preventing theft in your pta
TRANSCRIPT
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National Representative
2012 - 2013
Preventing Theft in Your PTA
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PreventingTheftin
Your PTA
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By the end of this workshop you will know:
How to define: theft, fraud, and embezzlement
How to recognize the signs of theft, fraud, andembezzlement
10 tips for fraud prevention
What to do if you suspect theft
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During this workshop, we may refer to the termstheft, fraud, and embezzlement interchangeably for
illustrative purposes.
*Note
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What is
Theft?
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Theft is,
The action or crime ofstealing.
source: askoxford.com
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PTA Theft
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
http://www.youtube.com/watch?v=Qm1Bu7KiDdshttp://www.youtube.com/watch?v=Qm1Bu7KiDds -
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What is
Fraud?
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Fraud is,Wrongful or criminal deception
intended to result in financial orpersonal gain.
source: askoxford.com
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What is
Embezzlement ?
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Embezzlement is,Steal or misappropriate
(money placed in ones trust orunder ones control).
source: askoxford.com
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Withholdingorunder reporting
collected dues is
another method ofstealing funds at
the local, state,
and national level.
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TheImpact ofStealing, Fraud, and
Embezzlement Hurts Children!
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The NegativeImpactHurts Children!
Damaged
Reputationand
Relationships
Loss of
Membersand
Outreach
Loss of
Advocacyand Grant
Dollars
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TheFraud
Triangle
Donald R. Cressey
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Opportunity
Motivation Rationalization
Fraud
Triangle
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Opportunity
Motivation Rationalization
Fraud
Triangle
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Opportunity
Motivation Rationalization
Fraud
Triangle
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Theft Warning Signs
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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-signedchecks, or bouncing checks
Not following internal controls Avoid or delay annual audit
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Opportunity
Motivation Rationalization
Fraud
Triangle
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Tips to Prevent Theft
C d t l dit
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Conduct annual audits
Send to board member withoutsignatory responsibilities forreview
Have 2 signatories (not related)
Do a monthly review of activities
Verify cash logs, provide receiptsand bank deposit slips
Make bank deposits immediately
Have 2 people count cash at alltimes
Review accounts payable vendors
Secure the checks, dont pre-signchecks, look for missing checks orchecks made out to cash
Track all bills and use originalinvoices
Ask for proof of tax payments
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Reasons WhyTheft Is
Not Reported
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Negative Publicity
Concern for safety ifthe offender makesthreats
Legal action by theoffender
To avoid embarrassingthe offender and/oroffenderschildren/family
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The Downside ofNotReporting Theft
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Sets precedent foradditional thefts
Creates an environment
that encourages theft Loss of credibility and
respect for your PTAamong members, thecommunity, partners, anddonors
Voids bonding insurancepolicy (if not prosecuted)
Encourages perpetrator to
steal from otherorganizations
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What to Do if YouSuspect Theft
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DO NOT make accusations!(libel or slander issues)
Determine suspects access toother PTA resources
Gather facts, documents, andinterviews
Identify all accounts involvedand consider freezing or closingthem
Contact the authorities
Contact the insurance company
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A Brief FAQTheft and Insurance
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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.
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Questions?
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(800) 307-4PTA (4782)
PTA.org
For a copy of this presentation, visit
http://pta.org/1949.htm