national representative 2012 - 2013 preventing theft in your pta

Download National Representative 2012 - 2013 Preventing Theft in Your PTA

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National Representative 2012 - 2013 Preventing Theft in Your PTA Slide 2 Preventing Theft in Your PTA Slide 3 By the end of this workshop you will know: How to define: theft, fraud, and embezzlement How to recognize the signs of theft, fraud, and embezzlement 10 tips for fraud prevention What to do if you suspect theft Slide 4 During this workshop, we may refer to the terms theft, fraud, and embezzlement interchangeably for illustrative purposes. *Note Slide 5 What is Theft ? Slide 6 Theft is, The action or crime of stealing. source: Slide 7 PTA TheftTheft In the News Miramar PTA Treasurer is Latest to Face Theft Charges Glendale Mom Convicted in $6,000 PTA Theft Fraud Source: The Sun Sentinel, 2012 Source: The Arizona Republic, 2011 Video: KKSL-TV, Salt Lake City Slide 8 What is Fraud? Slide 9 Fraud is, Wrongful or criminal deception intended to result in financial or personal gain. source: Slide 10 What is Embezzlement ? Slide 11 Embezzlement is, Steal or misappropriate (money placed in ones trust or under ones control). source: Slide 12 Withholding or under reporting collected dues is another method of stealing funds at the local, state, and national level. Slide 13 The Impact of Stealing, Fraud, and Embezzlement Hurts Children! Slide 14 The Negative Impact Hurts Children! Damaged Reputation and Relationships Loss of Members and Outreach Loss of Advocacy and Grant Dollars Slide 15 The Fraud Triangle Donald R. Cressey Slide 16 Opportunity MotivationRationalization Fraud Triangle Slide 17 Opportunity MotivationRationalization Fraud Triangle Slide 18 Opportunity MotivationRationalization Fraud Triangle Slide 19 Theft Warning Signs Slide 20 Delayed Reports Cash Receipts Multiple corrections to the ledger Lifestyle changes Missing money on Friday, replaced on Monday Signatories are related Checks made out to cash Large checks, pre-signed checks, or bouncing checks Not following internal controls Avoid or delay annual audit Slide 21 Opportunity MotivationRationalization Fraud Triangle Slide 22 Tips to Prevent Theft Slide 23 Conduct annual audits Send to board member without signatory responsibilities for review Have 2 signatories (not related) Do a monthly review of activities Verify cash logs, provide receipts and bank deposit slips Make bank deposits immediately Have 2 people count cash at all times Review accounts payable vendors Secure the checks, dont pre-sign checks, look for missing checks or checks made out to cash Track all bills and use original invoices Ask for proof of tax payments Slide 24 Reasons Why Theft Is Not Reported Slide 25 Negative Publicity Concern for safety if the offender makes threats Legal action by the offender To avoid embarrassing the offender and/or offenders children/family Slide 26 The Downside of Not Reporting Theft Slide 27 Sets precedent for additional thefts Creates an environment that encourages theft Loss of credibility and respect for your PTA among members, the community, partners, and donors Voids bonding insurance policy (if not prosecuted) Encourages perpetrator to steal from other organizations Slide 28 What to Do if You Suspect Theft Slide 29 DO NOT make accusations! (libel or slander issues) Determine suspects access to other PTA resources Gather facts, documents, and interviews Identify all accounts involved and consider freezing or closing them Contact the authorities Contact the insurance company Slide 30 A Brief FAQ Theft and Insurance Slide 31 Fidelity Bonds Q. What does a fidelity bond cover? A. Protects the cash of the PTA unit against theft, fraud, and embezzlement. Q. Who should be covered under this policy? A. Anyone in your PTA who has access to or handles money (e.g., Treasurer, President, Fundraising Chair) Q. How else should a PTA handle its fidelity bond policy? A. Inform the insurer of any changes (people) during the year and cover the position, not the person. See if a blanket policy would be a better value. Slide 32 Questions? Slide 33 (800) 307-4PTA (4782) For a copy of this presentation, visit


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