Nathan L. Abbott, CFE, CISA, EA

 To provide an overview of fraud cases that have occurred in Tennessee and the Tools we developed to help prevent them and Data.

“Never trust the people you cheat with. They will throw you under the bus.” Marianne M. Jennings “Three people can keep a secret if two are dead.” Ben Franklin 3

 The median loss caused by the frauds in our study was $145,000. Additionally, 22% of the cases involved losses of at least $1 million.  Report to the Nation

 The median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases reported to us was 18 months.  Report to the Nation

 Occupational frauds can be classified into three primary categories: asset misappropriations, corruption and financial statement fraud. Of these, asset misappropriations are the most common, occurring in 85% of the cases in our study, as well as the least costly, causing a median loss of $130,000. In contrast, only 9% of cases involved financial statement fraud, but those cases had the greatest financial impact, with a median loss of $1 million. Corruption schemes fell in the middle in terms of both frequency (37% of cases) and median loss ($200,000).  Report to the Nation

Major Attractions  Bald Eagles  Reelfoot Lake  State Prison County Demographics  Population: 7,323  Median Income - $21,995  Below Poverty line – 23.60%

 Female  Salary - $20,688  Married  Long-Time Employee PriceSquare Feet $6,0001,092 $37, $112,9002,382 Lifestyle

 Duration – 2005 – 2010  Issued 191 vendor checks  Total $202,  The median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases reported to us was 18 months.  Occupational frauds can be classified into three primary categories: asset misappropriations,  The median loss caused by the frauds in our study was $145,000.

 The state charge of theft over $60,000 and if convicted, she could be sentenced to 8 to 12 years in prison as a Range I offender (0-1 previous felony convictions).  She served only 1 year and only has to pay back $54,000 of the $202,000

Main Attractions  Close to Memphis  Pass through it to get to Graceland  Justin Timberlake was born in a bordering county County Demographics  Population – 38,173  Median Income - $46,283  Below Poverty Line – 14.30%

 Female, 74  Salary: $40,600  Director of Food Service

 Duration: 2007 – 2009  Fake Vendors  Double Billed Invoices  Kickbacks  Total: $177,000  The median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases reported to us was 18 months  Occupational frauds can be classified into three primary categories: corruption  The median loss caused by the frauds in our study was $145,000

 Anita "Joyce" Owen, was indicted on one count of theft over $60,000, two counts of theft over $10,000 and one count of official misconduct.  No Jail time, Probation  Restitution $1,000

Main Attractions  Great Smoky Mountains  Tennessee Volunteers Football  Aluminum City Demographics  Population – 8,449  Median Income - $33,520  Below Poverty Line – 11.9%

 Female, 58  Treasurer/School Bookkeeper  Very Helpful

 Duration:  Stealing Cash  Unauthorized Disbursements  Total: $428,  The median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases reported to us was 18 months  Occupational frauds can be classified into three primary categories: asset misappropriations; corruption

 Kathy Ann Winters, 58, of Harriman, Tenn., with willfully and knowingly embezzling more than $1,000 from the U.S. Department of Education  Kathy Ann Winters 40 months imprisonment followed by 3 years supervised release. Special assessment of $ and Restitution of $ 428,

Main Attractions  General “Mad” Anthony Wayne County Demographics  Population – 17,021  Median Income - $26,576  Below Poverty Line – 16.30%

 Female, 47  School Bookkeeper  Auditors wished all bookkeepers were as helpful as she was.

 Duration – 2008 – 2013  Collusion  Misappropriation of funds  Payroll  Total: $319,  The median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases reported to us was 18 months  Occupational frauds can be classified into three primary categories: asset misappropriations

 This case is still in the courts.

EFFECTIVENESS OF CONTROLS 24

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 We had a big budget.  We had the right tools  We had the expertise  We had time

 We had a big budget.  We had the right tools  We had the expertise  We had time  VBA – Free  Excel – Already have  It is used all the time and taught in school  $1,126,556.15

LeadingActualExpectedZ-Stat

FundFunctionObjectSub FundCost CenterSub Obj.TypeCkNumDateDescriptionDebitCredit CD /27/2013ACTION GRAPHICS CD /27/2013ACTION GRAPHICS CD697977/3/2013AMANDA MORTON CD697977/3/2013AMANDA MORTON CD702268/2/2013AMANDA MORTON CD702268/2/2013AMANDA MORTON CD709119/12/2013AMANDA MORTON CD709119/12/2013AMANDA MORTON CD /10/2013AMANDA MORTON

VendorTotalMaxMax2Max/Max2MinMax/MinCount 580 GRAPHICS4, , A & B AUTO & TRUCK REPAIR2, , ACT27, , , ALLEN PITNER AMERICAN PAPER & TWINE CO.131, , , AMERICAN PAPER & TWINE COM32, , ,

 Built-into all office applications  Free  Easy to learn  Allows tasks to be repeated the same everytime

Building a 21 st Century Digital Government that charged the Federal Chief information Officer (CIO) with developing and implementing a comprehensive government-wide strategy to deliver better digital services to the American people.

DO NOT PAY The goal is to integrate Do Not Pay into your existing business processes by providing your agency access to current and relevant data to help make an award or payment decision.

DO NOT PAY Data Sources Currently Available  Excluded Party List System - Private (EPLS) with an Office of Foreign Asset Controls (OFAC) feed  Death Master File - Public (DMF)  List of Excluded Individuals/Entities - Public (LEIE)  Excluded Party List System - Public (EPLS)  Debt Check  Central Contractor Registration (CCR)  Office of Foreign Assets Control (OFAC) feed

How it works Provides users with an internet-based, one stop shop for their data needs. Agencies can select the best searching methods to incorporated into their business processes.

 TAG - Tennessee  Ohio OPENDATA  DATA.GOV – Federal Government

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