Top 10 Tips to Avoid Fraud

 In Topics of Interest

This article was written by Jeremy Bendewald, Director of Forensic Accounting, with Eide Bailly LLP.


Top 10 Tips to Avoid Fraud

Fraud can happen to any tribe, or any tribal related entity. According to the Association of Certified Fraud Examiners (“ACFE”), 30% of employees will commit fraud if given the opportunity and 5% of revenues are lost to fraud annually.

How scary are these stats?


Don’t let your tribe’s story sound like this. Consider the following safeguards to help protect your tribe and its related entities from becoming a victim:


10. Review bank statements and all cancelled checks on a monthly basis.

9. Make daily deposits of cash and check. Also, keep cash and checks secure until they’re in the bank.

8. Approve employee hours before payroll is processed and review payroll reports on a regular basis.

7. Insist that full time employees take mandatory vacations of at least five consecutive days per year.

6. Purchase employee dishonesty coverage.

5. Look over monthly company credit card statements and corresponding supporting receipts/documentation for employee issued credit cards as well as employee expense reimbursements.

4. Require individual usernames and passwords for accounting system access. Turn on audit trail features and restrict employees to specific functions within the accounting system relating to their job functions.

3. Install security cameras in high risk areas such as where cash, inventory and equipment are located.

2. Implement a fraud policy in the employee handbook.
(The Association of Certified Fraud Examiners has a sample fraud policy available on their website.)

1. Don’t allow employees to use your signature stamp. It is your signature. And keep it in a secure location, such as a safe or locked drawer that only you have access to, when you are not using it.

A version of this article first appeared on our Possibilities Center blog.

Hear more on this topic and others at our Third Annual Tribal Accounting Conference on June 5-6, 2017 in Las Vegas at The Westgate Las Vegas Resort & Casino.



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