PAYROLL FRAUD EXPOSED

It is often impossible for company management to know every employee and their pay status. Furthermore, a non-robust payroll processes can often make it possible for false payments to be made. Common payroll fraud schemes include, among others, payments to: Nonexistent employees (“ghost” employees) added to the company payroll by someone with the authority to add new employees. Employees for hours not worked (falsified time reports). Employees for unauthorized salary/pay rates, overtime, or bonuses. Payroll fraud may involve collusion between employees (e.g., between the employee who receives the fraudulent pay and an “insider” with the ability to facilitate the payment). The incidence of Chris Palmer would be difficult to forget (Names has changed) Chris was responsible for updating employee data in the system (e.g., change of address, change in employee status). The HR database maintained by Chris fed into other company information systems, including the payroll system. When a salaried employee resigned from the company, Chris would defer changing that employee's status to “inactive” for a week or more after the employee's last day of work. The company payroll system would automatically compute wages due the former salaried employee for every day that the employee remained “active” in the system. Prior to each subsequent payday, Chris would temporarily change the address shown for the former employee to an address that Chris controlled, e.g., a mail drop. After the system issued a pays lip, Chris would change the former employee's address back to the original. Chris would make sure that the former employee status was reflected as inactive when he felt it necessary to “end” the scheme. In the rare circumstance when anyone questioned these payments, Chris was prepared with phony documentation indicating a payment had been made to the former employee in error and that collection action was being initiated to recover the overpayment. Chris continued to carry out this nefarious activities for 3 Years, until, a thorough audit conducted in 2018 reveal the discrepancy. Timesheet Fraud When a worker "punches in" for one more employee, they both commit timesheet fraud. Personnel who inflate the their working hours on timesheets are committing timesheet fraud. Though this type of fraud isn't just committed by employees on the own. A payroll officer or maybe director also can commit timesheet fraud by inflating the working hours on another employee's timesheet or even changing the speed of pay and subsequently transferring the additional cash to his or perhaps the personal bank account of her prior to issuing the employee's pay. There are many efficient methods to stop as well as identify timesheet fraud and they almost all center around controls: and auditing What can be done? CONTROLS TO MITIGATE PAYROLL FRAUD Use electronic timesheets to eradicate the chance for a worker to change info after they're submitted. Have supervisors approve timesheets before they're posted to payroll. Ensure that timesheets be finished as well as published on schedule to stay away from delays and after that a manager might not recall the time an employee worked. Agenda regular audits by someone outside of the division to evaluate timesheets to work schedules to identify anomalies. Call for a supervisor's endorsement for just about any alterations to employee pay rates or perhaps employee kinds. Use data analytics to identify anomalies in pay captures. Compare pay information with payroll budget to spot inconsistencies. Eliminating payroll fraud not just increases your income and cash flow but also ensures that your business is being run very well and the employees are trustworthy. Every single action you are taking to eradicate payroll fraud will certainly increase the value of your company while simultaneously making you to rest much better at night.

At Last, The Secret To WHY YOU SHOULD TAKE BLOGGING SERIOUSLY Is Reveal

What does blogging mean to you?

You may have been turned off by the idea of spending much time on your blog or think that it is not attracting clients the way it ought to.

You will need to invest some time in blogging for it to be successful. If you are not sure what the first step is, you may want to get an opinion from someone who has some experience with blogging before you jump in.

Another reason is that you have many ideas. With so many bloggers out there, you will need to come up with different ways to keep your readers coming back for more. When you take blogging seriously, you may find that you need to write more.

Blogging can be effortless when you take the time to learn about the rules. You will need to pay attention to things like spelling and grammar when you begin your first blog. 

If you are interested in blogging for a long time, these reasons might help you decide to put your skills to work in another way. However, you may not have the time right now to spend on your blog. 

It is where blogging as a business can be a great choice. Your money will go to good use, and you can get even more people involved.

The first reason is the investment that you make in your business. You will need to learn how to promote your blog effectively and what tools you need to get started. Without proper promotion, you may never see the results that you are want.

These reasons are great for starting a business, but they are not the only reason to blog. By taking your time and getting your blog running smoothly, you will not just get a high return on your investment, but you will find yourself blogging every day for the rest of your life. It can become your career, and your passion all rolled into one.

The second reason is for those who do not feel that they are ready to take their blog to the next level. You do not have to have your blog to take advantage of blogging for business. 

The third reason is that you will have something to say about the world around you. If you take blogging seriously, you will be able to share your opinion about any topic that comes up with ease. It is something that you will be able to say with authority.

The fourth reason is that you will feel better about your life. If you are already successful, you will get even more enjoyment out of it. You will also feel happier in general, which is a subtle side effect to any new activity that you take part.

It makes blogging for business even more enjoyable.

 

How to audit your accounts

I'm reading "How to Audit Your Account without Hiring an Auditor" on Scribd. Check it out: https://www.scribd.com/book/390195253

Ingenious Ways You Can Do With My Marriage Is On The Rocks; We’re Always Fighting About Money. Help!.

The level of economic situation is scary to say the least. The number of husband that are unable to provide for their family are increasing by the day, and the number of married women who have been pushed to subtle prostituting just to cater for the family is on the rise.

This are difficult situation in many families today and because of lack of money, most marriages are on the brink of collapse.

Couples today fight over money issues all the times and it seems that this single reason alone is leading to many divorce rate.

Now, let’s talk about some ways that couples can work on finding

agreement about money in their marriage:

Start with a broad vision.

Write down your shared vision

Husband and wife should seek to find common ground for a shared financial vision of the future.

The shared vision is futuristic in its entirety and even though there is a relapse or unexpected contingency, believe in the share vision between you and your wife.

Let the shared vision guide the couples.

Big questions like whether or not you’d like to own a home, what retirement might be like, and whether you’ll both work or whether one will be a breadwinner and the other a homemaker or both of you to work to support the share vision. It is important for you both to be honest with each other. 

Remember the primary goal is to build a happy family not a fortune.

 Communicate the share-vision all the time

One major reason why couple always argues is inability to communicate the share vision agreed on a regular basis.

This is very fundamental in a marriage,

Once you have a shared vision and you’re ready to tackle more financial conversation, try to set some specific long term goals.

Note that the shared vision include all source of income from the husband and wife on one hand and all expenses .The income include earnings from trade of the husband and wife(including any money received as gift)

Discuss  everything and try to always communicate all the time.

Mrs. Pamela had issues with his husband and the marriage is on the verge of collapse.

Her brother-in-law who lives in Canada send her $500 for the upkeep of her family and the woman did not tell her husband, though the money was used to pay off many debts owed by the family.

One year later, when the husband knew where the source of money was from, all hell was let loose.

Communication is very key to implementing a set vision for couples.

Review.

Now that you’ve had a chance to create a shared vision and specific long-term goals, review these together.

 Make sure that you are still on the same page. If doubts and concerns have arisen, deal with them. Remember that you value your marriage more than money.

 Build a budget.

Nothing is compared to a good and sound financial management than having a budget as a couple.

Create an action plan.

This is the ‘koko’ of the shared vision. On a daily basis, couples should take time to write down how money was spent and compare it with the shared vision plan.

Have a joint diary.

Write it down.

 Compare it.

Take-away

Ø A workable action plan likely includes something that looks an awful lot like a budget.

Ø If one of you objects to the term, call it something else. Spending guidelines, savings targets, discretionary spending limits all accomplish the same thing.

Ø Find language you can agree upon and then begin living by your budget, to realize your shared vision.

Ø Nothing is more important to the happiness of a family than the happiness of the marriage.

Find your shared vision for the future and work together to bring it about. Once you’re fighting for the same thing you’ll stop fighting over the same old thing.

Sel improvement expertise

https://www.facebook.com/groups/2174781559449556/

The end of the year is fast approaching. As a small business, this is the time to:

a)    Take stock of 2018.

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How can you take stock of 2018?

Ø Examine your financial activities for 2018:  You may have decent skill and knowledge in the areas of accounts, or have people in your small company/business operations who do a good job of taking care of the accounting transactions for you BUT it is important for you to engage an Independent person who will examine and check ALL your financial activities for 2018.

The Independent person will inspect documents, receipts, cashbook, bank statement and invoices. He can uncover certain things about your company that you might not have known. In fact, business owners are sometimes surprised by the outcome of the audit, and this process helps them see that they might have overlooked certain financial situations that were occurring in their company.

Ø Identify poor accounting practices: You may record the transaction wrongly or your employee who are getting lazy about performing the correct financial records. It is hard to see these issues unless you can view the overall picture, which is possible with an audit. Get an Auditor to overhaul your operations so as to understand the true position of your business operation/company in 2018.

Ø How much profit did you make in 2018? Most small business owners do not understand the bottom line of their business. Ask them questions like, what is your turnover in 2018? What is your Cost of sales in 2018? What is your profit in 2018? What is the worth of your business or company in case you want to sell in 2018? The Independent person will help to provide answers to all these questions.

Ø Uncover fraud: Some of the employees may be committing fraud without your knowledge. This is very possible with small scale operations. An auditor will identify discrepancies, fraud committed so that you can eliminate the problem.

Ø Using External Auditors Improves Your Credibility

You are probably doing all you can to ensure your business is well organised, but you can’t expect anyone to take your word. Imagine if your business suppliers and customers knows that you audit your accounts every year, the credibility and the trust accorded to you and your business will soar.

As you might expect, this does a lot for the credibility of the company, particularly in the eyes of potential investors and partners. By bringing in an auditor, you are showing your business network that you aren’t afraid of scrutiny and that you value financial and regulatory compliance.

Ø Business Improvements will reduce your cost: The auditor advice and recommendations on your business and how financial activities should be carried out effectively will help to reduce cost, thereby saving cash flow needed for your operations.

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Ø Clear Understanding of your business in 2018: One of the biggest benefits of an audit is that you can get a clear understanding of the financial situation of your company. By identifying cash flow, Sales, cost, and other financial information, you will have all of the information and details that you need to ensure that you are making the best financial decisions. You cannot get a precise snapshot of everything that is occurring within your business until you employ an auditor.

Hiring an auditor used to be something only big companies need to          Are you still not convinced? Talk to us.

Call 08038520767 or mail us at admin@baasinat.com

THE DEMISE OF SKYE BANK( FINAL PART)

Suffice to say, that there are many factors that led to the demise of Skye bank, but I want you to know that SkyeBank as a Company WAS NOT LIQUIDATED. The CBN issues a license to a bank to operate.

The CBN revoked the license of Skye bank to operate as a bank. The CBN did not dismantle the bank and nail the bank to the coffin or else that would have been disastrous to our fragile economy because Skye bank has over 260 branches in Nigeria with thousands of workers.

Skye bank also owns subsidiaries banks in West African countries such as Gambia, Guinea, Equatorial Guinea, Liberia, Angola and Sierraleon and imagine the impact of liquidating the bank on these ‘small’ economies.

The spillover effect of the bank liquidation would have a multiplier effect on all banks and financial institutions.

This might lead to panic withdrawals and erodes investor confidence in the banking sector and more importantly will lead to massive unemployment and loss of deposits by customers. CBN was incisive and immediately with AMCON appointed a bridge institution-Polaris to take over the management of Skye bank.

 Having said that, it doesn’t mean that investor confidence in Skye bank has not been dented. Let us look at two reasons for the demise of Skye bank. The first one is low liquidity ration and financial health/unethical practices by the company.

The bank has low liquidity ratios. Calm down! I will explain it to you.

Bank liquidity ratio: Any time you deposit to the bank, the bank collect your money and keep it safe for you. Who owns the money? It is you, but to the bank, that your money is a liability and anytime you come to the bank to withdraw your money, the bank is obligated to hand over your money to you. All the deposits in the bank are liabilities to the bank.

Liquidity ratio is the ratio of a banks liquid assets (cash or assets that can be turned to cash) to its liabilities (Mostly your deposits in the bank). In Nigeria's banks are supposed to have a liquidity ratio of 30%( The bank totals liquid assets is expected to exceed all the liabilities by 30%)

Skye bank liquidity ratio was very bad and it was a worrying sign because customers could want to withdraw their money and the branch WILL NOT BE able to hand over the customer money to him/her. So they resort to borrowing from the CBN to mitigate the embarrassment. The CBN governor said ‘’ The result of our examinations and forensic audit of the bank has, however, have revealed that the Skye bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN. The shareholders of the bank have been unable to recapitalize it.’’

The financial health and position of a Company are very important. How much profit is the Company making? How much cash does the Company have? How much debt is outside and who owes them? Does the owner of the Company withdraw money from the company at will? What is the level of drawings of the company investment and assets? Is their growth?

The Fiscal health of the bank was really worse. The Company loss in 2015 of N40.726 billion.was really bad and the downtrend continues unabated.If you are in a business like an ‘ajo’(credit thrift) business and you made a persistent loss in 4/5 years, something is wrong somewhere?

 Interestingly the bank did not deem it fit to institute cost-cutting measures to buck the trend. The bank employee benefits and emoluments increase by 95 per cent in 2015 and the general and administrative expense increased by 17%.  That year, bad loans jumped up by 47 per cent to N27.53 billion from N18.99 billion in 2014. Just imagine that?

 The lifestyles of the directors and key men leave more saliva to swallow.  The then chairman of the bank, Tunde Ayeni was indebted to the bank in excess of N70 billion. He used his position as the chairman of the bank to obtain loans well above the regulatory limits. (You see why I wrote my book ‘PREVENT YOUR EMPLOYEES FROM DEFRAUDING YOU’’)

The massive unethical and fraudulent practices in the bank leave much to be desired.

Blatant, Unethical, Criminal Mismanagement.

In 2017, despite Nigeria’s ailing recession and Skye bank woes and despite the debt and corruption scandals supposed to be hovering over his head, Tunde Ayeni threw a lavish 50th birthday party for his wife Biola Ayeni, filled with many who’s who, lots to drink, lots to eat and lots of lavish gifts..

There are other reasons why the bank license was revoked but the aforementioned issues outlined above shows that the CBN acted drastically to save depositors money but the CBN retain the old management and directors to continue to manage the company under the Polaris brand.

 I am of the view that as CBN has taken over the bank, it ought to have sacked both Board and Management and reconstitute a new Board and Management. The Directors and management of the bank were responsible for the collapse of the financial institution and so The Directors of Skye Bank must be held accountable; their properties should be sold to offset the debts and not the ordinary shareholders that entrusted the companies to them.”

LESSONS TO BE LEARNT

-Do not live beyond your means. Skye bank as an entity tried to grow beyond their means and it backfired.

-Workplace fraud is critical to the management of any company whether big or small. Keep your eagle eye on your company and ensure that you conduct an audit exercise on your financial operations on a regular basis.

-Spread your money. Do not deposit all your savings in one bank. Spread the risk by banking with 2/3 banks.

-Be interested in the financial health of your bank. Don't display don’t care attitude’.It will not help you. Contact me on my FB page(fb.me/baasinat) on how to go about it.

-Shareholders will definitely bear the brunt of the demise of Skye bank. Meet a professional stockbroker before making any decision to invest in shares of any company.

-Do a thorough feasibility/business plan before embarking on any project and ensure that the plan is followed systematically and any deviation must be properly analysed.

-Do not steal from your business. Most entrepreneurs are found wanting on this. They steal from their company. Remember the entity concept. Your Company is a corporate person and you are different from your company... Contact me on my FB page(fb.me/baasinat) on how to go about it.

Thanks for reading.

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