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Investing in the Future

Investing in the Future – Episode 2 – Drew Paxton

How do small towns and rural counties invest in their future? Tom Fox and Andrew Gay explore this topic in their new podcast series Investing in the Future – Developing Leadership in Kerr County. Leadership Kerr County is the premier leadership program in the Hill Country which enables men and women to learn more about the issues and topics that face Kerrville, Kerr County, and the Hill Country on a daily basis; everything from education and social services to economic development and health care. Kerr County has decided to invest in its citizens to create future leaders and lay a foundation for their future involvement in the leadership of Kerrville and Kerr County. This podcast is produced and hosted by the Texas Hill Country Podcast Network.

In our second episode, we are joined by Drew Paxton, who currently occupies one of the leadership Kerr County Steering Committee seats. Drew currently works as the Director of Planning and Development for The City of Kerrville. He was also a former class participant of Leadership Kerr County.

Highlights include:

-How did Drew find LKC, and what led him to apply to the program?

-How has LKC shaped his view of The City of Kerrville?

-His perspective of the Kerrville 2050 Plan.

-What was his perspective on the future of Kerrville as The City makes an effort to invest in itself?

Resources

Drew Paxton on LinkedIn

Andrew Gay on LinkedIn

Tom Fox on LinkedIn

For more information on Leadership Kerr County, click here.

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31 Days to More Effective Compliance Programs

One Month to More Effective Internal Controls – The COSO 2013 Internal Controls Framework

COSO was adopted in 1992 as a framework for a basis to design and test internal controls’ effectiveness. In 2010, updating this more than 20-year-old COSO Framework was deemed necessary to provide a more supportable approach when adversarial third parties challenged whether a company has effective internal controls (such as the SEC). , I believe the SEC will use this to review a company’s compliance with internal controls. This means that you need to understand what is required under the COSO 2013 Internal Controls Framework and can show adherence to it or justify an exception if you receive a letter from the SEC asking for evidence of your company’s compliance with the internal controls provisions of the FCPA.

The COSO 2013 Internal Controls Framework defines internal controls, from bottom to top, with the following Objectives: a) Control Environment, b) Risk Assessment, c) Control Activities, d) Information and Communication, and e) Monitoring. From these five Objectives come 17 Principles which we explore in more detail.
Three key takeaways:

  1. You must use the 2013 Internal Controls Framework or a similar source for your internal controls structure.
  2. The 2013 Internal Controls Framework identifies the following areas: a) Control Environment, b) Risk Assessment, c) Control Activities, d) Information and Communication, and e) Monitoring.
  3. Your internal controls must be sustainable.

For more information on how to build out a best practices compliance program, including internal controls, check out The Compliance Handbook, 3rd edition.

Categories
The Night Sky

Ben Locwin – Eclipse Basics

Welcome to The Night Sky: A Podcast on the Eclipses Comes to Kerrville, a podcast that celebrates that for two days over the next 18 months, Kerrville, TX, will be the Eclipse Capitol of the World. This podcast, hosted by Andrew Gay and Tom Fox, will celebrate these two eclipses and discuss how the town of Kerrville will prepare for an influx of a quarter million (or more) visitors. This podcast is hosted by the Texas Hill Country Podcast Network.

In this inaugural episode, Andrew and Tom visit with Ben Locwin, who holds a Ph.D. in AstroPhysics and has long loved the stars in the heavens. Ben describes the wonder and awe he found looking into the night skies as a young boy, and he explains the two different types of eclipses which will pass through Kerrville and how to view them best.

Highlights include:

·       What is a solar eclipse? How often do they occur? What is their significance?

·       What is an annular eclipse?

·      What is a total eclipse?

·       The best way to watch an eclipse?

·       Will the sensation of a total eclipse be more than visual?

·       Why are you looking forward to it?

·      If someone wanted to read up on these eclipses, what books might you suggest?

Resources

Ben Locwin on LinkedIn

Andrew Gay on LinkedIn

Tom Fox on LinkedIn

Categories
Greetings and Felicitations

Pawtastic Friends: How Dogs Find Hope & Family Through Enrichment Training

Welcome to the Greetings and Felicitations, a podcast where I explore topics that might not seem directly related to compliance but influence our profession. Experience insight and expertise with host Tom Fox in this podcast featuring guests Michael and Melissa Novelli, co-founders of Pawtastic Friends. Pawtastic Friends is the designated charity for the Compliance Podcast Network. Michael and Melissa are dedicated to helping shelter and rescue dogs in the Las Vegas area become more adaptable through enrichment training, activities such as yoga and aquatics training, obedience, and agility. This podcast is sure to tug on your heartstrings. Listen to how sweet this one dog is! Tune in to hear more from Michael and Melissa Novelli as they discuss their passion for helping pups in need.

Key Highlights

·      Training for Dogs in Need at the Pawtastic Friends Rescue Center [00:05:03]

·      Impact of Dog Training Programs on Rescue Dogs [00:09:17]

·      Sponsorship for Dog Rescues [00:12:46]

·      The Healing Power of Animals [00:16:16]

Quotes

1. “Rescue dogs aren’t broken.”

2. “It takes a village to help the animals, and we need it now more than ever.”

3. “Without this program, these dogs just sit in boarding unless, you know, somebody comes and gets them out to walking.”

4. “It’s life-changing for them and the people that adopt them.”

Resources

Pawtastic Friends https://www.pawtasticfriends.com/

Categories
Daily Compliance News

February 17, 2023 – The High-Risk Rebuild Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • Jamaica PM facing corruption inquiry. (Reuters)
  • The high risk in Ukraine rebuild. (NYT)
  • The art and science of succession planning. (FT)
  • Is ChatGPT ready for the big time? (WSJ)
Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Internal Controls – Code of Conduct as an Internal Control

In 2016, the SEC announced one of the most interesting non-international-focused FCPA enforcement actions. It involved a clear quid pro quo benefit paid out by United Airlines, Inc. to David Samson, the former chairman of the Board of Directors of the Port Authority of New York and New Jersey. This public government entity has authority over, among other things, United’s operations at the company’s huge east coast hub in Newark, New Jersey.

At the time, United’s Code of Conduct prohibited “United employees from directly or indirectly making bribes, kickbacks or other improper payments to government officials, civil servants or anyone else to influence their acts or decisions” and that “[n]o gift may be offered or accepted if it will create a feeling of obligation, compromise judgment or appear to influence the recipient improperly.” Only the United Board of Directors could grant a waiver to the code, and none was sought or obtained by Smisek. The Order concluded, “The [Chairman’s] Route was initiated in violation of United’s policies.”

The company was also sanctioned for not having internal controls to prevent such actions as those taken by Smisek. The SEC also found this was a violation of Section 13. This was in the face of detailing the protocol for the United instituting or reinstituting a route. The Order stated, “United had insufficient internal accounting controls to prevent approval of the South Carolina Route in derogation of United’s Policies.” All the underlying facts, enforcement theories, and remediation point towards the failure of internal controls when domestic bribery corruption occurs.

 Three key takeaways:

1. It is very unusual for the FCPA to form the basis of a domestic bribery violation.

2. A Code of Conduct can be an internal control.

3. Even a CEO must follow internal controls.

For more information on building a best practices compliance program, including internal controls, check out The Compliance Handbook, 3rd edition.

Categories
Hidden Traffic Podcast

EU Corporate Sustainability Reporting Directive Update

In this solo episode of Hidden Traffic Podcast, host Gwen Hassan dives into the new Corporate Sustainability Reporting Directive (CSRD) adopted by the European Council, which replaces the Non-Financial Reporting Directive (NFRD). The CSRD requires companies, both public and private, to report on a wide range of sustainability-related topics, including human rights, anti-corruption, modern slavery and human trafficking prevention, and environmental protection. Gwen will explain the impact of this directive on businesses and provide valuable insights into what companies can do to meet its requirements. 

The CSRD directive aims to increase disclosure requirements for companies and prevent greenwashing. It will also require subsidiary level reporting and auditable information about supply chain, due diligence and human trafficking prevention. The CSRD applies to a larger number of public and private companies and will increase cost. Companies should start preparing as soon as possible to meet the requirements.

 

The CSRD requires companies to report on a wide range of sustainability-related topics – including human rights, anti-corruption, modern slavery and human trafficking prevention, and environmental protection – and provide information about their strategy, targets, governance policies, incentives and risks. The European Commission will adopt standards for reporting under the CSRD by June of next year. The directive will become effective on January 1, 2026, with a 2028 opt-out date for small and micro entities. Large entities and their parents will have to comply immediately.

 

The recent development of the Forced Labor Protection Act in Africa highlights the issue of outsourcing services to low-cost countries and the potential liability companies can face for labor violations and human trafficking in their supply chain. A former content moderator in Kenya filed a lawsuit against both the outsourcing company he worked for and Meta, a social media giant, alleging that he was subjected to viewing graphic and violent material that caused him post-traumatic stress disorder. The court ruled that the case against Meta can move forward, highlighting the need for companies to take responsibility for practices in their supply chain, even if they were not aware of them. This could result in a strict liability standard for many types of companies.

 

Resources

Gwen Hassan on LinkedIn

Categories
Life with GDPR

NIS II

Jonathan Armstrong and Tom Fox return for another episode of the award-winning Life with GDPR. In this episode, we take up NIS II and are pleased to be joined by Jonathan Marks and Matt Kelly for a robust conversation.

Highlights include:

  • What is NIS II and how does it differ from NIS I?
  • NIS II governs by sectors.
  • What are the implications for global companies?
  • Where can you go for more information.

Resources

For more information on the issues raised in this podcast, check out the Cordery Compliance, News Section. For more information on Cordery Compliance, go their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here.

Connect with Tom Fox

Connect with Jonathan Armstrong

Categories
Daily Compliance News

February 16, 2023 – The Defending Fraud Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • Banks want visibility into account ownership data bank. (WSJ)
  • China national soccer head arrested on corruption charges. (FT)
  • Bankruptcy court rejects call for another investigation into FTX collapse. (Reuters)
  • After having accused Twitter of fraud, Musk now defends lawsuits accusing Twitter of fraud. (Bloomberg)
Categories
Wirecard

Season 3, Episode 38 – The Men Behind the Curtain

Welcome to Season 3 of Lies, Spies & Corporate Crimes: The Wirecard Saga. The Wirecard Saga, has become of the world’s leading sources on all things Wirecard. In Lies, Spies & Corporate Crimes: The Wirecard Saga; Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors looks at the biggest financial scandal in post-war Germany from a variety of angles. On this episode, Mikhail delves into the ongoing trial of Wirecard and Ollie Bellenhaus, who stand accused of numerous layers of deceit. She covers the landmark decision made by the Irish highest court as well as details around the many underlying entities that could now become exposed as a result. Mikhail also explores the many shell companies created. Tune in to this captivating episode to explore the world of corporate deceit, fraud, and money laundering on the Lies, Spies, and Corporate Crimes.

Key Highlights:

·      The History of Limited Liability Companies in Britain;

·      Allegations of Fraud in Binary Option Trading;

·      The Impact of Being Victimized by Financial Fraud Involving a Legitimate Business;

·      The Exploitation of Investors;

·      The Impact of Directors on Corporate Business: Examining the Cases of Ryan Coats and Liam Granger;

·      Credit Card Companies and Financial Services Providers;

·      Money Laundering Through Offshore Accounts in Ireland;

·      The Irish Central Bank’s Concern with Grey Mountain’s Unlicensed MSB Operation and Their Response;

·      Tax Evasion or Loss of VAT Revenue in Ireland; and

·      Directors’ Liability in an Irish Company.

Notable Quotes

1. “They label Bellenhaus, a professional liar.”

2. “The defense lawyers accused him of so many layers of deceit. It was almost comical.”

3. “The court’s decision means where a fraud perpetrated can be found to have a nexus through Ireland, there is now a basis to unmask those that ultimately benefited from that fraud no matter where they are.”

4. “Until this case, no Irish court had ever held that the veil of incorporation could be pierced or should be pierced in order that directors be held personally liable for the actual emissions of their company, in a case like the one mister Powell was bringing.”