Chapter 6 - The Old Audit That Never Happened
The foundation had undergone routine annual financial reviews.
Why had none discovered the issue?
Because most of the money had been restored before year-end.
Internal transfers occurred between funds inside the same organization.
The financial statements showed total cash.
Restricted-fund accounting appeared correct by reporting dates after adjustments.
That did not mean the conduct was acceptable.
It meant normal annual review was not designed to reconstruct every temporary internal transfer without reason.
Mother had found the pattern because she reviewed monthly fund-level cash movement.
After she died, my father became foundation chair temporarily.
Then delegated more responsibility to Violetta.
The person Mother wanted removed from financial influence gained more.
No one knew.
That fact devastated Anatole.
“I handed it to her.”
Claire corrected him gently.
“You made a decision without information someone deliberately withheld.”
“I should have known.”
“How?”
He had no answer.
Forensic accountants were engaged.
Not family employees.
Independent firm.
Full access.
Ten years of bank records.
General ledger.
Board minutes.
Vendor invoices.
Conflict disclosures.
Donor restrictions.
No one enjoyed the process.
May you like
Good.
Audits designed to preserve comfort rarely discover much.
