Saturday, August 15, 2015

Oakham Town Council Christmas Lights Supplier A Big Secret? Indicators of Fraud

Oakham Town Council Christmas Lights Supplier A Big Secret?

On Wednesday councillor will be ask to consider this:


21. EXCLUSION OF PRESS AND PUBLIC To decide whether to exclude the Press and Public under Section 1 of the Public Bodies (Admissions to Meetings) Act 1960, as amended, during consideration of Item 21 on the agenda as the identity of firms tendering for the contract is not in the public interest.


22. CHRISTMAS LIGHT TENDER (Appendices K(i) and K

Openness and transparency once again lacking at Oakham Town Council.

The council should not approve this exemption.

tender documents can be exempt.


After reading the Streets review of Oakham Town Council 2014 - 2015 accounts
a member of the public asked me to take a look at the following site and consider
how many of the ten fraud indicators can be ticked at Oakham Town Council.


http://www.kpmg.com/uk/en/issuesandinsights/articlespublications/pages/ten-warning-signs-fraud.aspx


I highlight those which we thought should receive further scrutiny, the person
it might apply to recently had their work publicly described at a meeting as
"sloppy and incompetent" by Cllr Elliot


 1. Rarely takes holidays

Whilst not taking holidays initially appears an HR or wellbeing issue, it is worth considering that this could be an indicator that an employee does not wish to leave his/her work open to the scrutiny of colleagues in his absence.


4. Defensive mechanisms

Whilst this is a slightly contentious area, managers should be able to use their best judgement. There have been many cases of employees inventing illnesses as a mechanism to act as a buffer to challenge.  If an employee is creating defence mechanisms to prevent questioning over transactions or performance, there may be reason to be extra vigilant. This is particularly the case where answers to straightforward questions are ever changing and inconsistent.


5. Senior managers with unusual spheres of influence

When the CFO banks cash takings or a senior manager is involved in purchasing decisions outside of his function, ask the question: why? In relation to the first of these it is important that all businesses can trace all fund inflows from source to bank with appropriate segregation of duties.


(Streets report refers to the lack of segregation of the Clerk's duties)


9. Excessive secrecy about a function and its operations

Certain business leaders have an uncanny habit of avoiding or postponing scrutiny, such as internal audit reviews, for seemingly plausible reasons. Such avoidance activity should not be accepted on a repeated basis.


10. Posting to vulnerable balance sheet accounts

When funds are stolen or accounts are manipulated the perpetrator will need to process an accounting entry to disguise the underlying transaction. Invariably, certain balance sheet accounts are used such as suspense accounts or other accounts (such as VAT or PAYE) that are rarely fully reconciled. Unexpected build up of balances on such accounts requires challenge.

(Body Power Fitness Ltd)