A Brief Note On District Health Board : Scandals

1244 Words Mar 18th, 2015 5 Pages
Otago District Health Board - Scandals in Auditing


With the avalanche of accounting scandals that have rocked the public, people tend to have increasingly high expectation that auditors are accountable for detecting all frauds, while the standards require auditors to provide reasonable, but not absolute, assurance. The purpose of the report is to discuss the accountability of auditors in detecting fraud by analysing a $16.9 million fraud of Otago District Health Board (ODHB) perpetrated by Swann and Harford from 2000 to 2006. The report will explain the event, the fraud, the stakeholders, the role of auditors and the current situation.

About ODHB

The ODHB, historically known as HealthCare Otago, was reformed as one of 21 DHBs on 1st January 2001 under the New Zealand Public Health and Disability Act 2000. Accordingly, it was a government-funded sector located in Dunedin with the aim to support healthcare providers and promote the well-being of the population (NZ Parliament, 2009). On 1 May 2010, Southern District Health Board was established succeeding the merger of Southland and Otago DHBs (Southern DHB, 2010).

Events Overview

Michael Swann, the chief information technology officer of ODHB, and his accomplice Kerry Harford who was the owner of Sonnford Solutions Limited, defrauded the ODHB of $16.9 million by creating 198 fraudulent invoices from Sonnford Solutions to ODHB for IT-related services that had never been delivered from 2000 to 2006 (NZPA,…
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