An employee at a medical practice was embezzling funds over many years by manipulating the optical sales and accounting systems. They were able to alter transactions and employ family members to facilitate the scheme. The practice has implemented new internal controls like centralized payments, dual verification of logs, regular external audits, and updated hiring practices. Medical practices commonly experience theft, with the greatest vulnerabilities being cash receipts, supplies, and payroll. Honest employees may steal if under financial pressure and find an opportunity, rationalizing their actions. Thorough screening and segregating duties can help mitigate risks of embezzlement.
Accountants, Erick Cutler and Jerry Murray, from the Dallas firm Goldin Peiser & Peiser, LLP spoke at the Arlington Dental Study Club November 17th. on the topic of fraud and embezzlement in dental practices. The purpose of the presentation was to raise dentists' awareness of fraud and provide information and ideas the attendees could take back to their practices. Contact Goldin Peiser & Peiser, LLP for more information or visit www.gppcpa.com.
Accountants, Erick Cutler and Jerry Murray, from the Dallas firm Goldin Peiser & Peiser, LLP spoke at the Arlington Dental Study Club November 17th. on the topic of fraud and embezzlement in dental practices. The purpose of the presentation was to raise dentists' awareness of fraud and provide information and ideas the attendees could take back to their practices. Contact Goldin Peiser & Peiser, LLP for more information or visit www.gppcpa.com.
Experience, Expertise, and Preparation: Keys to a Successful Workers' Compen...NationalUnderwriter
Experience, Expertise, and Preparation: Keys to a Successful Workers' Compensation Fraud Investigation by Stacey Golden (from FC&S Legal: The Insurance Coverage Law Information Center)
Unfortunately, workers’ compensation fraud has been on the rise. The poor state of the U.S. economy is certainly a
factor with the associated mortgage meltdown and government cutbacks. Even rising student debt in this environment is placing pressure on young people. Equally unfortunate for those who see fraud as a solution to their challenges, many consider it easy money and are simply clueless to the potential consequences. There are also plenty of examples of sophisticated cases that require careful and persistent digging.
AlphaStaff Webinar Importance of Drug and Background ScreeningAlphaStaff
Hiring someone is a decision that should not be based solely on the person’s ability to handle the job. While skills required to conduct the job are necessary, one cannot rule out threats caused by an employee with a checkered past (or present). Someone with a criminal record or someone who isn’t who they say they are can potentially cause significant damage to the welfare of the company and its staff.
This webinar, led by one of the country’s premier background check and drug screening companies and a key partner of AlphaStaff, will highlight the need, the process and the advantages of proper pre-employment screenings. Presented by Sterling Infosystems.
Employers don't want to take risks by hiring employees having criminal backgrounds. For that, background check is now a part of most of the hiring processes. But, should the prospective employees worry about it? What this pre-employment background check actually reveal?
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This Webinar focused on the subject in the title
FraudResourceNet (FRN) is the only searchable portal of practical, expert fraud prevention, detection and audit information on the Web.
FRN combines the high quality, authoritative anti-fraud and audit content from the leading providers, AuditNet ® LLC and White-Collar Crime 101 LLC/FraudAware.
The two entities designed FRN as the “go-to”, easy-to-use source of “how-to” fraud prevention, detection, audit and investigation templates, guidelines, policies, training programs (recorded no CPE and live with CPE) and articles from leading subject matter experts.
FRN is a continuously expanding and improving resource, offering auditors, fraud examiners, controllers, investigators and accountants a content-rich source of cutting-edge anti-fraud tools and techniques they will want to refer to again and again.
Experience, Expertise, and Preparation: Keys to a Successful Workers' Compen...NationalUnderwriter
Experience, Expertise, and Preparation: Keys to a Successful Workers' Compensation Fraud Investigation by Stacey Golden (from FC&S Legal: The Insurance Coverage Law Information Center)
Unfortunately, workers’ compensation fraud has been on the rise. The poor state of the U.S. economy is certainly a
factor with the associated mortgage meltdown and government cutbacks. Even rising student debt in this environment is placing pressure on young people. Equally unfortunate for those who see fraud as a solution to their challenges, many consider it easy money and are simply clueless to the potential consequences. There are also plenty of examples of sophisticated cases that require careful and persistent digging.
AlphaStaff Webinar Importance of Drug and Background ScreeningAlphaStaff
Hiring someone is a decision that should not be based solely on the person’s ability to handle the job. While skills required to conduct the job are necessary, one cannot rule out threats caused by an employee with a checkered past (or present). Someone with a criminal record or someone who isn’t who they say they are can potentially cause significant damage to the welfare of the company and its staff.
This webinar, led by one of the country’s premier background check and drug screening companies and a key partner of AlphaStaff, will highlight the need, the process and the advantages of proper pre-employment screenings. Presented by Sterling Infosystems.
Employers don't want to take risks by hiring employees having criminal backgrounds. For that, background check is now a part of most of the hiring processes. But, should the prospective employees worry about it? What this pre-employment background check actually reveal?
Protecting Your Organization Against Check and ACH FraudFraudBusters
Webinar series from FraudResourceNet LLC on Preventing and Detecting Fraud in a High Crime Climate. Recordings of these Webinars are available for purchase from our Website
This Webinar focused on the subject in the title
FraudResourceNet (FRN) is the only searchable portal of practical, expert fraud prevention, detection and audit information on the Web.
FRN combines the high quality, authoritative anti-fraud and audit content from the leading providers, AuditNet ® LLC and White-Collar Crime 101 LLC/FraudAware.
The two entities designed FRN as the “go-to”, easy-to-use source of “how-to” fraud prevention, detection, audit and investigation templates, guidelines, policies, training programs (recorded no CPE and live with CPE) and articles from leading subject matter experts.
FRN is a continuously expanding and improving resource, offering auditors, fraud examiners, controllers, investigators and accountants a content-rich source of cutting-edge anti-fraud tools and techniques they will want to refer to again and again.
Current Thoughts on Nutrition With Emphasis on Treating the Cause of Degenera...Visionary Ophthamology
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Occupational Fraud - What Dentists Need to Knowgppcpa
This presentation covers the definition of occupational fraud, the risk factors, the fraud triangle, how motive, opportunity and rationalization all play into fraud, what to do when fraud is detected, and actionable anti-fraud steps.
This session shows how your practice can utilize internal controls to promote efficiencies and effectiveness in the workplace and prevent the susceptibility of fraudulent acts by employees. Learn about the risk factors, vulnerable transactions, methods of detection and prevention as they specifically relate to your practice.
United Credit Education Services reveals the 10 myths about credit and the credit reporting agencies. Credit Restoration is legal thats why we have the Credit Repair Organization Act.
The information presented is for general information only and is not meant to substitute for legal advice. Always seek the advice of an attorney on legal matters.
The presenter makes no recommendations as to an individual physician’s participation or non-participation with any specific health plans, insurance company or payer. Each physician is urged to give due and proper consideration to their individual practice needs and act independently regardless of the actions or non-action of other physicians.
Payroll fraud is the most common form of employee theft and of all the accounting fraud scams it’s one of the hardest to detect. One of the difficulties in stopping payroll fraud is the different types of scams that exist. How can you implement policies, procedures and strategies to identify, eliminate and prevent payroll fraud?
Join Peter Goldmann, president of FraudAware as he outlines strategies for detecting and preventing payroll fraud.
The following article is related to deterring employee fraud within .docxssuser454af01
The following article is related to deterring employee fraud within organizations and answers some related questions. After reading the case, answer the following questions:
Read the article the following article:
Wells, J. T. (2004, December). Small business, big losses.
Journal of Accountancy,
198
(6), 42-47. Retrieved from Business Source Complete database.
Section:FRAUD
Audits and hotlines stack up as the bestcrime busters in a new ACFE study.
Occupational fraud has become--at least so far--the crime of the 21st century. It is a widespread phenomenon that affects practically every organization. The frauds in the 2004 Report to the Nation on Occupational Fraud and Abuse, from the Association of Certified Fraud Examiners, caused over $761 million in total losses, with a disproportionate percentage committed against small businesses--almost half of the frauds in the study took place in businesses with fewer than 100 employees. Not surprisingly such businesses are less likely to be audited or employ antifraud measures than the larger ones.
Several broad conclusions can be drawn from the 2004 report. First, though the losses have been stable over the years, the fact that in one year alone they are approaching $660 billion is cause for concern. Dishonest executives and employees are plying essentially the same schemes with the same results. Second, although large financial statement frauds receive the most attention, they are relatively uncommon compared to asset misappropriations and corruption. Third, small businesses remain the most vulnerable to occupational fraud because of three factors: They are the least likely to have an audit, a hotline or adequate internal controls. Fourth, audits--both internal and external--although excellent prevention devices are not the most effective means of detecting frauds. Fifth, hotlines and other reporting mechanisms are a vital part of any organization's prevention efforts but should go beyond employees to vendors and customers, too. Finally, occupational fraud cannot be eliminated but organizations that use both hotlines and auditors can greatly reduce these costly crimes.
Occupational fraud schemes can be as simple as pilferage of company supplies or as complex as sophisticated financial statement frauds. This article summarizes some of the key findings of certified fraud examiners (CFEs) in cases they investigated. Internal and external auditors and CPAs advising small business clients will learn of the most effective antifraud measures.
MEASURING THE COST OF FRAUD
Determining the true cost of occupational fraud is an impossible task. Because fraud is a crime based on concealment, organizations often do not know when they are being victimized. Many frauds never are detected or are caught only after they have gone on for several years. Many of those are never reported or prosecuted. In fact, there is no agency or organization that is specifically charged with gathering comprehensive fraud-relat.
In these slides we discuss the three aspects to committing fraud that are found in the fraud triangle and some steps that can be taken to begin a fraud risk assessment.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
1. J. ALBERTO MARTINEZ, MD
CAROLINA CLAVIJO
P R A C T I C E A D M I N I S T R A T O R
BORIS FOXMAN
P R E S I D E N T O F N B A C C O R P , C P A F I R M
How to Get
Embezzled
2. Discussion Topics
How it happened at VO
The scheme/ Search of evidence and aftermath
New controls at VO
How common is theft in medical practices?
What are the greatest areas of vulnerability?
How and why do honest people steal?
How to assess potential employees.
How to mitigate risk.
Final remarks on prevention, by Boris Foxman
3. How it happened at VO
Employee “EE” hired directly by DR 12 years+ ago. Lead
optician 9 years- promoted them to manager officially, but
always in control of all optical operations.
EE: strong sales skills, attractive and innocent
appearance… The 6’s C’s of the ideal sales person:
caring, charming, commendable, considerate, cordial &
courteous.
EE very close to DR, it felt like a family. EE was allowed to
employ family members for the optical. A case of
“complete trust”.
4. How it happened: Red flags we missed
DR gave full authority to EE to handle inventory, sales
pricing & discounts, ordering, hiring and training others.
Red flags:
Constant tardiness in reporting, constant late
hours, few vacations taken, for 10+years min. audits of
EE work and processes, total control of
sales, ordering, pick ups, money collection &
posting, unproportionate A/R balance, Net profit in
P&L some years max 10% and as low as 3%. EE with
very unstable personal life.
5. How it happened: Discovering the embezzlement
EE was manipulating other opticians with “cash
incentives” and commissions in advance. They could
mainly do “ sales” but all posting was reviewed or
done by EE later in the day, of course to be altered.
Opticians were instructed to keep
“double accounting” in separate books.
EE was immediately let go.
6. The clever scheme
80% of all transactions in 2 different systems are
manipulated
Security settings in software gave EE rights permission to
alter all transactions and enter adjustments.
Pay plan “ scheme” unveiled more details.
Fraud of cash and checks (even after fired)
EE has a “business account”
Some Credit cards sales were used to cover cash
transactions paid from pat. and not recorded in the
system.
EE had plenty of time to get “sophisticated” in methods.
7. The search of evidence & aftermath… for now
Find hard evidence, seek witnesses and
document, document & document
Estimate of $250,000+
Montgomery County Police/State Attorney’s office
Felony Type G: 2-10 years in jail/order of restitution
Claim to insurance- Insuring your
business against employee theft
Change of Policies and Procedures
But Overall…..Loss of sense of trust
8.
9.
10.
11.
12. New Internal Controls at VO
Extended analysis with accountants of current areas at
risk, change of policies and procedures.
Centralized payments at front desk. Opticians sale and post
in but send pat. to FD to make payments. Limited employee
access and rights.
Dual verification: both logs from FD and optical are
reconciled daily.
Audits from External Accountants 4 times per year for all
areas of the practice.
13. New Internal Controls at VO
System of Checks and Balances-Daily Receipt Log –
Balances with deposits
Inventory control every 2 months and monthly physical
count
Spot check lab invoices to match jobs
Written protocols for internal and external discount
policies ( for employees also)
Protocols with vendors, inventory of trials and centralized
CL ordering through ABB optical group.
14. Some of our hiring mistakes….
Your gut feeling can be wrong more often than you
realize.
Don’t hire for necessity, and if you must - do it in a for a
lower level position
Check &document references, have a script of questions
and always include the infallible“ will you hire again”
Department of Labor currently estimates that the average
cost of a bad hiring decision can equal 30% of the
individual’s 1st year potential earnings. A bad hire with an
annual income of $30,000 can equal a potential $9,000 loss.
15. Employee screening: Do it yourself vs. have a
company do it for you
Credit report for single use: Experian for free. It gives you
valuable insight into an individual's finances. Job applicant
fairness act in MD- in writing and must have “bona fide
job related reason to check credit.
Criminal check: There is not a single national database that
contains all criminal records in the U.S. - Check by county
and obtain permission in writing.
HireRight/Infocubic: cost of pre-screening packages
between $30 to $100. Results 1 day to up to week.
16. REALITY
Medical practices lose $25B annually*
Practices lose an average of 5%–10% of revenue to
fraud each year.*
86% of perpetrators are first-time offenders*
MGMA study of 945 practices found 83% (782)
practices had been victims of employee theft.**
3 of the 4 practices with a loss of $100,000 or
more were from groups with <10 physicians.**
17. UTOPIA?
“ It is better to trust and be disappointed once in a
while than not to trust and live in fear all the time”
How do I reconcile a philosophy that increases my
inner peace with the reality of the marketplace?
How do I fulfill my goal of making Visionary
Ophthalmology a “conscious corporation” And still
have a viable business?
18. What is a conscious corporation?
Purpose beyond profit
Humanized leadership
Corporate consciousness--- contribution
19. These areas
account for about
70% of theft.
supplies or equipment
Noncash
Cash Receipts
taking cash before or after it is
recorded on the books (co-
pays, refraction fees)
Disbursements
forging checks, submitting invoices for
fictitious goods, submitting inflated invoices
Petty Cash
Payroll
creating a fictitious
employee, unauthorized
bonuses or inflated
pay rate
10%
10%
10%
Greatest Areas of Vulnerability
70%
20. Right set of circumstances for honest people to steal:
How and why do honest people steal?
Rule of thumb among forensic accountants and auditors:
10-10-80 Rule:
10% of employees will always steal,
10% will never steal,
80% will steal under the right set of circumstances
Financial pressure: Could be an addiction, loss of household
income, medical bills, debt, accident, or greed
Rationalization: Begins with “just borrowing”
Opportunity: Perception of borrowing or stealing without
getting caught
1.
2.
3.
21. How to Assess Potential Employees
*MGMA Study
The Challenge:
All potential employees must be screened:
86% of perpetrators were terminated*
62% were not prosecuted*
Verify past employment and references
Check criminal history
Check civil history
Driver license violations
Credit checks (76% of practices did not perform
credit checks*)
22. Employee screening: Do it yourself vs. have a
company do it for you
Credit report for single use: Experian for free. It gives you
valuable insight into an individual's finances. Job applicant
fairness act in MD- in writing and must have “bona fide
job related reason to check credit.
Criminal check: There is not a single national database that
contains all criminal records in the U.S. - Check by county
and obtain permission in writing.
HireRight/Infocubic: cost of pre-screening packages
between $30 to $100. Results 1 day to up to week.
23. How to Mitigate Risk: Trust but Verify
Screen job applicants thoroughly.
Assess high-risk areas: co-pays, mail
receipts, disbursements, patient refunds, payroll.
Segregate duties. Never have same person doing deposits
and postings.
Conduct unscheduled audits: create a perception of detection
by monitoring employee work and testing compliance.
Be alert to disgruntled or stressed employees.
Outsource bookkeeping duties.
1.
2.
3.
4.
5.
6.
24. What can you change today?
Allow only the physician owners to sign checks.
Maintain a receipt book for all cash payments.
Endorse all checks “for deposit only” to the business
account immediately upon receipt.
Balance funds in cash drawer and payment log daily.
Employees ordering supplies should be different than the
employee receiving or paying for them.
Examine payroll records on a regular basis.
Delegate the responsibility for receiving checks/cash to
someone other than the person who records incoming funds
to the ledger.
25. Solution:
LIVE IN FEAR ALL THE TIME?
Hire and utilize external auditors that will look at
your practice unemotionally and prevent/uncover
embezzlement.
This way Visionary Ophthalmology can continue to
grow and fulfill its ultimate purpose: Contribution.
26. LBF International Tax LLC
Motivation for embezzlement
Approach to handling cash and finances in general
Defining good and reliable accounting systems
Boris Foxman
27. “An Ounce of Prevention is
Worth a Pound of Cure”
Editor's Notes
The first 2 come to about 70% on average. The other 3 are around 10% each.