Different Types Of Membership Fraud (YMCA)
Membership Fraud
A specific fraud that could be committed against the YMCA is membership fraud. This fraud could be perpetrated solely by a YMCA member, or could be a form of collusion with a YMCA member. There are a few different ways a person could commit membership fraud against the YMCA. The current methods discussed are swiping someone else's card and collusion involving membership age. After covering these fraud methods, a discussion of how to detect each of these frauds, as a forensic accountant.
To gain access to the YMCA facilities, a member must first swipe their card to gain entrance. After the person swipes their card, the picture shows up on the screen and the employee at the front desk observes to verify the photo matches …show more content…
Currently there are 11 employee credit cards in use. These are typically given to department heads and they can use them to purchase needed supplies for their respective department. The receipts from these credit cards are gathered at the end of the month and turned in, with an explanation of the transaction, to the CFO. The CFO subsequently, reviews the receipts for reasonableness.
There are two issues with the current guidelines with the P-Cards. First of all they are not to be shared. The problem is that there is no way to detect whether or not the cards have been shared. In our discussion with the CFO, he mentioned that there has been in the past, sharing of cards. This creates more difficultly in tracking what is being purchased and by whom. The second way is that since the checks are only briefly looked at, employees could evade suspicion of questionable transactions. If the receipts or the explanation appears to be reasonable no other investigation is done. Employees could be purchasing gas for their own vehicles or personal …show more content…
Most of the revenue is not collected with cash, however the swim meets have various weaknesses. They have controls in place, nevertheless they are not the strongest. Cash boxes are required to be signed out and back in, each event’s collections are to be documented, two people must count the cash bag/box before it is distributed and when it is returned along with other controls. The risk of theft of cash is present, as there is no way to immediately tell if a theft has occurred. Even with a person with a counter, collusion could happen to steal a portion of the admission money. The concessions also have the same problem as there is only a cash box consequently, volunteers will have no record of the actual amount of money taken
A specific fraud that could be committed against the YMCA is membership fraud. This fraud could be perpetrated solely by a YMCA member, or could be a form of collusion with a YMCA member. There are a few different ways a person could commit membership fraud against the YMCA. The current methods discussed are swiping someone else's card and collusion involving membership age. After covering these fraud methods, a discussion of how to detect each of these frauds, as a forensic accountant.
To gain access to the YMCA facilities, a member must first swipe their card to gain entrance. After the person swipes their card, the picture shows up on the screen and the employee at the front desk observes to verify the photo matches …show more content…
Currently there are 11 employee credit cards in use. These are typically given to department heads and they can use them to purchase needed supplies for their respective department. The receipts from these credit cards are gathered at the end of the month and turned in, with an explanation of the transaction, to the CFO. The CFO subsequently, reviews the receipts for reasonableness.
There are two issues with the current guidelines with the P-Cards. First of all they are not to be shared. The problem is that there is no way to detect whether or not the cards have been shared. In our discussion with the CFO, he mentioned that there has been in the past, sharing of cards. This creates more difficultly in tracking what is being purchased and by whom. The second way is that since the checks are only briefly looked at, employees could evade suspicion of questionable transactions. If the receipts or the explanation appears to be reasonable no other investigation is done. Employees could be purchasing gas for their own vehicles or personal …show more content…
Most of the revenue is not collected with cash, however the swim meets have various weaknesses. They have controls in place, nevertheless they are not the strongest. Cash boxes are required to be signed out and back in, each event’s collections are to be documented, two people must count the cash bag/box before it is distributed and when it is returned along with other controls. The risk of theft of cash is present, as there is no way to immediately tell if a theft has occurred. Even with a person with a counter, collusion could happen to steal a portion of the admission money. The concessions also have the same problem as there is only a cash box consequently, volunteers will have no record of the actual amount of money taken