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© Aronson LLC | aronsonllc.com |
Delivering Risk & Fraud Assessments Your Board Wants & Needs
Greg Plotts, CPA, Partner &
Rob Eby, CPA, CGMA, Partner
© Aronson LLC | aronsonllc.com
Agenda
• Enterprise Risk Assessment
Overview
• Fraud Assessment Overview
• Getting to Know the Perpetrator
• In the News
• Anti-Fraud Programs & Controls
• Data Analytics & Visualization
Testing Techniques
• Taking Action
Enterprise Risk Assessment Overview
4© Aronson LLC | aronsonllc.com
WHY conduct enterprise risk assessments?
All too confusing and overdone…Except when
we get in troubleMust do it…
But how do we do it better?
Keep Us Out of Trouble Make Our Business Better
Growing Number of Frauds
New Potential Security Breaches
CatastrophicReputational Consequences
Bigger Fines and Settlements for information disclosure
New/Expanded Regulations
Effective Use of Technology
Coordinated Risk Management Activities
Growing Threats & Vulnerabilities and Attacks
Enhanced Security Policies
Cost-Effective Compliance
Rationalized & Optimized Controls
Better Protect Key Assets & Information
GOAL
5© Aronson LLC | aronsonllc.com
HOW do we conduct enterprise risk assessments?
Top-down Risk
Profile identified
and assessed
Bottom-up Risk
Profile identified and
assessed
Residual risk assessment and
evaluation of management controls
Consistent
methodology,
approach,
language, tools
A
B
Compare A to B to
make sure they
align
Inherent risk assessment, evaluation
of specific controls and residual risk
assessment
Operations
Audit Committee
HRFinanceAudit
Quality
Audit
Firm
Corporate
Governance
Group Risk Focal Point (Collation
and Reporting)
IT
• Identified and assessed locally by management and local risk
teams
• Consistent language, methodology and scoring parameters used
• Aligned to business objectives
6© Aronson LLC | aronsonllc.com
Approach
Tim
e
line 1 – 2 weeks 1 – 2 weeks 1 week 2 weeks
Ob
ject
ives
► Understand the environment,
its policies, processes, and
controls
► Identify risks in the various risk
categories
► Rank and prioritize risks based on
established methodology
► Report risks based on likelihood and
impact
Aro
nso
n A
ctiv
itie
s
► Conduct entrance meeting to
discuss scope, approach,
deliverables and project plan
► Request and review all
applicable documentation
► Identify applicable risk
categories from the Risk
Universe
► Develop questionnaire for in-
person interview to identify
risks in the risk categories
► Interview key Senior Management
personnel and Board of Directors to
gain an understanding on their
perspective of risk
► Benchmark existing processes against
industry leading frameworks
► Collate all data point and identify risk
across all in-scope risk categories
► Identify risk factors that contribute to the
risks
► Rank and prioritize risks
► Identify gaps and develop
recommendations
► Develop draft of the Risk
Assessment Report
► Develop Risk Assessment Report
including recommendations
► Deliver Risk Assessment Report to
stakeholders for review and feedback
► Receive and incorporate feedback
► Finalize Risk Assessment Report
► If requested, present the Risk
Assessment Report to the Board of
Directors
Wo
rk
Pro
du
cts
► Entrance meeting
presentation
► Interview Questionnaire
► None ► Draft Risk Assessment Report ► Final Risk Assessment Report
Plan Identify Assess Report
7© Aronson LLC | aronsonllc.com
HOW do we categorize, understand, and address risk?
• Risk Categories
– Strategic
– Financial
– Operational
– IT
– Compliance
• Risk Ranking
– Risk Level = Likelihood x Impact
– Low, Medium, and High scores
• Inherent Risks vs Residual Risks
• Managing Risks – Accept, Avoid, Mitigate, or Transfer
8© Aronson LLC | aronsonllc.com
WHAT are we assessing?
Governance:
Board Performance
Tone at The Top
Control Environment
Corporate Social Responsibility
Planning and Resource Allocation:
Organizational Structure
3rd Party Relationships
Strategic Planning
Annual Budgeting
Forecasting
JV’s /Alliances and Partnerships
Outsourcing Arrangements
Major Initiatives:
Vision and Direction
Planning and Execution
Measurement & Monitoring
Technology Implementations
Technology Support
Strategic
Market Dynamics:
Competition
Macro-Economic Factors
Lifestyle Trends
Socio-Political
Communication & Investor Relations:
Media Relations and Investor
Communications
Marketing:
Marketing
Fundraising
Membership Development
Intermediary Relationships
People/Human Resources:
Culture
Recruiting & Retention
Development & Performance
Succession Planning
Compensation & Benefits
Information Technology:
IT Management
IT Confidentiality
IT Availability/Continuity
IT Spend
IT Integrity
IT Infrastructure
Operations
Business Interruptions:
Natural Events
Terror & Malicious Acts
Outages
Assets:
Real Estate
Physical Assets
Information Assets/Records
Core Operating Processes:
Portfolio Management
Pricing and Valuation
Investment Accounting
Investment Performance and
Attribution
Safeguarding of Client Assets
Service Provider Oversight
Contract Management
RISK UNIVERSE
Financial
Liquidity Risk Management: Liquidity Risk Cash Management Funding Insurance
Accounting and Reporting:
Accounting, Reporting and Disclosure
Internal Control
Credit Risk Management: Credit Risk Credit and Collections Settlement Risk Counterparty risk
Compliance
Code of Conduct :
Ethics
Fraud
Legal & Regulatory:
Federal Laws
International
Compliance
State Laws
Intellectual Property
Legal & Regulatory (Cont):
Litigation and Discovery
Response
Supervision
Customer Protection
Data Protection and
Privacy
9© Aronson LLC | aronsonllc.com
Sample Heat Map
Strategic Operational IT Financial Compliance
Heatmap Risk Type Color Key
10© Aronson LLC | aronsonllc.com
WHERE you can expect enterprise risk to take you?
Defined: 3
Integration with Business Processes has Begun
Risk Metric Requirements Defined
Assessment convergence has begun
Risk Processes Automation has Begun
Risk Awareness Program Implemented
Managed & Measurable: 4
Risk Processes Automation Consistent & Complete
Trending of Compliance and Risk Metrics
Risk Processes Monitored and Improved
Risk Metrics Aligned with Business Drivers
Optimized: 5
Risk Processes Quality Program Implemented
Risk Processes Fully Aligned with Business
Risk Processes Optimized for Efficiency
Risk Optimization Tied to Technology Investment
Managed: 2
Risk Appetite Statements Defined
Risk Processes Defined
Risk Processes Mapped with Framework
Risk Taxonomy & Threat Matrix
Initial: 1
Requirements Defined
Risk Processes Identified
Risk Taxonomy & Threat Matrix
Fraud Assessment Overview
12© Aronson LLC | aronsonllc.com
News Story #1
• In June 2018, a former bookkeeper pleaded no contest to charges that she stole nearly $7 million from a nonprofit, an organization that serves the intellectually disabled.
• At age 71, she was sentenced to 25 years in prison and ordered to pay nearly $7 million in restitution.
• Hawaii News Now referred to it as one of the largest white-collar crime cases in Hawaii’s history.
• She used the money to buy 5 homes, fund lavish vacations, purchase cars, benefit family members, and gamble in Las Vegas.
• She forged approximately 628 checks over 19 years, amounting to about $50,000 a month.
• In several instances, the NFP had to borrow money from a board member in order to pay its bills.
• The theft was discovered during a routine audit.
• Additional losses are possible since financial institutions are only required to maintain records for up to seven years.
13© Aronson LLC | aronsonllc.com
Defining Occupational Fraud
The Association of Certified Fraud Examiners (ACFE) defines Occupational Fraud & Abuse as:
“the use of one’s occupation for personal enrichment
through the deliberate misuse or misapplication of the
employing organization's resources or assets”
14© Aronson LLC | aronsonllc.com
The Fraud Triangle
• Personal debt
• High medical bills
• Supporting a habit
• Work-related pressures
• “I’m not hurting anybody.”
• “This organization owes me.”
• “I’ll pay it back.”
• Inadequate segregation of duties
• Rapid turnover/lack of oversight
• Absence of mandatory vacations
• Constant “crisis” mode
• Controls not followed
15© Aronson LLC | aronsonllc.com
How does an organization’s size relate to its occupational fraud risk?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
16© Aronson LLC | aronsonllc.com
How does detection method relate to fraud duration and loss?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
17© Aronson LLC | aronsonllc.com
What is the breakdown of fraud schemes in nonprofits?
3%
9%
10%
17%
19%
19%
22%
22%
29%
34%
40%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Register Disbursements
Cash Larceny
Financial Statement Fraud
Skimming
Non-Cash
Check Tampering
Cash on Hand
Payroll
Expense Reimbursements
Corruption
Billing
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
18© Aronson LLC | aronsonllc.com
Defining Fraud Schemes
• Billing schemes include: false vendors or shell companies; resubmitting valid invoices for
duplicate payment; and including personal expenses as company charges.
• Corruption includes: conflict of interest, bribes, kickbacks, bid rigging, and sales schemes.
• Non-cash schemes include: theft of inventory or company assets and misuse of company
assets.
• Skimming includes: theft of incoming payments before they are entered into the system
hidden by lapping receivables or unrecorded sales.
19© Aronson LLC | aronsonllc.com
Defining Fraud Schemes (Cont.)
• Expense reimbursement schemes include: mischaracterized expenses, overstated
expenses, fictitious expenses, and duplicate reimbursements.
• Check tampering includes: forged maker, forged endorsement, and altered payee.
• Payroll schemes include: ghost employee, retaining an employee on payroll after
termination, falsified wages, and commission schemes.
• Cash on hand includes: theft of petty cash or stealing funds from company vault.
• Cash larceny includes: theft of cash or receipts after the transactions have been entered
into the general ledger.
20© Aronson LLC | aronsonllc.com
What are the top concealment methods?
29%
30%
30%
31%
34%
42%
48%
55%
0% 10% 20% 30% 40% 50% 60%
Created Fraudulent Elec. Docs/Files
Created Fraudulent Journal Entries
Destroyed Phys. Docs
Altered Elec. Docs/Files
Altered Trans. in Acct. Sys.
Created Fraudulent Trans. in Acct. Sys.
Altered Phys. Docs
Created Fraudulent Phys. Docs
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
21© Aronson LLC | aronsonllc.com
Case Study: False Vendor Invoices
• Nick is the A/P clerk at ABC, a rapidly growing company
• Nick’s responsibilities include A/P, cash disbursements, and new vendor approval
• Nick knows his bosses don’t pay attention to vendor invoices under $2,500
• Nick forms a shell company (XYZ), with a PO box address
• Nick adds XYZ as an ABC-approved vendor
• Nick generates a few $500 monthly invoices from XYZ for “consulting services” and arranges for ABC to pay them
• Thinking he’s in the clear, Nick later increases the XYZ invoices to $2,499 and submits them on a semi-monthly basis
Getting to Know the Perpetrator
23© Aronson LLC | aronsonllc.com
How does the perpetrator’s level of authority relate to occupational fraud?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
24© Aronson LLC | aronsonllc.com
How does the perpetrator’s age relate to occupational fraud?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
25© Aronson LLC | aronsonllc.com
How does the perpetrator’s gender relate to occupational fraud?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
26© Aronson LLC | aronsonllc.com
How does the gender distribution of perpetrators vary by region?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
27© Aronson LLC | aronsonllc.com
How does the perpetrator’s tenure and education relate to occupational fraud?
TENURE
• Very few (9%) were with employer for <1 year.
– 44% for 1-5 years
– 23% for 6-10 years
– 24% for >10 years
• Median loss increases with tenure.
– $241,000 for >10 years
– $173,000 for 6-10 years
– $100,000 for 1-5 years
– $40,000 for <1 year
EDUCATION
• Most college-educated.
– 47% with college degree
– 14% with post-grad. degree
– 15% with some college
– 24% with HS diploma or less
• Median loss increases with
education.
– $230,000 with post-grad. degree
– $160,000 with college degree
– $130,000 with some college
– $75,000 with HS diploma or less
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
28© Aronson LLC | aronsonllc.com
Do perpetrators tend to have prior experience?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
PRIOR FRAUD CONVICTIONSPRIOR EMPLOYMENT-RELATED
DISCIPLINARY ACTIONS FOR FRAUD
29© Aronson LLC | aronsonllc.com
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
Do fraud perpetrators also engage in non-fraud related misconduct?
30© Aronson LLC | aronsonllc.com
What is the frequency and median loss by department of perpetrator?
Department Frequency Median Loss
Accounting 14% $212,000
Operations 14% $88,000
Senior Management 11% $729,000
Admin. Support 8% $91,000
Finance 6% $156,000
IT 3% $225,000
Marketing 2% $80,000
HR 1% $76,000
Board of Directors 1% $360,000
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
31© Aronson LLC | aronsonllc.com
Attributes of an Embezzler
Superiority
ComplexGreed
Pressure
from
Above
Rule-Breaker
Mentality
Sense of
Entitlement
Thrill
SeekerWell-Educated
AddictionPosition
of Trust
Financial
Stress
Anti-Fraud Programs & Controls
33© Aronson LLC | aronsonllc.com
Were losses recovered?
53%32%
15% Nothing Recovered
Partial Recovery
Recovered AllLosses
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
34© Aronson LLC | aronsonllc.com
What are the common red flags?
12%
15%
16%
20%
30%
46%
0% 10% 20% 30% 40% 50%
Wheeler-dealer attitudde
Divorce/Addiction problems
Unwillingness to share duties
Unusually close to vendor/customer
Financial difficulties
Living beyond means
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
35© Aronson LLC | aronsonllc.com
What is the frequency and median loss by initial detection of fraud?
Detection Method Frequency Median Loss
Tip 40% $147,000
Internal Audit 15% $100,000
Mgmt. Review 13% $135,000
By Accident 7% $250,000
Account Reconciliation 6% $85,000
External Audit 4% $470,000
Police 2% $1,000,000
Surveillance 2% $48,000
Confession 1% $500,000
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
36© Aronson LLC | aronsonllc.com
What was the primary internal control weakness?
0% 5% 10% 15% 20% 25% 30% 35%
Lack of competent personnel
Poor tone at the top
Lack of management review
Override of existing controls
Lack of internal controls
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
37© Aronson LLC | aronsonllc.com
How does the presence of anti-fraud controls relate to median loss?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
38© Aronson LLC | aronsonllc.com
How does the presence of anti-fraud controls relate to duration of fraud?
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
39© Aronson LLC | aronsonllc.com
Effective Controls
Prevention
DeterrenceDetection
Prevention
• Code of conduct
• Employee counseling services
• Fraud training
• Employee background checks
• Mandatory vacations, job rotation
• Segregation of duties
Detection
• Fraud hotline
• Financial statement trend analysis
• Monthly financial statement preparation and
review
• Monthly reconciling of accounts
• Surprise (internal) audits
• External audit
• Employee exit interviews
Deterrence
• Prosecuting fraud perpetrators
40© Aronson LLC | aronsonllc.com
Fraud/Whistleblower Hotlines
44%
51%
54%
54%
60%
63%
0% 20% 40% 60% 80%
2008
2010
2012
2014
2016
2018
% of Victim Organizations that Had a Fraud Hotline
Source: ACFE’s Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse
Tips are the #1 fraud-detection method
Hotlines provide a reporting channel for
complaints from employees and/or
outsiders
– Confidential
– Anonymous
Many organizations (especially small
nonprofits/associations) do not have a
fraud hotline
41© Aronson LLC | aronsonllc.com
Code of Conduct
• Conflicts of interest
• Confidentiality
• Relationships with customers and suppliers
• Gifts and entertainment
• Unethical behavior
• Use of corporate assets
• How to report fraud or unethical behavior
It is important to monitor the compliance with the code of conduct which may include requiring at least
annual confirmation of compliance and understanding the code.
42© Aronson LLC | aronsonllc.com
Segregation of Duties
Human Resources
• Is there a mandatory vacation policy?
• Is the hiring function separate from payroll processing?
Cash Receipts
•Is the sales function separate from credit approval?
•Does the A/R clerk also handle customer complaints?
Cash Disbursements
•Does the person who signs checks also perform bank reconciliations?
•Do checks over a certain threshold require dual signatures?
•Who approves new vendors?
Financial Management
•Are financial statements prepared monthly and reviewed by an executive?
•Are A/R and A/P reports reconciled to the G/L on a monthly basis?
Data Analytics & Visualization Testing Techniques
44© Aronson LLC | aronsonllc.com
Fraud Data Analytics & Visualization Process
• Define the fraud indicators you wish to test for based on experience and common fraud schemes. May be beneficial to hold a fraud brainstorming meeting to help define.
Define the Fraud Test
• Identify source IT system(s) which store the data required and extract this data in a controlled environment
• Clean the data and convert to a format suitable for analysis. Import into analysis software or excel for test execution.
Data Extraction & Cleansing
• Translate the fraud tests into suitable technical data tests and perform analysis to identify unusual trends, data anomalies and control breakdowns.
Data Analysis & Visualization
• Reports that provide data insights for process owners. The tests can be re-performed on a periodic basis to facilitate continuous monitoring.
Reporting and Monitoring
45© Aronson LLC | aronsonllc.com
Example Fraud Test Definitions
Payroll
• Ghost employees
• Duplicate bank details
Payments analysis
• Adherence to limits
• Trend analysis
Vendor file
• Run checks of vendor addresses against employee addresses for any matches and be aware of any P.O. boxes
Accounts payable
• Weekend payments
• Payments to unauthorized vendors
• Run checks of duplicate invoice numbers, dates and amounts for items submitted more than once
• Check invoices against contract terms or purchase orders for amounts that don’t agree
Financial statement close
• Manual journal postings/adjustments
• Journals not balancing to 0
• Journals posted after hours
• GL accounts that are frequently reversed
• Dormant accounts that are suddenly being used
© Aronson LLC | aronsonllc.com
• Data becomes more understandable and
appealing
• Users can access and intake information more
efficiently
• Presents information in an easy to understand
format
• Data visualization can be used to
– Identify areas for improvement
– Predict revenue (streams)
– Detect fraud
Why is data visualization important?
47© Aronson LLC | aronsonllc.com
How Can Data Visualization Detect Fraud?
• It will NOT detect fraud that is “off the books”
– It will provide analytics for existing information, which may lead to the discovery of off additional
activities
• Data Visualization allows managers and executives to consume information more effectively
and get a broader picture
• Data to visualize:
– Revenues from an odd area of the country
– Expenses changing over periods of time
– Revenues and expenses by department
– Expenses by vendor to shell companies
48© Aronson LLC | aronsonllc.com
What do I need to look for in data visualization software?
Data Usability/Applicability
• Data that is not collected
cannot be visualized.
• Inaccurate data will produce
inaccurate results
User Competence
• Data visualization software
can be a very powerful tool,
but if the person using the tool
is not well versed in the
software, the results may not
be ideal.
49© Aronson LLC | aronsonllc.com
Free Data Visualization Software
• Microsoft Power BI– Microsoft’s free data analysis tool built do go beyond Excel’s natural limitations
– It offers a simple and easy to use interface that is excellent for beginners
• Tableau Public– Tableau’s free data visualization tool for all users in a flexible end-to-end
analytics platform
• Openheatmap– Simple online tool for creating heatmaps that transforms traditional spreadsheet
geographical data into an easily digestible heatmap in a matter of seconds
• VIDI– Browser based software used to quickly map data with the goal of serving
people with detailed insight into a team’s preparedness
• D3.js– A JavaScript library used to produce dynamic and interactive data visualizations
within web browsers
– A very powerful tool for advanced users
51© Aronson LLC | aronsonllc.com
Tips
Establish a baseline and then look for outliers or values that exceed averages.
Look at both high and low values that are unexpected.
Small anomalies may add up over time.
Group your data into meaningful classifications and compare between periods and, if applicable,
locations.
Data analytics should be repeated and ongoing in order to establish patterns and deviations from
regular expectations.
Communicate that monitoring activities are being conducted regularly so that employees are aware
that close attention is being paid.
52© Aronson LLC | aronsonllc.com
Risks
• Data quality – The results from analytics tests are only as good as the input data.
• Data volumes – There may be significant data volumes and your data analytics testing
infrastructure should be capable of handling these volumes.
• Data security – Appropriate security protocols should be considered throughout the
extraction and analysis to protect the confidentiality and integrity of source data.
Taking Action
54© Aronson LLC | aronsonllc.com
Fraud Prevention Check-Up
• ACFE has a Fraud Prevention Check-Up tool available here: http://www.acfe.com/fraud-prevention-
checkup.aspx
• Questions include:
– Risk Assessment
• To what extent has the organization established a process for oversight of fraud risks by the board of
directors or others charged with governance?
• To what extent has the organization created “ownership” of fraud risks by identifying a member of senior
management as having responsibility for managing all fraud risks?
– Anti-fraud controls
• To what extent has the organization implemented measures to eliminate or reduce each of the
significant fraud risks identified in its risk assessment?
55© Aronson LLC | aronsonllc.com
Fraud Risk Assessment
• Understand the controls that are in place
– Are they being followed?
• What controls should be added?
– Prioritize based on level of risk
– Costs vs. benefits
• Are there ineffective controls in place that should be removed?
• Risk assessment should consider:
• fraud prevention controls
• fraud detection controls
• Trying to prevent all fraud generally is not cost-effective
• No guarantee you can prevent all fraud, no matter what controls you have
56© Aronson LLC | aronsonllc.com
Fraud Investigations
Receive/Evaluate Allegation
Develop hypothesisPlan Investigation
Coordination among internal departments
Coordination with external service providers
Conduct Investigation
Interviews
Collect evidence
Analyze evidence
Prove or disprove hypothesis
Report results
Take Corrective Action
Criminal referral
Civil action
Disciplinary action
Insurance claim
Extended investigation
Modify internal controls
57© Aronson LLC | aronsonllc.com
As the lead partner in Aronson LLC’s Nonprofit and Association Industry Services Group, Rob
Eby is a strategic leader with more than 25 years of professional experience. He is a results-
driven practitioner who specializes in assurance and consulting services for clients that include
schools, faith-based organizations, foundations, associations, and service organizations.
Rob’s diverse leadership experience spans the professional and personal divide. In addition to his
role at Aronson, he was a college professor and a winning high school soccer coach. He also sits
on the board of the Aronson Foundation and is a board member of Interfaith Works, a nonprofit
that serves the needs of poor and homeless populations in Montgomery County. Formerly an
executive for a nonprofit organization, Rob is uniquely qualified to understand the demands of
nonprofit accounting and leadership.
As an active participant in the accounting profession, Rob has taught numerous CPE classes and
presented financial accounting and auditing topics at events that include the Virginia Society of
CPA’s Annual Nonprofit Conference and the Greater Washington Society of CPA’s Annual
Nonprofit Symposium. He was a contributing author to ASAE’s The Financial Management
Handbook for Associations and Nonprofits, and the Nonprofit Controllers Manual, published by
Warren, Gorham and Lamont, Inc. As a nonprofit thought leader, Rob is a contributing author to
Aronson’s Nonprofit Report blog.
Rob earned his bachelor’s degree in accounting from Grove City College in 1986 and his master
of arts from Capital Bible Seminary. Rob is a member of the American Institute of Certified Public
Accountants and the Greater Washington Society of Certified Public Accountants.
301.231.6291
Rob Eby, CPA, CGMA
58© Aronson LLC | aronsonllc.com
Greg Plotts, CPA, serves as a partner in Aronson’s Nonprofit & Association Services
Group. He is a proactive and collaborative leader with over 20 years of industry
experience.
Greg specializes in financial statement assurance and consulting matters for associations
and other exempt organizations. He has a wide range of experience with complex issues,
including internal controls, revenue recognition, fraud investigations, international audit
matters, foreign currency transactions, valuation of intangible assets, joint ventures,
mergers and acquisitions, and more.
Greg’s passion lies in building strong, productive relationships with both his clients and
team. He invests the time to listen and learn about his clients’ organizations, objectives,
and challenges. He then partners with them to implement the right strategic initiatives to
achieve their short- and long-term objectives. As an enthusiastic mentor, he is committed
to cultivating a positive and healthy team culture, where all members thrive and grow.
Prior to joining Aronson, Greg held steadily increasing leadership roles at both a “Big 4”
accounting firm and a regional accounting firm. Active in the community and profession,
his involvement builds on his knowledge and understanding of the nonprofit industry and
increases the value he brings to his clients.
301.231.6226
Greg Plotts, CPA
59© Aronson LLC | aronsonllc.com