Page 9 - test2

9

Who’s Minding the Money?

Unfortuntely there are many cases in Nebraska governmental entities and non-profits where a person who was

entrusted with the funds was instead directing some of the money to their own bank account. LARM Loss Control
staff has given presentations at LARM Risk Management Seminars about this issue called “Who’s Minding the
Money?’ In it, they describe the main reasons why a person steals the money: opportunity, financial pressure and
neutralization/rationalization in which a person tells themself they deserve those extra funds. Dave Bos, LARM

Loss Control Manager said segregation of financial duties is of primary importance.
”No one person should have all responsibility for any given function. Functions with money should be distributed No one person should have all responsibility for any given function. Functions with money should be distributed
”
among as many people as possible to reduce risk of any one person diverting money. The person collecting the
money should not be the sole person reconciling the account. There should always be supported receipts. The

more people involved, the less risk of funds being diverted,” Bos said.
For more information about this topic contact Bos at dave.bos@larmpool.org.