Forensic Accounting and Audit (±x)
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This is the latest version of the RFP and has further information on entities and specific procedures. I have had a number of conversations with Accounting Firms and following those calls additional information is updating here which will accelerate the process.
I am taking this project forward rather than Tania because I understand the legal aspects of the losses and of course the original structures and the reasons that they were set up in the first place.
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PROJECT NAME – RHODIUM REGULARISATION
BUDGET – GBP 200,000
START DATE – AS SOON AS POSSIBLE
BILLING MODEL – AGREED HOURLY RATE x HOURS WORKED
Rhodium Group PLC (“GBRHOGRP”) and its associated and non-associated entities require various types of Accounting and/or Forensic Services (“the Services”) to be provided by properly licensed chartered accountants (“the Accountant”).
GBRHOGRP is assisting in the resolution of accounting, financial and legal issues for Rhodium Group and its associated entities (“RHO”). To minimise confusion, the latter will now be known as ‘Rhodium’ as opposed to ‘Rhodium Group’. The full accounting positions of RHO need to be ascertained together with the loan accounts position of Joseph S R de Saram (“JDS”) who is the Principal Financier of RHO.
Upon the determination of RHO and/or JDS asset/liability positions, Immortal Holdings PLC (“GBIMMHLD”) intends to clear the [undisputed] third party liabilities via assignments and/or purchases with a view to acquiring the remaining assets at net realisable values.
GBRHOGRP intends anticipates the project will take a maximum of 4 months. Phases within the project will commence at the appropriate times subject to the completion of prior deliverables as required.
The jurisdictions in which entities are/were located are primarily:-
AU Australia / BS Bahamas / GB United Kingdom / HK Hong Kong SAR / LK Sri Lanka / SG Singapore / US United States
SCOPE OF WORK
The Scope of Work falls into ten distinct categories, which comprise the Services:-
(a) Capturing of Accounting Transactions – ‘Finding’
(b) Collating of Accounting Information – ‘Sorting’
(c) QuickBooks Data Entry – ‘Entering’
(d) Producing Detailed Reports – ‘Reporting’
(e) Forensic Analysis and Discovery – ‘Analysing’
(f) Determining Losses and/or Damages Claims – ‘Quantifying’
(g) Advising GBRHOGRP generally – ‘Advising’
(h) Taxation Consulting generally for GBRHOGRP and RHO – ‘Taxing’
(i) Providing Litigation Support to Lawyers – ‘Liaising’
(j) Providing Expert Testimony in Court – ‘Testifying’
It may be possible for separate organisations to handle different areas independently as long as there is proper co-ordination, quality assurance and of course no conflicts. By way of example (a) and (b) would fall into this category. One multinational Tier 1/2 Accountant which handles the entire process would be ideal but not a prerequisite.
CONFLICT SEARCH – UK ENTITIES
GBRHOGRP is handling accounting queries for the following entities. The eight character alphanumeric code is how the entity is represented on its systems, with the first two characters representing the ISO 3166 country code as appropriate.
Some of the entities and those below may have become inadvertently deregistered and many have incorrect registered office addresses, shareholder and officer information which are, for example, reflecting on CH, ASIC, CR and ACRA due to the failings of the existing/previous directors.
The following entities are registered in England and Wales:-
Commercial Trading Entities
GBRHOGRP Rhodium Group PLC (09707899)
GBFLXPAY FlexiPay Ltd (10298189)
GBMSYSTM Mail System Ltd (10706855)
GBSECHST Secret Host Ltd (09707426)
GBRHOSYS Rhodium Systems Limited (10298655)
GBRHOHUM Rhodium Human Capital Ltd (09710785)
Corporate Entity Asset Holding
GBIMMHLD Immortal Holdings PLC (10735678)
Nominee Service Providers
GBNCODIR Nominee Company Director Ltd (10571618)
GBNCOSEC Nominee Company Secretary Ltd (10571620)
GBNCOSHR Nominee Company Shareholder Ltd (10575426)
Special Purpose Vehicles
GBJOSDES Joseph S R de Saram (10301561)
CONFLICT SEARCH – OVERSEAS COMMERCIAL ENTITIES
Commercial Trading Entities
AURHOAUS Rhodium Australia Pty Ltd (ACN 123291510)
BSRHOBHS Rhodium Bahamas Ltd (under restoration to the register)
HKRHOHKG Rhodium Hong Kong Ltd (under restoration to the register)
SGRHOSGP Rhodium Singapore Pte. Ltd (20102230R)
AUSYNCON Synergize Consulting Pty Ltd (under restoration to the register)
LKRHOHCP Rhodium Human Capital (Pvt) Ltd
LKRHOISL Rhodium Infrastructure Solutions (Pvt) Ltd
Asset Holding Entities
AUACN123 A.C.N. 123 116 245 Pty Ltd (ACN 123116245)
AUACN133 A.C.N. 133 893 893 Pty Ltd (ACN 113893893)
AUACN136 A.C.N. 136 492 898 Pty Ltd (ACN 136492898)
AUELIXIR Elixir Vitae Pty Ltd (ACN 146683847)
BSRHODSA Rhodium SA (under restoration to the register)
AUACN139 A.C.N. 139 312 833 Pty Ltd (under restoration to the register)
AUACN167 A.C.N. 167 386 218 Pty Ltd (under restoration to the register)
AUPARADX Paradox Payment Processing Pty Ltd (under restoration to the register)
AUXYZABC XYZ ABC DEF Pty Ltd (ACN 606922810)
SGFLXPAY FlexiPay Systems Pte. Ltd.
Special Purpose Vehicles
CONFLICT SEARCHES – ADVERSARIES
Ahead of Private Criminal Prosecutions and/or Civil Litigation, there are a number of parties which will be sued, and whom damages claims would need to be quantified. A list will be provided after the completion of the statutory compliance work.
(A) FINDING – Capturing of Accounting Transactions
Review of existing paperwork for each Entity / Rename files correctly using GBRHOGRP naming conventions / Produce a list of Suppliers/Clients/Banks etc in MS Excel / Produce detailed contact information for each Supplier/Client/Bank in MS Excel / Fax, E-mail and/or write to each Supplier/Client/Bank informing of updated contact information for the Entity and to advise that Accounts Admin personnel may be making contact in due course in relation to copy invoices, full statements, and queries / Establish any regular invoices from/to Client/Supplier/Bank, for example monthly, quarterly / E-mail the Supplier/Client/Bank requesting the missing paperwork to be produced, together with a full statement showing invoices issued and payments made / Store the information obtained from third parties.
Accounts Payable / Receivable Info Reqd
Please refer to the following and associated articles:- Information Required We require the following information as colour pdfs, without which we...
(B) SORTING – Collating of Accounting Information
Create Client/Supplier/Bank folders containing accounting documentation and/or correspondence / Produce spreadsheets relating to each transaction on MS Excel
(C) ENTERING – QuickBooks Data Entry
Analyse the Chart of Accounts for all the Entities and ensure that they are set up correctly in QuickBooks / Create any additional QB data files, using two for each year (01 January to 30 June is H1, 01 July to 31 December is H2) / Design the Accounts Transactions Template (‘ATT’) / Review each invoice/statement and enter the information contained therein into the ATT / Assign the Accounts Code to the transaction from the drop down (on the spreadsheet) and verify whether it is correct / Ensure Asset Classes integrity is correct and maintained across all entities and reflected in QB data file / Enter data into QB once the transaction in ATT is verified.
(D) REPORTING – Producing Detailed Reports
Produce Standard and define Customised Reports
(E) ANALYSING – Forensic Analysis and Discovery
Analyse particular debtors/creditors dealings / Analyse Fixed Asset Registers of physical items (laptops, servers etc) / Analyse Fixed Asset Registers of logical and/or intangible items (intellectual property, domains etc) / Analyse debit/credit interest calculations on soft/hard loans / Analyse Director Loan Accounts / Analyse Capitalisation of Research & Development costs / Produce data required for Business Planning
(F) QUANTIFYING – Determining Losses and/or Damages Claims
Calculate amounts which need to be rebilled to third parties / Issue invoices to third parties / Quantify Losses regardless of litigation / Quantify Damages Claims regardless of litigation
(G) ADVISING – Advising GBRHOGRP generally
Provide advice generally to GBRHOGRP on the findings of the foregoing and associated areas
(H) TAXING – Taxation Consulting on structures/restructuring
Provide multi-jurisdictional taxation advice / Liaise with tax authorities in relation to the regularisation taking place / Lodge tax returns / Advise on taxable losses and their treatment
(I) LIAISING – Providing Litigation Support to Lawyers
Work with lawyers and liaise in terms of causes of action / Provide quantification of losses and damages claims
(J) TESTIFYING – Providing Expert Testimony in Court
Provide Expert Testimony as via Forensic Reports and/or Cross-Examination in judicial proceedings.
Seven laptops will be provided by GBRHOGRP, named PI/XI and KAPPA/LAMBDA/MU/NU/OMICRON containing QuickBooks Desktop Enterprise and/or Microsoft Office 2016. Logical connectivity will be provided to GBRHOGRP systems though physical Internet access provided by the Accountant.
GBRHOGRP will provide the following e-mail addresses to enable communication to be effected with third parties:-
Accounts Payable | RHOGRP firstname.lastname@example.org
Accounts Receivable | RHOGRP email@example.com
Accounts Admin | RHOGRP firstname.lastname@example.org
Accounts Admin | RHOGRP email@example.com
Accounts Admin | RHOGRP firstname.lastname@example.org
Accounts Admin | RHOGRP email@example.com
Accounts Admin | RHOGRP firstname.lastname@example.org
GBRHOGRP envisages seven personnel working full time and reviews can be undertaken as to the number of workers. The work product itself will be reviewed on a weekly basis and that may determine the number of personnel at any given time. A minimum of 250 hours per week is required.
Personnel will focus on the backlog and current items concurrently until the backlog is cleared. There are significant amounts of work and GBRHOGRP is turning to full outsourcing to ensure independence because of the various thefts and/or frauds perpetrated against RHO and/or JDS by parties in Australia, Singapore and Sri Lanka.
WORK AND PROCEDURE
Items on hand are being uploaded to GBRHOGRP’s “B1” system. Original documentation is kept for compliance/legal purposes and all work is performed from colour scans in Adobe Portable Document Format (pdf). Each entity needs accounts processed from the incorporation of the company to ensure that any subsequent audit is not challenged on the basis of incorrect starting positions. Unfortunately much of the documentation was stolen during the December 2015 Fraud perpetrated against JDS/RHO.
GBRHOGRP can expand upon the document procedure but essentially the documentation will synchronise to the various laptops provided and they can be entered directly. Parties will be able to collaborate in realtime in relation to the documentation and any queries.
Five of the laptops will be for Accounts Pre-processing (obtaining missing invoices, preparing spreadsheets for debtors/creditors/banks). The remaining two laptops will be used for Data Entry onto QuickBooks across all the entities.
Each Entity will have a separate QB datafile, with H1 for the first half of the year and H2 for the second half of the year. Documents are stamped or coded with the appropriate entity and any asset classification is also stamped onto the invoice, so fewer queries arise.
Queries can be e-mailed to GBRHOGRP who will respond in writing so that there is an extensive audit trail.
ULTIMATE USER OF ACCOUNTING INFORMATION
Primarily, the Entities themselves. None of the entities are publicly listed so once the bookkeeping is completed by Accountant, the various entities will use the documentation for the purpose of management accounts, as a precursor to statutory audits and non-statutory audits, and for the purpose of statutory reporting requirements.
None of the entities have any commercial bank borrowing, or commercial credit facilities from third parties. The financing has been provided by JDS and close associates.
Management accounts will be used by entities to reconcile with third party creditor and debtor positions, provide cashflow analysis and provide management accounts on a quarterly basis. In terms of historic accounts/backlog, simply H1 and H2 is fine rather than Q1/Q2/Q3/Q4. The accounts will enable entities to plan both current and future projects and investment strategies.
THE NEXT STEP
In any event please add me to your LinkedIn connections should you or your colleagues be able to assist in any way, and thank you for your kind assistance in these matters. Whilst I do not read incoming messages, I do send outbound communications to those on my connection list of around 11,000 .
Joseph S R de Saram (JSRDS)