert
Testimony
• Lost earnings and profits
• Lost value
• Breach of contract
• Breach of fiduciary duty
• Business interruption
• Contract costs and claims
• Tortious interference
• Patent infringement
• Professional malpractice
• Shareholder disputes
• Theft of intellectual property
• Wrongful termination
• Wrongful death
43. HOW CAN RAFFA ASSIST YOU IN
PREVENTING AND DETECTING FRAUD?
Part III: The Prevention* Page 43
Business Valuation & Due
Diligence
• Mergers, acquisitions and
divestitures
• Marital dissolution
• Partner/shareholder disputes
• Estate and gift tax planning
• Financial reporting
• Compensation related
• Employee stock ownership
plans
• Benchmark studies
• Financial modeling
Forensic Accounting Services Group
Insolvency &
Reorganization
• Viability analysis and survival
assessment
• Strategic restructuring
• Cash flow analysis and forecasting
• Liquidation analysis
• Evaluating creditor and debtor
positions
• Restructuring debt
• Interim management services,
including Chief Restructuring
Officer
• Preparing plans of reorganization
and disclosure statements
• Pre-bankruptcy planning and post-
filing compliance
• Bankruptcy litigation consulting to
trustees
44. WHAT WE LEARNED ABOUT FRAUD IN
OUR THREE-PART SERIES
PART I: THE FRAUD
• Why it is important that you are educated in fraud
• The magnitude of fraud in nonprofits
• The types of frauds in nonprofits
• Why does fraud occur in nonprofits
• Some important fraud prevention takeaways
PART II: THE DETECTION
• Who are the fraud perpetrators?
• Why do people commit fraud?
• How is fraud detected?
• What are fraud red flags?
• Fraud detection techniques
• What do you do when you uncover fraud?
PART III: THE PREVENTION
• What are the primary factors contributing to fraud in nonprofits?
• Detective versus preventative controls
• What are the best preventative measures?
• The five critical takeaways!
44Part III: The Prevention* Page
45. RESOURCES AND SUGGESTED READING
• 2012 Report to the Nations on Occupational Fraud and Abuse,
Association of Certified Fraud Examiners,
http://www.acfe.com/rttn.aspx
• Managing the Business Risk of Fraud: A Practical Guide; AICPA,
ITA, and ACFE; https://na.theiia.org/standards-
guidance/Public%20Documents/fraud%20paper.pdf
• The CPA’s Handbook of Fraud and Commercial Crime Prevention,
AICPA
• “The American Fraud Report,” www.jpsimsconsulting.com
• “Fraud Talk” Blog, fraudtalk.blogspot.com
• “American Greed” series, CNBC on Wednesdays at 9 p.m.
Part I: The Fraud* Page 4545Part III: The Prevention* Page
47. BIOGRAPHY
47
• 35 years of consulting, audit, accounting and tax experience in the public and private
sectors.
• Started career with a Big-Four international accounting firm in Washington, DC.
• Founded a regional certified public accounting and consulting firm in 1982 and grew it to
on of the Washington, DC’s largest firms in seven years. Merged his practice with Raffa
P.C. in 2008.
• Managed and conducted audit and accounting engagements ranging from small privately
held to large publicly held businesses in various industries, including multi-national
businesses, nonprofit organizations, and governmental entities and agencies.
• Performed economic and financial analysis, including projections and forecasts, in support
of litigation and claims for lost earnings and profits, business interruption, shareholder
disputes, patent and trademark infringements, bankruptcy and restructuring, and structural
settlements; assistance with interrogatories, document requests and depositions; and
serving as an expert and consulting witness.
• Performed and supervised business valuations for both public and closely held companies
in a variety of industries, individuals and estates, family limited partnerships and limited
liability companies, including valuations for business combinations (SFAS 141R), mergers,
acquisitions, and divestitures, estate and gift taxes, marital dissolution proceedings, buy-
sell agreements, intangible assets and intellectual property, purchase price allocations,
goodwill (SFAS 142) and long-lived asset (SFAS 144) impairment, fair value accounting
(SFAS 157), cheap stock (IRC 409A), stock-based compensation (SFAS 123R), phantom
stock and employee stock ownership plans.
• Conducted and led teams of forensic accountants on fraud audits and investigations,
including fraudulent financial statements, misappropriations of assets and embezzlements;
money laundering, kickbacks, bribery and conflicts of interest; insurance claims;
bankruptcy; financial institutions and loan fraud. Also has conducted fraud risk
assessments, anti-fraud programs, and fraud training and education.
LAWRENCE J. HOFFMAN,
CPA/CFF, CVA, CFE
SENIOR PARTNER
RAFFA, P.C.
1899 L STREET, NW
WASHINGTON, DC 20036
TEL. 202-822-5408
FAX 202-822-0669
LHOFFMAN@RAFFA.COM
Part III: The Prevention* Page
48. BIOGRAPHY
48
• Assisted companies and nonprofits with restructuring and turnaround situations, including
recapitalizations, reorganizations and liquidations. Advised entities on Chapters 11 and 7,
bankruptcy filings and proceedings and non-judicial workouts. Developed and
administered crisis management plans, cash flows, liquidation and turnaround analysis,
debt restructuring and creditor negotiations, and turnaround plans.
• Formulated strategic short- and long-term business and financial planning for various
business organizations and served as interim “C” level positions, including for a major
North American sports league, European and U.S. aircraft manufacturer, aviation charter
airline and travel company, and a multi-chain quick service food chain.
• Formulated syndication strategies and prepared business plans and private placement
offerings, including financial forecasts, market research and analysis, due diligence,
securities pricing and structuring for various public and private securities offerings,
including SEC filing.
• Founded and developed a regional NASD licensed broker dealer investment banking firm.
Placed over $150 million in debt and equity and represented over $200 million in merger
and acquisition transactions.
• Founded and developed two private equity funds in excess of $10 million, including
investments in early stage and mature emerging companies in the form of debt and equity.
Portfolio investments included aviation, food and hospitality, software and technology,
telecommunications, sports and entertainment, banking and financial institutions,
healthcare, and wholesale and retail.
• Co-founded and managed various real estate acquisition, ownership, and operating
entities, including commercial office buildings, shopping centers, flex warehouses,
residential housing and developed land.
• Performed tax and financial consulting services for individuals and closely held
businesses.
• Instructor in audit, accounting, finance, and forensic accounting.
LAWRENCE J. HOFFMAN,
CPA/CFF, CVA, CFE
SENIOR PARTNER
Part III: The Prevention* Page
49. BIOGRAPHY
49
LAWRENCE J. HOFFMAN,
CPA/CFF, CVA, CFE
SENIOR PARTNER
EDUCATION & CERTIFICATIONS
• Bachelor of Science, Accounting – Mount St. Mary’s University
• Certified Public Accountant (CPA)
• Certified Fraud Examiner (CFE)
• Certified in Financial Forensics (CFF)
• Certified Valuation Analyst (CVA)
• Private Investigator (PI), Virginia
• Series 7 General Securities Representative (not active)
• Series 24 General Securities Principal (not active)
• Series 63 Uniform Securities Agent (not active)
PROFESSIONAL ASSOCIATIONS & AFFILIATIONS
• American Institute of Certified Public Accountants, Member
• Virginia Society of Certified Public Accountants
• Association of Certified Fraud Examiners
• National Association of Certified Valuation Analysts
• Institute of Business Appraisers
PERSONAL INTERESTS
• Private pilot with instrument, multi-engine, high performance complex and aircraft
ratings
• Golf and fishing
• Reading and politics
Part III: The Prevention* Page
50. BIOGRAPHY
• 9 years of fraud investigation and financial audit experience
• Started career with U.S. Government Accountability Office’s Forensic Audits and Special
Investigations Unit
• Led as many as 3 concurrent forensic audits and investigations on a variety of topics,
including: Federal contractor/grantee eligibility fraud and integrity issues; federal tax
collection program integrity; abuse of government purchase cards, travel cards, and premium
class travel privileges; employment of sex offenders and child abusers at schools and child
care facilities; passport application fraud; manufacture and marketing of herbal dietary
supplements
• Planned, developed, and completed audit and investigative objectives, scope, and
methodology
• Designed innovative analytical strategies and investigative techniques to identify fraud
indicators in complex datasets, using software packages such as IDEA and SAS
• Identified, investigated, and ultimately referred hundreds of cases of potential fraud, waste,
and abuse to federal authorities for administrative action
• Led multiple undercover operations of varying complexity and political sensitivity
• Drafted numerous congressional testimonies and publicly available audit reports (see co-
authorship experience below)
• Designed and implemented internal quality assurance policies and procedures
EDUCATION & CERTIFICATIONS
• Bachelor of Science, Accounting – University of Maryland, College Park
• Bachelor of Science, Finance – University of Maryland, College Park
• Designated as a Certified Fraud Examiner (CFE) by the Association of Certified Fraud
Examiners
Leslie C Kirsch, CFE
Manager
RAFFA, P.C.
1899 L STREET, NW
WASHINGTON, DC 20036
TEL. 202-955-7204
FAX 202-822-0669
LKIRSCH@RAFFA.COM
50Part III: The Prevention* Page
Editor's Notes
From I Love You Phillip Morris, 2009
Jim Carrey, playing con artist Steven Jay Russell, interviews for an accounting position that he is wholly unqualified for. This scene shows his employer’s “due diligence” effort prior to hiring.
From Arrested Development, Fox, 2005
George Michael Bluth, manager of the Bluth family frozen banana stand, is convinced to go along with his cousin Maeby’s cash register theft scheme. George Michael’s father will be coming by later to independently verify inventory and daily sales figures, so Maeby comes up with a plan to circumvent the controls.
From ESPN’s Mayne Street, 2008
Kenny Mayne reports in to Accounting when his expense reports are questioned.