Inventory is an area of your practice where segregating duties will greatly reduce the risk of theft.
If the person responsible for ordering inventory also receives the inventory and enters it into your computer system, there's no one to verify whether the amount recorded matches what was ordered.
So if 12 cases are ordered and received but only 10 cases are entered into the inventory system, no one will notice that the other two cases ended up in your inventory person's trunk.
Police: Employee steals pain medication from veterinary hospital
A 45-year-old woman is accused of stealing pain medication while working for a local veterinary hospital, police say.
Jennifer Manning was charged with felony embezzlement on Sept. 22 after police say she stole at least 17 bottles of Tramadol from the Jolly Pond Veterinary Hospital, located at 3800 Longhill Road, James City County Police Department spokeswoman Stephanie Williams wrote in an email.
Manning is accused of stealing the medication while accepting deliveries from Feb. 2, 2015 to Sept. 2 as an employee of the veterinary hospital. Police believe she took one full bottle from some deliveries and only logged the remaining bottles, Williams wrote.
Police believe Manning stole about $385 worth of Tramadol. The Drug Enforcement Administration considers the medication a schedule four drug, meaning it has a low potential for abuse and dependence. Other schedule four drugs include Xanax and Valium.
Tramadol is used as a pain killer for moderate and severe pain, including surgical pain. It can become habit forming if used for a long time, according to the Mayo Clinic.
Manning’s case is scheduled to be heard in Williamsburg-James City County General District Court on Oct. 4.
Source: http://wydaily.com
A dual control system requires the authorization or approval of two individuals to complete a transaction.
One individual should not be responsible for an entire financial transaction from beginning to finish.
The dual control system puts a second set of eyes on transactions, greatly lessening the risk of embezzlement.
Inventory Management:
One person orders. A different person receives in the order. All purchase orders should be forwarded/transmitted to bookkeeping.
Incentive ... Opportunity ... Rationalize = The Fraud Triangle as a three legged stool -------> Take away a leg! Business owners must be proactive in preventing fraud/embezzlement!
MINIMIZE OPPORTUNITY!
Companies should always be looking to minimize the opportunity for fraud and unethical behavior. Kathryn C. Tiffany, LLC of Voorhees, New Jersey can assist with this. Working as a outside certified bookkeeper, Kathryn C. Tiffany, LLC can help companies analyze operations, review internal controls and address any current or future vulnerabilities. It is a worthwhile investment for any organization that wants to remain secure against the hazards of fraud. Internal controls a must for businesses!
$19K stolen from Mount Laurel medical office:
MOUNT LAUREL – Two former employees stole thousands of dollars from a medical office by forging checks, authorities said.
The crimes against the Briggs Road office, which police did not identify, occurred over a period of at least five months starting in March. The owner discovered the thefts last month, police said.
One of the suspects, 29-year-old Andrea D. Lecklikner of Turnersville, was arrested Thursday on charges of theft by deception and conspiracy. Police said she forged checks totaling $4,959 in New Jersey and Pennsylvania.
A second suspect, 29-year-old Brittany Mulholland of Sewell, remains at large, police said Friday. She forged checks totaling $14,412, according to police, who obtained warrants charging her with computer criminal activity, theft by deception and conspiracy.
Original article can be found here: http://www.courierpostonline.com
UNDERSTANDING THE FRAUD TRIANGLE
The three factors that make up the fraud triangle are:
Pressure. Most individuals require some form of pressure to commit a criminal act. This pressure does not need to necessarily make sense to outside observers, but it does need to be present. Pressures can include money problems, gambling debts, alcohol or drug addiction, overwhelming medical bills. Greed can also become a pressure, but it usually needs to be associated with injustice. “The company has not been paying me what I am really worth,” for instance.
Opportunity. An opportunity to commit the act must be present. In the case of fraud, usually a temporary situation arises where there is a chance to commit the act without a high chance of being caught. Companies that are not actively working to prevent fraud can present repeated opportunities to individuals who meet all three criteria of the fraud triangle.
Rationalization. The mindset of a person about to commit an unethical act is one of rationalization. The individual manages to justify what he or she is about to do. Some may think they are just going to borrow the stolen goods, or that they need the money more than the “big” company they are stealing from.
POLICE BLOTTER:
THEFT/ARREST: In August 2016 the owner of a medical office on Briggs Road reported that two former employees had been stealing money from the business over a period of time.
The investigation revealed that between March 2016 and August 2016 employee Andrea D. Lecklikner, age 29, of Turnersville, NJ cashed forged checks at various locations in New Jersey and Pennsylvania totaling $4,959.00.
A warrant for her arrest was obtained charging her with theft by deception and conspiracy to commit theft by deception.
On September 22nd she turned herself into police.
She was released pending a court hearing after posting 10% of $25,000.00 bail.
The investigation also revealed that a second employee, Brittany Mulholland, age 29, of Sewell, NJ cashed forged checks at various locations in New Jersey and Pennsylvania totaling $14,412.00.
Mulholland also accessed the computerized payment system of the business and stole an additional $8,985.27.
Warrants were obtained charging Mulholland with computer criminal activity, theft by deception, and conspiracy to commit theft by deception.
Mulholland remains at large.
- Mount Laurel Police Department
Everyone is eligible for an automatic tax deadline extension and the first thing you should do if you missed the tax filing deadline is file for an extension with the IRS.
This gives you until October 15th to file your taxes.
However, you should also know that if you owe the IRS money, it is due on April 15th. So even if you file for a tax deadline extension, you need to send in an estimate of the taxes you owe.
Failure to do so can result in fines or penalties.
There are no penalties or fees for not filing for an extension if you don’t owe the IRS any money.
