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What to do if you suspect your organization is the victim of theft or embezzlement

  1. Investigate first!  Never accuse until you know the facts.
  2. Call your attorney and CPA for advice.
  3. Be careful when confronting the person:
  4. Consider having your attorney and CPA with you, but always have a witness, particularly if the situation is male-female
  5. If there is any possibility of a problem, consider having a police officer with you
  6. It's usually better to confront the person after business hours when fewer employees are present to avoid an incident and embarrassment
  7. On advice of counsel, the person should be either terminated or put on administrative leave.
  8. Make sure you get such items as keys, credit cards and so forth.
  9. Consider changing the door locks.
  10. Change the computer passwords!
  11. Decide whether or not to press charges.
  12. Contact the insurance company that handles the fidelity bond.
  13. Get advice from counsel on how to relate the circumstances to employees, the board of directors and investigators.
  14. Get advice from counsel on how to handle references.
  15. Work with your accountant to thoroughly evaluate the system of internal controls and correct whatever deficiency led to the problem.

Reprinted with the permission of Edward McMillan, CPA.

NPC Reportable Event

In accordance with VHA Handbook 1200.17, all thefts and embezzlement, regardless of amount, need to be reported to the Nonprofit Program Office.

 

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