Millions missing from hospital, AP audit reveals

It may not always be a good idea to trust employees simply because they have been charged with taking care of an organization's funds. Many times, these individuals are the source of significant financial losses, owing in part to their proximity to financial resources. Using AP audit solutions can help uncover embezzlement, but the longer a company waits to use the tools, the more money thieves are able to steal.

According to the Courthouse News Service, Florida hospital chain Promise Healthcare recently sued its former payroll manager Sonny Ramdeo for embezzling approximately $5.4 million from the establishment. Ramdeo was hired in 2005?, but it was only recently that an accounts payable audit discovered that he had developed a complicated scheme to divert Promise's payroll taxes to himself.

The news source noted that hospital officials and auditors had trouble detecting the embezzlement because Ramdeo fabricated documents, emails and websites in order to fool others into believing that the facility's payroll services provider was receiving and processing the taxes.

In a similar situation in Ohio, a former Fayette County Memorial Hospital staff accountant was recently indicted for using her position managing funds for theft. The Record Herald reported that Kimberly Crabtree had stolen nearly $20,000 over several years by issuing herself fraudulent checks from the organization's accounts. 

These incidents place renewed emphasis on the importance of using audit solutions, no matter how much employers trust their staff.

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