Central Carolina Chapter Association of Certified Fraud Examiners

Central Carolina Chapter Association of Certified Fraud Examiners Volume 24, Issue 2 Central Carolina Chapter, PO Box 99666, Raleigh, NC 27624 May 2015 President s Message Welcome all members of the Central Carolina Chapter of the ACFEs. To all new members or potential members who are consider joining the Chapter, please feel free to reach out to me or any Board members for additional information. We are pleased to announce that we will have Gerard M. Zack, CFE, CPA, CIA, CCEP speak to our chapter on May 11, 2015. Mr. Zack is a national known speaker who has spoken at many ACFE events. He will be speaking Uncovering Fraud with Financial and Ratio Analysis. The event will be held at the North Raleigh Hilton. Additional details can be found in this newsletter. A reminder that our annual elections will be held this Spring. Nominations have already gone out. All paid members of the Chapter should be receiving ballots shortly. This is an important process, so I encourage all to place their votes. Board of Directors 2014-2015 President Jay E. Sharpe, CPA, CFE Vice President Spier Holloman Secretary Scott Cunningham, CFE. CPP Treasurer Charles Kelly Director Anne Howard, CFE Director Richard Reedman, CFE/USTCP Director - Ralph Flanary, CFE Director Doreen Rettie, CFE Director Stacie Tronto, CFE Committee Chairs 2014-2015 I would like to take a moment to once again to remind all the members that this is YOUR chapter. It exists to only serve its members. That being said, please feel free to contact myself or any of the new board members with ideas or thoughts about the Chapter and its training events. I look forward to hearing from you. There will be a board meeting on Sunday, May 10, 2015 at 5:00 at the North Raleigh Hilton. All members are welcome to attend. Thank you once again for all the Board members who help put this seminar on. I look forward to seeing everyone on May 11, 2015. College Relations - vacant Elections Stacie Tronto, CFE/Brian Biggs, CFE Scholarships -- Doreen Rettie, CFE Training -- David Bradley, CFE Upcoming Seminar Dates May 2015 8 hours August 2015 4 hours November 2015 8 hours Jay E. Sharpe, CPA, CFE 1

Other Chapter Information 2014-2015 Dues and Seminar Rates o Dues: CFE Chapter Member - $40 (annually) Associate Chapter Member - $50 (annually) o 4-hour seminar: CFE / Associate Chapter Member - $50 Guest - $75 o 8-hour seminar: CFE / Associate Chapter Member - $125 Guest - $175 Central Carolina Chapter - WEBSITE @ www.ccc-acfe.org Please let us know if you find any missing or broken links so we can fix them. Please note that the chapter is set up to serve its members. If you have an ideas on how to improve the newsletter or ideas on future speakers, please contact us. Please let us know if you have any general concerns or questions. Accomplishments If you would like to share news of accomplishments that you or other members have made, please notify us (i.e., having articles published, etc.). If you have job openings you would like to post, please notify us. We will be glad to list open job positions in our quarterly newsletters. However, please take in mind that these are quarterly newsletters and the open position listing may not always be timely. Contact information for officers: o Jay Sharpe jsharpe@rivescpa.com 2

Central Carolina Chapter - ACFE Balance Sheet As of March 31, 2015 Cash $ 27,835 Accounts Receivable - Total Assets $ 27,835 Accounts Payable $ - Total Liabilities - Net Assets 27,835 Total Liabilities and Net Assets $ 27,835 3

Central Carolina Chapter - ACFE Profit & Loss For the Six Months Ended December 31, 2014 Membership Dues $ 5,015 February 2015 Seminar -50 Seminars 13,279 Total Revenues 18,244 Seminar Expenses 14,349 ACFE Annual Meeting 3,290 Insurance 250 Bank Fees 264 Web Site 1,322 Professional Fees 121 Meals & Entertainment 71 Speaker Fees /Expenses 148 PO Box Rental 91 Total Expenses 19,910 Change in Net Assets $ (1,666) 4

Chapter and ACFE Rules Board members (Officers and Directors) should be familiar with the Chapter and ACFE Rules regarding Chapter Administration. If you plan to run for office, please look in the back of your Chapter Directory and become familiar with the information on both Chapter rules and procedures and ACFE procedures. When you take a job with the Chapter, you must be able to perform the tasks associated with the job and you must attend the Board of Directors meetings (only four meetings a year) unless you have been excused from a work related director position by the Board. We have several active committees, including: College Relations, Elections, Scholarships and Training. If you are interested in performing committee work for the chapter, please contact the President, Jay E. Sharpe at: jsharpe@rivescpa.com 5

Fraud Seminar May 11, 2015 North Raleigh Hilton GERARD M. ZACK, CFE, CPA, CIA, CCEP Bethesda, Maryland Gerard Zack is a Managing Director in the Global Forensics practice of BDO Consulting and is based in the Washington, DC area office. He has more than 30 years of experience providing fraud prevention, detection, and investigation services, as well as forensic accounting, fraud risk assessment, and risk management. He also designs fraud awareness training programs for organizations and evaluates corporate anti-fraud programs. His experience also includes numerous financial statement, compliance, internal, and vendor audits. He has worked with businesses in many industries, nonprofit organizations, and government agencies throughout North America and Europe. Prior to joining international firm BDO, Mr. Zack ran his own anti-fraud services firm, Zack, P.C., since founding the practice in 1990. Before 1990 he served as an audit manager with an international public accounting firm. Along the way, Gerry took a two-year hiatus from his practice to serve as Chief Operating and Compliance Officer for an international scientific organization headquartered in Washington, D.C. Mr. Zack is a Certified Fraud Examiner (CFE), Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Compliance and Ethics Professional (CCEP), and holds a Certificate in Risk Management Assurance (CRMA). In addition to serving clients, Gerry has served on the faculty of the ACFE since 2006, providing anti-fraud training in North America, Europe, Africa, Asia, and Australia. He is the 2009 recipient of the ACFE s James Baker Speaker of the Year Award. In 2013 Gerry was elected to serve a two-year term on the ACFE s Board of Regents for 2014-2015. Gerry is the author of three books published by John Wiley & Sons: Financial Statement Fraud: Strategies for Detection and Investigation (2013), Fair Value Accounting Fraud: New Global Risks and Detection Techniques (2009), and Fraud and Abuse in Nonprofit Organizations: A Guide to Prevention and Detection (2003). He is also the principal author of the ACFE course Uncovering Fraud with Financial and Ratio Analysis, and has contributed to several other course manuals. He is the author of numerous articles on fraud and related topics and is a highly sought speaker at international and national conferences, including the Annual ACFE Global Fraud Conference, and those sponsored by the AICPA and many other groups. Mr. Zack earned his M.B.A. in Finance at Loyola University in Maryland and his B.S.B.A. in Accounting from Shippensburg University of Pennsylvania. He can be contacted by telephone at +1 301.634.0279 or by e-mail at gzack@bdo.com. 6

Chapter Seminar May 11, 2015 8 NASBA/CFE Credits Uncovering Fraud with Financial and Ratio Analysis Registration Form 7

Registration Form (Please return this form along with your check) I will attend the Chapter Meeting/Seminar on: Monday, May 11, 2015 Name (Print) Company/Organization E-Mail Address Mailing Address Registration Fee Enclosed: CFE/Associate Chapter Member ($125) Guest ($175) Note: If you have not paid your dues for 2014-2015, please remit payment prior to the seminar for the discounted price. **Dues for CFES - $40 per fiscal year **Dues for Associates - $50 per fiscal year Mail check to: Registration Central Carolina Chapter-ACFE PO Box 99666 Raleigh, NC 27624 Registration Deadline: Thursday, May 7, 2015 Refund Deadline: Refund requests must be emailed to jsharpe@rivescpa.com, by Friday, May 8, 2015 8

What being a Certified Fraud Examiner Means The designation of Certified Fraud Examiner does not signify that the holder of the title is an expert in the field of fraud examination. It does mean that the fraud examiner has met the requirements of the ACFE and is receiving the continuing education on deterrence, detection, investigation, and prosecution in fraud and abuse situations. Fraud examiners have various areas of expertise and come from various backgrounds such as auditing, investigation, and law enforcement. Many have experience with regulatory agencies of Federal and State governments. The Association of Certified Fraud Examiners requires that the CFE receives at least 20 continuing education credits per year with 2 hours of ethics in addition to the 10 fraud hours to maintain the CFE (effective 01/01/2010). The previous education and experience of a CFE usually is an indicator of the qualifications for a specific job in fraud examination. 9

Do you want to be a CFE? Associate Pre-Examination Scholarship Program From the Scholarship Committee Doreen Rettie, Chair Please note the rules for applying for the Exam Prep Course, especially the deadlines for submitting applications and the need to have been an associate member in the 2012-2013 year in order to apply. The rules are detailed with the application form on the following pages. If you have previously submitted an application and did not receive the award, please resubmit. Since only one scholarship is awarded twice per year, you may have been a runner-up, so give it another try and resubmit. The scholarship committee welcomes your application. Applications are due by the end of January and July each year. Scholarships will be awarded at each May seminar and November seminar if there is a qualified candidate. What is the exam prep course? It is a self study course on a CD. You load it on your computer and study on your schedule. Past winners have told us while the preparation is a bit rigorous; it pays when you take the exam. If you are a member of the Association, the cost out of your pocket would $745 if you purchased the CD which is a good reason to turn in an application. If you are not a member of the Association, the cost out of your pocket would be $945; that is a good reason to join the chapter and be able to apply in the future. The Scholarship is an award to you from the Chapter Board of Directors. The Chapter does not pay for the actual exam which is a minimal amount compared to the prep course. If you do not take the exam within one year, you repay the Chapter for the cost of the exam prep course. Applications must be mailed to the Chapter Post Office box. If I have any questions, whom do I ask? Contact Doreen Rettie, Chair of the Scholarship Committee doreen.rettie@ncdps.gov 10

Instructions for Application The Chapter Board of Directors is awarding competitive scholarships to Associates who wish to become Certified Fraud Examiners. The ACFE provided a discount to the chapters making the awards. This is a competitive scholarship based on points. The Central Carolina Chapter is making the awards in order to help provide certification assistance to those Associate Chapter Members wishing to become CFE s. Judging will be based on maximum points in the competition. Make sure you include the narrative as stated on the instruction form. If you do not include the narrative, you will lose 25 points. The Scholarship Committee will not notify you when something is missing from the application. You need to re-check the steps to be sure that the package is complete. The Associate Scholarship Program has replaced the old College Scholarship program. The first Associate awards were made at the August 18, 2003 seminar. Those who have received scholarship awards include: Robert Crotts (deceased) who received the first award, Bryan Strickland, Tim White, Ray Clinebelle, David King, Christopher Cole, Randy Richartz, Steve Bass, Betty Rouse and Tammy Montanez. Should the applicant not receive an award the first time he/she applies, the application must be re-submitted by the appropriate application dates. An application form is included in the newsletter. Candidates should send the completed Application form to: Doreen Rettie, Scholarship Committee, Central Carolina Chapter, and P.O. Box 99666, Raleigh, NC 27624. Eligibility requirements include the following: Candidate must be an Associate Member of the ACFE in good standing in Austin and Associate Member number must be included Candidate must have been an Associate member of the Central Carolina Chapter in the prior year 2012-2013 Support documents for experience and education must be available if the Committee requests them Candidate must sign a statement (on last page of application) agreeing to repay the Central Carolina Chapter for the cost of the scholarship should he/she fail to take the examination for CFE within one year of the date of registration. The refund will be used to provide another Associate Scholarship. Candidates must include a narrative with the application. The narrative is Why the Chapter Should Award the CFE Pre Exam Scholarship to me. The Scholarship Committee will award up to 25 points for the narrative. North Carolina licensed CPA s and those who are licensed under the Private Protective Services Board receive additional points. Certifications are not included as licenses. Candidates must not have a criminal record. Note: Be sure to follow the instructions on the following application. 11

Association of Certified Fraud Examiners Central Carolina Chapter, Inc. Pre-Examination Award for Associates 2013-2014 Application (Applicants must be Associates with ACFE and must have been Central Carolina Chapter members during the Chapter fiscal year prior to the Scholarship application FY 2012/2013) Name (print first, middle, and last names): ACFE Associate Number and date you became an Associate: Address: Telephone (Work): Telephone (Home): Employer: For how long? Your job title: Your occupation: 1. Education: Please list name of college and year degree received Points Claimed Bachelor's Degree or equivalent (20 Points) College: Year: Graduate study: (5 points) College: Year: 2. Licenses: (If more than one license, list each in Explanation Section): Award 5 points for each license in a recognized fraud related profession: (Please state name of the NC license) (CPA, PI) Do not provide certifications; the points are for licenses only. Number 3. Experience: (List Company names in Explanation Section) Award 5 points for each full year of full time fraud-related work experience in the following areas. (Credit cannot be claimed for more than one category during a specific time period): Auditing years x 5 Criminology years x 5 Investigation years x 5 Accounting years x 5 Law Enforcement years x 5 Legal years x 5 Loss Prevention years x 5 12

4. Participation: Award 5 points for each year you have been an ACFE Associate: Award 5 points for each attendance at a Chapter seminar in the past 3 years. Award 5 points for each committee assignment (Audit, Elections etc) in 3 years. o Award 5 points if you chaired the committee Award 2.5 points for each hour you have provided training to the Chapter: Total Points Claimed by Candidate: 5. Narrative: (Points will be assigned by the Scholarship Committee for Candidate s narrative.) You are required to submit a narrative entitled Why the Chapter should Award the CFE Pre-Certification Exam Scholarship to Me (not to exceed one page with 12 point type). Please attach to your application. Total Points Received (up to 25 points) Send the application by the appropriate date (postmark is the determining factor) shown in the instructions to: Doreen Rettie, Scholarship Chair, Central Carolina Chapter, P.O. Box 99666, Raleigh, NC 27624 I certify that the above information is correct: Your signature Date I certify that I do not have a criminal record (disallowed for CFE participation): Your signature Date I agree to the repay the Central Carolina Chapter the full amount of the scholarship within 90 days if I fail to take the CFE within one year of registration. (We will be requesting repayment from you if you do not take the exam as scheduled) Your signature Date 6. Explanation or Additional Information (back of form if necessary) 13

2014 2015 Application for Chapter Membership or Dues Payment Form Central Carolina Chapter Association of Certified Fraud Examiners PO Box 99666 Raleigh, NC 27624 This form should be printed out and submitted along with your check for membership application or dues payment for the 2013 2014 fiscal year. Membership Application OR Dues Payment (check one) (Note: You must be a member in good standing with ACFE in Austin in order to be considered for Chapter membership) Change of Information (Yes or No) Name (please print) Designation: CFE (Include ACFE number) Associate (Include ACFE number) Occupation Number of Years (in the field of fraud examination) Employer and Address Home Address Should mailing and directory listing be your home or business address? Telephone (business) Telephone (home) Email Address (to be used for newsletter distribution) Dues or Membership Fee enclosed: CFE ($40) Associate ($50) Please make checks payable to: Central Carolina Chapter ACFE Mail to: Treasurer, Central Carolina Chapter - ACFE P.O. Box 99666 Raleigh, NC 27624 14