Our firm was retained by an insurance company to investigate a fidelity insurance claim filed by a municipal public school board. The claim was based on the allegation that the manager of a school program had submitted expense receipts for personal expenses for reimbursement by the school board, and her husband (who provided various services to the school board) submitted false invoices for work never performed.
Our role involved reviewing the internal controls surrounding expense reports (i.e. how they were prepared, the process for determining whether expenses were business related, the process for identifying conflicts of interest, etc.). This was an important step in determining whether the losses suffered by the school board were caused by fraud or a violation of policy (which would not be covered by insurance).