1. Don’t Let Your Money Disappear!

2.  ANYONE  Longstanding  All levels  No prior history

3. 87% who commit fraud have never been charged before

4. Frauds last 18 months before they are detected

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

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

7. Small organizations = more frauds for more money

8. The longer they’ve worked The larger the fraud

9. Audits find only 3% of the fraud

11. INCENTIVE OPPORTUNIT Y RATIONALIZATION

14.  Medical  Spouse unemployment  Gambling  Debt

15.  Just borrowing  They owe me  They’ll never miss it

16.  No one watching  Too much control  Cash  Management override

17. YOU CONTROL THE OPPORTUNITIES

18.  MANAGEMENT must create the control environment  Auditors simply evaluate

19.  Rules apply to all  Don’t belittle procedures  No management overrides  Discipline

20.  Tipline  Employees and the public  Training

22. InitiateApproveComplete SEGREGATION OF DUTIES

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

24.  Require receipts  Involve multiple people  Reduce cash when possible

25.  Don’t pre-sign  Don’t use stamps  Independent review  Void check procedure

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

27.  Original invoice/receipt  Analytics – ex: fuel  Credit card controls

28.  Best Practices Website  Your Questions