I'm currently working in a construction company and have noticed some strange activity recently which has put me in an awkward situation. One of my responsibilities is tracking the site staffs activity through their timesheets, logging project activity etc....
One lunchtime whilst out and about i noticed a few members of staff going into a business premises with the project manager taking materials and tools in. I assumed they were working in there on a project.
The next week i was looking for the project on their timesheets but it didn't appear and never has, in fact the time the site staff spent on that job was allocated by them to another separate project. I had a suspicion that something wasn't quite right with jobs and i think that this may have confirmed it. It seems the project manager is using the staff to work on other jobs, pocketing the money and using the company to pay the staff wages. The staff also have to be in on this as they are not putting the jobs on their timesheets.
Not really sure what to do about this. i should be letting the directors know but i suspect that one of them is in on this scam and one doesnt know about it. The directors are like chalk and cheese, one is a chancer, one is straight as a arrow. In which case whistleblowing may well cause a break up between the directors putting the company at risk and therefore my job.
I'm really quite annoyed about this an most of us in the company are hardworking, the wages are average but this project manager who is on a good salary seems to be stealing from the company in my opinion, just plain greed!!
I suppose i know in my heart of hearts i wont do anything about it but one day when the time is right i hope i do.
Hi Neil
Im not sure of your full background, but am assuming now that you work full time for this company and you do not have any other clients.
What an awkward position to be in. I am also assuming there is no whistleblower protocol in the business, but even if there was that it could be obvious where this information has come from. That said, even if one director is in the know the actions of this project manager could potentially damage the business just as much as a fall out between the Directors. Give their nature, which perhaps balance each other out (much as a sales director and FD working together - they butt heads but often reach a compromise!) have they had massive fallouts before and sorted their issues?
Im wondering if you can bring this to their attention without actually saying that you know there is an issue. As it is your responsibility to track such activity you could ask them for a meeting and explain your concerns/confusion, eg this contract is overspent whilst this is way under budget/timesheets are confusing type of conversation, so whilst not making any specific conclusions yourself you are actually leading them to make it.
The other option is to look for irrefutable evidence of this project managers wrongdoings in terms of a paper trail - I will guarantee there will be gaps in timesheets that cannot be fully accounted for/paperwork from customers/suppliers that dont link in properly - such people never fully cover their tracks.
Its that or start to look now for something else so that you can move on your own terms.
Maybe someone else on here might have some ideas too.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I personally would leave. Find a new job, keep your reference and run. Your time there would be unbearable after blowing the whistle. Horrid situation to be in. Ethically, you should report your fears to your boss. Tough and uncomfortable call.
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
I think Nigel you have to look after yourself here. There is no legal responsibility for you to report your suspicions but you clearly feel there is a moral responsibility and whilst I feel it is usually a good idea to follow your instincts, without some kind of safety net like a new job to go to, I think I would bite my lip. If you can cleverly introduce your concerns in the way Jo suggests then that may be the solution.
I would like nothing more than to tell of my concerns but i have no safety net to fall back on so will have to keep things to myself for now.
I've highlighted to the director projects where actual labour has far exceeded budget, i have a feeling that these projects are being used as a dumping ground for labour that is used on these other projects i've been taking about above. The Director has expressed concern about these high labour projects but the project manager will talk his way out of it, he has the gift of the gab as they say.
I hate dishonesty like this and i hate people being taken advantage of especially for personal gain but i need my job as well!!
I'm a little more confused over the moral dilema here.
your responsibility surely is to the management of the business.
Basic premise is that you can be held liable for :
What we knew
What we ought to have known
What we ought to have done about it.
You know that there is an issue here so by not reporting it are you not compliant with it?
Why would your position suffer if you voiced your concerns to management?
How could the project manager talk his way out of matters if the director does an impromptu site visit?
Is it the sort of business where you can air your concerns?
It is a conundrum but surely your ethical duty to the firm and risk of deemed compliance by not reporting make this an issue that needs to be discussed with the management and also air your concerns that you feel that if not caught in the act the manager will be able to talk the project manager will be able to talk his way out of it.
Personally, I would report it to senior management as I would feel that I had a moral and ethical duty to the business and my profession.
I cannot tell you what to do and I do not know whose professional bodies rules you work under but if they are IFAC affiliated you have a duty to report under sections 110, 120 and 130 otherwise you may also find yourself in trouble with your professional body as well as the business in question. (other bodies not recognised by IFAC generally have their own rules based on the IFAC code and some bodies recognised by IFAC have more stringent interpretations of the eithical rules).
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have no concrete proof that anything is a amiss is my first problem. I believe one of the Directors is actively involved, the other is not therefore knowing the two personalities involved this would send a shockwave through the business. The project manager involved is v friendly with the Director, drinking buddies. This company does not have the sort of culture where concerns are expressed. It is a construction company and the prevailing attitude is very much keep your mouth shut and get on with your work.
I see your point very clearly and agree with it however the issue is not black and white and i feel by taking this further, my position/reputation within the company would be put in jeopardy.
If the staff are not putting the 'other job' time on their time sheets, the business isn't paying them which would then presumably follow that it is not of cost to the business. Or have i missunderstood something?
I understood the issue to be that the staff are claiming the time they disappear with materials as if they had worked on a project for the employer, and the loss of materials.
