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Erin Carter

Earlier this month, the Association of Certified Fraud Examiners (ACFE) issued Occupational Fraud 2024: A Report to the Nations. This is the 13th installation of the largest global study on occupational fraud and includes information about the costs, schemes, victims, and perpetrators of fraud. To limit the potential for criminal activities and financial loss, management needs to regularly evaluate and update fraud prevention programs to ensure maximum effectiveness. The findings contained in the report, including changes to how tips are reported, should be carefully considered.

For most charities and organizations, fundraising is an essential function that ensures funding is available to continue existing programs, create new ones, and pay operating expenses. Without this money, it would be tough to maintain the ability to fulfill the core mission. This underscores the importance of a vibrant fundraising strategy that highlights successes, articulates how programs meet goals and provides a clear picture of how funds are used. Since donors want to feel they have contributed to a worthwhile cause, it’s vital to demonstrate the value provided. Attention will be focused on what an organization says about itself and what others are saying.

There has been significant concern amongst legislators about the retirement-saving opportunities available to American workers. A recent study by the Pew Charitable Trusts has found that 51% of workers are concerned about running out of money in retirement and 71% wished they had more saved. These findings, common among such studies, reflect the alarming situation many will face in the golden years. It also means taxpayers could be left paying the bill to help those without sufficient means. Over the past few years, Congress has passed several parcels of legislation to make it easier for employees to participate in and benefit from workplace retirement plans including the SECURE Act of 2019 and the SECURE Act 2.0.  

The SECURE Act 2.0 passed into law in December 2022 calls for several updates to plan operations. Due to the comprehensive nature of the legislation, many updates are set to phase in over five years. Provisions effective in 2024 include introducing Starter 401k plans, student loan matching payments, deferral failure corrections, and introducing a new emergency savings account (PLESA). These accounts are limited to $2,500 in annual contributions and the first four withdrawals are tax-free. While regulations guiding all new provisions have yet to be issued, the IRS recently released Notice 2024-22 which provides important details on PLESA anti-abuse rules.

Over the past decade, the Department of Labor (DOL) has expressed growing concern about the quality of employee benefit plan audits. When there are deficiencies or other issues, it means that plan participants may not be receiving the important protections offered by a properly conducted audit. To better understand the issue and identify contributing factors, the DOL has published several plan audit quality reports in 1997, 2004, and 2015. Key details about deficiencies, quality by size of CPA firm, and other important information have been reviewed and analyzed. The findings have been useful to regulators and companies when hiring a new plan auditor.

Starting in 2024, many businesses will be required to report certain information about company ownership to the Financial Crimes Enforcement Network (FinCEN). The new requirement is mandated by the Corporate Transparency Act which passed in 2021. The purpose of the legislation is to make it easier for the federal government to fight tax fraud, money laundering, and terrorist activities financed through domestic companies. Under new rules, new and existing small businesses and limited liability companies are required to disclose information about their beneficial owners. This includes the name, date of birth, and address of each owner along with a unique identifying number from a passport or driver’s license is required.

The Corporate Transparency Act (CTA) was passed to enhance financial transparency and counter illicit financial activities, including terrorist financing and money laundering. As part of the legislation, certain entities are required to report beneficial ownership information to the Federal Crimes Enforcement Network (FINCEN). The purpose of the new report is to help the Department of Treasury more effectively identify where potential criminal behavior is occurring and investigate suspected crimes. The legislation will add new reporting requirements for Atlanta small and mid-sized companies to comply with in 2024 and 2025.

According to the Occupational Fraud 2022: Report to the Nations, tips are one of the most common ways that fraud is identified. This data point reflects the importance of implementing a whistleblower program as part of fraud prevention efforts. Yet many questions often arise about how to effectively manage a hotline. The ACFE recently released  Building a Best in Class Whistleblower Hotline Program, which provides important benchmarking and best practice information.

Over the past few years, Congress has passed various legislation designed to make it easier to participate in and save money in an employer sponsored retirement plan. The growing retirement savings gap has long been an issue the government has been working to address. Efforts to change retirement savings started with the  SECURE Act of 2019 and mostly recently included additional reforms that culminated in the SECURE Act 2.0. The latter included many changes designed to encourage employers to start workplace plans and to make it easier for workers to participate. Many of the updates are significant and are scheduled to become effective over a 5-year period.

The alarming situation has prompted Congress into action calling for significant changes to make it easier for workers to qualify, participate in, and benefit from employer sponsored retirement plans. Most recently the SECURE Act 2.0 was signed into law which outlines changes to accelerate saving opportunities. Despite it’s sweeping nature, many in Congress are looking for more ways to streamline the process. One example is the Auto Reenroll Act of 2023 which was introduced in late July and allows employers to automatically reenroll non plan participants.