What Do You Know About Travel Expense Fraud? And, What Could It Be Costing You??

Darin Thompson, 51, a former principal employed by Fairfax County Public Schools, is charged with felony embezzlement related to his alleged misuse of credit cards.

The accused, who worked at Hayfield Secondary School, allegedly used school-issued credit cards to buy himself nearly $8,000 worth of travel and event expenses that were unrelated to his job.

An investigation began after the Fairfax County Public School's Office of Auditor General reported the allegations to police.

The accused principal was placed on leave after the allegations came to light and was eventually suspended.

Source: https://wjla.com/news/local/former-fairfax-county-principal-charged-with-embezzling-nearly-8k-school-funds-darin-thompson-personal-expenses-travel-events-hayfield-secondary-school-virginia

Commentary

The embezzlement alleged above involved travel and event expenses, unrelated to employment, that were charged on organizational credit cards. Although the above appears to be misappropriation, embezzlement can also occur when travel-related receipts are offered as cover for embezzlement.

Receipts establish where money was spent, when, and what it was spent on. These receipts should always be collected, and any claimed travel or event expenses should be able to be easily connected to legitimate organization-related trips or events. An identifiable business-related purpose for the expenses must be established.

Employees who cannot provide, or refuse to provide, receipts for stated travel or event expenses should be viewed with suspicion, and such expenses should be flagged for detailed review. Accounting staff should never simply rely on an employee's vague or broad statements that all expenses were business-related.

Organizations should have procedures to ensure all expenses are thoroughly reviewed before approval. Clear fraud reporting mechanisms should be in place for reporting concerns.

The final takeaway is that travel expenses may be a tempting cover story for embezzlement schemes.

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