Do you really have a 2nd job?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

This is an interesting fraud that took place at the Environmental Protection Agency (EPA). John Beale, a retired, former EPA employee, collected paychecks from approximately the year 2000 through 2013 even though he had absence totaling about 2 1/2 years. What was his alibi? He claimed falsely that he was simultaneously working undercover in special projects for the CIA.

Questions:
1. What type of internal controls could the government have put in place to prevent this?
2. Based on the information regarding retribution to be paid back in the article(s), what do you assume Mr. Beale’s annual salary was approximately?
3. Although Mr. Beale was sentenced for this fraud, do you think that there are any other individuals at the EPA or a separate government agency that should be reprimanded or are responsible for the length of time that this fraudulent situation continued?
Source:
Zajac, A. (2013). Ex-EPA Official Who Faked CIA Jobs Gets 32-Month Sentence. Bloomberg News, Dec. 18 (Retrievable online at http://www.bloomberg.com/news/2013-12-18/ex-epa-official-who-faked-cia-jobs-gets-32-month-sentence.html)
Teichert, E. (2013). Former EPA Official Admits to Salary Scam. Law 360.com, Sep. 27 (Retrievable online at http://www.law360.com/articles/476367/former-epa-official-admits-to-salary-scam)