Boss's suspicious behavior

[Tabby L]

Thank god this isn't my problem, but I am posting for a friend who wants to be 100% anonymous.   She is noticing what she may think are illegal happenings with her boss, that he maybe siphoning money from the company tiny bit by tiny bit.  She isn't sure and doesn't want to cause a scene, but doesn't want to be involved or implemented if he is.  She is feeling in a no win situation.  She is at a loss on what to do next.   I told her I would post her and see what others would say.   This is how she is feeling, she isn't positive on any illegal actions, just noticing little .. things and if she brings it up and it is nothing, she looks very bad, if he is doing it and she says nothing, she maybe considered helping him.  If she says something and he is doing something, she says she would be scared for some type of retaliation.   Please let me know what you would.

[msmarieh]

I would say it depends on what kinds of things she is seeing.

There may possibly be any number of other explanations (for example, it is something the company is aware of and authorized; it's a reimbursement she's not aware of, etc.).

Unless this is a situation where money goes through her hands in some way prior to reaching her boss (i.e. forged expense reports), I don't see how she would be implicated or blamed in this. If money does pass through her hands first, I would make sure she has every detail of background documented and backed up with receipts.

Unless she is sure, I would keep my mouth shut, but I would certainly watch closely for indisputable proof and I might ask an occasional question or two (oh, I see you put in "xyz" on this, but perhaps you forgot that... )

Without knowing slightly more details (don't need to know everything of course), it's difficult to know what advice to give.

[Atlanta Z3]

Isn't it odd the things that jog memories.  Over 25 years ago as a pharmacy tech we sold money orders.  There was a set process and apparently it was easy to manipulate.  I had no clue what was going on and it was not unusual in this company to have to take lie detector tests for all pharmacy employees (3-4 times a year).  So when I was called for another test, there were a lot of questions related to the money orders.  The new manager was creating fake money orders, voiding and then cashing them somewhere else for spending money.  I had  no clue!  He was of course fired.

My suggestion would be for your friend to leave as quickly as possible.  Barring that I would be extra diligent in documenting any cash transactions she in which may have involvement, even to the journal entries.  Taking home a copy of any suspicious emails (printed), or any other documents which could be an issue to her. 
The problem I see going forward is should any of this become public it may taint her ability to get a job, she may be totally innocent of any wrong doing but a future employer doesn't want to have any doubt about an employee's integrity.
As for reporting, my guess is someone else knows what is going on and is already watching unless the company is private and it's the president.  I do not think I would be reporting findings unless I was absolutely certain of my facts and even then I would think I would be doing so only as I went out the door.

[claudiamag]

My advise would be document, document, document.  Get all approvals and requests in writting.

For example, I process expense reports for my boss and three of his direct reports.  They must all (including boss) provide me with receipts for EVERY expense and an explanation for the expense (i.e., business lunch regarding client XYZ, etc.).  They write this in back of every expense receipt.  I include a the receipt along with the explanation with the report which they in turn sign and then their direct boss approves.  Then I scan all this and send on to accounting for reimbursing.  If there is ever a question, I have the scanned copy for reference as to why they are requesting reimbursement of said expense.  I'm covered sign the employee and the boss signed their approval.

If its a matter of money being siphoned by some other means, again document any FACTS you may be aware of, such as on such and such day boss requested x amount for such and such.  It doesn't have to be done in a manner that suggests she is watching boss every move, but rather it could be done as a "reminder" that x amount was requested/given for accounting use.  I don't know if I am explaining that right.

If any of my guys request petty cash for anything, they must send me an email with they request and the motive.  Without that, I won't give them any money.  This is my back-up for accounting.

Its a  really tough situation.  Perhaps if we knew slightly more details as to why employee has these suspicions, we might be able to give metter advice.  Good luck to your friend.