Governance
Recently a front page lead story in the Herald Palladium was about a $15,000 a year comptroller for a small grocery store chain who had embezzled $6.4 million dollars in the past seven years. It seems that arrests for embezzlement appear every other month. How the accused in this case, or the already convicted in others involving churches, local governments, small businesses and even very large corporations don't know from the beginning that their misdeeds will come to light confounds me.
Though I do believe a much too high percentage of Americans, given the choice between stealing $50+ billion dollars over 20+ years like Madoff and then spending retirement at taxpayer expense would take that choice.
My second thought on the matter was how poor the governance (oversight) is in many organizations on Main Street, let alone Wall Street. Here are three simple rules to follow no matter the size of the firm.
A number of years ago I created the chart below pertaining particularly to non-profit governance as part of the trainings I do for boards of directors. You might run a cross check to see how any non-profit you volunteer for stands up against the expected standards. The books listed at the top can easily be found at Amazon and a couple in many libraries.
This chart also can easily apply to for profit businesses of any size. If you want a copy of the purely academic paper (which hasn't been updated to a white paper yet) email me at jonrwallace@yahoo.com and I'll send you the Pdf.
Good luck getting your losses back folks. Last I knew the pay rate for inmates wasn't that good but the cost to the rest of society was around $50,000 a year per.
Though I do believe a much too high percentage of Americans, given the choice between stealing $50+ billion dollars over 20+ years like Madoff and then spending retirement at taxpayer expense would take that choice.
My second thought on the matter was how poor the governance (oversight) is in many organizations on Main Street, let alone Wall Street. Here are three simple rules to follow no matter the size of the firm.
- If you have checks coming in the mail, the person who opens them and enters the vendor/client and amount doesn't make the deposits.
- Whomever closes the cash drawers doesn't do final reconciliation in the books.
- Budget an annual audit. Period.
A number of years ago I created the chart below pertaining particularly to non-profit governance as part of the trainings I do for boards of directors. You might run a cross check to see how any non-profit you volunteer for stands up against the expected standards. The books listed at the top can easily be found at Amazon and a couple in many libraries.
This chart also can easily apply to for profit businesses of any size. If you want a copy of the purely academic paper (which hasn't been updated to a white paper yet) email me at jonrwallace@yahoo.com and I'll send you the Pdf.
Good luck getting your losses back folks. Last I knew the pay rate for inmates wasn't that good but the cost to the rest of society was around $50,000 a year per.
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Thank you for sharing your worldview.