March 2013

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MCN Podcast 130x130 BrownEpisode # 35 of the Maryland Construction Network

In today’s show we welcome Mr. Stephen K. Ball back to the program for a discussion about the recognition and prevention of fraud in construction companies. Steve is a Partner in the accounting firm of Gross Mendelsohn – www.gma-cpa.com – 410-900-1308.

Association of Certified Fraud Examiners reports that a typical organization losses from fraud = 5% of revenues

  1. Construction ranked as the 3rd worst of industries for the occurrence of fraud
  2. Conditions for fraud?  Why?
    • Individuals with financial problems
    • Opportunity to commit fraud
    • Rationalization that they are entitled to more
  3.  Red-Flags for financial fraud
    • Living beyond means
    • Unusually close association with vendors or customers
    • Unwillingness to share duties
    • Unwillingness to take time off
    • Family problems
    • Irritability
    • Addiction problem?
  4. Typical fraud scenarios
    • Fictitious vendors
    • Altering checks
    • Kickbacks – inflated invoices
    • Creation of fictitious employees
    • Purchases on credit card
  5. What can you do? Prevention is key
    • Integrity at the top – lead by example
    • Communicate how to report suspected fraud
      • Fraud Hotline services are available – very effective
    • Implement controls and techniques
    • Receive bank statement directly
    • Check banking activity online regularly
    • Examine deposits and checks
    • Make bank reconciliations in a timely fashion
    • Implement job rotations or mandatory vacations if possible
    • Require authorizations for large transactions
    • Physical control of documents assets, checks, etc.
    • Really examine the financial statements
  6. Why do programs breakdown
    • collusion between employees
      • commission reports
      • invoices that are not legitimate
    • Override of controls – even from management
    • Fraud usually occurs by a trusted employee
  7. It is managements responsibility to their employees to institute checks and balances to protect employees from making a bad decision and instituting a fraud
    • Majority of people committing fraud have no prior history of criminal behavior
    • Stresses in their lives push them to act uncharacteristically
  8. Fraud happens and effects the bottom line!
  9. Fraud prevention is the issue!

Visit www.mdconstructionnet.net pages to sign-up for our e-mail list. Click on the “Contact” ad on the right hand side of the screen

MCN Direct Connect – May 22, 2013information and registration form available through these links or on the website under the Connect Now/Direct Connect Tab

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MCN Podcast 130x130 BrownEpisode # 34 of the Maryland Construction Network

In today’s show we meet Mr. Robert Aydukovic, President of the Maryland Center for Construction Education & Innovation – www.www.mccei.org – 410-704-5981.

  1. MCCEI is a 501c(3) Non Profit organization
  2. A product of Governor O’Malley’s Workforce Investment Board
  3. MCCEI is a public-private partnership established by industry, education, and government to benchmark the emerging trends in the construction industry
    • to expand relevant career pathways
    • collaborate with education to advocate for construction as a profession of choice
    • connect the industry to transformative technologies
  4. Leadership of MCCEI includes public and private sector with an emphasis placed upon the input from the construction industry
    • Chairman – Martin G. Knott, Jr., President – Knott Mechanical, Inc.
    • Vice Chairman –  Gino Gemignani, Senior Vice President – The Whiting-Turner Contracting Company
    • Other organizations and agencies including Towson University, Associated Builders and Contractors – Baltimore Metro Chapter, Washington, DC Building Trades Council, Division of Labor and Industry – Department of Labor, Licensing and Regulation, State of Maryland, Construction and Energy Technologies Education Consortium, Maryland State Department of Education, Governor’s Workforce Investment Board, National Skills Coalition
    • Many leading companies from Maryland’s construction industry
  5. Our industry has trained for the trades but we have not addressed the needs for our new economy and the evolution within the construction industry
  6. Large companies have the ability to build education programming into their strategic plans
    • 90% of construction companies are small businesses
    • They struggle to provide instruction on their own
    • Cannot afford lost productivity
  7. A career path in the construction industry ranked 248th out of 250 choices presented to high school students
    • But the construction industry is highly entrepreneurial
    • The median wage in the construction industry is 10% – 15% higher than that of general business
  8. Future episodes will examine the study and recommendations from MCCEI’s extensive research – “The Critical Path
    1. Includes opinions of construction business owners as to their expectation for the evolution of the construction industry

MARK YOUR CALENDAR!

  1. May 22, 2013 – MCN’s Inaugural “Direct Connect” event
  2. 5:00 pm – 7:30 pm at the Boumi Temple in White Marsh, Maryland

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MCN Podcast 130x130 BrownEpisode #33 of the Maryland Construction Network

In this episode MCN Founder Rob Bertazon discusses some of the changes being made at MCN and the introduction of some exciting new programs.

  1. Verna Regler – Former Executive Director of the Building Congress & Exchange of Metropolitan Baltimore has joined Rob Bertazon as a Partner in the Maryland Construction Network.
    • Verna brings a flair for exceptional “live” programming and her ability to connect people to MCN
    • Verna’s presence will allow the introduction of live networking events – “Direct Connects” – for MCN
    • May 22nd – MCN’s 1st Direct Connect from 5:00 pm to 7:30 at the Boumi Temple in White Marsh
  2. Constant Connects always available at www.mdconstructionnet.net
    • Podcasts
    • Bid Opps Page
    • Job Wanted Page
    • Help Wanted Page
    • Trading Post Page
      • Excess Equipment
      • Surplus Materials
      • Items You Need To Get Off Site!
    • Member Directories
      • Alphabetical
      • CSI Categories
      • Residential Contractors
        • Your Company Name, Description, Contact Info And Logo
  3. Quick Connect Memberships To MCN
    • Only $100 Annually
    • Free Posts On Opportunity Pages
    • “Connected” Pricing To MCN “Direct Connect” Events And “Education Connections”
    • Access To MCN Newsletters
    • Plus, More To Come!
  4. Connection Plans To Publicize The Goods And Services You Supply –  Flyer Available Here
    • Direct Connect Plans
    • Constant Connect Plans
    • Published Connect Plans
    • Unique Connect Plans

Click Here to get more information about making your “connection” at MCN!

 

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