The Treasurer of a registered charity in Devon is accused of stealing £200,000 from a local charity over the course of nine years by building “long-standing relationships within the organisation.”

Geraldine Coates, who runs her own bookkeeping company, is on trial for allegedly stealing the money between 2009 and 2018 while working as Treasurer of the Honiton and District Agricultural Association (HDAA).

Ms Coates held the position of Treasurer at the HDAA, a registered charity that funds local agricultural and educational projects, between 1996 and 2018 and was responsible for managing accounts, paying bills, overseeing invoices and chasing payments.

According to the prosecution, Ms Coates had built strong relationships within the charity and took advantage of the trust placed in her “to siphon funds for her own personal benefit.” She allegedly transferred the money directly into her own account.

Appearing at Exeter Crown Court last month, Ms Coates pleaded not guilty to one charge of fraud by abuse of position. If found guilty, she could receive a custodial sentence of up to ten years.

The impact of such a fraud, where a trusted individual dishonestly exploits her position to cause financial loss or personal gain, can be immense. In addition to the direct financial loss, organisations face significant disruption during any investigation and the risk of lasting reputational damage. Colleagues of the accused often feel a deep sense of personal betrayal.

Roger Isaacs, Forensic Partner at Milsted Langdon, points out that a key phrase from the prosecution’s case was the “limited financial checks” in place.

“This type of case illustrates the importance of robust internal controls.

He adds: “Cases like this are a reminder that trust, however well-founded it may feel, is never a substitute for proper financial governance.

“A Treasurer handling substantial funds should be required to obtain dual authorisation for significant transactions and periodic reconciliations by someone outside the finance function.

“These safeguards should not be burdensome or expensive to implement, but their absence creates exactly the kind of environment in which this type of fraud can go undetected for years.”

Source: BBC News