Boston s Beacon. Calendar of Events Boston Chapter. Upcoming Training Meeting The Devil is in the Data. Save the Date!
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1 Boston s Beacon Volume , Issue 4 October 2006 Calendar of Events Boston Chapter October 19, 2006 Fall Seminar - Fraud and Ethics Dave Hancox, NY Office of the Comptroller State Audit Bureau Lombardo s Randolph, MA November 15, 2006 Fall Workshop - Federal Grants O Neill Building, Boston, MA December 7, 2006 Annual Holiday Charity Lunch, Maggiano s, Boston, MA January 18, 2007 Winter Seminar - Volpe Transportation Building, Cambridge, MA February 15, 2007 Winter Workshop - Federal Reserve Building, Boston, MA March 13, 2007 Regional Professional Developmental Conference Bentley College, Waltham, MA National October 30-31, 2006 National Performance Management Conference at the Renaissance Schaumburg Hotel & Convention Center, Schaumburg, IL Inside this Issue CGFM News... 5 Chapter Balance Sheet Chapter Membership Contests...2, 5 Chapter Recognition Program... 6 CEC Meeting Highlights... 5 Community Service Event.4 Member News... 6 Membership Application National Office News... 9, 10 New England News..10 Officers & Directors List..12 Trivia..7 Upcoming Meeting.3 Save the Date! Fall Training Seminar at Lombardo s in Randolph. Fraud and Ethics Dave Hancox, NY Office of the Comptroller, State Audit Bureau Oct 19 To register please contact Howard Olsher, CGFM at Howard.Olsher@sao.state.ma.us or via phone at or online at Upcoming Training Meeting The Devil is in the Data Dave Hancox, CGFM of the New York Office of the Comptroller, State Audit Bureau will speak on the subjects of Fraud and Ethics at the Boston Chapter of the AGA Fall Training Seminar at Lombardo s in Randolph, MA. The training will be held on Thursday, October 19, Registration will begin at 8:30 with the morning session starting at 9:00. Lunch will be served from 12:00 to 1:00 and is included in the session price. The afternoon training portion of the session will start at approximately 1:00 with a planned conclusion at 4:00. Seven (7) CPEs will be awarded for this event. The cost of the meeting is $75 for members and $100 for nonmembers. To register please contact Howard Olsher, CGFM at Howard.Olsher@sao.state.ma.us or via phone at or online at Page 1
2 CONTEST CONTEST AGA Membership Photo Scavenger Hunt The Boston Chapter of the AGA will award one free membership (or reimburse a current member) to an individual who submits their pictures (either digital or photograph) with any five out of the following ten items. 1. With a CGFM certificate (does not have to be the certificate of the individual). 2. In front of the State House (Boston, Providence or Concord). 3. In front of City or Town Hall (any city or town hall within Mass, RI or NH). 4. With a statue in Boston s Quincy Market area. 5. With a member of the Boston AGA Chapter Executive Committee. 6. With one of the Hilltop (restaurant) cows. 7. At Fenway Park (Boston), Gillette Stadium (Foxborough), McCoy Stadium (Pawtucket), Gill Stadium (Manchester), LeLachuer Park (Lowell) 8. With a Boston Chapter CPE form (does not have to be the certificate of the individual). 9. With an AGA logo on a cup, mug or shirt 10. With a picture of your pet. (they don t have to look like you) All entries must be sent to the newsletter editor by February 28, At the conclusion of the contest a winner will be chosen from all valid entries. The winner will be announced at the Regional PDC at Bentley College. Photos become the property of the Boston Chapter of the AGA. Page 2
3 Fraud & Ethics: the Devil s in the Data Presented by David R. Hancox, CIA, CGFM Co-Author: Government Performance Audit in Action Faculty: Siena College and USDA Graduate School, Washington DC Director of Audits: NYS Comptroller s Office As a student of the auditing and management profession, Dave Hancox is a fan of Tom Peters. Building on Peters ideas, Dave will explore how the auditing profession needs to rethink its traditional approaches and begin to embrace a new and uncharted way of doing business to find the fraud that exists in unethical organizations. The profession is simply not meeting the public s expectations today and its leaders need to do something or step out of the way. September Training Meeting Pension Reform State and Federal Perspective On September 21 st, approximately 30 Boston AGA Chapter members and friends met at The Harp for the first Chapter Meeting of the Program year. After lunch, Chapter President John Beveridge, CGFM welcomed attendees and recognized Immediate Past President David LeBlanc, CGFM for his outstanding contributions last year. He also reminded everyone of the Chapter s Membership Scavenger Hunt, PDC Scholarship Incentive, and upcoming training events before introducing our guest speaker. Joseph Connarton, Executive Director for the Public Employees Retirement Administration Commission (PERAC), discussed Pension Reform State and Federal Perspective. Mr. Connarton explained that PERAC was created in 1996 to provide broad oversight to 106 retirement systems in the Commonwealth. More specifically, the commission provides actuarial evaluations and performs audits of regular and accidental/ordinary disability compensation. Through out his presentation, he stressed that pension reform is coming. There are changes throughout the country in both public and private arenas. Thank you, Joe, for a very timely and informative session! In Re-imagine: Making the Compelling Case for Radical Enterprise Change and then Doing Something about It! Tom Peters is "madder than hell." He rants about the organizational barriers and the egos of "petty tyrants" thwarting the good intentions of enterprising people in numerous ways. He sets out to reinstall the will, passion and know-how into every executive and employee who is ready to take on a renewed sense of individual responsibility. Finding fraud is also a significant challenge to the auditing profession and the managers of an organization. Auditors need to re-examine the approach they have historically taken to their work. Auditors have to get back to basics and assure they are using up-to-date techniques to find the fraud, waste and abuse that exist in the system. Traditional audit techniques relying on examining documents are simply ineffective. Documents can be manufactured or altered with the technology that is readily available today. But, documents are also disappearing in this electronic age. Confronted with literally millions of transactions, what do we do? Mr. Hancox defines five major challenges to the auditing profession and their cause. He also proposes a focus that will enable auditors to meet the public s expectations for auditors and the work they do. His presentation is supported by real examples of fraud and waste and the techniques used to find it. The recent audit his team worked on identified level 3 sex offenders in New York State getting Viagra from the State s Medicaid program. The audit received nation-wide attention and brought about change at the national level. Page 3
4 The Socks Box Needs To Be Filled Again! During last year s October training event at Lombardo s, the Boston Chapter collected new socks that were distributed to several homeless shelters. The need for new, clean socks for the homeless is well documented and has been recognized by such charities as the Red Sox Foundation that held their own successful socks drive this year in conjunction with the New England Sports Network (NESN). Since the need for socks continues and we were so successful last year in filling our Socks Box, the AGA Boston Chapter will once again be collecting packages of new socks for men and women at our training event on October 19, 2006, at Lombardo s. Rosie s Place, a sanctuary for poor and homeless women, offers both emergency and long-term assistance to women who have nowhere else to turn. Established in 1974, Rosie s Place is committed to welcoming each guest with respect and unconditional love. Rosie s Place accepts no government funds, and relies instead on committed volunteers and private supporters to accomplish its effective and innovative work. Homeless men and women at Rosie s Place in Boston and Father Bill s Place in Quincy will benefit from your generous donations. Every person who brings at least one pair of new socks will be entered into a raffle for a certificate towards a future training event. For more information about the wonderful work done by these shelters, please visit the links listed below: Father Bill s Place, also known as the Quincy Interfaith Sheltering Coalition, is an interfaith housing provider committed to providing permanent solutions to the problems of homelessness. Since it s inception in 1984 as an emergency shelter, Father Bill s Place has grown into a highly visible, well respected, social service agency assisting those in need in the South Shore Page 4
5 CGFM NEWS Have you been thinking about applying for the CGFM? Now is the time! From September 1 until November 30, 2006 AGA will give a rebate of $20 for CGFM applications received with the assistance of AGA chapters. In order to receive a $20 rebate, 1. the complete CGFM application (application form, $85 application fee and copy of the transcript) must be received by AGA Office of Professional Certification during the period of September 1 through November 30, the CGFM application form must have the promotional phrase: "CGFM chapter promotion - [name of your chapter]" written at the bottom of the form. If the application is submitted online, the applicant must put this phrase in the last question: "How did you learn about the CGFM Program?:". Important notes: - A full application fee of $85 must be paid at the time of application. The $20 check will be sent to the applicant by mail in January. CEC Meeting Highlights The Boston Chapter Executive Committee met on September 19, The following items were discussed and approved: The Education Committee has finalized the majority of training sessions and speakers for the year. Treasurer s report was filed and accepted. All corporate returns have been filed with the proper authorities. Nominating Committee has started it s work for the upcoming year and will begin taking nominations for the election of officers next May. CGFM Committee will look into having Massachusetts declare March CGFM month as it was last year. They will also explore having RI and NH doing similar. Community Service is hosting their Sock Drive for the October training session. One of the people that brings socks to the October training will win a certificate to be used at a future chapter event. Plans are already being made for events in December and March. Plans were made to reach out to the individuals on the suspended members list. - The applicant must put the words "CGFM chapter promotion" AND the name of your chapter on the application form in order to receive the rebate. - It is preferable that the applications are submitted by the applicants themselves and not by the chapter. The applicant does not have to be a chapter member in order to receive the rebate. But that is not all... The chapter that encouraged the most applications submitted as part of this promotion in the three-month period of September-November 2006 will also receive $20 X the number of applications that quoted that particular chapter! PLUS every chapter listed on the application (in the promotional phrase as described above) will receive 50 BONUS CREDITS (Chapter Recognition Program) per application! Boston Chapter Association of Government Accountants Annual Professional Development Conference Scholarship The Boston Chapter of the AGA is awarding one paid, annual registration fee to the Association of Government Accountants 2007 Annual Professional Development Conference. (Value is approximately. $900) Conference is to be held in Nashville, Tennessee, June 24 27, To be eligible for this award an individual must have attended at least five (5) of the seven (7) educational sessions sponsored and held by the Boston Chapter offering CPEs from September 2006 through April The individual must be a Boston Chapter member prior to the drawing that will be held in April The award will be drawn at random from those meeting eligibility through the last training session in April This award is not transferable by the recipient. However an alternate (s) will be drawn in the event that the primary recipient cannot or chooses not to attend. Page 5
6 Volume , Issue 3 Boston s Beacon February October Please join the Membership Committee in welcoming the following new and transfer members to the Boston Chapter: Paul Sagarino Town of Burlington Welcome! Smith Utubor KPMG, LLP N. Brock Romano KPMG, LLP Eric Berman Mass. Office of the Comptroller Caryn Shea Mass. State Auditor s Office Go for Growth! Membership Update The Boston Chapter membership includes: 232 Active Members 13 New Members 0 Members Transferred In 0 Members Transferred Out 33 Suspended Members **************************** From the Editor Do you know someone in the Boston Chapter who has recently received promotion, accepted a new position, retired or won an award? Would you like to share your good news with fellow AGA members? Or maybe you re interested in writing a technical article for an upcoming issue of Boston s Beacon. Please forward submissions for the next issue of Boston s Beacon to dleblanc@doe.mass.edu. Thanks! Member News Dante Zamora of the Mass Department of Education has been recognized by the US Coast Guard in Boston as the Reserve Petty Officer of the year. Maureen Barry of US Veterans Affairs, OIG office in Bedford was promoted to Audit Manager Congratulations to each of these individuals The Boston Chapter recognizes and thanks the following new member sponsors since May 2006: David A. LeBlanc, CGFM....5 Julie Burns, CGFM Jane Gustowski Wallace A. Franklin, CGFM.2 Chapter Recognition Program The Chapter Recognition Program is designed to support, encourage, and promote the accomplishment of AGA s mission and to provide flexible noncompetitive guidelines for a wellrounded chapter. The Chapter Recognition Program year begins on May 1 st and concludes on April 30 th. Boston Chapter credits as of September 30, 2006 were: Maximum Credits Credits % of Categories Credits Earned Allowed Avail Leadership, Planning & Participation 3,000 3,400 3, % Education & Professional Development 4, % Certification 4,000 1,575 1,575 39% Communications 3,000 3,383 3, % Membership 3,000 1,950 1,950 65% Early Career % Community Service 2,000 3,200 2, % Awards 1,000 2,350 1, % Total 22,000 17,383 14,050 64% Boston Chapter Balance Sheet August May 31, 31, Assets Assets Cash Cash Checking Account $ 3,706 Checking Savings Account $ 15,029 3,147 Certificates Savings Account of Deposit 12,425 18,176 Total Cash Certificates of Deposit $31,160 12,964 Total Accounts Cash Receivable $34,287 0 Total Accounts Total Accounts Receivable Receivable $ 0 Total Assets $31,160 $34,287 Liabilities and Fund Balance Accounts Payable $ 0 Accounts Current Fund Payable Balance $ 31,1600 Total Current Liabilities Fund Balance and Fund Balance $31,160 34,287 Total Liabilities and Fund Balance $34,287 Page 6
7 Speaker Database The AGA-Boston Chapter is building a speaker database. Do you know a dynamic speaker who you would like to see at an upcoming educational event? Are you a speaker who would like to be included in the database? Please send the speaker s name, address, phone number, address and potential topics to the Chapter s Director of Registration Howard Olsher, CGFM at Howard.Olsher@sao.state.ma.us. Thoughts to ponder Is a cannibal someone who is fed up with people? What disease did cured ham have? October Quote Don't confuse fame with success. Madonna is one; Helen Keller is the other. TRIVIA QUESTION! Erma Bombeck Police Blotter Items A man robbing a bank in Riverhead, N.Y., passed the teller a note demanding money on the back of a bulk-mail envelope that featured his name and address. A man found guilty of capital murder in Montgomery, Ala., appealed his conviction on the grounds of ineffective counsel. He had acted as his own attorney. A man was charged with shoplifting at a Wal-Mart in Boonton, N.J., after he put a $70 price tag on a $1,395 television set and presented it at the checkout counter. This $777, budget film launched the careers of many young stars, including Richard Dreyfuss, Harrison Ford and George Lucas. Answer found elsewhere in the newsletter. Boston s Beacon is published by the Association of Government Accountants Boston Chapter. Comments should be forwarded to dleblanc@doe.mass.edu Websites of Interest American Society for Public Admin (ASPA)... MA Chapter of ASPA... Association of Certified Fraud Examiners (CFE)... Greater Boston Chapter of CFE... Association of Government Accountants... AGA Boston Chapter... AGA Hartford Chapter... AGA Maine Chapter... COSO... First Gov... Governmental Accounting Standards Board... Government Executive... Institute of Internal Auditors (IIA)... IIA Greater Boston Chapter... Intergovernmental Audit Forum... International Accounts Payable Professionals (IAPP)... National Assoc of State Auditors, Comptrollers & Treasurers... National Assoc of State Comptrollers... National Assoc of State Treasurers... National State Auditors Association... National Electronic Commerce Coordinating Council... Page 7
8 A number of us have pets that think, OK know, that they run our lives. However, sometimes we can pretend to exert some control on the situation. Try sending your pets this letter. You know that they can read since they are always lying on or picking up the newspaper when you try to read it. Dear Dogs and Cats, Rules for Dogs and Cats The dishes with the paw print are yours and contain your food. The other dishes are mine and contain my food. Please note, placing a paw print in the middle of my plate of food does not stake a claim for it becoming your food and dish, nor do I find that aesthetically pleasing in the slightest. The stairway was not designed by NASCAR and is not a racetrack. Beating me to the bottom is not the object. Tripping me doesn't help because I fall faster than you can run. I cannot buy anything bigger than a king sized bed. I am very sorry about this. Do not think I will continue sleeping on the couch to ensure your comfort. Dogs and cats can actually curl up in a ball when they sleep. It is not necessary to sleep perpendicular to each other stretched out to the fullest extent possible. I also know that sticking tails straight out and having tongues hanging out the other end to maximize space is nothing but sarcasm. For the last time, there is not a secret exit from the bathroom. If by some miracle I beat you there and manage to get the door shut, it is not necessary to claw, whine, meow, bark, try to turn the knob or get your paw under the edge and try to pull the door open. I must exit through the same door I entered. Also, I have been using the bathroom by myself for years - canine or feline attendance is not mandatory. Lastly and most importantly, the proper order is kiss me, then go sniff the other dog or cat's posterior. I cannot possibly stress this enough! At least our priorities are set TRIVIA ANSWER! American Graffiti, 1973 (Nominated for five Academy Awards) Page 8
9 News from National FREE Downloads AGA s National Performance Management Conference Join us in Schaumburg, IL, just north of the Chicago airport, for AGA s National Performance Management Conference a one of a kind event focusing on state and local government performance reporting. The National Performance Management Conference (PMC) will bring together state and local government managers to share in educational sessions, networking and recognition of state and local government entities that have been honored with AGA s Certificate of Achievement in SEA Reporting. Don t miss this opportunity to share best practices with industry leaders and peers. The training you need can be found at AGA s Second Annual National Performance Management Conference, set for October 30-31at the Renaissance Schaumburg Hotel & Convention Center (just north of Chicago O Hare airport). With the theme Integrating Measurement with Management: Making the Connection, and offering 14 CPE hours, the PMC is an excellent learning and networking opportunity for performance and accountability professionals. Create your own curriculum through a combination of both general sessions and concurrent sessions. Make a connection with those defining and preparing SEA Reports, and those who can assist you in preparing your own. Topics will include managing for results and connecting management with measures. This is your chance to learn best practices for report preparation from SEA award winners. Topics will include: Using performance information to improve management Engaging citizens to establish goals and measures in the community Assisting officials to integrate performance information Comparing benchmarks All this and more awaits at AGA s PMC! AGA Research Reports Aim to Advance the Profession: PAR - The Report We Hate to Love- In December of 2004 AGA and PricewaterhouseCoopers LLP (PwC) undertook a cooperative research project to determine the usefulness of Performance and Accountability Reports (PARs) for their intended audiences, and how that usefulness can be improved. Challenges in Performance Auditing: How a State Auditor with Intriguing New Performance Auditing Authority is Meeting Them The objective of this research study is to document the initial actions taken by Washington State Auditor Brian Sonntag to implement the provisions of the initiative and prepare to conduct performance audits. The Federal Purchase Card: Use, Policy & Practice This report summarizes the findings of an AGA CPAG Research Program study of purchase card (government issued charge cards used for purchases) use by federal government agencies. The subsequent three phases of this AGA study series will provide similar reviews of purchase card use by state and local governments; the travel card-government issued charge cards used for travel-by federal government agencies; and the travel card used by state and local governments. Trends in Technology, is the third in a planned series of studies covering areas of interest to our members. Trends in Technology is an annual report on emerging issues in information technology and financial management. The study covers compliance management, business process management, project portfolio management, RFID and wireless communications. It analyzes each topic area and discusses its implications for functional management. Financial Management Shared Services: A Guide for Federal Users Landmark Research Report Solely Devoted to Melding Best Practices of Private Sector with Federal Agency Experiences This research is the first document of its kind to focus solely on federal users of financial management shared services. The research identified a number of best practices, worse practices and lessons learned for users and potential users of financial management shared services in the federal government. The 2005 CFO Survey Integrating Internal Control with Performance Management, sponsored by AGA Professional Corporate Partner Grant Thornton, explores the impact of emerging issues on CFO operations, discusses issues candidly with peers and related functional communities and shares findings within the federal community. This year s survey focuses on internal controls and performance measurement including integration with other management improvement initiatives within agencies. Audit Federal Financial Controls: Sooner Rather than Later Would Sarbanes-Oxley Benefit Federal Financial Management? The report concludes that the overall status of internal controls over federal financial reporting is not good and efforts to legislate improvements have not produced the desired results. These can be found at Page 9
10 AGA White Paper Outlines Top Issues in Accountability Profession For the third year, AGA brought together more than 100 leaders in government financial management at its annual Professional Development Conference & Exposition to discuss challenges facing the profession. The result of the wide-ranging discussions is the 2006 White Paper. It outlines how four task forces plan to tackle issues in Human Capital, Education & Research, Performance Reporting and Citizen-Centric Government. The task forces reported on the progress they have made and also developed new initiatives to move the profession forward. Read the White Paper at Around the New England Region Maine Chapter Meetings Held on the 2nd Tuesday of each month, September-May, at the Senator Inn. Meetings include a social lunch, chapter meeting/announcements, and an informational speaker Chapter Executive Committee (CEC) Meetings Held once each month, typically following the Chapter Meetings They are held as needed during the summer months Minutes will be posted in the following month's newsletter NW3C 2006 Economic Crime Summit October 24-25, 2006 Providence, RI Westin Providence The National White Collar Crime Center (NW3C) is hosting the 2006 Economic Crime Summit in Providence, Rhode Island on October Topics for this year s summit include Online Auction Fraud, Credit Card Fraud, Disaster Fraud, and Terrorism and White Collar Crime. This is the 10 th anniversary of NW3C s Economic Crime Summit and we re celebrating in the city where the inaugural conference was held. Typical attendees include security professionals, law enforcement personnel, victim and consumer service advocates, certified fraud examiners, auditors and loss prevention specialists, technology and business professionals, and other specialists. Breakout sessions on the topics of Credit Card Fraud, Online Auction Fraud, Terrorism & White Collar Crime, and Disaster Fraud. Visit index.cfm to register online and reserve your space today Visit the New England Region online! Hartford Chapter at Maine Chapter at Meetings for the Hartford Chapter These are generally held at 6:00 p.m. on the third Wednesday of each month from September to May. The meeting location is the Marco Polo Restaurant, 1250 Burnside Avenue, East Hartford, CT. Page 10
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12 Volume , Issue 4 Boston s Beacon February October Officers, Directors and Chairs John W. Beveridge, CGFM, CFE President Office: John.Beveridge@sao.state.ma.us Wallace Alan Franklin, CGFM, CGA President-Elect Office: Wallace.Franklin@SAO.state.ma.us David A. LeBlanc, CGFM Immediate Past President Newsletter Editor Office: dleblanc@doe.mass.edu Richard Sullivan, CPA Secretary Office: rsullivan@powersandsullivan.com Maria Mamakos Treasurer Office: mmamakos@doe.mass.edu Julia P. Burns, CGFM Vice President for Education and Programs Office: Julia.Burns@osc.state.ma.us Christine Donohoe Vice President for Planning Office: cdonohoe@massport.com Nick Dahl, CGFM Director of Bylaws and Procedures Office: Nicholas.Dahl@med.va.gov. Joseph Valchuis, CFE Director of Professional Certification Office: joseph.valchuis@sao.state.ma.us Kimberly Rapoza, CGFM, CPA Director of Community Service Office: Kimberly.Rapoza@oig.hhs.gov Susan Weeks (Tefft), CGFM, CPA Director of Membership Office: stefft@doe.mass.edu Howard Olsher, CGFM, CFE Director of Registration Office: Howard.Olsher@sao.state.ma.us William Muench, CGFM, CPA Director of Scholarships and Awards Office: wmuench@dcaa.mil Kelly Lanier Chapter Auditor Office: klanier@doe.mass.edu Mary T. Leyden, CGFM Career Day Chair Tel: Daniel Simmons Webmaster webmaster@aga-boston-chapter.org Association of Government Accountants Boston Chapter c/o 17 Pleasant Street Malden, MA Platinum Chapter
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