There is a notable and prevalent wastage and embezzlement of funds in the organization. The problem cuts across all the departments in the organization but it is most prevalent in the cash office department and the supply chain management section. These two departments are the worst it as there are numerous loopholes in the two sections. The wastage and embezzlement of the cash and cash equivalents in the organization is a problem to the organization as huge chunks of funds are being lost to greedy officials who are in charge of the two sections. The immediate cause of the problem can be attributed to lack of proper controls in the departments that will ensure that the loopholes that permit this vice are sealed. Other causes that lead to the problem include lack of professionalism and integrity in the officials who are entrusted with handling of the operations of the two departments.
Solution or Plan
The lasting solution to this problem facing the organization will be to incorporate checks and balances that will monitor the cash movements throughout the departments. Some of these checks and balances will include incorporating numerous signatories to particular accounts in the organization. This solution will apply both in the cash department and the supplies department. In addition to this solution, the organization should introduce a tendering process in the awarding of tenders. The awarding process should be carried in a particular time of the year and should last for a stipulated time as included in the policies of the organization. Another solution that would help curb the lack of professionalism and ethics would be the adoption of an employment policy where only competent officials are employed to particular positions. Employees who are vested with mandate of a particular organization should be members of professional organizations as this helps them to maintain integrity at all times.
Why the solution or plan will work
These solutions will work for various reasons. One such reason why the first solution will work is that numerous signatories will make certain any withdrawals are disclosed to all parties involved. This minimizes any occurrence of a withdrawal without prior knowledge. In the supply section, tendering will ensure that only the competent get the positions to supply the organization and no collusion occurs between the supplier and the supply chain manager. This will eliminate any chances of embezzlement. The third solution of employing competent professionals who are registered with their respective professional organizations will work as these professionals are regulated by these membership organizations and will have to act ethically to prevent any disciplinary measures upon them which may include expulsion.
How the solution or plan will be implemented
The implementation should be immediate and swift. The organization is expected to introduce a minimum of three signatories to any bank withdrawals as soon as possible. In addition, reshuffles in the accounts section will assist reduce any vested interests in a certain position as new entrants will come up with new policies. In addition, any further recruitment in the organization should incorporate the help of professional organizations to ensure that those employed are competent and professionals.
Conclusion or Action statement
It is critical that the organization adopts these strategies and curb the wastage of resources in the organization. This will save the company much money as the monitoring process will be intact. In addition, reshuffles and tendering processes should be initiated with urgency so as to streamline the management of cash in the organization.
Chart
The accounts department should have one overall manager who oversees the operations of all the other subsections. The manager will be a signatory to all bank accounts as a mitigating factor.
