[Michlib-l] Employee signing his own pay check

[Membiela, Clare (MDE)]

Hi Sharry:

This is not a good idea. Financial good practice suggests that checks, expenditures, etc. should be reviewed by more than one person, and the person that has the authority to write a check should not be able to write checks or disburse funds to themselves or to a blank or generic entity ( for example, “Cash”). The reason for this is to guard against potential theft and fraud. Even if the person is legitimately owed those funds, having a financial staff person write checks to themselves does not present the image of  library procedures as ones that  contain adequate internal controls to mitigate and identify potential problems such as theft or fraud.

Here is a link to the Library of Michigan’s Public Library Financial Guide.  This manual has good information on financial policies. Page. 54  contains  information on internal controls.

https://www.michigan.gov/documents/libraryofmichigan/LM_SLS_2019_Financial_Management_Guide_FINAL_11-6-19_670795_7.pdf

Your auditor or accountant could also provide some additional information and suggestions if you are looking for a way to create a process for the Bookkeeper’s payment.

I hope this is helpful!

Sincerely,
Clare

Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
MembielaC at michigan.gov<mailto:MembielaC at michigan.gov>
517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.
[cid:image002.png at 01D6FAEE.6F624540]



From: Michlib-l <michlib-l-bounces at mcls.org> On Behalf Of Ovid Library via Michlib-l
Sent: Wednesday, February 3, 2021 4:40 PM
To: michlib-l at mcls.org; Ovid Library <ovidlibrary1949 at gmail.com>
Subject: [Michlib-l] Employee signing his own pay check

CAUTION: This is an External email. Please send suspicious emails to abuse at michigan.gov<mailto:abuse at michigan.gov>

Dear Clare,

The Ovid Public Library Board is considering the legality of having the employed bookkeeper sign his own paycheck,  We would appreciate your thoughts on this matter.

Sincerely,
Sharry Huyck
Director
Ovid Public Library
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20210204/b80f5079/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 17008 bytes
Desc: image002.png
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20210204/b80f5079/attachment.png>