Potato Grower

87th Annual IGSA 21 YOUR INDUSTRIAL POWER SOURCE 4499 Market Street · Boise, Idaho 83705 · www.ecpower.com Phone: (208) 342-6541 | (800) 354-6767 Fax: (208) 345-4308 I D A H O · M O N TA N A · U TA H · O R E G O N · WA S H I N G T O N · C O L O R A D O E C Power Systems specializes in the sales, service, rental and parts distribution of industrial power products, including emergency standby systems, engines and accessories. We offer parts, service and warranty for all of our products sold at six western locations. Call to learn how we can help with your power equipment needs. FEATURING: PROUD TO SUPPORT OUR LOCAL POTATO GROWERS! 145425ECPowe13h 1 5/30/14 11:24 AM The following questions should be reviewed within your organizations on a periodic basis: • Are records or documents suddenly missing and untraceable? • Are there excessive credit memos? • Are certain customer/donor/member names frequently showing up as having received refunds? • Is the general ledger out of balance? • Are duplicate payments found in the ledger? • Are adjustments to receivables or payables frequently found in the ledgers? • Are there excessive cash transactions found in expense accounts? • Is the organization experiencing inventory shortages above normal shrinkage? • Are there alterations on employee time sheets after supervisors have signed them? • Are there frequent shipments to P.O. boxes? • Are shipping destinations anywhere other than the business address? • Are unreasonably large quantities of supplies ordered? • Are weekend or holiday delivery dates shown on the invoices? • Do delivery dates appear that do not conform to vendors' usual patterns of delivery? • Are goods delivered by a vendor other than the one from whom the merchandise was ordered? • Are some vendors paid on a preferential basis? • Are invoices not properly canceled to avoid duplicate payments? • Are there unusual markings on invoices? • Are invoices appearing that are copies and not the original? • Are handwritten invoices being paid? • Do some invoices appear to lack the proper letterhead? • Are invoice totals round dollar amounts? Once fraud has been detected, quick and decisive action is necessary. Many organizations have founded a formal fraud action plan to assist in the response to fraud. A fraud response plan should include the general company policy on fraud and set out the action to be taken when fraud is suspected. Having a detailed fraud response plan in place helps ensure that everyone is clear about the action that needs to be taken if and when fraud is identified or suspected. Thinking about the issues in advance helps management to ensure that all relevant aspects are covered. It is difficult to react promptly without a plan to follow. A detailed document setting out the policies and procedures to be followed in the case of fraud has the following benefits: • It demonstrates that management is in control of the situation. • It can help to minimize the risk of further loss once fraud is detected. • It should improve the chance of recovering the loss already incurred or maximize the amount recoverable. • It provides a clear statement to employees that management will not condone fraud and will take appropriate action against anyone found to be involved in fraudulent activity. Management should also be actively engaged in the ongoing prevention of fraud by establishing an appropriate tone and implementing ongoing invigilation. Management can encourage an anti-fraud culture emphasizing corporate responsibility. Management should define fraud so employees are aware of what actions constitute fraud and/or misconduct and what consequences exist for engaging in fraudulent behavior. They should also ensure that all employees know the procedures in the event of a fraud being discovered or suspected, including how to report fraud. Ongoing invigilation should include: 1. Separation of Duties: The company should maintain appropriate separation of duties between accounting job functions and provide necessary review and oversight to these functions. When separation of duties is performed appropriately, the following functions will occur separately: • authorization function (e.g. signing checks).

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