An Investigation of Fraud in Nonprofit Organizations: Occurrences and Deterrents

Losses due to fraudulent activities are particularly troublesome in the nonprofit sector because they directly reduce resources available to address tax-exempt purposes. The ensuing bad publicity may also reduce contributions and grants in subsequent periods. This paper uses data provided by Certified Fraud Examiners to report on the types of fraud they identified in nonprofit organizations and the characteristics of both the victims and the perpetrators of the fraudulent activities. Based on the analysis of the data, the authors suggest ways that fraud losses can be prevented or mitigated. In particular, governing boards are urged to consider important controls in addition to the annual financial statement audit.This publication is Hauser Center Working Paper No. 35. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

The Single Audit Act: How Compliant Are Nonprofit Organizations?

Audits are an important legal accountability tool used by resource providers (donors, grantors, and others) to assure that resources are spent by nonprofit organizations in accordance with the resource providers intentions. This paper reports on audits that are required by the government of the United States for organizations receiving large amounts of federal financial assistance. Since 1990, nonprofits receiving substantial federal funds are required to undergo this rigorous and expensive form of federal oversight. We report on 11,841 nonprofit entities that underwent such audits, and the 3,592 audit firms that conducted them, from 1997 to 1999. Overall, compliance with federal regulations appears to be high. Our study indicates that smaller nonprofits, those that are new to government grants, and those with prior audit findings have a significantly higher rate of adverse audit findings. Perhaps for cost or other reasons, these nonprofits are being audited by less experienced auditors. Current federal funding does not provide any additional funds for Single Audit Act compliance. One policy implication of our work might be to provide federal funding specifically for Single Audit Act compliance to these nonprofits.This publication is Hauser Center Working Paper No. 16. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

Zero-lag long-range synchronization of Hodgkin-Huxley neurons is enhanced by dynamical relaying : poster presentation

Background The synchrony hypothesis postulates that precise temporal synchronization of different pools of neurons conveys information that is not contained in their firing rates. The synchrony hypothesis had been supported by experimental findings demonstrating that millisecond precise synchrony of neuronal oscillations across well separated brain regions plays an essential role in visual perception and other higher cognitive tasks [1]. Albeit, more evidence is being accumulated in favour of its role as a binding mechanism of distributed neural responses, the physical and anatomical substrate for such a dynamic and precise synchrony, especially zero-lag even in the presence of non-negligible delays, remains unclear. Here we propose a simple network motif that naturally accounts for zero-lag synchronization for a wide range of temporal delays [3]. We demonstrate that zero-lag synchronization between two distant neurons or neural populations can be achieved by relaying the dynamics via a third mediating single neuron or population. Methods We simulated the dynamics of two Hodgkin-Huxley neurons that interact with each other via an intermediate third neuron. The synaptic coupling was mediated through alpha-functions. Individual temporal delays of the arrival of pre-synaptic potentials were modelled by a gamma distribution. The strength of the synchronization and the phase-difference between each individual pairs were derived by cross-correlation of the membrane potentials. Results In the regular spiking regime the two outer neurons consistently synchronize with zero phase lag irrespective of the initial conditions. This robust zero-lag synchronization naturally arises as a consequence of the relay and redistribution of the dynamics performed by the central neuron. This result is independent on whether the coupling is excitatory or inhibitory and can be maintained for arbitrarily long time delays (see Fig. 1). Conclusion We have presented a simple and extremely robust network motif able to account for the isochronous synchronization of distant neural elements in a natural way. As opposed to other possible mechanisms of neural synchronization, neither inhibitory coupling, gap junctions nor precise tuning of morphological parameters are required to obtain zero-lag synchronized neuronal oscillation

Measuring Operations: An Analysis of the Financial Statements of U.S. Private Colleges and Universities

As events in the business sector have highlighted, companies can play by the rules and yet produce misleading financial statements. This study examines the nongovernmental organizations that provide a substantial portion of higher education in the United States. We seek to determine whether private colleges and universities take advantage of the discretion available to them under accounting and auditing standards by presenting an operating measure in their statement of activities. We find that nearly 60 percent of schools report an operating measure but the items included or excluded from operations vary widely.This publication is Hauser Center Working Paper No. 17. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

Assessing Financial Vulnerability in the Nonprofit Sector

Effective nonprofit governance relies upon understanding an organization's financial condition and vulnerabilities. However, financial vulnerability of nonprofit organizations is a relatively new area of study. In this paper, we compare two models used to forecast bankruptcy in the corporate sector (Altman 1968 and Ohlson 1980) with the model used by nonprofit researchers (Tuckman and Chang 1991). We find that the Ohlson model has higher explanatory power than either Tuckman and Chang's or Altman's in predicting four different measures of financial vulnerability. However, we show that none of the models, individually or combined, are effective in predicting financial distress. We then propose a more comprehensive model of financial vulnerability by adding two new variables to represent reliance on commercial-type activities to generate revenues and endowment sufficiency. We find that this model outperforms Ohlson's model and performs substantially better in explaining and predicting financial vulnerability. Hence, the expanded model can be used as a guide for understanding the drivers of financial vulnerability and for identifying more effective proxies for nonprofit sector financial distress for use in future research. This publication is Hauser Center Working Paper No. 27. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

A mechanism for achieving zero-lag long-range synchronization of neural activity

Poster presentation: How can two distant neural assemblies synchronize their firings at zero-lag even in the presence of non-negligible delays in the transfer of information between them? Neural synchronization stands today as one of the most promising mechanisms to counterbalance the huge anatomical and functional specialization of the different brain areas. However, and albeit more evidence is being accumulated in favor of its functional role as a binding mechanism of distributed neural responses, the physical and anatomical substrate for such a dynamic and precise synchrony, especially zero-lag even in the presence of non-negligible delays, remains unclear. Here we propose a simple network motif that naturally accounts for zero-lag synchronization of spiking assemblies of neurons for a wide range of temporal delays. We demonstrate that when two distant neural assemblies do not interact directly but relaying their dynamics via a third mediating single neuron or population and eventually achieve zero-lag coherent firing. Extensive numerical simulations of populations of Hodgkin-Huxley neurons interacting in such a network are analyzed. The results show that even with axonal delays as large as 15 ms the distant neural populations can synchronize their firings at zero-lag in a millisecond precision after the exchange of a few spikes. The role of noise and a distribution of axonal delays in the synchronized dynamics of the neural populations are also studied confirming the robustness of this sync mechanism. The proposed network module is densely embedded within the complex functional architecture of the brain and especially within the reciprocal thalamocortical interactions where the role of indirect pathways mimicking direct cortico-cortical fibers has been already suggested to facilitate trans-areal cortical communication. In summary the robust neural synchronization mechanism presented here arises as a consequence of the relay and redistribution of the dynamics performed by a mediating neuronal population. In opposition to previous works, neither inhibitory, gap junctions, nor complex networks need to be invoked to provide a stable mechanism of zero-phase correlated activity of neural populations in the presence of large conduction delays

Elementary Hadronic Interactions at the CERN SPS

New data from the NA49 experiment at the CERN SPS concerning hadron+proton and hadron+nucleus interactions are discussed and compared to nucleus+nucleus collisions. Detailed information on baryonic momentum distributions and nuclear enhancement factors for kaons and cascade baryons are extracted.Comment: 11 pages, 9 figures, to be published in the Proceedings of the XVIth International Conference on Ultrarelativistic Nucleus-Nucleus Collisions "Quark Matter 2002", Nantes, France, July 200