Missouri state auditor Tom Schweich recently released an audit of Douglas County that revealed significant financial mismanagement, including the submission of receipts for duplicate payments.
The former director and assistant director of the county received reimbursements for equipment without supporting documentation and failed to account for all advanced monies, as well as claiming excessive miles of travel at inflated rates. Duplicate receipts and claims that had been altered were also submitted for meal expenses.
The audit faulted the county's planning for a judicial center project. Specifically, the county agreed to buy land and buildings before securing the necessary funds, and failed to obtain an appraisal to make sure the price was reasonable before purchasing.
For governments, companies, and organizations alike, conducting regular accounts receivable and accounts payable audits can help to quickly identify mismanagement and embezzlement, mitigating the resultant negative effect. Additionally, making employees aware that financials are being monitored is likely to discourage future attempts to embezzle or defraud.