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WhkltbjEree Pross, Wednesday Noôvombor2,0, Page Fraud ctae umPOff botter coMuntrols in hospital'sacounting By Mark Reetior Oshawa General Hospital (OGH) has changed ts accounting procedures alter a Whitby woman pied guilty to defrauding the hospital of almost $700,000 eariior this yoar. Carol Anne Frac was convicted of fraud and theft over $1,000 in April and sentenced to 40 months In jail. The hospital had hlred Frac to work in the hospitai's accounting office in February, 1988, according te a statement of facts agreed te, by both her defence lawyer and the crown attorney, and her dutios Former Henry Street High School principal Clarence Prins bas been appointed _interimi directer- of education of the Durham Board of Education. Prima, who retired in June, will assume the post Jan. 1 when current director Pauline Laing takes up ber duties with the Ministry' of Education and Training. Prins, former superintendent of education/employee relations with the board, wil I the board's tep administrative position until the board sélects a new director. Before ho retired, Prins also replaced Laing wben she tok a leave of absence te research education in several other countries. Laing will be project director for the niinistry's Ontario Curriculum Project. The board recentiy approved Laing's secondinent, for a period of more than two and a balf yoars - - Jan. 1, 199 6 te Aug. 31,1998 - for the position. After the secondxnont, Laing will retire. inciuded printing and payment of cheques and end-of-the-month reconciliations. .She started "misappropriating" money right from the beginning by taklng the firt cheque from each run, which was normally voided and stored, somehow removlng the void mark and makixig the choque out t erseif. The> cheque was deposited at a bank machine bite an account held jointly by Frac and ber husband. Whonthe choque would clear back te the hospitai, Frac would remove it from the monthly statement and either bide or For the projeet, Laing will be rosponsiblo for provincial curriculum for tatudonts from eariy years to graduation. Laing has been diroctor of the Durham board for seven years. Local police have begun the holiday season RIDE (Reduce Impaired Driving Everywhere) campaign. The campaign wiii continue until Jan. 4. As part of the oernpaign, Mothors Against Drunk Drivers (MADD) are distributing red ribbons to motorists to promote sober driving. VOLUNTEERSl Durham Family Respite la Iooking for volateers toe ejoy Urne and frienduhip with indîviduals who have special needs. Cail 427-3541. We invite you to explore the endless possibilities of Christmas gift giving at Rousseau's. Take advantage of our special Christmas savings on ail accessories throughout the store. p.s. - If your gift is not perfect, you may exchange it after Christmas. DD* ktUMfd\U \e HERITAGE HOUSE imited 216 Mary St. E. Whitby, OntarÎo (905) 668-3483, (905) 686-0061 Mon. - Wed. 10-6, Thurs. - Fr1. 10-8, Sat. 10-5, Sun. closed destroy it. .To cover the sbortfiall, she wouid record choques wbicb bad been written but not yet cashed as if they had aiready gone througb. The cheques wore initialiy quite amali, in the range of $800, but eventually escaiated te $9,000 and more - but always under $10,000 -- every two weeks. Although one accounting firm caicuiated the amount of the fraud te be $788,040, Frac was charged witb defrauding *684,581, whicb was the amount another accountant calculated the loss te be. The money was spent on travel, dining out and gambiing at the racetrack, Atlantic City and Las o o o o Vegas, according te the crown, altbougb ber defence lawyer contended the "vast miajorlty» of the money was invested in ber husband's, failed business ventures. OGH retained forensic auditors te do an internai review after the fraud came te iight, says hospital. executive vice-president Bill Lewis, "and they conciuded that we did have a roasonable system of internai control but tbey did recommend further enhancements... and we have impiemented those." Changes include instituting credit and crimînal record checks for prospective accounting staff or other positions of trust; improving 2nd Annual "exception reporta" te directers on changes in prices or wage rates; requuring al band-written cheques tobhave a signature instead ofjust a itamp; physicaliy cutting out the signatures on voided cheques and closeiy scrutinizing ail cheques and month-end bank reconciliations. As well, duties have been split so t.he same person dosent Issue a choque and then do the reconciliation, says Lewis, addlng that staff are aiso now aiternated between different jobs each month. The $684,581 Iosn, nons of whicb was donated money, was fuliy covered by Insurance, Làewis mays. Frac's husband, Paul, was abo cbarged but it -was lator dropped. Whitby Free Press o Santa 1Claus o Pa.radle a c 0 o o Sat. Dec. 2nd at i 'Oar Bring a non-perishable food item- to the parade and give it to one of the Whitby Free Press Carriers who wiII be accompanying ourvan in th,e parade. 0. 0 Ail food donated wilI be distributed by The, Salvation Arm y0 Prîns named interim director o! board .oj