FRAUD: Best ways to avoid it

In the article (“an ounce of prevention”) printed in The Press on March 6, Mr. Troy Tymeson was reported as sharing his “painful” experience of the embezzlement of Sheryl Carroll, ostensibly to advise business leaders of the community how to prevent fraud from happening to them.

Unfortunately, I could not help getting the idea that his No. 1 recommendation was to deny all personal responsibility and accountability for the incident. Instead, he continues to place all blame solely on the perpetrator (Sheryl L. Carroll). Not what I would expect from a highly paid manager of one of the most important administrative functions of Coeur d’Alene government.

He would have been better advised to use the occasion to share with us what lessons were learned from the incident and focus on how to minimize the risk of such an event in the future, not only for the business owners in the room, but also for government institutions where safeguarding taxpayer money is paramount.

Admission to being taken-in by the acting talents of his “Barbie” is simply not an acceptable excuse. If Coeur d’Alene staff had done their job in background checking prior to hiring, they would have discovered that she had a history of embezzlement.

So, Lesson No. 1: Do a thorough job of background checking, especially where the position involves funds or other inherently high risk items.

Lesson No. 2: Accounts Payable in any organization should be considered an area of extreme risk, a function designed to send dollars out the door. That suggests a “Barbie” in such a position, no matter how competent an actor, needs effective oversight. Such oversight minimally would not permit the individual from “overseeing the annual audit.” Isn’t that like inviting the fox into the chicken coop?

Lesson No. 3: A well organized and monitored process is needed to provide the necessary checks and balances to manage and reduce risks to a reasonable level. At the sentencing hearing of Ms. Carroll, Coeur d’Alene’s Deputy Finance Director was heard to claim that it took several months for staff to learn how to perform her function … hardly an indication of an effective processing environment with oversight.

I believe that we, the community, have a right to demand effective administration of our services and resources. No organization is perfect. We want to see our city administration strive to a very high level of performance, one that is professional enough to admit mistakes and learn from them.

FRANK ORZELL

Coeur d’Alene