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This Week in the iNews:

▲ TAX CUTS IN STIMULUS BILL MAY REACH $300 BILLION

▲ FOCUS ON FRAUD: BUSINESS COMPUTERS ARE ALWAYS AT RISK

▲ NEW LUNCH & LEARN DATES FOR 2009 – MARK YOUR CALENDARS!

▲ Tax Cuts in Stimulus Bill May Reach $300 Billion

From the Desk of John Mack, CPA

Tax cuts in President Barack Obama’s American Recovery and Reinvestment Plan could top $300 billion. Individuals would likely benefit from a payroll tax cut and businesses from increased expensing election and bonus depreciation as well extended net operating loss carry backs. Lawmakers are still working on the details of the tax cuts, and other stimulus measures, such as increased infrastructure spending, enhanced unemployment benefits and job creation programs.

President Obama’s job creation endeavors are likely to focus heavily on “green collar” jobs. The stimulus package is expected to extend and expand existing tax breaks for developing and producing alternative energy, such as biomass and wind energy, as well as tax breaks for investing in energy-efficient property.

Please join us on February 17, 2009 at noon for our “Lunch and Learn” series featuring the Stimulus Tax Bill. Please call Michelle at (616)774-9004 or email her at mripley@pmcpa.com for reservations.

▲FOCUS ON FRAUD: BUSINESS COMPUTERS ARE ALWAYS AT RISK … ESPECIALLY FROM EMPLOYEES – IMPORTANT FOLLOW UPS FROM LAST TIME

Take Control (continued from last time)

Perhaps the most important strategy to protect against internal computer fraud is to know who has access to what data and how that access is controlled. If a business has its own server, keep it in a locked, well ventilated room, and log everyone who enters and exits.

Require employees to have passwords for their computers and for particularly sensitive stored data and files. To be effective against

intruders, passwords need to be complicated, including numbers and upper- and lower-case letters, and should be changed frequently. And it even would go without saying that employees should not write down passwords and leave them in readily accessible locations, such as taped to their monitors.

Lock the back door

Remember that disgruntled or recently fired employees could continue to use their passwords to gain remote access to the company’s network. Once in, they can do much damage to data by adding, deleting or altering files.

When an employee is let go, their passwords and all other system authorizations must be disabled immediately, and then everyone in their department must be made to change their passwords. Employees may sense their imminent firing and so the system administrator might review files and programs to which the departing employee had access; it has occurred that when an employee feels they will be let go may install programs that will delete files after they have left.

Recognize a real threat

Obviously, businesses need to protect their computer systems from external threats, but it is also very important to realize that the greatest threat may come from within. Even the most trusted long-term employee may be a bigger risk than a hacker. He or she may be the fox that knows not only where the hens roost, but also where they lay their eggs.

If you have questions about computer fraud, or other fraud matters, please call our office. We will be happy to respond.

▲NEW LUNCH & LEARN DATES FOR 2009 – MARK YOUR CALENDARS!

Please join us for the 2009 installments of our monthly Lunch & Learn Series Programs. Each program will begin at noon and end around

1:00 p.m. Lunch and parking will be provided.

· Tuesday, February 17, 2009 – Tax Planning Under President Obama

· Thursday, March 19, 2009 – Financial Planning in Today’s Environment from a CPA’s Perspective

· Tuesday, May 19, 2009 – Business Valuations

· Thursday, June 18, 2009 - Managing the Business Risk of Fraud: A Practical Approach

Please contact Michelle Ripley at mripley@pmcpa.com or at 616.774.9004 for your reservation for any of the programs.

Seating is limited. Don’t miss out!