The sales team were misusing their travel privilegs

The sales people travelled a lot. The sales manager signed their expenses. I was supposed the sign the manager’s expenses. Our accountant comes in once a month to do the books. Last month he expressed his concern to me about the rising costs of the sales force. We now had three people plus the manager.

I began to look over their expense claims and noticed they were staying in expensive hotels, bought very expensive meals and drinks, and stayed overnight at places where they could easily drive home. When I questioned the manger, he said these were all legitimate expenses and it cost a lot to entertain customers. I suggested we establish an expense policy. At first he resisted but then agreed. The next month I checked and there was no real change in behavior.  I told the manager he needed to act now.

The next thing I learned through a friend was that the sales manager was seen in a hotel with a woman who wasn’t his wife in city X. I checked his expenses because he was supposed to be in city Y. There was a receipt from a hotel in city X but when I called the hotel, there was no record of his stay.

I hate confrontation, but met him the next morning. He denied everything and got really upset with me. He got very angry but couldn’t explain the situation. I told him we were going to audit all of the sales team’s expense for the past year. He got up, told me he quit, and left the building.

 

Transparency audit theft expense reports trust employees corruption 

Even after we did an audit and installed security cameras, we couldn't figure out why stock was missing

Over the past few months we have been running out of stock of certain components. This held up production and cost us a great deal of money. No one seemed to know why this was happening so we had an audit.

What we found was shocking. We were running out of stock because someone was stealing the key components. The invoices showed they were delivered, the internal stock systems said they were on the shelves, but when went to the shelves, they weren’t there. There were only two people in the warehouse. We didn’t know what to do because we couldn’t accuse someone without evidence.

We installed security cameras but didn’t see anything suspicious. We were still missing stock- in fact we lost over $10k of components. We couldn’t figure out what was going on so we finally called the police. They sent someone from the fraud squad who looked at all the records. She said nothing was stolen. The fact was it never arrived at the factory. The invoices were false and one of the warehouse men, who was in on the fraud, recorded them as real and then entered them into the system.

The warehouse man was arrested as was the sales rep at the supplier. It turns out they were cousins and had done this at other companies.