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Dont Let Your Money Disappear!

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ANYONE Longstanding All levels No prior history

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87% who commit fraud have never been charged before

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Frauds last 18 months before they are detected

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Average loss $60K from employees, $180K from management

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Tip offs in 81% of cases Financial stress Control freak Too close to vendors Living beyond means

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Small organizations = more frauds for more money

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The longer theyve worked The larger the fraud

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Audits find only 3% of the fraud

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INCENTIVE OPPORTUNIT Y RATIONALIZATION

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Medical Spouse unemployment Gambling Debt

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Just borrowing They owe me Theyll never miss it

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No one watching Too much control Cash Management override

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YOU CONTROL THE OPPORTUNITIES

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MANAGEMENT must create the control environment Auditors simply evaluate

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Rules apply to all Dont belittle procedures No management overrides Discipline

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Tipline Employees and the public Training

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InitiateApproveComplete SEGREGATION OF DUTIES

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BARRIERS Small staff Signature stamp, on-behalf approvals SOLUTIONS Involve other employees, may not be finance staff Approver must sign

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Require receipts Involve multiple people Reduce cash when possible

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Dont pre-sign Dont use stamps Independent review Void check procedure

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W-9 Already in system? No phone = red flag Verify the business

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Original invoice/receipt Analytics ex: fuel Credit card controls

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Best Practices Website Your Questions