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<HTML><HEAD><TITLE>Important: News from Profit Search Inc.</TITLE>
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face="'Trebuchet MS',Verdana,Helvetica,sans-serif" color=#ffffff
size=2>An E-Newsletter for the A/P Professional</FONT></TD>
<TD style="PADDING-RIGHT: 5px; TEXT-ALIGN: right"><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #ffffff; FONT-FAMILY: 'Trebuchet MS',Verdana,Helvetica,sans-serif"
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size=2>May 2007</FONT></TD></TR></TBODY></TABLE></TD></TR>
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<TD align=left><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #ffffff; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#ffffff
size=2>in this issue
<LI style="MARGIN-LEFT: 12pt; COLOR: #ffffff; TEXT-INDENT: -12pt"
color="#FFFFFF"><A style="COLOR: #ffffff" href="#article1"
shape=rect color="#FFFFFF">Facing Pressure to Cut A/P Service
Costs?</A>
<LI style="MARGIN-LEFT: 12pt; COLOR: #ffffff; TEXT-INDENT: -12pt"
color="#FFFFFF"><A style="COLOR: #ffffff" href="#article2"
shape=rect color="#FFFFFF">Is Inventory Fraud Eroding Your Profit
Margins?</A>
<LI style="MARGIN-LEFT: 12pt; COLOR: #ffffff; TEXT-INDENT: -12pt"
color="#FFFFFF"><A style="COLOR: #ffffff" href="#article3"
shape=rect color="#FFFFFF">See you in Dallas - The IAPP Forum is
Here!</A>
<LI style="MARGIN-LEFT: 12pt; COLOR: #ffffff; TEXT-INDENT: -12pt"
color="#FFFFFF"><A style="COLOR: #ffffff" href="#article4"
shape=rect color="#FFFFFF">Business Tip of The Month</A>
<P></FONT></P></LI></TD></TR></TBODY></TABLE><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
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<P style="FONT-WEIGHT: bold">Dear Doug,</P>
<P>Welcome to the May Issue of our newsletter. <BR><BR>You know, the
French have a cliche that's appropriate to share with you. "Plus de choses
changent plus qu'ils restent la m�me chose" The more things change the
more they stay the same.<BR><BR>I say this because in this issue I call
your attention to the $4.8M inventory fraud case at Building 19, how it
happened, lessons learned and why is was preventable. <BR><BR>I hope you
find this issue informative. Of course, we are here to help detect and
prevent inventory fraud through A/P best practices - which always require
support from the Boardroom.<BR><BR></P><BR>Doug Costello, President
</FONT>
<P></P>
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<TR>
<TD vAlign=bottom><A shape=rect name=article1>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR>
<TD style="BACKGROUND-COLOR: #669980" width=15
bgColor=#669980><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD>
<TD width=5><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD>
<TD style="BACKGROUND-COLOR: #99cccc" width=15
bgColor=#99cccc><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD></TR></TBODY></TABLE></A></TD>
<TD style="TEXT-ALIGN: right" vAlign=bottom width="100%"><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 13pt; COLOR: #669980; FONT-STYLE: italic; FONT-FAMILY: 'Trebuchet MS',Verdana,Helvetica,sans-serif"
face="'Trebuchet MS',Verdana,Helvetica,sans-serif" color=#669980
size=3>Facing Pressure to Cut A/P Service Costs?</FONT></TD></TR>
<TR style="BACKGROUND-COLOR: #669980" bgColor=#669980>
<TD colSpan=2><IMG height=2
src="http://img.constantcontact.com/letters/images/spacer.gif"
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<DIV style="MARGIN-RIGHT: 5px"><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#000000
size=2><IMG height=96 alt="Cost cutting" hspace=5
src="images/cutdollarbill.jpg"
width=120 align=right vspace=5 border=0>
<DIV style="MARGIN-TOP: -10px">
<P>All companies today are under pressure to lower the fixed costs of
doing business, and find create ways to consolidate internal services
without compromising operations - while maintaining or improving profit
margins! New technologies, business expansion, mergers and acquisitions
and the demand to keep pace with change each contribute to the risk of
human error, and the possibility of fraud. Over time, the accumulation of
apparently small human errors in A/P will amount to millions of dollars in
lost revenue.<BR><BR>To meet the new demands, many companies are combining
their accounts payable activities into a "shared service"
department.<BR><BR>Managing A/P services across the enterprise, especially
for autonomous A/P departments serving different business units, is a
daunting task. Consistency in software, A/P practices, vendor selection
criteria, and invoice processing will minimize the risks for the company
and yield the highest operational cash flow. Regulatory and management
pressures are sufficient motivation to develop a high integrity system
across the entire enterprise, focusing on these strategies:<BR><BR>
<UL>
<LI>Process reengineering & optimization to eliminate inefficiencies
and maximize A/P performance and savings
<LI>Re-evaluate staff deployment while considering cost pressures and
the need to optimize overhead
<LI>Employ Six Sigma quality management techniques in the A/P process
<LI>Develop a strategic approach to A/P and audit recovery company-wide
</LI></UL><BR><BR>Profit Search, Inc. can help you manage an enterprise or
divisional A/P recovery audit when you are ready...
<P></P></DIV>
<DIV style="TEXT-ALIGN: right"><A style="COLOR: #669980"
href="http://rs6.net/tn.jsp?t=xz7vs4bab.0.uocrq8n6.efibf8n6.1&ts=S0238&p=http%3A%2F%2Fwww.profitsearchinc.com"
shape=rect color="#669980">Learn more at our
website...</A></DIV></FONT></DIV>
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src="http://img.constantcontact.com/letters/images/spacer.gif"
width=1></DIV>
<P></P>
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bgColor=#669980><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD>
<TD width=5><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD>
<TD style="BACKGROUND-COLOR: #99cccc" width=15
bgColor=#99cccc><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD></TR></TBODY></TABLE></A></TD>
<TD style="TEXT-ALIGN: right" vAlign=bottom width="100%"><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 13pt; COLOR: #669980; FONT-STYLE: italic; FONT-FAMILY: 'Trebuchet MS',Verdana,Helvetica,sans-serif"
face="'Trebuchet MS',Verdana,Helvetica,sans-serif" color=#669980
size=3>Is Inventory Fraud Eroding Your Profit Margins?</FONT></TD></TR>
<TR style="BACKGROUND-COLOR: #669980" bgColor=#669980>
<TD colSpan=2><IMG height=2
src="http://img.constantcontact.com/letters/images/spacer.gif"
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<DIV style="MARGIN-RIGHT: 5px"><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#000000
size=2><IMG height=120 alt=inventory hspace=5
src="images/inventory.jpg"
width=87 align=left vspace=5 border=0>
<DIV style="MARGIN-TOP: -10px">
<P>No doubt you saw the Building 19 carpeting fraud case in the news this
Spring. Video surveillance cameras would never have caught this $4.8
inside theft! They got away with it for a while, but a buyer for the
company who went with her gut instincts, asked questions and ultimately
exposed the culprits!<BR><BR>I suppose if I laid out every detail of what
I learned, I'd be teaching readers how to set up a scam of their own, so
I'll be brief! Suffice it to say that one of the buyers questioned an
invoice and said he didn't think they got that much carpet. When the buyer
looked into it, it turned out the vendor shipped less carpet than they
billed for.<BR>After they realized what was happening, they looked through
the purchasing files for "proof of deliveries" and other trucking records
and found multiple shipments that were overstated.<BR><BR>They've changed
their process so that two people have to sign for incoming shipments. One
person signs for the receipt of the shipment and another person does the
count of the merchandise. Now they need to have a bill of lading to go
with the shipment. In the beginning the fraudsters had all the paperwork
with the invoice, so it looked legitimate. They just shipped less carpet
than what they billed. Later on they got lazy and billed for merchandise
that wasn't shipped. This fraud required collusion between someone at the
vendor and someone at Building 19. It's hard to detect fraud, especially
when there is collusion. Tighter controls/better processes would have
detected this one sooner. If they had thought the dollars were big enough
they might have looked into it sooner, but no one must have thought it was
big enough because they didn't do anything. It took a perceptive buyer to
pull the plug on the issue.<BR><BR>We see at least three lessions learned
worth sharing with you, to minimize your exposure to inventory scams off
your back docks:
<OL>
<LI>If you feel something is wrong or suspicious, go with your intuition
and explore it further.
<LI>Check your current receiving process and consider a two-person
verification
<LI>Double check for segregation of duties </LI></OL>
<P></P></DIV>
<DIV style="TEXT-ALIGN: right"><A style="COLOR: #669980"
href="http://rs6.net/tn.jsp?t=xz7vs4bab.0.mr4lu4bab.efibf8n6.1&ts=S0238&p=http%3A%2F%2Fwww.ago.state.ma.us%2Fsp.cfm%3Fpageid%3D116"
shape=rect color="#669980">See What The Massachusetts Attorney General
Says...</A></DIV></FONT></DIV>
<DIV style="CLEAR: both"><IMG style="CLEAR: both" height=1
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=1></DIV>
<P></P>
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<TR>
<TD vAlign=bottom><A shape=rect name=article3>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR>
<TD style="BACKGROUND-COLOR: #669980" width=15
bgColor=#669980><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD>
<TD width=5><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD>
<TD style="BACKGROUND-COLOR: #99cccc" width=15
bgColor=#99cccc><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD></TR></TBODY></TABLE></A></TD>
<TD style="TEXT-ALIGN: right" vAlign=bottom width="100%"><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 13pt; COLOR: #669980; FONT-STYLE: italic; FONT-FAMILY: 'Trebuchet MS',Verdana,Helvetica,sans-serif"
face="'Trebuchet MS',Verdana,Helvetica,sans-serif" color=#669980
size=3>See you in Dallas - The IAPP Forum is Here!</FONT></TD></TR>
<TR style="BACKGROUND-COLOR: #669980" bgColor=#669980>
<TD colSpan=2><IMG height=2
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD></TR></TBODY></TABLE>
<DIV style="MARGIN-RIGHT: 5px"><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#000000
size=2><IMG height=49 alt="iapp logo" hspace=5
src="images/iapplogo.gif"
width=125 align=left vspace=5 border=0>
<DIV style="MARGIN-TOP: -10px">
<P>Just thought we'd reach out to the A/P community to remind them about
this year's annual IAPP Forum at the Gaylord Texan Resort in Dallas which
is starting this coming Sunday. <BR><BR>The Forum is the foremost
professional development opportunity for the A/P community and we strongly
urge you or your staff to attend. There are three days filled with loads
of valuable workshops, networking opportunities and entertainment. I
always return from the trip with loads of insights and information that
can help A/P departments improve their process and
productivity.<BR><BR>We'll be there, as usual, and I invite you to call my
cell phone at (617)875-5815 if you can make it and we can link up for
lunch, or have a short discussion about your A/P department's payment
challenges and see if we can help stop the payment leakage! <BR><BR>Dallas
is a fun city and if you have not yet made plans to attend the event,
there is still time to register. </P></DIV>
<DIV style="TEXT-ALIGN: right"><A style="COLOR: #669980"
href="http://rs6.net/tn.jsp?t=xz7vs4bab.0.nr4lu4bab.efibf8n6.1&ts=S0238&p=http%3A%2F%2Fwww.iappnet.org%2F"
shape=rect color="#669980">Go here to grab the Conference
Agenda...</A></DIV></FONT></DIV>
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src="http://img.constantcontact.com/letters/images/spacer.gif"
width=1></DIV>
<P></P>
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bgColor=#669980><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD>
<TD width=5><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD>
<TD style="BACKGROUND-COLOR: #99cccc" width=15
bgColor=#99cccc><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD></TR></TBODY></TABLE></A></TD>
<TD style="TEXT-ALIGN: right" vAlign=bottom width="100%"><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 13pt; COLOR: #669980; FONT-STYLE: italic; FONT-FAMILY: 'Trebuchet MS',Verdana,Helvetica,sans-serif"
face="'Trebuchet MS',Verdana,Helvetica,sans-serif" color=#669980
size=3>Business Tip of The Month</FONT></TD></TR>
<TR style="BACKGROUND-COLOR: #669980" bgColor=#669980>
<TD colSpan=2><IMG height=2
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD></TR></TBODY></TABLE>
<DIV style="MARGIN-RIGHT: 5px"><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#000000
size=2><IMG height=161 alt=stamp hspace=5
src="images/rubberstamp.jpg"
width=143 align=right vspace=5 border=0>
<DIV style="MARGIN-TOP: -10px">
<P><BR>Check signing security. In 1996 I took a job with a national
employment services company with 8000 contract employees. I soon noticed
they were using a rubber stamp to sign manual checks in the accounts
payable department. I made a mental note to tell management this was an
unsafe payment practice. Two weeks later a local bank questioned a big
check that an employee was depositing. It turned out that he had been in
collusion with another employee and had faked almost fifty checks totaling
$375,000 using a rubber stamp and blank check stock that was stored in an
unlocked storage cabinet. If you're using a rubber stamp to sign manual
checks, destroy it right away! Never, never never use a rubber stamp to
sign checks. <BR><BR>There are many security measures available for
signing checks that are easy to use. If you need help with this area, give
me a call. </P></DIV></FONT></DIV>
<DIV style="CLEAR: both"><IMG style="CLEAR: both" height=1
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=1></DIV>
<P></P>
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<TD vAlign=bottom>
<TABLE cellSpacing=0 cellPadding=0 border=0>
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<TD style="BACKGROUND-COLOR: #669980" width=15
bgColor=#669980><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD>
<TD width=5><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD>
<TD style="BACKGROUND-COLOR: #99cccc" width=15
bgColor=#99cccc><IMG height=15
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=15 border=0></TD></TR></TBODY></TABLE></TD>
<TD style="TEXT-ALIGN: right" vAlign=bottom width="100%"><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 13pt; COLOR: #669980; FONT-STYLE: italic; FONT-FAMILY: 'Trebuchet MS',Verdana,Helvetica,sans-serif"
face="'Trebuchet MS',Verdana,Helvetica,sans-serif" color=#669980
size=3>A Word About Us...</FONT></TD></TR>
<TR style="BACKGROUND-COLOR: #669980" bgColor=#669980>
<TD colSpan=2><IMG height=2
src="http://img.constantcontact.com/letters/images/spacer.gif"
width=5 border=0></TD></TR></TBODY></TABLE>
<DIV style="MARGIN-RIGHT: 5px"><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#000000 size=2>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR>
<TD width="100%"><FONT
style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Verdana, Geneva, Arial, Helvetica, sans-serif"
face="Verdana, Geneva, Arial, Helvetica, sans-serif" color=#000000
size=2>
<DIV>Profit Search Inc. provides A/P audit and recovery services
throughout the New England area. We are here to help you get back
money your company is owed - and we have established a track record
of achieving stellar results for companies in every industry. Learn
more about our services <A
href="http://rs6.net/tn.jsp?t=xz7vs4bab.0.pjmr59bab.efibf8n6.1&ts=S0238&p=http%3A%2F%2Fprofitsearchinc.com%2Fservices.htm">here</A>:
</DIV>
<P>In a nutshell, we are Recovery Professionals, endorsed by the
IAPP. Learn more about our company <A
href="http://rs6.net/tn.jsp?t=xz7vs4bab.0.qjmr59bab.efibf8n6.1&ts=S0238&p=http%3A%2F%2Fprofitsearchinc.com%2Fabout_profit_search.htm">here</A>:
<BR><BR>We hope you discovered some valuable information in this
issue. <BR><BR></P>
<DIV></DIV>
<P></FONT></P></TD></TR></TBODY></TABLE></FONT></DIV>
<DIV style="CLEAR: both"><IMG style="CLEAR: both" height=1
src="http://img.constantcontact.com/letters/images/spacer.gif"
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size=4>Quick Links...</FONT></TD></TR>
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<TD colSpan=2><IMG height=2
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<LI><A style="COLOR: #669980"
href="http://rs6.net/tn.jsp?t=xz7vs4bab.0.rjmr59bab.efibf8n6.1&ts=S0238&p=http%3A%2F%2Fprofitsearchinc.com%2Ftestimonials.htm"
shape=rect color="#669980">Client Testimonials</A></FONT></LI></TD>
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<LI><A style="COLOR: #669980"
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shape=rect color="#669980">Our 7 Step Recovery
Process</A></FONT></LI></TD></TR>
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