Building a Fraud Resistant Organization

Jill S. G. Palmeter, CPA, Partner (Nov, 2015)

Earlier in the year we shared a series of thought leadership emails related to fraud and its impact on the business community, particularly in the not-for-profit (NFP) area.  The Independent Sector, a NFP organization researching and publishing NFP trends and data, has reported an estimated $1.5 trillion of revenues generated by NFP organizations. The Association of Certified Fraud Examiners estimates an overall 5 percent annual revenue loss due to fraud.  This equates to $77 billion of estimated fraud losses in the NFP sector alone. The financial loss may or may not be significant to your organization, but the impact often extends to other critical areas:

  • Damage to the organization’s reputation
  • Negative publicity
  • Lower employee morale
  • Cost of litigation and investigation
  • Disruption to business operations

Two broad categories of fraud exist: fraud that is committed against the organization and fraud that is committed by the organization.  In the first instance, assets of the organization are misappropriated through credit card abuse, fictitious vendor schemes, conflicts of interest, payroll schemes and various other techniques.  Fraud committed by an organization entails fraudulent financial reporting to mislead donors, funding sources, charity watchdog agencies, government agencies, board members and others. 

With the new year fast approaching, it may be a good time to re-evaluate your organization’s systems of internal controls and re-examine the importance of maintaining a strong fraud-resistant culture within your organization.  Please join us to see how.

Dermody, Burke & Brown’s Upcoming Complimentary Seminar entitled…

Helping to Build Fraud Resistance Within Your Organization

Thursday, January 14, 2016
8:00am - 9:30am
at Dermody, Burke & Brown
443 North Franklin Street
Syracuse, NY 13204

This seminar is designed for:
Executive Directors
Agency Financial Managers
Board Members

Invitations will be mailed out in December or feel free to RSVP today at epm@dbbllc.com.  Seating is limited for this complimentary seminar.

 

DB&B…Educating to Empower