FINANCIAL SHENANIGAN:
(An Object of Economic Decrement)

By; Alawiye Semiu

Fraud has been a social cancer deeply rooted into the fabric of human, especially in the case of a state like Nigeria where its atmosphere is congested with lack of transparency and likewise its financial system embellished with misappropriation.
Government in this respect reported the issue of “ Ghost Workers” receiving salaries at which over 200billion were recovered into the treasury account. The question is this; is there no proper cash control system put in place? Is there no ministry or department in government in charge of cash where such activity occur.
This could be seen as a result of misappropriation of funds within government agency that handle cash and due to the lack of internal control which place the whole system into crime where employee, vendors, or even former officer who know the modus operandi of the environment would perpetrate and may have access to the system.

It is high time the accounting professional bodies save the nation from shameful act which abject the people into poverty and cause downfall of the economy.
Looking inwardly to the meaning of fraud, fraud is nothing but misappropriation of financial information in which a person in a position of trust and responsibility is defiance of prescribed norms, breaks the rule to advance his personal interest at the expense of the public interest he has been entrusted to guard and promote.

Though, it is difficult to stop fraudulent activity in the society where the system is lacking internal control, segregation of duties or manipulation of account by top officers but yet, a measure could be placed to minimize its risk.
Firstly, there should be good cash handling procedure routinely audited and to ensure that they are being followed consistently.
Secondly, is providing cash handling training to department staff and even where applicable adherence to cash handling procedure could be included as part of staff’s annual performance review which will allow the recognition of those that follow policies as laid down and at which employee or officer handling cash is accountable for misconduct.
Besides, there could be physical security where by individual handling cash seat in an area with camera coverage, this will monitor the affairs of the officer in-charge of cash.
Moreover, risk management and governance could be another measure to detect fraud by understanding the control environment and consequence should be taken if cash is stolen.
Understanding how, where, when cash is collected and duties performed by each employee are imperative when designing internal control that can provide reasonable assurance that significant theft of cash and record-keeping error will be prevented or mitigated.
Therefore, every society should put in place internal checks and an efficient internal control system so as to reduce the risk of financial shenanigan as it is an object of economic decrements.

Writer:
Alawiye Semiu
Lagos State University


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