The expertise of Rainer & Company shareholder Mike DeHaven was recently featured on a segment for KYW Newsradio 1060AM, where reporter Marc Kramer shared DeHaven’s tips on how businesses can ensure their retirements plans are safe from fraud. Click here to to listen to the reporter, or see below for the insight that Rainer & Company shared:

Is your company’s retirement plan as safe as you think it is? Fraud is on the rise, with cases of plan trustees, payroll employees and plan administrators diverting funds into their personal accounts. One administrator even set up fake businesses, and paid bogus invoices from plan funds!

In all fraud cases, plan trustees are liable for replacing stolen funds, plus the IRS imposes penalties. That’s why it’s imperative for your management team to provide oversight and control procedures for your business’s retirement plan. Mike DeHaven, partner at Rainer and Company Certified Public Accountants, urges you to:

  1. Segregate duties. Employees who have physical access to plan assets should not have access to the accounting system!
  2.  Manage oversight. Trustees should meet monthly, if possible, to review financial performance and look for irregularities.
  3. Check references. Run criminal and credit checks on those entrusted with administering your plan. Those with bad credit history may be more susceptible to committing fraud.