Internal Control Case Study: Employee Uses City Card for $91,000 in Personal Purchases

When I speak to federal grant recipients about the new risk and integrity assessment, I often say that risk is NOT an “only” child. In other words, when bad things happen to good grant recipients it often is a failure on many levels that allow waste, fraud and abuse to occur and grow. A recent example in the news about a municipal employee who is accused of using her city credit card to make over $91,000 in personal purchases over a seventeen month period is a great case in point. Grand Theft and Scheming to Defraud Police discovered a large amount of consumer electronics purchased with city credit cards at the home of the accused thief. While this case winds its way through the legal system, let’s look at some of the internal control failures that allowed this type of abuse of both taxpayer money and broken trust to … [Read More...]