Recovery audit reveals victim’s violations

In a surprising twist to an embezzlement case, the reported victim of misappropriation is now being disciplined for violations discovered during a recovery audit conducted in response to the alleged crime, according to the Kenosha News.

Wisconsin's Kenosha Cemetery Association (KCA) is preparing to go to civil court to face its former office manager, Janet DePaoli, and her husband for allegedly taking as much as $225,000 of its funds for personal use between 2005 and July 2009, when DePaoli was fired.

During the course of the audit, several instances of noncompliance on the KCA's behalf were revealed. Specifically, an unlicensed employee was found to have sold lots, cemetery merchandise and undeveloped space. Additionally, the association changed its perpetual care fund trustee without board approval in January 2007 and failed to maintain proper records or make required deposits into cemetery lot, mausoleum and pre-need care funds.

The state Department of Safety and Professional Services subsequently ordered the KCA to provide quarterly reports that include sales revenue, number of pre-need contracts and other financial information.

In addition to maintaining good business practices, it's important to keep comprehensive records in case potential embezzlement is uncovered that would require extensive accounts payable audits.

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