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Risk of Frauds in Schools

Schools are susceptible to fraud because they have few staff with financial expertise, so internal controls are difficult. Senior staff overseeing finances may lack training, leaving schools vulnerable. Local authorities have anti-fraud strategies to prevent and detect fraud that schools should know and follow. Common types of fraud include theft of cash collected, false expense claims, personal purchases, misusing petty cash, not charging family for goods/services, fake invoices, and false payroll entries.

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31 views1 page

Risk of Frauds in Schools

Schools are susceptible to fraud because they have few staff with financial expertise, so internal controls are difficult. Senior staff overseeing finances may lack training, leaving schools vulnerable. Local authorities have anti-fraud strategies to prevent and detect fraud that schools should know and follow. Common types of fraud include theft of cash collected, false expense claims, personal purchases, misusing petty cash, not charging family for goods/services, fake invoices, and false payroll entries.

Uploaded by

ElvisPreslii
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

The Risk of Fraud in Schools


1.1 Schools have relatively few staff who have a detailed understanding of finance
systems and procedures. This means that it can be more difficult to effect
internal controls such as internal check or segregation of duties. Furthermore,
senior staff responsible for overseeing the schools financial control and
financial position may lack the time, training or experience to fulfil these
responsibilities effectively. This can leave a school susceptible to fraud.
1.2 Many LAs have Anti Fraud and Corruption Strategies, which deal with issues
such as fraud prevention and detection. If such a strategy exists, a copy
should be available at the school and the key features made known to staff
with financial management responsibility.

2 What are the Most Likely Types of Fraud?


2.1 Examples are:
theft (e.g. retaining for personal use cash collected for school dinners,
trips, etc)
false claims (e.g. for travel which did not take place, for unworked or
unjustified overtime etc)
unauthorised purchase of items of equipment for personal use
improper use of petty cash for personal purposes
failing to charge for goods or services provided for friends/family (e.g.
school uniforms, lettings etc)
processing false invoices to a non-existent supplier and pocketing the
proceeds
making false entries on the payroll by inventing a fictitious employee
and arranging to be paid an additional salary

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