Police report lodged against Singapore Silat Federation finance director over alleged salary irregularities

Credit : Channelnewsasia.com

Why is this type of news constantly appearing in our media?

I believe the gap is in the reporting. There is a lack of transparency and real time updates of the system. Very often, the perpetrator knows the weakness of the system and this person’s weakness succumbs to the system weakness. The temptation is too strong to dip the hands into the biscuit tin.

Most of the time , the management team will get to see the report at the end of the month(if there is a monthly management meeting). I am not sure if it is a mandatory requirement or SOP to review the monthly accounts in this type of setting.

The fact of the case was not shared in the news, but often than not, there is this chance of abuse during the window period and make good when there is an inspection or window dress the documents to cover up, and provided the amount is not too much of variance to be able to borrow to cover up in a short period before the game is up.

A cloud system will allow management to have separate access to the accounting system to check from outside the premise any time so that the operators knows that some one can and is looking at the accounts,

Another solution is to do random spot checks on collections and outstanding owing to and owing by. Someone higher than the finance director must be given the task to do that. It will not give them enough time to cover for the discrepancies.

With online banking, there is no excuse for waiting for a bank statement to come and sadly many organisations are still not signing up on internet banking.

These organisations need to step up on their operating procedures as there are taxpayers funds or donor funds involved.

We are most willing to assist any organisation to modernise its operations by subscribing to our solutions.

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Writer : Choo Hong Peng,
Chartered Accountant, Singapore
Email : sales@realtimme.net


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