Not-For-Profit & Government

Fraud Investigations and Forensic Accounting

One of the biggest problems for any kind of business, including not-for-profit organizations and governments, is fraud. According to 2008 statistics from the Association of Certified Fraud Examiners:

  • Approximately 14% of all frauds occur in not-for-profits and 18% in governments
  • The median duration of all frauds is 24 months

The median amount of losses from fraudulent activities varies depending on the type of fraud:

  • Asset misappropriation: $150,000
  • Fraudulent financial statements: $2 million
  • Corruption: $500,000

Every business is susceptible, which is why every not-for-profit and governmental organization should consider having a periodic fraud risk assessment. Fraud risk assessment helps your management team understand the areas more susceptible to fraud and the actions needed to mitigate the risk. 

If your organization suspects fraud, then a fraud investigation may be warranted; more often than not, investigating fraud produces results. In July 2008, one of our certified fraud examiners completed an investigation of a local government that uncovered a fraud that had resulted in nearly $2 million in stolen funds. The individual who was responsible was sentenced to 10½ years in prison and ordered to pay restitution.

Our fraud investigation experience with not-for-profits and governments includes the areas of:

  • Payroll and disbursements (check, expenses reports, and credit card schemes)
  • Revenue recognition
  • Contracting procedures
  • Federal funds

During the investigation, we quantify the client’s financial loss through detailed testing of transactions, using both manual and automated techniques; interview the suspects, witnesses, and the victims; and obtain evidence from outside parties such as the client’s bank. 

Our investigation team also has experience working with law enforcement throughout the investigation, including conducting an evidence search of the suspect’s home and office, as well as working with the client’s attorney in preparing evidence and providing testimony. 

Not-For-Profit & Government Contacts

All Regions

Mary Case

800-905-4010

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