background image
7
Connecticut CPA
g
September/October 2017
By Bonnie Stewart, CTCPA Executive Director
Nearly
10%
of accounting firm
revenues are from client
accounting services and
virtual CFO services.
The typical
organization loses
5%
of annual revenues to fraud.
The slice of net client fees
represented by that service
area, which includes outsourced
finance and accounting services
and other back-office support for
clients, more than doubled to 9%
for the largest firms with annual
revenue of $10 million or more
who are active in this area.
That estimate from the
Association of Certified Fraud
Examiners (ACFE) is based on
the organization's most recent
study, which analyzed 2,410
occupational fraud cases that
caused a total loss of more than
$6.3 billion. The median loss from
a single case of occupational
fraud was $150,000.
Read more about how your company can
mitigate losses from fraud on page 22.
Source: AICPA National Management
of an Accounting Practice Survey
Source: ACFE's Global Fraud Study,
Report to the Nations on
Occupational Fraud and Abuse
By the
Numbers
#
Workplace and Professional Trends
49%
of female millennial career
starters said they feel they
will be able to rise to the
most senior levels with
their current employer.
Born between 1980 and 1995,
female millennials make up a
significant proportion of the
current and future talent pool.
Today's female career starters
are more confident in their
ability to reach senior levels
than previous generations.
Source: PwC's The Female Millennial:
A New Era of Talent
State Budget Challenges Continue
As this issue went to press, state legislators were still em-
broiled in an unprecedented budget impasse.
Connecticut has enormous economic potential, but one of
the biggest barriers to achieving it is the state's fiscal crisis.
We have members at companies large and small, at public
accounting and advisory firms, at municipalities, at not-for-
profits, and at businesses. I've heard time and time again
that you need economic predictability and consistency to
do your job well to make the best decisions and provide
the best advice for your company, your clients, your family,
and yourself.
It is extremely important for the future of the state that the
legislature get our state's fiscal house in order. While the
problems can't be addressed overnight, the time is now
to develop a plan that will help Connecticut's citizens as
well as nonprofit, municipal, and business leaders feel more
positive about the state's future.
This year the legislature had a $5 billion deficit it needed
to address in order to balance the budget. State employee
unions approved a $1.5 billion concession package that
was ultimately approved by the legislature, reducing the
deficit to about $3.5 billion.
That means that, roughly speaking, there is about a $1.53
billion deficit left to address. Legislators are discussing
the budget now and conversations with some legislative
leaders have indicated that anything and everything is on
the table in terms of potential revenue generation and
spending cuts.
You've told us that these are important issues to you and
you'd like us to keep you apprised of the state's economic
and fiscal situation. We'll be paying close attention to what's
happening in order to protect the profession and keep you
aware of the latest via our Capitol Corner email alerts and
webpage (www.ctcpas.org/capitolcorner).