GNYADA April 2016 Newsletter

GNYADA Named 'Partner of the Year' by Department of Education 14

Technical Education and the United Federation of Teachers, at its head- quarters in Manhattan. The award recognizes GNYADA’s excellence in supporting CTE schools, staff and students in a num- ber of areas, including; teacher train- ing, mentoring, scholarships, compe- titions, program review and work experiences for students. GNYADA was commended for initi- ating a teacher externship program that put NYC automotive instructors to work at local franchised new car dealerships’ service centers. The externships offered teachers a first- hand look at what it’s like to work in today’s automotive retail business as well as providing some professional contacts for future networking.

GNYADA Education Committee Chairman Nick Toomey (L) and Association VP of Education Ed Gazzillo (R) with NYC DOE Executive Director of CTE John Widlund.

GNYADA recently received the first ever CTE Partner of the Year Award , from the New York City Department of Education (DOE).

The award was given at the DOE's Annual CTE Partner Appreciation Event, in collaboration with the Advisory Council for Career &

Internal Fraud: Protect Your Dealership

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Internal audit controls are vital to monitoring your dealership’s financial status and staving off audits by regu- lators. They’re also important in detecting and deterring fraud from within the dealership.

and employees should be regularly retrained to use it.

bank accounts and cash clearing accounts. Review cancelled checks for prop- er endorsements by payees. Review bank activity daily, paying attention to any unusual transac- tions. Limit and control the ability to wire money out of the dealership’s bank accounts. Train and cross-train all employees handling cash, and continue to monitor positions that involve cash receipting, depositing, posting and reconciling. Make sure employees know to report all cash transactions over $10,000 by using IRS Form 8300. That filing compliance is ongoing,

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The above list is not all-inclusive of financial best practices, but these sug- gestions go a long way in demonstrat- ing the dealership’s robust audit poli- cy, deterring fraud and safeguarding dealership assets. Dealers should regularly perform self-audits, review bank statements, and perform random inventory counts during the year.

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Best Practices to Prevent and Detect Fraud

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Review cash receipts for proper coding, and closely review any changes made to payment types. Segregate accounting duties (payables, receivables and cash). Perform physical inventories using accounting sources as the control. Have an outside source perform unannounced reconciliations of

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Thanks to Christine Andrews of WithumSmith+Brown for her contributions to this article.

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • April 2016

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