STARK RAVINGS
The Newsletter of the IMA Canton Chapter

April 2017

 http://canton.imanet.org

Jeff Walters, President
Cullen Bahler, Editor

In this issue:

This Month's Technical Sessions

IMA Volunteer Day Moved to May 17th

IMA International Conference

Fraud & Internal Controls

Webinar Schedule

IMA Technical Sessions

Connect with Us!

Do you have info to share with our chapter? Email it to news@cantonima.org.

If you wish a colleague to receive these announcements, send an email to news@cantonima.org and we will add them to our announcement list.

Please join Us!

Click here to register and order off the special menu for April

April 18, 2017 | 5:00 - 8:00
NOTE CHANGE IN LOCATION:
The Canton Brewing Company: 120 3rd St. NW Canton, OH 44702
(directions)

Reservation Deadline: Friday, April 14 

Pre-Dinner Technical Session (5:00 - 6:00 pm) and After-Dinner Technical Session (7:00 - 8:00 pm)

Networking and History of the Canton Brewing Company
Presented by Staff of the Canton Brewing Company

The Canton Brewing was founded in 1883 by Otto Giessen from Bavaria born in 1848. He was a bookkeeper when he first immigrated to Cleveland in 1865. He worked at a brewery in Akron and was replaced by Wilhelm Burkhardt when he came to Canton in 1873. He became partners with John Klopfenstein at Graber Brewery. Klopfenstein left the partnership a year later and founded the Union Brewing Company. Giessen operated the Grabber Brewery later renamed Otto Giessen Brewery until it burned down in 1883. This is when Giessen built the Canton Brewing Company on Third N. and Walnut, which still stands today. He owned it for four years when he sold it to William Rommel. Otto used the money to buy a Saloon in town and later founded the Canton Buggy and Gear Company. In 1891 Rommel bought the Union Brewing Company to combine production, and in 1903 the Union building was demolished to make way for the McKinley Monument.

Today, the Canton Brewing Company is a split-level 15,000+ square-foot brewpub including: a brewery with a 15-barrel brewing system, a full service restaurant on the main floor, and a speakeasy tap room in the lower level. Our location at 120 3rd Street in Downtown Canton, once McCrory's 5˘ and 10˘, has been revitalized to commemorate the rich history from which Canton Brewing was built. The brickwork, arched windows and doorways, original flooring and lighting are modeled after and indicative of those original breweries, and are intended to create a Prohibition-era atmosphere.

 

Click here to register and order off the special menu for April

 

Canton IMA's Annual Volunteer Day
Moved to May 17th, 5:00 - 7:00 pm

Who? - You! Open to all Canton IMA members and guests

What? - Opportunity to serve the community and network with other business professionals

Where? - Akron-Canton Regional Foodbank (350 Opportunity Pkwy, Akron, OH 44307)

When? - May 17, 5:00 - &;00 pm

Interested? Here's how to sign up:

1. Complete an online application form to create a volunteer account. *If you have already completed an application, simply skip to step 2.

Adult Volunteer Application

Youth Volunteer Application (ages 10-15 volunteering with an adult)

2. Log in to the Volunteer Information Center to sign up for the April 1st event.

Click on the calendar for May 17 and sign up for Volunteer Group: Canton IMA

Your username is your email address. Forgot your password? Don’t worry; there is an easy password recovery process!

Welcome to the Foodbank:

The Akron-Canton Regional Foodbank is located at the corner of Dart Ave and Opportunity Pkwy off of OH-59 near Downtown Akron. Our address is 350 Opportunity Pkwy, Akron, OH 44307. Get Directions.

When you arrive, please use our visitor parking, either in front of the building or in the Dart Avenue lot. You may use the main entrance or the side, Visitor entrance.

What to wear:

It’s best to dress in layers. The weather outside effects the temperature inside our warehouse.

Safety is our priority! Please note that open-toed shoes and jewelry are not permitted in our warehouse when handling food. Comfortable shoes are recommended as you may be on your feet the entire time.

Lockers are available for your personal belongings.

Your Volunteer Project

Volunteer projects are based on the daily needs of the Foodbank. The time you give sorting and inspecting food donations, labeling product for repackaging, or packaging bulk items help us provide 84,000 meals to people struggling with hunger in our community, each and every day!

More Information

If you have any additional questions, please feel free to contact Joyce Badertscher, Chair of Publicity & Community Service at joycembadertscher@gmail.com

Thank you and we look forward to serving with you!

 

IMA Member Benefit
Join us at IMA's Annual Conference & Exposition


 

Strategic Finance
NONPROFIT FRAUD: HOW GOOD ARE YOUR INTERNAL CONTROLS?

BY HERBERT SNYDER, MARGARET ANDERSEN, AND JILL ZUBER

Editor's note: Although this article pertains to nonprofits, it contains information that all of us can benefit from, especially since many of us serve as board members. It is merely an excerpt. For the full article, click here.

While fraud in nonprofits has received increased attention during the past 10 years, the organizations remain an understudied population in the context of internal controls and fraud. More specifically, a majority of research dealing with fraud in nonprofits has focused on the victim organizations. While such research is valuable, the question of whether the organizations that experienced fraud are different in some significant way from those that, thus far, have escaped it is still unanswered. This isn’t a trivial question. Nonprofit organizations commonly view fraud as a matter of misfortune. The conventional wisdom of fraud prevention and auditing strongly disputes this view, but empirical evidence is needed to convince some organizations otherwise.

THE CULTURE OF NONPROFITS AND THE RISK OF FRAUD

In addition to the increased damage that fraud causes, nonprofits also face potentially greater risks of becoming victims. A wide range of studies have found that nonprofits may be at higher risk for the occurrence of fraud than for-profit organizations because of the nature of their mission and their management structure. For example:

• Governing boards are often composed of volunteers who lack expertise in financial management.

• Directors of nonprofits frequently lack the skills for effective financial management.

• Daily financial management is frequently under the control of a single individual who isn’t otherwise subject to the financial controls and oversight normally found in profit-making entities.

• The organizational culture of nonprofits leads them to believe that their charitable purpose is sufficient to protect them against fraud.

• Revenue streams are difficult to control or verify.

In light of the potential damages from fraud and the inherent risk that nonprofit culture creates, prudent management accountants would advocate for stronger internal controls to mitigate the risk. Research in nonprofit fraud suggests that the presence of internal controls influences losses and that many incidents of fraud could be prevented through the application of well-known principles of internal control.

Were There Any Changes After the Fraud?

For organizations that reported fraud, a number of practices showed a statistically significant difference in frequency at the time of the fraud and currently.

Practices done more frequently after fraud occurred than before are:

• Check of employee references/job history;

• Board review of individual expenses;

• Board training in financial management;

• Job rotation;

• Vacation policies enforced;

• Bonding of employees;

• Review levels of bonding;

• Physical security reviews;

• Issuing of receipts for fines/fees; and

• Review of specifications for insurance quotes.

Practices done less frequently are:

• Presigning of checks; and

• Spending more than budget

All the nonprofits that experienced fraud made at least some changes, though not every nonprofit adopted all of the internal control practices that were found to be significantly different. While the frequency with which fraud occurred is unfortunate, the willingness of the affected organizations to make changes in the wake of fraud is cause for optimism. In cases of fraud, it isn’t unusual for the affected organizations to make no changes in internal control. This seems counterintuitive and self-destructive, but a common outcome of fraud is embarrassment at having been taken in by the fraudster. Thus organizations are frequently reluctant to admit that they have been victims. Since change can be seen as evidence that an error was made, they resist it as a face-saving measure. Many organizations not only don’t make changes, but they fall victim a second time to the same weakness, such as still allowing one person to collect cash, record the amount, and reconcile the bank statements.

TAKE THE RIGHT STEPS

Organizations frequently resist efforts to improve their internal controls and to implement antifraud programs. They argue that fraud and abuse occur as the result of determined criminals. In other words, the organization had the misfortune to employ someone determined to commit fraud. The feeling may be particularly pervasive in nonprofits, which feel that their charitable mission provides unique protections.

But as our study indicates, this doesn’t seem to be the case. There are significant differences between those organizations that experienced fraud and those that didn’t. In particular, nonprofits that experienced fraud significantly improved their internal controls after the fraud by increasing the frequency of beneficial financial practices. After the improvements, these nonprofits more closely resembled those organizations that didn’t experience fraud. Fraud is costly, both financially and nonfinancially. Good internal controls can reduce the occurrence of fraud and, if fraud occurs, can help discover the incident.

Source: http://sfmagazine.com/post-entry/march-2017-nonprofit-fraud-how-good-are-your-internal-controls/ 

 

Webinar Schedule

You will earn CMA and CPE credits when you attend any live webinar. Replay webinars are available in the archive but do not earn credits. Advance registration is recommended—IMA webinars are popular and fill up quickly.

Leases on the Balance Sheet Compliance with the New Standard
April 19, 2017
1:00 - 2:00 pm EDT

The CMA Exam: Test-Taking Tips and Strategies
April 25, 2017
10:00 - 11:00 am EDT

Current Expense Management Trends and T and E Spending Benchmarks
April 26, 2017
1:00-2:00 pm EDT

Register for Any Webinar

 

Mark Your Calendar:
Join Us at IMA Technical Sessions

2016-2017 tech sessions will be held at Kozmo's Grille with the exceptions noted below. There are two hour-long sessions beginning at 5:00 and 7:00 and dinner in between.

  • May 16

Cost for dinner is $30 regardless of the location. Please look for invite emails with registration information prior to each meeting.

Schedule:

• Social/Networking at 4:45 pm

• Pre-Dinner Technical Session at 5:00

• Dinner at 6:00 pm

• Post-Dinner Technical Session at 7:00 pm

More info: http://canton.imanet.org

 


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info@cantonima.org


The mission of the Institute of Management Accountants (IMA) is to provide a forum for research, practice development, education, knowledge sharing, and the advocacy of the highest ethical and best business practices in management accounting and finance. Please join us as we promote this mission in the greater Canton, Ohio, area.


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