fraud

Earlier this year we posted a blog titled Fraud in Clubs that highlighted some interesting outcomes relating to fraud.  If you haven’t had a chance to read the blog then follow the link and have a look.

Of interest and to add to that blog post there were some interesting trends that have been identified that relate to the specific types of fraud.  This information also comes from the same report referred to in the post.  The report is titled: Not-For-Profit Fraud Survey 2012 Clubs Sectors that was prepared by the accounting firm BDO and is well worth reading.

If you refer to page 15 of the report these trends were based on the single largest fraud that had occurred in their organisation over the past two years.

Some of the key findings include:

  • The most common type of fraud reported was cash theft (50%)
  • The typical fraudster was a female in her forties who was a paid employee in a non-accounting role
  • Collusion was present in 21% of cases, with the typical colluder being a male or female aged over 50 and a club member
  • 61% of the respondents who reported suffering a fraud believed the full extent of the fraud had not been discovered
  • The most common methods for discovering fraud were tips (44%) and internal controls (21%
  • The average duration of each fraud was 14 months
  • Respondents indicated financial pressure and maintaining a lifestyle were the most common motivators for fraud
  • 61% of respondents did not report the matter to the Police
  • 79% of respondents terminated the perpetrators employment
  • 64% of organisations that suffered a fraud did not recover any funds.

While the focus may be in relation to clubs many of the issues raised can apply to any organisation and whether you are a board member, treasurer or senior member of staff it is certainly worth reading as it provides some valuable insights on this tough and sensitive topic.