A Washington state employee misappropriated nearly $900,000 through fraudulent credit card purchases, the Office of the Washington State Auditor found in a fraud report released today. It is the largest internal misappropriation in a state agency in at least the last 15 years.
The report identifies $878,115 in misappropriations between 2019 and 2023 at the Office of Administrative Hearings (OAH).
Misappropriation of public funds and fraud cases have surged in just the past year due to remote work, artificial intelligence and other factors.
Five years ago, the Office of the Washington State Auditor advised the town of Cusick that it had inadequate controls over its payroll and credit cards. Had the small government followed its audit recommendations then, it likely could have avoided more recent, and much larger, losses.
Several irrigation and drainage districts near Yakima hired the same bookkeeper who misappropriated public funds through a variety of schemes, according to a report published today by the Office of the Washington State Auditor.
The Pierce County Housing Authority needs to prioritize better financial controls to reduce the risk of another loss of public funds, the Office of the Washington State Auditor concluded in a report published Thursday.
“It’s time to make strong financial controls the Pierce County Housing Authority’s highest priority. Without them, the risk of a loss of public funds is too high,” said State Auditor Pat McCarthy.
Employees are on the road again, traveling to various in-person trainings and conferences. Given this, one cannot help but wonder about the internal control systems for processing employee reimbursements and travel claims. Are they ready to handle this activity and prevent waste, loss or abuse?
It’s been a week of fraud—how to prevent it, spot it, and what to do once you’ve found it. This is a serious topic, so let’s end the week as we often do: with movie night! Grab some popcorn and wrap up International Fraud Awareness Week 2023 with a list of movies and podcasts that offer a glimpse into the emotional side of fraud.
Every year, the Special Investigations Team at the Office of the Washington State Auditor investigates frauds in all types of governments, from large state agencies to small towns and special purpose districts. In fiscal year 2022, our Office published 13 fraud reports, representing nearly half a million dollars in misappropriated or questionable use of public resources
One of the best tools in your fraud-fighting toolbox is a bank statement review. Whether you are a finance professional, a department head, or even an elected or appointed official, reviewing the bank statements can greatly increase your odds of deterring and detecting fraud.
State and local governments should be familiar with RCW 43.09.185, which requires them to immediately report all known or suspected losses to SAO. But the statute's long history has come with a lot of questions and confusion. For example, what constitutes a “loss”? Are there times when “immediately” doesn't make sense for the situation?