When an individual is responsible for the funds of an entire city, a great deal of trust has been endowed in his or her ability to perform important auditing tasks. Furthermore, the role this individual plays in the longevity of the town's operational budgets and allocation services is a critical one. For this reason, it is important to deploy an accounts payable solution in order to prevent fraudulent behavior.
According to the Shelton Herald, $914,000 in city funds was stolen over the period of 10 years from a small town in Connecticut by Sharon Scanlon, former assistant finance director. The source reported that it is uncertain how the restitution, which is in the same amount that was originally taken from the treasury, will be paid.
The Shelton Herald released another article that delved into Scanlon's relationship with the funds, citing her as having direct and immediate access to the money under the purview of the finance director. It was through this position that she made out checks to herself, which allowed her to bypass the controls and protocols put in place to govern such activity.
In situations like these, where larceny is internal and difficult to discover, it's important for organizations to maintain AP audit solutions in order to preempt embezzlement.