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Hub You - What is Company Fraud and How Do You Stop It? (Part 2 of 2)
Look for an Import and Export Management Company with a sophisticated technical infrastructure and suite of transportation logistics solutions, which adhere to international standards, and can be tailored to meet customer requirements.A technical infrastructure that provides easy access to information through e-mail, SMS, fax, and the Internet is an essential part of a freighting company. The provision of accurate information and timelines is a critical component of the supply chain. Information you need to put your mind at ease should be available day and night, so you can manage the business of your move, efficiently and effectively.Shipping Freight-The PitfallsFirst point of call is to choose a company that in terms of transportation logistics, offers you a level of service that you are happy with. They must meet the terms agreed upon. You need to make it clear from the beginning that if additional costs do occur, you need to be aware of them upfront. As far as payment is concerned, have your tim
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense M
Nobody much likes performance evaluation systems. Managers find them unworkable and uncomfortable. Workers dread them. And many experts think we should scrap them altogether.But if you're a working manager you don't get much choice. You've got to do performance evaluations on your people using the system your organization has in place.You can make lemons from this lemonade, though. Here's how.Start by understanding that there are really two different things that go by the name, "performance evaluation." One of those things is your organization's formal performance appraisal process.Do whatever you must to handle your organization's evaluation system. You have to work with whatever system your organization has devised. Someday you may be able to change it, but not now. Devote your time and energy to making the system deliver good results.But the formal system is only part of the story. Usually the evaluation that happens there is like a report card. It's a summary judgment of performance that took place over
There are two main steps required to stop fraud in your company: Step 1 - identify your fraud risks; Step 2 - implement corporate expense management software controls to minimize those risks.
STEP 1 - Identify Your Fraud Risks
Is your company vulnerable to any of the following?
- Variances between hardcopies and computerized reports;
- Departure and return airfare on different dates but with no corresponding hotel expenses;
- Meals on weekends or in non-work locations;
- Poor descriptions and incomplete documentation such as a missing boarding pass, itinerary or receipt;
- Dates out of sequence;
- Old receipts;
- Nasty or inconsistent explanations to questions regarding claims. A common response is "how dare you question me?" ;
- Copies;
- Altered receipts;
- Credit card statements or printouts instead of receipts;
- Airline tickets:
- Employees have been known to pay for airline tickets using frequent flyer points and then claim the cost of a ticket as an expense from the company. This can be considered a fraudulent activity;
- There are numerous mechanisms employed to defraud an organization through the use of airline tickets. Organizations need to be diligent when dealing with airline ticket exchanges, refunds, partial refunds and possibility the flight being claimed was not taken (evidence of car rental, parking at the home airport, meals or other expenses in the destination are not present).
- Duplications to watch out for:
- These may not be identical amounts as in the case of partial hotel bills;
- Past due charges on mobile phone bills;
- The same expense may be reported twice in one period or in two or more periods with a different description and coding.
- Claiming personal items can also be a source of fraud against the company. These can include:
- Travel for family members;
- Retail or personal purchases;
- Excursions added on to business trips;
- Extra days in a hotel, car rental etc.;
- Gift shop, massages, etc. may be included on a hotel bill;
- Non-authorized trips.
- Organizations should also be diligent in identifying expenses being claimed that were not incurred. This is especially relevant when related to the claiming of meal expenses and meal per diem expenses;
- Inconsistencies such as taxi and rental car claims for the same portion of trip or mileage calculations that are clearly inflated;
- Overstatements may or may not be deliberate, however they include typographical errors ($34.95 reported as $3,495) and incorrect exchange rate conversions.
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense M
Why pay a high priced PR agent when you can get free media placement to promote your product, service, or book?Follow these top ten tips for 2005 and it will
be your most profitable year yet!1. Write an attention grabbing headline.Realize that your headline must immediately
"hook" a busy producer or editor at first glance.
If your headline doesn't hook them, they won't read
further.2. Be certain that your book is appropriate for the target audience.Do not send a media release about your romance novel to a radio show that interviews only nonfiction authors. Wishful thinking is well and good, but realize that shows KNOW their target market.3. Realize that there is a difference in format when sending a release by email and by fax.A faxed release and release sent by mail can be
identical. However, an email release requires careful
crafting to get right and is an art onto itself. The key
concept to remember is twofold. First, the subject line spells the difference between the release being opened o
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense M
When you want to decorate your new living or office quarters, there are many different alternatives available. Whether for home or for business, a furniture rental company can satisfy all equipment needs, from home furniture, to office furniture, to electrical appliances.Renting furniture for your home or business lets you preserve capital for other endeavors. The above reason is why 80 per cent of the Fortune 500 companies to rent their furniture.The other reason will be that furniture rental serves as a great alternative to those who cannot afford to purchase a permanent set of furniture. It is also good for those who will only be living in a certain location for a short period of time. Renting furniture satisfies all these requirements.For example, furniture rental offers the ability to rent an entire room of furniture for significantly less than it would cost to permanently furnish a room. Moreover, many furniture rental companies offer you the chance to purchase the furniture at the end of the rental period.Shopping f
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense M
If there is not enough diversity in your employee base or there is high turnover with certain groups of employees, your organization will not be able to leverage the power of diversity. Building diversity in a company through recruiting and retention is an important step to creating an inclusive workplace. Are your recruiting efforts doing the following? Here are some tips to help build diversity in your organization through recruitment:
- Begin to recruit from middle and high schools. Attend career days and come prepared to discuss the benefits of working for your organization and your industry.
- Identify stereotypes of people who work in your industry and develop strategies for changing perceptions i.e. Firefighting should only be a male occupation.
- Use more inclusive language and visuals in rule books, orientation, and recruiting materials.
- Create cross-cultural and cross gender mentoring programs and provide training for mentors.
- Develop relationships with associations and organiza
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense M
Fundraising can be hellish especially to first time organizers who do not have a clue on what to do. Everything may seem overwhelming, from organizing the event down to the selection of the product or services that the organization will be offering.Below are some quick tips in raising funds. Read on and you might get a thing or two that can help you make organizing your fundraising a breeze.Decide on your target amountBefore you can actually plan the rest of the fundraising event, you need to determine just how much you will need to raise. Everything will actually depend on this, from the venue of your charitable event, the persons that you will be inviting and even the product that you will be offering.For instance, if your target is only a few thousands, you don’t need to organize so big a function for the fundraising campaign. The items that you will selling or the services that you will be offering need not be the expensive ones. Candies, chocolates and other kiddie stuff can do the trick.However, if you are loo
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense Management Software Controls
In order to minimize the risk of fraud in your company, your corporate expense management software controls should be designed to provide and support the 5 W's (Who, What, Where, When, and Why). They must ensure that all reasonable, authorized expenses incurred in order for a staff member to perform their job responsibilities are paid with the corporate credit card and documented with an original, valid, unaltered receipt, and they must be implemented throughout the entire organization, at all levels and in all functions.
In practice, these corporate expense management software processes, controls, and procedures are very broad. They relate to items such as approvals, authorizations, verifications, reconciliations, segregation of duties, reviews of operating performance, background investigations, and physical security. They need to be embedded in your day-to-day management and monitoring processes, and they need to also leverage available information technology.
Segregation of Duties as a Corporate Expense Management Control
Given the nature of accounts payable and the related functions, segregation of duties is a crucial consideration. Following is a partial list of duties related to accounts payable and how they should be segregated.
- The person responsible for bank reconciliation should not:
- Handle unclaimed property reporting
- Be a signature on a bank account
- The person who is check signature should not:
- Authorize invoices for payment on an account that he/she is also a signature
- Have ready access to the check stock.
- A person who is responsible for the check stock should not:
- Be an authorized signature
- Handle the bank reconciliations
- The person responsible for the master vendor file should not:
- Be an authorized signature
- Be able to approve invoices for payment
- Handle unclaimed property
- Individuals responsible for accounts payable functions should not also be responsible for accounts receivable.
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation
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