$20M+ Recovery: Forensic Expertise with Diverted Funds
We were engaged when our client became concerned that remittances due from one of its divisions were being under-reported. As our fraud and forensic accounting team began to investigate, we discovered a clever web of bank accounts – dozens - and multiple front organizations being used to surreptitiously divert portions of proceeds from various transactions over several years. The nature of the transactions - variable pricing determined at auction - and the multiple entities that were to receive revenue distributions from the transactions, made this sophisticated fraud very difficult to trace.
The resulting engagement has now spanned two years, and is being extended indefinitely as our team continues to increase the dollar recovery, which is now in excess of $20,000,000.
Tax Consulting – New Approach to Withholding Taxes Earns IRS Sign-off; Saves Client > $1 million
Prior to engaging us, our higher education client paid withholding taxes of approximately $500,000 per year for a particular group of scholarship students. The client was following procedures set up by the Big Four accounting firm the preceded us.
Urish Popeck tax professionals reviewed those procedures and the relevant tax law, regulations, rulings and IRS pronouncements related to this area and developed a new methodology for withholding taxes related to the taxable portion of the scholarship program.
The new approach we developed was reviewed and accepted by the IRS, and implemented by the client. The result: well over $1 million in savings to date.
Process Improvement – Reducing A-133 Audit Time by 50%
Urish Popeck was brought in as a technical consultant relating to an OMB A-133 audit. The client is a $1 billion university and hospital system that receives +$500 million in federal funding annually. In preparation for the annual OMB A-133 audit, our staff prepared audit supporting schedules, pre-audited major programs, developed compliance monitoring processes, and documented key compliance and internal controls. Additionally, Urish Popeck prepared the Schedule of Expenditures of Federal Awards.
As a result of our work, audit time decreased from nine months to less than four months. And, we also provided tax advisory services that aided the client in reducing tax penalties and interest totaling nearly $500,000.