LETTER: Better oversight would deter theft of funds
Has anyone else noticed how many people have been caught stealing money from the accounts of private and public organizations? Thefts and embezzlements amounting to thousands of dollars have been perpetrated by school cafeteria workers, PTA officers, chiefs of police, municipal secretaries and others.
Many of these crimes have been committed because of addictions to drugs and/or gambling, extortion payments, as well as personal financial distress. What amazes me is how long these thefts appear to go on before anyone suspects wrongdoing and an investigation is ordered. As I see it, much of the fault rests with the general administration of the organization for not having regular, recurring audits performed by trained auditors. In many cases, a professional auditing firm is not needed when the ledger is simple to reconcile. The practice of giving only one person complete responsibility for making deposits, issuing checks and using debit cards should be terminated. At least two signatures should be required for all transactions. Absolutely no single person should ever be the sole manager of the accounts and/or treasury. Financial reports should be given at each meeting of the organization, and the accounts should be open for inspection by the general membership. Any clear deviations from universally accepted accounting practices should require the confiscation of the accounts and records, and an immediate audit should be commenced.
Surely knowing that the financial records are subject to scrutiny at any time would go a long way to discourage theft. Nothing is perfect, but granting financial officers/managers complete trust with very little oversight is inviting people in distress to take whatever they want, whenever they want it, with little fear of discovery! Any organization, both public or private, that does not closely monitor its financial business is inviting criminal activity.
Ronald J. Yamka
Canonsburg