“Dedicated to Enhancing the Legal Profession
Description: Dedicated to Enhancing the Legal Profession through Advanced Financial Education 1 The AACFL An educational organization providing training on the financial aspects of divorce practice to attorneys and judges nationwide. The CFL
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slide1. “Dedicated to Enhancing the Legal Profession through Advanced Financial Education” 1<br>
slide2. The AACFL
An educational organization providing training on the financial aspects of divorce practice to attorneys and judges nationwide.
The CFL certification for divorce attorneys – Now in over 12 states!<br>
slide3. Thursday, June 25, 2020
3:00PM – 4:00PM
Eastern Standard Time AACFL Webinar: Capturing Cash Perks and Add Backs For Support Purposes Alex Krasnomowitz: CPA, CVA, MBA – Smolin Lupin- Partner
Daniel Roche : CPA, ABV, ASA - Marcum LLP- Partner, National Business Valuation Service Line Leader
Allen J. Scazafabo, Jr.: Riker Danzig Scherer Hyland & Perretti LLP - Partner<br>
slide4. Speaker Introductions Alex Krasnomowitz: CPA, CVA, MBA
Smolin Lupin
Partner Daniel Roche : CPA, ABV, ASA
Marcum LLP
Partner, National Business Valuation Service Line Leader Allen J. Scazafabo, Jr. Riker Danzig Scherer Hyland & Perretti LLP
Partner<br>
slide5. Holistic Approach Business Financial Operations
&
Marital Spending<br>
slide6. Business Financial Operations<br>
slide7. Red Flags Large amounts of cash payments for goods/services
Low/high amounts of cash on hand
“Friendly” relationships with customers/vendors
Poor internal controls
High Employee Turnover<br>
slide8. Important Considerations Strong Management Interview
Non-titled Spouse Interview for Intel and “Map”
Cost Control - Can be Very Expensive
Strong Forensic Team<br>
slide9. Business Financial Operations Revenue
Cost of Sales
Expenses
Assets
Liabilities<br>
slide10. Revenue Understanding and Auditing the Revenue Cycle
Estimates
Contracts/Agreements Invoices
Reported Revenue
Accounts Receivable
Deposits<br>
slide11. Cost of Sales Ratio Analysis - Gross Profit Margin
Purchase Orders
Check Signing Authority
Overly Friendly Relationships with Vendors<br>
slide12. Expenses Perks buried in general ledger accounts
Key word search: last names, Etc.
Vendors with same address or similar names
Family member employees
Who signed the back of that check?
The Main Characters: T&E, Auto, Cell<br>
slide13. Assets & Liabilities High/Low Cash Balances
Accounts Receivable/Bad Debts
Non-Operating Assets
Deferred Compensation<br>
slide14. Marital Spending<br>
slide15. Marital Assets How were they purchased?
Does this make sense with officer compensation/distributions?
Remember people like to spend money!
The best one: Compare CIS spending to business tax returns
Remember most folks do not plan for divorce until it’s happening<br>
slide16. Marital Bank Accounts Where did the money come from?
Again, does the money make sense given officer compensation/distributions?
What assets were purchased in each year?
Can you track larger ticket items to bank accounts or did they just appear?<br>
slide17. CIS How far apart is the martial spending on the CIS’s?
Can you reconcile marital income to marital spending?
Is savings being used to fund lifestyle?
Are there 3rd party debts in the CIS funding asset purchases?<br>
slide18. Putting It Together<br>
slide19. Reconciliation Trace funds flow from:
Sales Records to
Busiest Bank Accounts to
Marital/Personal Bank accounts to
Asset Purchases<br>
slide20. Panel Q&A<br>
slide21. Contact Us<br>
slide22. Contact Information Alex Krasnomowitz: CPA, CVA, MBA
Smolin Lupin
Partner Daniel Roche : CPA, ABV, ASA
Marcum LLP
Partner, National Business Valuation Service Line Leader Allen J. Scazafabo, Jr. Riker Danzig Scherer Hyland & Perretti LLP
Partner<br>
slide23. akrasnomowitz@smolin.com n Phone 862.881.4757 Alex Krasnomowitz: CPA, CVA, MBA- Partner
Smolin Lupin Alex Krasnomowitz is a Member of the Firm and a licensed Certified Public Accountant in New Jersey with over 20 years of experience. Alex is a Certified Valuation Analyst and member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. In his role on Smolin’s Forensic & Valuation team, Alex leverages his extensive track record and experience servicing clients in both the private and public sectors to assist attorneys and clients through their disputes. Having worked as an auditor, a controller, and a litigation consultant, Alex is able to bridge the gap between the services provided by the firm and the various business challenges his clients are facing. He specializes in supporting both clients and a tremendous network of legal partners seeking support for business valuations, matrimonial litigation, corporate investigations, forensic accounting, public trust maters, and shareholder disputes.
Professional & Civic Affiliations
American Institute of Certified Public Accountants (AICPA)
New Jersey Society of Certified Public Accountants
Advisory board member of the New Jersey Chapter of the American Academy for Certified Financial Litigators. SUBJECT MATTER EXPERTISE
Business Valuation
Forensic Accounting
Matrimonial Litigation
Shareholder Disputes
Corporate Investigations
Public Trust Matters
EDUCATION
MBA and BBA
St. Bonaventure University<br>
slide24. Daniel Roche : CPA, ABV, ASA, Partner
Marcum LLP Daniel Roche is a partner and the National Business Valuation Service Line Leader for Marcum, LLP and works out of Marcum's Roseland, New Jersey Office. He appraises business interests and provides litigation support for a wide variety clientele. Mr. Roche’s experience includes appraising companies and providing litigation support for family law matters and commercial litigation matters as well as non-litigation (estate and gift tax/financial reporting) purposes.
Mr. Roche joined Marcum in 2005 is a frequent presenter on business valuation topics, both within Marcum and externally at continuing legal education seminars.
Mr. Roche holds the Accredited Senior Appraiser (“ASA”) designation from the American Society of Appraisers. He is also a Certified Public Accountant licensed in New Jersey and holds the Accredited in Business Valuation (“ABV”) credential from the American Institute of Certified Public Accountants.
Mr. Roche graduated Monmouth University with a Bachelor of Science degree in Business Administration (economics concentration) in 1999, and received his MBA from Rutgers University (finance concentration) in 2009. His education in economics and finance helps
Professional and Civic Affiliations
American Society of Appraisers (ASA), Northern New Jersey Chapter, Vice President
American Institute of Certified Public Accountants (AICPA)
New Jersey Society of Certified Public Accountants (NJSCPA) SUBJECT MATTER EXPERTISE
Business Valuation
Family Law Litigation Support Intangible Asset Valuation Litigation Support Services Forensic Investigations
EDUCATION
Master of Business Administration, Finance
Rutgers University
Bachelor of Science, Business Administration (Economics Concentration) Monmouth University daniel.roche@marcumllp.com | 973.646.3815<br>
slide25. Allen J. Scazafabo, Jr. is a partner in the Firm’s Family Law Group. Allen’s clients appreciate that he recognizes that each client’s needs and goals require individualized care and attention. A client commented to the publication New Jersey Family that Allen has “a gift for empathizing with his clients while dissecting relevant facts to approach a case. He is adept at understanding family law and gives realistic solutions to problems.” The client added, “Allen treats his clients like family which is the crux of what most clients need when dealing with difficult family dynamics.” Allen has seventeen years of family law and litigation experience including complex civil matters requiring multiple experts and examination of expert witnesses. He has handled numerous complex matters involving disputes over the distribution and valuation of assets and custody disputes. Allen J. Scazafabo, Jr., Partner
Riker Danzig Scherer Hyland & Perretti LLP<br>
slide26. Thank you!<br>
slide27. Find a list of our members:
aacfl.org/chapter-ny – New York Chapter
aacfl.org/chapter-ma – Boston Chapter
aacfl.org/chapter-nj – New Jersey Chapter
aacfl.org/chapter-il – Chicago Chapter
aacfl.org/chapter-pb – Palm Beach Chapter
The AACFL – https://aacfl.org/
The CFL Training Course - https://aacfl.org/cfl-training-courses
The Institute for Financial Dispute Resolution - https://www.institute-fd.org/
Phone: 800-809-1999 Email: info@aacfl.org<br>
slide2. The AACFL
An educational organization providing training on the financial aspects of divorce practice to attorneys and judges nationwide.
The CFL certification for divorce attorneys – Now in over 12 states!<br>
slide3. Thursday, June 25, 2020
3:00PM – 4:00PM
Eastern Standard Time AACFL Webinar: Capturing Cash Perks and Add Backs For Support Purposes Alex Krasnomowitz: CPA, CVA, MBA – Smolin Lupin- Partner
Daniel Roche : CPA, ABV, ASA - Marcum LLP- Partner, National Business Valuation Service Line Leader
Allen J. Scazafabo, Jr.: Riker Danzig Scherer Hyland & Perretti LLP - Partner<br>
slide4. Speaker Introductions Alex Krasnomowitz: CPA, CVA, MBA
Smolin Lupin
Partner Daniel Roche : CPA, ABV, ASA
Marcum LLP
Partner, National Business Valuation Service Line Leader Allen J. Scazafabo, Jr. Riker Danzig Scherer Hyland & Perretti LLP
Partner<br>
slide5. Holistic Approach Business Financial Operations
&
Marital Spending<br>
slide6. Business Financial Operations<br>
slide7. Red Flags Large amounts of cash payments for goods/services
Low/high amounts of cash on hand
“Friendly” relationships with customers/vendors
Poor internal controls
High Employee Turnover<br>
slide8. Important Considerations Strong Management Interview
Non-titled Spouse Interview for Intel and “Map”
Cost Control - Can be Very Expensive
Strong Forensic Team<br>
slide9. Business Financial Operations Revenue
Cost of Sales
Expenses
Assets
Liabilities<br>
slide10. Revenue Understanding and Auditing the Revenue Cycle
Estimates
Contracts/Agreements Invoices
Reported Revenue
Accounts Receivable
Deposits<br>
slide11. Cost of Sales Ratio Analysis - Gross Profit Margin
Purchase Orders
Check Signing Authority
Overly Friendly Relationships with Vendors<br>
slide12. Expenses Perks buried in general ledger accounts
Key word search: last names, Etc.
Vendors with same address or similar names
Family member employees
Who signed the back of that check?
The Main Characters: T&E, Auto, Cell<br>
slide13. Assets & Liabilities High/Low Cash Balances
Accounts Receivable/Bad Debts
Non-Operating Assets
Deferred Compensation<br>
slide14. Marital Spending<br>
slide15. Marital Assets How were they purchased?
Does this make sense with officer compensation/distributions?
Remember people like to spend money!
The best one: Compare CIS spending to business tax returns
Remember most folks do not plan for divorce until it’s happening<br>
slide16. Marital Bank Accounts Where did the money come from?
Again, does the money make sense given officer compensation/distributions?
What assets were purchased in each year?
Can you track larger ticket items to bank accounts or did they just appear?<br>
slide17. CIS How far apart is the martial spending on the CIS’s?
Can you reconcile marital income to marital spending?
Is savings being used to fund lifestyle?
Are there 3rd party debts in the CIS funding asset purchases?<br>
slide18. Putting It Together<br>
slide19. Reconciliation Trace funds flow from:
Sales Records to
Busiest Bank Accounts to
Marital/Personal Bank accounts to
Asset Purchases<br>
slide20. Panel Q&A<br>
slide21. Contact Us<br>
slide22. Contact Information Alex Krasnomowitz: CPA, CVA, MBA
Smolin Lupin
Partner Daniel Roche : CPA, ABV, ASA
Marcum LLP
Partner, National Business Valuation Service Line Leader Allen J. Scazafabo, Jr. Riker Danzig Scherer Hyland & Perretti LLP
Partner<br>
slide23. akrasnomowitz@smolin.com n Phone 862.881.4757 Alex Krasnomowitz: CPA, CVA, MBA- Partner
Smolin Lupin Alex Krasnomowitz is a Member of the Firm and a licensed Certified Public Accountant in New Jersey with over 20 years of experience. Alex is a Certified Valuation Analyst and member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. In his role on Smolin’s Forensic & Valuation team, Alex leverages his extensive track record and experience servicing clients in both the private and public sectors to assist attorneys and clients through their disputes. Having worked as an auditor, a controller, and a litigation consultant, Alex is able to bridge the gap between the services provided by the firm and the various business challenges his clients are facing. He specializes in supporting both clients and a tremendous network of legal partners seeking support for business valuations, matrimonial litigation, corporate investigations, forensic accounting, public trust maters, and shareholder disputes.
Professional & Civic Affiliations
American Institute of Certified Public Accountants (AICPA)
New Jersey Society of Certified Public Accountants
Advisory board member of the New Jersey Chapter of the American Academy for Certified Financial Litigators. SUBJECT MATTER EXPERTISE
Business Valuation
Forensic Accounting
Matrimonial Litigation
Shareholder Disputes
Corporate Investigations
Public Trust Matters
EDUCATION
MBA and BBA
St. Bonaventure University<br>
slide24. Daniel Roche : CPA, ABV, ASA, Partner
Marcum LLP Daniel Roche is a partner and the National Business Valuation Service Line Leader for Marcum, LLP and works out of Marcum's Roseland, New Jersey Office. He appraises business interests and provides litigation support for a wide variety clientele. Mr. Roche’s experience includes appraising companies and providing litigation support for family law matters and commercial litigation matters as well as non-litigation (estate and gift tax/financial reporting) purposes.
Mr. Roche joined Marcum in 2005 is a frequent presenter on business valuation topics, both within Marcum and externally at continuing legal education seminars.
Mr. Roche holds the Accredited Senior Appraiser (“ASA”) designation from the American Society of Appraisers. He is also a Certified Public Accountant licensed in New Jersey and holds the Accredited in Business Valuation (“ABV”) credential from the American Institute of Certified Public Accountants.
Mr. Roche graduated Monmouth University with a Bachelor of Science degree in Business Administration (economics concentration) in 1999, and received his MBA from Rutgers University (finance concentration) in 2009. His education in economics and finance helps
Professional and Civic Affiliations
American Society of Appraisers (ASA), Northern New Jersey Chapter, Vice President
American Institute of Certified Public Accountants (AICPA)
New Jersey Society of Certified Public Accountants (NJSCPA) SUBJECT MATTER EXPERTISE
Business Valuation
Family Law Litigation Support Intangible Asset Valuation Litigation Support Services Forensic Investigations
EDUCATION
Master of Business Administration, Finance
Rutgers University
Bachelor of Science, Business Administration (Economics Concentration) Monmouth University daniel.roche@marcumllp.com | 973.646.3815<br>
slide25. Allen J. Scazafabo, Jr. is a partner in the Firm’s Family Law Group. Allen’s clients appreciate that he recognizes that each client’s needs and goals require individualized care and attention. A client commented to the publication New Jersey Family that Allen has “a gift for empathizing with his clients while dissecting relevant facts to approach a case. He is adept at understanding family law and gives realistic solutions to problems.” The client added, “Allen treats his clients like family which is the crux of what most clients need when dealing with difficult family dynamics.” Allen has seventeen years of family law and litigation experience including complex civil matters requiring multiple experts and examination of expert witnesses. He has handled numerous complex matters involving disputes over the distribution and valuation of assets and custody disputes. Allen J. Scazafabo, Jr., Partner
Riker Danzig Scherer Hyland & Perretti LLP<br>
slide26. Thank you!<br>
slide27. Find a list of our members:
aacfl.org/chapter-ny – New York Chapter
aacfl.org/chapter-ma – Boston Chapter
aacfl.org/chapter-nj – New Jersey Chapter
aacfl.org/chapter-il – Chicago Chapter
aacfl.org/chapter-pb – Palm Beach Chapter
The AACFL – https://aacfl.org/
The CFL Training Course - https://aacfl.org/cfl-training-courses
The Institute for Financial Dispute Resolution - https://www.institute-fd.org/
Phone: 800-809-1999 Email: info@aacfl.org<br>