preventing theft in your pta

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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)

    [email protected]

    PTA.org

    For a copy of this presentation, visit

    http://pta.org/1949.htm