Chapter 6 Employee Frawd and the Awdr of Cash 269 EXHIBIT 6.52.1 Schedule of Interbank Transfers c-5 EVERREADY CORPORATION Schedule of Interbank Transfers December 31,2017 Date Date Disbursing Account Receiving Account Date per Bank Check Bank 417 1st National 1601 1st National 1193/ 31-Decb 31-Decm 1st National Payroll 31-Dec 31-Dec. 19621st National Date per Amount Books 10,463/ 24-Dec 24-Decm1st National Payroll 9,9714 08-Jan Date per Bank 24-Decn Bank 08-Janm 1st National Payro 08-Jan 08-Jan n Taced fom cash disbaniements journal Chesk property listed as ousstuinding on hank recoeciliation Vuched deposit cleared in bank statement Taced from cash receipts jourl .Vuwbaddepasit cleared in bank staternett. Nae We scanned the cash disbursenments and cash receipts journals for checks to and deposits from other bank accounts Asked about the Citizen National Bank transactions, EverReady's chief financial offi- cer readily admitted the existence of an off-books bank account. He explained that it was used for financing transactions in keeping with normal practice in the construction industry. He gave the auditors the December and January bank statements for the account at Citizen National Bank. In it, the auditors found the following: Citizen Natlional Bank Check Payable to Amount Dated Cleared Bank 4050 1st National $10,000 23-Dec 29-Dec 4051 Chase Bank 12.000 28-Dec 31-Dec 4052 1st National 12,000 30-Dec 05-Jan 4053 Chase Bank 14,000 4-Jan 07-Jan 4054 1st National 20,000 -Jan 13-Jan Received from Amount Date Chase Bank $1,000 22 Dee Chase Bank 15,000 30-Dec 1st National Chase Banlk 10000 05-Jan 12,000 07-Jan When asked about the Chase Bank transactions, EverReady's chief financial officer admitted the existence of another off-books bank account, which he said was the personal account of the principal stockholder. He explained that the stockholder often used it to finance EverReady's operations, He gave the auditors the December and January bank state- ments for this account at Chase Bank; in it, the auditors found the following: Chase Bank Check # 2220 2221 Payable to Citizen National Bank Citizen National Bank Citizen National Bank 11,000 15,000 12.000 Dated 22-Dec 30-Dec Cleared Bank 28-Dec 05-Jan 12-Jan