Who's Minding The Store?

http://www.sun-sentinel.com/news/local/broward/sfl-flbworkforceone0823nbaug23,0,7290962.story
It seems to me this is another case of the guardians of the public's largesse not adequately doing their job.

Beginning with the amount of the embezzlement of $2.4 million, it equates to an average of $200,000 per year for 12 years. How was she able to divert the checks involved? Where were the organization’s internal controls? Were they adequate?

Where were the organization's auditors?

From the story, it appears to be a "lapping" scheme. Nothing very sophisticated or uncommon. A simple look at the defendant's apparent style of living and her net worth in relationship to her annual salary would have uncovered this scheme.

What was the amount of the annual theft as a percentage of the organization’s total annual revenues? Was it enough to trigger a second look at any time? Was the classic step of simply comparing the endorsements on the backs of a sampling of incoming checks with the correct account endorsements for authorized bank accounts ever taken? In other words, was any auditing "around" the computer instead of "through" the computer undertaken?