LPO fraud highlights need for robust financial controls

Trustees at the London Philharmonic Orchestra (LPO) responded well to a fraud situation a Charity Commission investigation has found. The Commission opened an investigation in November 2009 after being made aware of fraud committed by the LPO’s former finance director between June 2005 and August 2009. According to the report, the LPO trustees undertook a series of actions that allowed it to successfully recover £1.2m of losses through legal action. The individual responsible was convicted of fraud by abuse of position and acquiring and using stolen property, and sentenced to 4 years in prison.

By reviewing and strengthening its internal financial controls the Commission says the LPO is now in a stronger position to better protect itself from future harm. The investigation concluded that the trustees acted responsibly in a number of ways by obtaining professional advice including commissioning a forensic investigation by an independent accountancy firm. The Commission is keen to highlight issues for the wider sector arising from the case including the importance of having in place robust internal financial controls.