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Wake Schools Auditor Wins Anti-Fraud Certification

Posted June 3, 2007
Updated June 4, 2007

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— The Wake County school system now has an in-house auditor certified as a specialist in detecting fraud, officials said.

Doug B. Kinney, the schools’ senior director of internal audit, has earned a designation as a certified fraud examiner after a professional examination, the district announced Friday.

Kinney has been the system’s internal auditor since 1985 and now leads a staff of five.

The internal audit department reports directly to the superintendent's office rather than the school system's administrative services division, which includes the finance and budgeting departments. "That allows the audit department to be independent of who and what we're reporting," Kinney said.

The district has had problems in the past with fraud.

In 2005, six people, including four former employees from the school system's transportation department, pleaded guillty for their roles in a multimillion-dollar fraud scheme.involving fake orders to Wilson-based automotive-parts supplier. A seventh person was convicted in 2006.

It might never be known how much money was lost, but the Wake County school system has recovered an estimated $5 million.

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  • claudette Jun 4, 2007

    This is NOT an award, (i.e. something you win,) it is something you earn and WRAL knows that but chose a misleading and juicy story line to get a rise out of Wake citizens, which they achieved. For those of you who care about the truth, to become a Certified Fraud Examiner you must meet the requirements as defined by the Association of Certified Fraud Examiners (ACFE) a worldwide organization. The website to become certified is: http://www.acfe.com/Membership/become.asp.

    As for the transportation fraud, let me remind you that those who committed the fraud worked in collusion. In addition, an external audit was performed at the request of the Board of Education. The company was Summerford Accounting PC out of Birmingham, Alabama, not your company next door; their website is http://www.summerfordcpa.com/geninfo.htm, if you care to read about their credentials.

  • jbtilley Jun 4, 2007

    "How do you win something like that, and does it mean anything since it was won?"

    I'm thinking door prize or some sort of raffle.

  • Sidekick Jun 4, 2007

    There is free reigns for school systems when it comes to financial accountability. The folks in Wake Co. got too greedy and it had to have something done about it. But, if there was an audit of any county school system, it would uncover a surprising amount of fraud and mis-appropriated funds.
    Let's see how many school systems volunteer to have their books audited and by someone that has not been in bed with them for 20 years.

  • Sick N Tired Jun 4, 2007

    Good point, emtp2k... They are "trying" to restore our faith in the corrupt system by throwing pointless certifications out there. Perhaps what they need is a "honesty" certification instead.

  • emtp2k Jun 4, 2007

    obviously the certification means little if the man has worked with them since the 80's and they had people "purchasing" phony parts and using the money for TVs etc. It's just a case of the wake county schools sending out propoganda to try and restore confidence in a school system that has many problems. the fact remains that they problems won't go away until they stop throwing good money into the salaries of the administrators and start putting the money into recruiting teachers and building schools. They are a top heavy organization with very little respect for the average parent in the county. Look at their scare tactics in regards to year round schools. "If you don't choose year round, we aren't sure where your child will go to school" We need to remove everyone on the school board and start over with people who have some fresh ideas and will listen to what parents and families need.

  • Tax Man Jun 3, 2007

    Wasn't it the Wake County Schools that had the fraud recently with the school buses and the phony parts sales? They should require all of their auditors to have this rating.

  • moonpie Jun 3, 2007

    My sister-in-law, a CPA, EARNED her anti-fraud certification thru classwork. I didn't realize until this article, that we should have announced it in the news!

  • Ashen-Shugar Jun 3, 2007

    Wake Schools Auditor Wins Anti-Fraud Certification.....

    How do you win something like that, and does it mean anything since it was won?