We live in an age of overwhelming complexity. Will you choose to adapt?

We live in an age of overwhelming complexity.  Things will not get simpler, the change will only accelerate.

Do I really need to explain that the complexity of everything is overwhelming?  Consider merely the new 990, increasing regulation of every area of running a ministry or business, and the exponential growth of fantastic technology tools.

We need to decide whether we are going to adapt or not.  It is actually possible to opt out of the growing complexity.  Consider the cost though.  If our ministries do not adapt they may die.  More likely they will shrivel, then shrink into irrelevance.  At a personal level, we need to adapt or get left behind.

I choose to adapt.  I may be struggling and bumbling in my efforts, but I will move forward.  How about you?

Rationalization – the final side of the fraud triangle

The final component needed to complete the fraud triangle is rationalization.  This is the ability to persuade yourself that something you otherwise know is wrong is really OK.  A lot of mental gymnastics are obviously needed to do so, but that is the point.  If a person goes through those gymnastics, than what was wrong before is now acceptable. How can that happen? (more…)

Motivation side of the fraud triangle – part 2

Amongst the many dangers is that some motivations would be hidden from view in the workplace.  Some of them, such as drinking or narcotics, would eventually show side effects in the workplace.  Those factors could create visibility that would raise questions which in turn could in turn possibly result in discovery of the fraud.  If that is the motivation, the plan could self-destruct fairly quickly.  

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An example of fraud motivation that took sixty seconds to find

It is very sad to read about the tragedies that take place.  Immediately after posting the previous discussion of the motivation side of the fraud triangle, went to a blog I frequent. Have now added it to the blogroll on the right.  Here is the article .  It clearly illustrates the motivation factor.  (more…)

Motivation – the second side of the fraud triangle

Motivation is typically described as the pressure or incentive to commit fraud.  When great pressure is brought to bear, people will do things you would have never thought possible.  We used to illustrate this with someone who has a drinking problem or a gambling problem.  Those illustrations of pressure don’t paint a good enough picture because you can’t drink enough (and still function) to create pressure to steal enough money to cause a severe problem.  Let’s expand the picture.  Long before someone with a drug problem deteriorates to the point of non-functioning, they can appear to function normally on the outside but have a need for so much money that the only way they could possibly feed their addiction is to steal from the ministry. (more…)

Major changes to Review and Compilation Reports from SSARS 19

Remember that SSARS 19 makes a lot of changes to the review and compilation procedures.  In terms of the reports, the entire report is changing – the wording is completely different.

Update – SSARS 19 had been replaced by SSARS 21. All the reports have been revised. You can check out these posts at my other blog, Attestation Update:

 

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Watch your Facebook settings, if don’t want to tell everything to the world

If you want everything you say on Facebook to be visible to the world, that is okay.  If you want to set limits on who can see how much, then you need to modify your privacy settings.  Best explanation I have seen on how to manage your privacy is found in this article from the Christian Computing Magazine.  Took me a while to wander through the settings and instructions at Facebook to learn what is covered here in just a few pages.

By the way, the magazine is free.  You can read it online or get email delivery.  Check it out. Sign up for a free subscription.

Expanded 1099 reporting starts in 2012

(See this post for update – legislation repealed!)

Reporting requirements for 1099s will soon expand dramatically.  From the Journal of Accountancy: “(b)eginning Jan. 1, 2012, virtually all payments by a trade or business aggregating $600 or more to any single vendor during any calendar year will have to be reported at the end of each calendar year to the vendor and to the IRS on Form 1099. Vendors include almost anyone a trade or business pays in the course of doing business, other than its employees whose compensation is already reported on Forms W-2.” – the full article is available online. (more…)

Revised accounting for leases – proposed changes to Topic 840

The accounting rule makers (that would be the FASB) have proposed massive changes to lease accounting.  Essentially, all leases with a term over 12 months will be recorded as an asset with an offsetting liability for the lease payments.

This is a casual summary (well, as casual as I can get when discussing accounting).  A separate post at my other blog, www.attestationupdate.com goes into more technical details.

A very rough analogy is that all leases in the future will be treated in somewhat the same way as a capital lease is handled today.  (more…)

Opportunity– one side of the fraud triangle

Opportunity is the first side of the fraud triangle we will discuss.  This is when there is a situation that would allow a person to do something wrong.  These are the weaknesses and procedures to correct them that we usually talk about.  Places where someone could get their hands on money and get it out the door.  (more…)

Fraud happens when the ‘fraud triangle’ is present

This will be the first in a series of on what accountants call the fraud triangle.

Just a few comments before we begin.  These posts will be written in a more casual style that you would usually see from an accountant.  They will definitely be more casual than you have seen in my published resources, which you can find here. (more…)