The Check’s (Not) in the Mail
A Compliance Case Study
The People:
Allison, a development specialist at the university
Keenan, a manager in the Office of Development
Carol, Director of Development
Mrs. Nguyen, a donor to the university
Micah, a specialist in Accounts Receivable
The Setting:
A meeting room in the Office of Development and University Relations
The Event:
Carol, the Director of Development for VCU, was working on a project in the department’s conference room when the conference room phone began to ring. Carol picked it up and answered.
“Hello, this is Carol.”
“Hi, Carol, it’s Keenan. Do you have a minute to discuss something?” he asked. “Sure,” said Carol, “Do you want to come down to the conference room?”
Keenan entered the room and closed the door. He wasn’t his usual self; he looked pretty serious. As he took a seat at the table, he said, “We’ve got a problem.”
“What is it?” asked Carol.
“Remember the donation made last month by Mrs. Nguyen?”
“‘The one for $50,000? Yes. What’s wrong?”
“Well, I just got off the phone with her. She wanted to know why a $50,000 check she sent a month ago had not been cashed. She wanted to know if everything was ok.”
“Wait. I remember handling that check. We entered it into the donor database and sent a thank you letter. Then, it went to……whom? Allison? She would have delivered it to Accounts Receivable, correct?”
“Correct. Do you want to call her down here to ask about it?”
“Yes, let’s see if she’s in.” Carol picked up the phone and dialed Allison’s extension. “Allison? Hey, it’s Carol! Are you busy? I’m in the conference room with Keenan. Can you join us for a minute? We have a question for you.”
A minute later, Allison joined them. “Hi! What’s up?”
Carol got right to the point. “Hey, do you remember Mrs. Nguyen, who made the donation to the scholarship fund last month?”
“Uh-huh,” replied Allison.
“Did you take her check to Accounts Receivable?”
“Yes, I did. Yeah – I dropped it off right after we received it.”
“So, like ‘after we received it,’ three weeks ago?” asked Keenan, “Because she called today to say it hadn’t been cashed yet and she was worried that something was wrong.”
“Wow,” said Allison, “Yeah, no. I’m positive I delivered it right after we received it. I wouldn’t forget about a check for such a large amount.”
“That’s what we thought, too. Okay, thanks,” said Carol, “We’ll try to figure out what happened with her bank; let us know if you think of anything out of the ordinary that happened with this donation.”
“Okay, I will. I’m sorry I couldn’t help any more,” said Allison as she left.
Carol didn’t understand why Mrs. Nguyen’s check had not cleared the bank. After reviewing the situation again, she decided to call Accounts Receivable. “Hi, Micah? It’s Carol in Development. I’m calling to follow up on a donor check we delivered to you guys.”
“Happy to help!” said Micah.”Can you give me the donor name?”
“Mrs. Linh Nguyen.”
“Got it. For $50,000?” asked Micah.
“That’s the one,” said Carol. “The donor says it hasn’t been deposited yet. Can you confirm the date that you received it?”
“Well,” said Micah, “She’s right; it hasn’t been deposited yet. We just got it yesterday.”
“What?” exclaimed Carol. “You received it YESTERDAY? We were told it was delivered to you three weeks ago.”
“No, ma’am,” sighed Micah. “This was stamped as received yesterday. Do you need anything else?”
“No….” said Carol, “I think I’ve got what I need. Thanks, Micah. Talk to you later.”
“Darn it!” Carol said to herself. “Allison wasn’t telling the truth about when she delivered the check. I’d better see if she’s still in.”
Carol was right; Allison hadn’t told the truth. When she asked her about the check from Mrs. Nguyen, Allison started crying and said she had forgotten about it. Then, yesterday, when she found it in a pile on her desk, she took it to Accounts Receivable.
“I’m really sorry I lied. I shouldn’t have done that,” said Allison. “I was afraid of getting in trouble.”
The Takeaway:
Carol called the ICO to discuss the matter and ask how to handle it. Ultimately, an investigation led to Allison receiving a written warning; not only because she violated the university’s Cash Receipting Policy, but because instead of admitting her mistake, she resorted to deception.
We all make mistakes. While Allison’s was, admittedly, a big one, it was still a mistake and not something she did intentionally or with malice toward the donor or the university. Fortunately, the Office of Development reached out to Mrs. Nguyen and was able to salvage an important donor relationship. Unfortunately, the damage done through Allison’s breach of trust could last for many years to come, as she attempts to regain the trust of her co-workers.
VCU is committed to an environment of integrity and one of the ethical standards we value is honesty. While it may be difficult, and even embarrassing, to admit when we have made a mistake, the benefits to being honest far outweigh the consequences of telling a lie.
Please note: The names, departments and details in this case study were changed to protect the people involved in the actual case investigated by the ICO.