RJ has been a secretary with a large practice of eight physicians for the past seven years and has had only one raise in that time. Each physician and the practice administrator have a practice credit card issued in their name. Typically, when RJ places orders for the physicians, she uses that physician’s credit card information. RJ has learned which providers use the company credit card the most and who reviews their statements closely. RJ started small with personal holiday purchases and eventually developed the sense that the practice owes her these “holiday bonuses” because of her years of service. Initially this went unnoticed and eventually grew close to $10,000 spread out over the course of the year.
Diagnosis:
Inappropriate credit card use
Recommendations:
- Safe guards in place to limit access to credit card information
- Careful review of the credit card statements by one of the partners on a rotating basis
- Review our Red Flag Checklist Do You Have an Employee at Risk for Embezzlement
- Remember to Trust but Verify—especially for employees with access to money and financial processes
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