Stealing?

[SkunkedAgain]

I know that nobody is going to give me legal advice, but some guidance would be helpful.

My wife processes payments for her law firm. She noticed that the new office manager, my wife's boss, routinely uses the company credit card for personal purchases (furniture, hair salon outings, dinner) but then writes checks back to the company usually later in the month - I assume once she gets her paycheck.

Several times I've urged my wife to report this to the firm partners, but she hasn't. My rationale is that IF this is illegal or against company policy, my wife has now become an accomplice because she knows and didn't report it. My wife feels that it's not a huge deal since the office manager repays the money and because the office manager may have a deal worked out with the firm's partners. My stance is that it doesn't hurt to make sure that the partners know but could definitely hurt if the office manager fails to repay. If she doesn't repay the money one month then it's embezzlement.

Am I being paranoid or should I be more adamant that my wife report this to someone? I guess that I'm ignorant of what really constitutes embezzlement, but feel that I know the difference between right and wrong!

[LightningBG]

Yeah, she should talk to a partner to get it straightened out. Otherwise she could pay the price down the road, by losing her job, for overlooking the accounting "irregularities".

[TooTallTom]

Also, the firm is out the interest (if any) while they carry the balance on the company card.

Hey, doesn't your wife work for a lawyer? Maybe they could give you some advice.

[Brian-Mn]

She needs to have a sit down with her boss. Just give her a heads up that she noticed what she is doing and will be obligated to report it if she see's it again.

She should make a note of the time and date of the meeting in case things go South.

CYA is in order here.

[upnorth]

The boss needs to know, but we are talking a proceed with caution thing here. I would suggest a brief question to her direct supervisor before heading to the big boss, there may be an agreement in place allowing for that to be done.

[Whoaru99]

Or, maybe before talking with anyone specifically, find out if there is a published acceptable use policy for the company card and give it a read.

[Matt C]

Audit season is right around the corner. The Auditors will be asking alot of questions regarding behaviors like that...

[timjones]

Depends on how the company has it set up. I had a company credit card for traveling. I was responsible for all charges on that card. At the end of each trip I would fill out an expense report for everything that I spent. There were allowable amounts for room, meals, gas, airline fairs, etc. I would be reimbursed by the company for allowable expenses. When the credit card payment came due, I had to pay any amount over and above what I was reimbursed that I may have put on the card that weren't considered allowable.

[Surface Tension]

Or, maybe before talking with anyone specifically, find out if there is a published acceptable use policy for the company card and give it a read.

That is were I'd start.

If allowable and there is a late payment, what action is your wife supposed to take?

[PerchJerker]

Is there a Human Resources department or person at the law firm? That would be the place to mention this ......

[Down Deep]

There should be a written policy for use of company funds. If there isn't, there should be. I work with and do business with several law firms and they all have a managing partner. That is where she should go. If your wife's position functions as a clerk and just prepares checks for approved expenses then I don't think she is complicit in the mis-use of funds. Although morally I believe she has responsibility to clarify the expenditure with someone within the firm as a loyal employee.

[MuleShack]

Depends on how the company has it set up. I had a company credit card for traveling. I was responsible for all charges on that card. At the end of each trip I would fill out an expense report for everything that I spent. There were allowable amounts for room, meals, gas, airline fairs, etc. I would be reimbursed by the company for allowable expenses. When the credit card payment came due, I had to pay any amount over and above what I was reimbursed that I may have put on the card that weren't considered allowable.

This is how our company is set up as well. This way the company doesn't get stuck with a bill, it is the users card. The company only reimburses the card user.

However if the lady is repaying the company bank account, this is a whole different set of circumstances then.

[SkunkedAgain]

She is repaying the company bank account, even telling my wife not to cash her reimbursement checks until payday. This company has always been poorly run in my opinion. The partners focus too much on their craft and not on the business. The office manager is new, only on the job since last year and also took over as the HR manager. So they are one in the same and there are barely any policies regarding how anything should be done. I view it as the wild west of business.

Thanks for all of the replies.

[candiru]

personally I think I would report it to the higher-ups. I can't help but think there is some kind of scam going on.

[Tom7227]

Simple. Report it because if the firm doesn't grow up and get things squared away they won't be in existence before long. In today's legal marketplace there's no room for this sort of sloppiness. As for the actions of the person in question - if she's running things that close to the edge it won't be long before she tips over it.

[slipperybob]

There are things called petty cash funds/accounts. Some people are just priveleged with those.