By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
AN Auditor General’s report into the Magistrate’s Court has exposed instances of cashiers allegedly altering payment receipts and nearly two dozen missing cheques.
The findings prompted recommendations for investigations to be carried out over several inconsistencies.
Another incident – a missing endorsed blank cheque for $6,000 that was later cashed — was directly given to the Royal Bahamas Police Force for further investigation.
Auditor General Terrance Bastian noted differences between amounts that were paid for maintenance support – either child support or spousal support payments — versus the amount that cashiers posted to client cards for these payments.
Only a sample size of client payments were reviewed, but it was enough for Mr Bastian to note that “when a cashier alters a client’s receipt, it could lead to inaccurate maintenance support payments, inaccurate arrears calculations for both civil and domestic court clients and mistrust of the court system.”
For this portion of the audit, 12 separate client receipts from 2017 to 2019 were found to have discrepancies. The concerns were outlined in a report looking into the Magistrate’s Court’s accounts department for the period July 1, 2016 to June 30, 2018.
In one instance, the initial amount entered for a client was $400 but the amount posted to the client’s card was $100. Another client amount was entered at $350 but nothing was posted to the client card. At several other times there was a $100 difference between the initial amount entered and the actual amount posted to the client’s card. Even a difference of $20 was highlighted after one client paid $220, but only $200 was posted to the card.
The report said given the discrepancies in amounts posted to client cards, there had been an outstanding balance of $1,670, adding: “When receipts are altered arbitrarily, the amount for the intended recipient is compromised.”
The auditor general also looked at how long it took for payment receipts to be modified.
This was made possible by the QuickBooks audit trail report, which provides a log of all transactions within the company file.
Through this log, the report said in one instance the time between one initial sales receipt and when it was modified was 20 days. For another receipt, the modification time was five days. Some modifications seemed to happen immediately while others took place over a matter of hours or minutes.
“The modification of receipts without management’s approval should raise a red flag or which should give cause for a closer review of all voided, edited or modified receipts,” the report notes. “Modified receipts where the amount received is reduced would significantly affect the bank balance and the amounts to be paid to the recipient.”
Missing cheques were also a cause for concern among the audit team.
During the financial probe, officials were informed that an endorsed blank cheque dated May 16, 2018 was missing and subsequently cashed on May 24, 2018 in the amount of $6,000.
“This matter was given to the police for further investigation,” the report said.
Auditors were further made aware of 20 other missing cheques, spanning April 2019 to May 2019.
The cheques totalled $13,675, the highest valued at $2,754.
“The cheques were not found at the time of this audit and subsequently management placed stop payments on the cheques. Due to negligence, the deposit fund account incurred cancellation fees of $45 per cheque totaling $900. An investigation was undertaken by management, which resulted in management having to prepare replacement cheques,” the report noted.
Other issues highlighted were that for domestic and civil cases, arrears schedules attached to files were manually prepared and in most cases inaccurate; payments had not been posted on client cards; and clients were still paying support payments even after the child had reached the age of maturity.
Neither had reconciliations for the court’s chequing account for three years 2016 to 2018 – the period under audit, been carried out.
For its part, management of the Magistrate’s Court said access had been given to cashiers for them to correct client’s names on receipts at the time of payment.
Management said administrators of the system were given instructions for two supervisors to have void access at some point in 2018.
“The modification and edit access has been taken from the cashiers and only the supervisors can void,” management said in its response to the audit’s findings.
Contacted for comment yesterday, Attorney General Carl Bethel said he was aware of the basic allegations in the report and indicated that the matter as of two weeks ago was being attended to by the relevant authorities.
Comments
Hoda 4 years, 7 months ago
Now just how we are prepared to call everyone involved in frontline politics a thief, we need to these civil servants up to bat - and their friends and family they probably doing funny business for. When them white me from ORG start saying ordinary Bahamians are corrupt thieves, dont get mad.
bahamianson 4 years, 7 months ago
laughable! every sector of this country is corrupt. if we dig into every fiber of this country , it seems that we will find corruption. this is very disappointing. when will we take all of the hands out of the cookie jar?
Chucky 4 years, 7 months ago
Ain’t even one Bahamian that’s not corrupt an everyone knows it.
It’s how we roll.
Sickened 4 years, 7 months ago
People are disgusting bad! Stealing from people needing child support. Low!
hrysippus 4 years, 7 months ago
The Auditor General is one civil servant who is definitely worth his salary. It would be good if he could audit the RBPF firearms department which deals only in cash and hand written receipts.. A process just crying out to be abused.
geostorm 4 years, 7 months ago
What a disgrace! We are such a dishonest society. I'm embarrassed that people would stoop to such low levels for a quick buck!
bogart 4 years, 7 months ago
Kudos to Mr. Bastian on catchin all the small fries at the bottom, but what about all the big culprits in done known by public in big govt entities...????
Hoda 4 years, 7 months ago
Thats what they have discovered from a few cases, you know how much cash money passes through magistrates court, from the road traffic tickets alone..., its a statistical fact that more theft occurs at that hands and feets, or small fries, in institutions and corporations. If the big culprits take 50, the small fry taking 50 over years and repetitively
DiverBelow 4 years, 7 months ago
Are you mad because of the prominent prevailing theft? or angry because you missed the opportunity? A third World Country is determined by the amount of corruption that prevails; small payouts, friendly adjustments, family favors or blatant payoffs to officials... all a reflection on the professed Christian Society & Country. Thank God for Mr. Bastian, now support his efforts right up to prosecution.
BONEFISH 4 years, 7 months ago
What the auditor general disclose has been going on for some time.
This is nothing new.
The Tribune had a story in the last Ingraham administration about the theft of funds from the court system on the island of Grand Bahama.They did not call the name of the judicial official involved.But somebody who knew about it told me who the person was.The person was simply transferred and never prosecuted.The current attorney general Bethel was the AG then also.
We protect our friends in this country.That how we roll in this country.Bahamians love to play brand new.
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