HighDrive NetworkHighDrive NetworkHighDrive NetworkHighDrive Network
  • Programs
    • The BusinessMakers
    • The EnergyMakers
    • HXTV
    • HealthMakers
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • Business Builders
    • Brandonomics
    • Women Mean Business
    • Biz Moments
  • About HighDrive
  • Advertising
  • Contact

Danielle Supkis Cheek – EAS team

Entrepreneur's Playbook | Episode: 676 | Guests: Danielle Supkis Cheek | 0
Did you know small businesses are more susceptible to fraud that larger operations? And Not-for-Profits are at an even greater risk. Find out why. Jen Lemanski discusses best practices with Danielle Supkis Cheek, a certified fraud examiner at PKF Texas.

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski and I’m back again with Danielle Supkis Cheek, a PKF Texas Director and one of our Certified Fraud Examiners. Danielle, welcome back to the Playbook.

Danielle: Thanks for having me.

Jen: In your fraud and forensics practice, I know you work with a lot of not-for-profits. There’s fraud in not-for-profit?

Danielle: Unfortunately, yes. One of the risks that non-profits have is that—we’ve done a session before on small businesses and how small businesses are more susceptible for fraud because of their ability to, in effect, invest in their infrastructure, and the size of their resources. It takes it one step further for non-profits. The problem is that most non-profits are not profit maximizing entities, by the name, but really some kind of social good maximization. Most of their money goes toward spending on their mission. Accounting is not usually the mission of most non-profits, as much as I’d like it to be, and so what ends up happening is that a lot of metrics for non-profits on their success are based on the percent spent towards their mission vs. what they spend on their admin, or actually fundraising as well, but I care most about the admin for this little conversation and topic because where you prevent fraud is on IT resources and accounting resources. Since they’re actually theoretically penalized for investing heavily in IT and accounting infrastructure because of that percent spend, through lesser donations is the penalty, they tend to push the limit as far as they can go on cutting costs on overhead and not investing in the technology—

Jen: Not a lot of oversight either. A lot of not-for-profits are working with volunteers, too.

Danielle: Yes, which creates additional risk for them.

Jen: Is it more complicated then for a not-for-profit?

Danielle: Accounting for a non-profit is more complicated than a rank and file business, and the reason for that is that because they are getting donations from either the public, just soliciting general donations, or a private foundation, or even actual the public US government, or a state and local government, there’s a certain duty to spend the money that you’re receiving for your mission in accordance with the donor stipulations. That tracking is actually pretty darn complicated to do, especially on a bootstrapped infrastructure from a spend perspective.

Jen: How would a not-for-profit not necessarily prevent fraud, but eliminate some risk?

Danielle: There’s a lot of things that can be done to eliminate some risk. The key control is around cash, really tightening down cash, using the tracking feature of different accounting softwares and kind of hacking together at various accounting softwares to be able to track those restrictions, and actually understanding what’s going on in your books and not overcomplicating it for the sake of overcomplicating but making sure that you’re figuring out where that money is actually going, doing your best practices book keeping, bank reconciliations, that kind of stuff. The most important is tightening down cash more so than anything else.

Jen: Good to know. We’ll get you back to talk a little bit more about that.

Danielle: Sure thing.

Jen: For more about this topic visit pkftexas.com. This has been another Thought Leader Production brought to you by PKF Texas the Entrepreneur’s Playbook. Tune in next week for another chapter.

brought to you by

Recent Entrepreneur's Playbook Episodes

Benefits of IC-DISC with your Company

Benefits of IC-DISC with your Company

IC-DISC is still a viable incentive for exporters. How can it benefit your company? ...
Entrepreneur's Playbook
Facilitating the Due Diligence Process

Facilitating the Due Diligence Process

Are there ways to facilitate the due diligence process? Jen discusses due diligence specifics ...
Entrepreneur's Playbook
Understanding Due Diligence

Understanding Due Diligence

What is due diligence and how does it benefit your company? Jen discusses benefits ...
Entrepreneur's Playbook
Tax Reform and Transfer Pricing

Tax Reform and Transfer Pricing

Tax Reform is bringing change to transfer pricing. Jen discusses local and foreign details ...
Entrepreneur's Playbook
Changing Inspection Trends for the PCAOB

Changing Inspection Trends for the PCAOB

The PCAOB is expected to change some of its inspection trends. Jen discusses what ...
Entrepreneur's Playbook
SEC Comment Letters

SEC Comment Letters

Jen discusses trends in SEC comment letters with Miriam Rouziek, an audit manager and ...
Entrepreneur's Playbook
Loading...
© HighDrive 2018-2019 | All Rights Reserved
  • About HighDrive
  • Charlotte, NC
  • Columbus Ohio
  • Contact HighDrive
  • Fort Lauderdale
  • HighDrive Network
  • HighDrive Network
  • HighDrive Network
  • HighDrive Programs
    • Biz Moments
    • Brandonomics
    • Business Builders
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • HealthMakers
    • HXTV
    • The BusinessMakers
    • The EnergyMakers
    • Women Mean Business
  • HighDrive Sponsorship
  • HighDrive Weekly
  • Indianapolis Indiana
  • Kansas City
  • Milwaukee
  • Nashville
  • Oklahoma City
  • Raleigh NC
  • San Antonio
  • Seattle
HighDrive Network