Local News

Wake Schools Auditor Wins Anti-Fraud Certification

Posted June 3, 2007 1:21 p.m. EDT
Updated June 4, 2007 10:39 a.m. EDT

— 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.