any eye out for warning
signs that may indicate the
presence of fraudulent
activity. A partial list of
things to be aware of include
the following:
statistical data on fraud and
embezzlement in schools
does not exist at this time,
however it is estimated that
only half of the ongoing
fraud cases within our
schools is actually being
discovered. Therefore, the
possibility of fraud occurring
and going unnoticed is a real
concern.
will have only a few
employees that have a
background and
understanding of financial
systems and processes. This
can result in a lack of proper
internal controls and
segregation of duties when it
comes to cash handling and
financial reporting
procedures.
and implement strong
internal controls is the
hardest part for busy school
administrators. The good
news is that there is help
available. Start the process
by contacting your district
office and asking about
fraud prevention strategies
that may be in existence at
the district level. Many
have a system of fraud
strategies that are currently
being utilized that can be
modified for use at your
school.
mind that the vast majority
of people working in schools
are honest and trustworthy,
but there can always be a
that specifically covers these
types of matters.
implement and monitor
include the following:
sure the monthly bank
statement is opened and
reviewed by someone other
than the person that
performs the reconciliation.
Also, monitor and ensure
that the reconciliation is
performed timely and
accurately.
Make sure that money is
counted twice (by separate
individuals) before being
deposited. If possible,
separate the cash collection
and disbursement process
between two individuals.
your bank and make sure
two signatures are required
before a check is processed
at the bank.
monitoring can mitigate
some large headaches down
the road if you take the time
to implement effective
controls.
fraud occurring
and going
unnoticed is a
real concern"
The implementation of a
comprehensive internal
control structure can go a
long way in providing a
deterrent to fraudulent
activity.
when implementing a sound
system of internal controls
will be your district office
business department. The
staff at the district level
should be well versed in
appropriate controls related
to the disbursement and
collection of cash.
Additionally, your district
may have standard operating