Coronavirus

INJECTING THE VIRGINIA ECONOMY GO Virginia funds redirected

To address the economic impact of coronavirus on the Commonwealth, Gov. Ralph Northam restructured funding from the Growth and Opportunity for Virginia (GO Virginia) initiative to the new Economic Resilience and Recovery Program.

The GO Virginia Board approved a policy to implement the Economic Resilience and Recovery Program with up to $14.66 million in GO Virginia funds. Each GO Virginia regional council may apply for up to $1 million to support strategic initiatives in response to the economic conditions caused by the pandemic.

As of press time, four projects had already been approved through the program, including a rapid COVID-19 testing project in the New River Valley and Roanoke health districts and a drone test delivery project. Find more on GO Virginia at dhcd.virginia.gov/gova.

Employee safety is No. 1 member concern

Ensuring the health and safety of all employees is the No. 1 concern of VSCPA members, according to a May survey of the effects of COVID-19 on the CPA profession. Here are the top five issues keeping you up night:

1.

Employee health and safety

2.

Maintaining work/life balance

3.

Losing clients/revenue due to business closures

4.

Handling stress related to personal situation and/ or family needs

5.

Re-evaluating budget and business plans to ensure long-term stability

The survey also revealed that 42 percent of CPA respondents have reduced staff at their physical offices, with most employees telecommuting. So, not surprisingly, members would like guidance for managing a remote workforce on a long-term basis. Other needs include receiving COVID-related accounting and financial reporting updates and guidance on how to advise clients. The VSCPA Coronavirus Resource Center at vscpa.com/coronavirus is continually updated with info and resources in these areas, as well as CPE opportunities.

CALCULATE LOAN FORGIVENESS

A new tool from the American Institute of CPAs (AICPA) helps CPAs and small businesses calculate Paycheck Protection Program (PPP) loan forgiveness. The AICPA is updating the calculator as new information and guidance becomes available from the U.S. Small Business Administration and U.S. Treasury Department. You can find the calculator (an Excel download) and other resources in the PPP section of the VSCPA Coronavirus Resource Center at vscpa.com/coronavirus.

Fraud during COVID: significant

Fraud experts, the U.S. Internal Revenue Service (IRS) and the Government Accountability Office (GAO) are sounding the alarm about fraud in a post-pandemic world.

The first in a series of benchmarking reports from the Association of Certified Fraud Examiners (ACFE) reveals that CFEs are seeing an increase in a variety of fraud types in the wake of the pandemic. As of May, 68 percent of survey respondents had experienced or observed in increase in fraud levels, and one quarter believe the increase to be significant. Almost all (93 percent) foresee more increases through May 2021.

Unsurprisingly, cyberfraud tops the list, with respondents citing business email compromise, hacking, ransomware and malware. The next most popular frauds are those by vendors and sellers (price gouging, product misrepresentation, overbilling, etc.), payment fraud and health care fraud.

The IRS also reminded taxpayers to guard against tax fraud and other related financial schemes related to COVID-19. Since the pandemic began, the IRS Criminal Investigation Division saw a variety of Economic Impact Payment scams, such as stealing the payments or using them as cover to steal personal information. Other schemes include selling fake COVID test kits or treatments, medical supplies and more. Taxpayers could also be duped by fake charities soliciting donations for individuals and groups suffering from the disease.

And a new 400- page GAO report reveals a high fraud risk related to the rapid rollout of the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The GAO cites limited lender review as part of the problem. It recommends the U.S. Small Busienss Administration develop and implement plans to identify and mitigate risks.

Find more fraud stats from the ACFE in “Fraud in the Wake of COVID-19: Benchmarking Report” at acfe.com/covidreport. And any COVID-19 scams can be submitted online to the National Center for Disaster Fraud at justice.gov/disaster-fraud/ ncdf-disaster-complaint-form.

TAKE ACTION AGAINST CYBERTHREATS

The pandemic has made data security an even more urgent concern for the profession. Working remotely to such an extreme has opened new potential access points and vulnerabilities hackers can exploit. CPA firms are already prime targets for identity thieves, and these new vulnerabilities can exacerbate the profession's cyber-related challenges. Clever hackers have many ways of exploiting accountants facing tax filing deadlines, especially when firms have outdated software, vulnerable email systems or inattentive employees. As the sophistication of hackers and other cyber criminals increases, so do the types of threats and the number and scope of data breaches. There are ways you can take action NOW. Check out this list from VSCPA preferred provider CAMICO on things you can do, from maintaining work-from-home “cyber hygiene” to powering down. Find the alert at camico.com/blog/fraudulent-tax-return-filings-other-cyber-threats.