Is Your Practice Safe From Employee Theft?
When was the last time, if ever, you thoroughly reviewed your accounting department’s internal controls? Does your cash flow reflect your expanding workload? In today’s economic crisis, more and more medical practices, surgery centers and hospitals are becoming victims of internal crimes perpetrated by trusted employees. It is thought that up to 80% of practice groups experience some form of exposure due to weakened internal controls. Here are just a few of the headlines we’ve seen:
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“Business manager charged with embezzling $178,000”—www.delcotimes.com
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“Bookkeeper Admits Embezzling $2.3 Million for Lottery Habit…She embezzled $2.3 million in three and a half years on her job as the bookkeeper for a medical group practice, she said.” — www.nytimes.com
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Accounts Receivable Clerk for Nursing Facility Diverted Over $927,000 for Personal Use in Money Laundering Case” —www.irs.ustreas.gov
Don’t let this happen to you. Sound, tested and written internal controls are absolutely necessary for every business. This not only protects the business but also protects the employees who are responsible for managing the business.
Somerset is ready to assist your practice with an in-depth internal control review. This review includes a detailed review of the procedures in place in all transaction cycles through interviews of a wide array of your personnel and observation of controls in place. In addition to noting deficiencies in the control structure, we will provide suggestions for improving controls over the safeguarding of company assets and financial reporting.
Again, with
emphasis on potential unknown gaps within your internal controls, can you
afford not to have it reviewed? Please
contact us today.
Health Care Commentaries is
provided by Somerset’s
Health Care Team
for our clients and other interested persons upon request. Since
technical information is presented in generalized fashion, no final
conclusion on these topics should be made without further review. For
additional information on the issues discussed, please contact a member
of our Health Care Team. This
document is not intended or written to be used, and cannot be used, for
the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.SomersetHealthCareTeam.com
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