CoatingsPro Magazine

MAR 2019

CoatingsPro offers an in-depth look at coatings based on case studies, successful business operation, new products, industry news, and the safe and profitable use of coatings and equipment.

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Page 18 of 75

COATINGSPRO MARCH 2019 19 1. Conduct a credit check and criminal history before offering employment to new workers. Job interviews and reference checks are only part of the hiring process. A thorough background check on all potential employees, especially those who will be handling your money, should be a mandatory part of your hiring proce- dures. Be sure to do this for everyone — even those referred to you by friends, family, and coworkers. 2. Segregate job duties across several people. In general, avoid having one person responsible for receiving materials and approving payments, and avoid having one person in charge of billing and depositing funds to the bank. Separating responsibilities reduces the risk of asset misappropriation, which is the most common type of occupational fraud according to the Association of Certified Fraud Examiners (ACFE). 3. Review payroll reports. You may think you have payroll covered because you approve timecards and salaries prior to payroll being run, but do you verify that the payroll run matches what you approved? A few common issues that you may encounter and catch if you review reports are salaried employees who are suddenly paid overtime, payroll checks issued to non-existent employees, or payroll checks where taxes or previous advances were not deducted. If you're diligent in your reviews, you should be able to catch these warning signs early on and avoid larger fraud in the future. 4. Encourage whistleblowing. Fostering a culture of honesty and accountability in your business will help you ensure that your staff feels empowered to keep an eye out for trouble. This includes reassuring employees that if they see something, they should say something, without fear of retri- bution. According to the ACFE, 40 percent of all fraud is caught because someone spoke up about witnessing suspicious behavior. Getting those whistleblowers to speak up can be difficult. After all, the fraudster is likely a trusted employee, and whistleblowers may be afraid you won't believe them — or worse, that you' ll terminate their position. Help your employees to help you with this culture change. 5. Review your bank statements and cancelled check images. This sounds a bit old school, but reviewing these Money Matters • 636.239.4300 Rugged Reliable Versatile • Industrial-quality machines • Loaded with standard features • Range in size from 0.5 cuft to 160 cuft • Easy to operate and maintain • Last for years • Portable and stationary models Re ad e r In qui r y at co ati n g sp ro m a m /i n q0319

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