An investigation into a suspected £11,000 fraud in a Glasgow primary school is underway.
A council audit boss told city politicians that the cash has allegedly been "misappropriated."
Duncan Black, head of audit and inspection said he wanted to highlight a fraud being "investigated."
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He said: "We believe around £11,000 of school funds have been misappropriated. We are working with management on rectifying that."
A council report presented to the finance & audit scrutiny committee yesterday by Mr Black said: "failure to comply with the expected financial control framework has enabled a suspected £11,000 fraud within one of the council’s primary schools."
The council has not released the name of the school involved.
The probe came to light as Mr Black presented the council's internal audit annual report and draft governance statement to the meeting.
Mr Black also gave an update on the council's fraud team, which saved the public purse over £1.5 million during the last financial year.
The staff's investigations included false homelessness applications and claims relating to the Scottish Welfare Fund.
The meeting heard 298 whistleblowing allegations were made with 14 ongoing and 56 deemed unfounded. They included claims of abuse of power, theft and parking for the disabled among others.
Among other significant issues, Mr Black also outlined how a council payroll system - SAP - had a five week outage in January.
He said the outage had a "significant impact on key financial operations including payments to staff and suppliers" among other effects.
He said the auditing team were looking at lessons learned, manual workarounds, which took place and the clearing of backlogs.
The meeting also heard the department had been dealing with high staff turnover with auditors leaving for promotion.
The council report presented at the meeting said: "The council has a system of internal control designed to manage risk to a reasonable level. Internal controls cannot eliminate the risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness."
The report added how it is the "head of audit and inspection’s opinion that limited assurance can be placed upon the adequacy and effectiveness of the governance and control environment, which operated during 2022 to 2023 in the council and its subsidiaries and relevant associates."
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