Lincoln (Neb.) - Nov. 17, 1997 - University of Nebraska- Lincoln officials said today that they have uncovered evidence of embezzlement at the West Central Research and Extension Center in North Platte.
Although the investigation into the alleged embezzlement is ongoing, officials said the amount involved is about $60,000, nearly all of which was private grant money intended to support research at the center.
Gary Hergert, interim director of the center, said bank records indicate that a former WCREC accounting clerk apparently deposited checks written to the university into a an office sundry fund checking account at First National Bank in North Platte. The clerk, who resigned from the extension center in October, then apparently forged checks on that account using the signature of another center employee who was authorized to sign.
Hergert said the sundry fund account was not a university account, but was owned by the center's employees, who donated their own money. He said the account was established by employees for purchases such as coffee or flowers for hospitalized coworkers.
Accounting personnel at the center discovered shortfalls in university accounts in mid-October, a few days after the alleged embezzler left the university's employ. An initial investigation at the center and at the bank indicated embezzlement. On Oct. 21 Hergert contacted Alan Moeller, assistant vice chancellor for finance and personnel at UNL's Institute of Agriculture and Natural Resources in Lincoln. IANR oversees all research and extension centers. Moeller called the University Police Department and met with police personnel and the university auditors that day.
An internal auditor from university's Operations Analysis Office in Lincoln went to North Platte Oct. 24 to begin an investigation that revealed the extent of the alleged embezzlement. Ken Cauble, director of the UNL Police Department, which has statewide jurisdiction, went to North Platte Nov. 4 to begin the criminal investigation in conjunction with the office of Lincoln County Attorney Kent Turnbull.
University Police and the Lincoln County Attorney's Office have not released the name of the suspect, pending charges.
Hergert said the original sundry fund account, which required just one signature for check-writing, has been closed and another opened. The new account requires two signatures on each check, he said.
IANR Vice Chancellor Irv Omtvedt said steps will be taken to prevent another incident.
"We deeply regret that something like this has happened, but I'm confident procedures will soon be in place that will ensure that nothing like this happens again," he said. "We have reviewed internal control procedures with the directors of all the research and extension centers and will institute any additional measures necessary to ensure thorough accountability."
Moeller said he did not yet know how much of the center's
loss would be covered by insurance. He said the university plans
to file an insurance claim, pending release the name of the
suspect. Moeller said the university's insurance carries a
$10,000 deductible.
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