Failure to conduct regular accounts payable audits and implement a proper system of checks and balances allowed an Alaska National Guardsman to allegedly embezzle more than $220,000 from the organization, the Alaska Dispatch reports.
An AP audit conducted by the Alaska National Guard found that Jason Johnson, the former budget administrator of its family program, was able to "write checks with pre-authorized checks, control the accounting for all disbursements, and was directly in charge of reporting on the use of funds in the two accounts," according to the news source.
Johnson is believed to have misappropriated $228,723 worth of government grants and community money between 2006 and 2010, and faces three felony counts of fraud, theft, and falsifying business records.
Court documents indicate that Johnson told program director Janet Myers that he embezzled the funds because "it was too easy."
The lack of a system of checks and balances that requires more than one person to sign off on company disbursements can result in theft simply because employees know they can get away with it. Establishing safeguards and making workers aware that regular AP audits are conducted can decrease the likelihood of embezzlement.