July 7, 2015
Considerations for for-profits and not-for-profits alike...
According to one online dictionary citing Webster’s, embezzlement is defined as “The act of fraudulently appropriating to one’s own use, the money or goods entrusted to one’s care and management.” Embezzlement differs from certain other types of theft in that the person committing the act was “entrusted” with the care of the money or goods. They did not have to commit a criminal act to obtain access to the money or goods.
Google the word embezzlement along with your city or state and a year and any number of articles will appear of both alleged and confirmed cases of embezzlement. This week in Richmond, Virginia, there is a story involving allegations of embezzlement spanning a number of years by a trusted employee for hundreds of thousands of dollars. This story involves a for-profit medical practice. Unfortunately, it is just as likely to find a similar story for a not-for-profit organization or charity. These stories are reported in good economic times and in bad and often involve people and organizations that you would never expect to experience an incident of embezzlement.
Are you vulnerable? The Association of Certified Fraud Examiners website discusses “The Fraud Triangle” which originated from the hypothesis of Donald R. Cressey in his 1972 book, Other People’s Money. The conditions included in The Fraud Triangle are:
While no one action will fully protect your organization from embezzlement and it is difficult, if not impossible, to fully eliminate the risks, there are steps you can consider to reduce your risk. It may be difficult to recognize either outside pressures or rationalizations but steps can be taken to reduce opportunity. Some of these steps would include:
There are numerous considerations to evaluate in your effort to reduce the risk of embezzlement. Each organization needs to consider its options while considering their size, budget and operational opportunities. It is also important to realize that these efforts are not a one-time exercise but require ongoing evaluation as facts and circumstances will evolve over time.
As always, please let us know if we can be of assistance to you or your organization related to this article or the other accounting, bookkeeping, payroll, bill payment, tax compliance or related business advisory needs you are experiencing.
If you are like most, summer is prime time for family and friend vacations. It’s a time to unwind and recharge…to see new places and try new things. For many, “new things” often means food. And if you are trying to maintain or lose weight, that can be a problem. So, for all you travelers trying to stay healthy this summer, here are 5 great tips to help you stay on a healthy eating plan and still enjoy your vacation!
If you are like most families, summer means vacation. And if your kids are like most kids, they tend to be tethered to their technology. Whether planning to travel abroad or a long weekend at a local campground, summer is a time for exploration and simply paying attention to the beauty around us.
For many of us, our smartphone is a vital travel tool. We rely on it for navigating unfamiliar places, taking photos, and identifying recreational activities. Michael Zhao, an editor for TheWirecutter.com, offers the following tips on what to pack in addition to your smartphone—so you won’t be stranded when traveling this summer...or any other time of the...