National Museums Scotland (NMS) has called in the police after an internal audit revealed that over £80,000 was missing from its accounts.
The organisation asked its internal auditors, KPMG, to “review the integrity of certain cash withdrawals” after discrepancies dating back several years came to light in July last year, according to the NMS annual report for 2011-12.
The inquiry subsequently showed that a fraud had taken place and the NMS management contacted the police, who have confirmed that they are investigating a report of “historic fraud”.
NMS suspended two members of staff in its financial department at the start of the inquiry. One has since been sacked and the other has resigned.
In the organisation's annual report, auditors said their initial findings do not "imply a fundamental weakness in the system of internal controls”.
An NMS spokeswoman said: “We became aware of the issue in July 2012 and started an investigation immediately with the involvement of our internal auditors, KPMG.
“Since then it has been confirmed that there has been a fraud. The matter has been passed to Lothian and Borders Police.
“Two members of staff were suspended and, following internal disciplinary procedures, one member of staff was dismissed and the other resigned. We are unable to comment further.”
The alleged fraud has attracted comment from political leaders in Scotland. Willie Rennie, head of the Scottish Liberal Democrats, told the Scotsman: “The allegations of historic fraud that have been reported are clearly very serious.
"I know that management at NMS will be anxious to get to the bottom of this and it is right that the legal process is allowed to run its course.
"When it comes to bodies and organisations in receipt of public support, ministers need to be aware of exactly how taxpayers’ money is being spent.”
The police investigation is ongoing.
The organisation asked its internal auditors, KPMG, to “review the integrity of certain cash withdrawals” after discrepancies dating back several years came to light in July last year, according to the NMS annual report for 2011-12.
The inquiry subsequently showed that a fraud had taken place and the NMS management contacted the police, who have confirmed that they are investigating a report of “historic fraud”.
NMS suspended two members of staff in its financial department at the start of the inquiry. One has since been sacked and the other has resigned.
In the organisation's annual report, auditors said their initial findings do not "imply a fundamental weakness in the system of internal controls”.
An NMS spokeswoman said: “We became aware of the issue in July 2012 and started an investigation immediately with the involvement of our internal auditors, KPMG.
“Since then it has been confirmed that there has been a fraud. The matter has been passed to Lothian and Borders Police.
“Two members of staff were suspended and, following internal disciplinary procedures, one member of staff was dismissed and the other resigned. We are unable to comment further.”
The alleged fraud has attracted comment from political leaders in Scotland. Willie Rennie, head of the Scottish Liberal Democrats, told the Scotsman: “The allegations of historic fraud that have been reported are clearly very serious.
"I know that management at NMS will be anxious to get to the bottom of this and it is right that the legal process is allowed to run its course.
"When it comes to bodies and organisations in receipt of public support, ministers need to be aware of exactly how taxpayers’ money is being spent.”
The police investigation is ongoing.
