{"id":938,"date":"2006-08-25T07:29:48","date_gmt":"2006-08-25T14:29:48","guid":{"rendered":"http:\/\/www.artsjournal.com\/artfulmanager\/wp\/2006\/08\/keeping_an_eye_on_the_kitty\/"},"modified":"2006-08-25T07:29:48","modified_gmt":"2006-08-25T14:29:48","slug":"keeping_an_eye_on_the_kitty","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/artfulmanager\/main\/keeping_an_eye_on_the_kitty.php","title":{"rendered":"Keeping an eye on the kitty"},"content":{"rendered":"<p>While motivating, trusting, and supporting their dedicated staff is a primary issue for cultural managers, it&#8217;s also their duty to keep a close eye on the cash. The Orange County Performing Arts Center found this out the hard way this past spring as it discovered an employee had <a href=\"http:\/\/www.ocregister.com\/ocregister\/homepage\/abox\/article_1074821.php\">stolen $1.85 million<\/a> from the coffers (<a href=\"http:\/\/charitygovernance.blogs.com\/charity_governance\/2006\/03\/orange_county_p.html\">more on this case here<\/a>).<\/p>\n<p>Auditors have several red flags they look for when sniffing out fraud or theft. Employee <i>pressures and incentives<\/i> are key indicators (personal financial problems or ill will against the organization), as are <i>opportunities<\/i> left open by easy access to cash or inventory, or lack of financial controls. Finally, <i>attitudes and rationalizations<\/i> by staff can suggest a need to dig a bit deeper (disregard for accounting controls, sudden change in lifestyle, and such). <a href=\"http:\/\/antifraud.aicpa.org\/Resources\/Auditors\/Identifying+and+Assessing+Vulnerability+to+Fraud\/Identifying+Fraud+Risk+Factors\/Appendix+to+SAS+No.+99+Fraud+Risk+Factors.htm\">Full details<\/a> of these risk factors are on-line, including specific examples of what to look for (thanks to <a href=\"http:\/\/nonprofiteye.blogspot.com\/2006\/08\/risky-business.html\">Nonprofit Eye<\/a> for the link).<\/p>\n<p>It&#8217;s an unpleasant reality you may never have to face. But you owe it to your donors, your constituents, and your board to be alert.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While motivating, trusting, and supporting their dedicated staff is a primary issue for cultural managers, it&#8217;s also their duty to keep a close eye on the cash. The Orange County Performing Arts Center found this out the hard way this past spring as it discovered an employee had stolen $1.85 million from the coffers (more [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-938","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-main","7":"entry"},"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/posts\/938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/comments?post=938"}],"version-history":[{"count":0,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/posts\/938\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/media?parent=938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/categories?post=938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/tags?post=938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}