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?
Local governments rely on predictable and stable revenues from things like property and sales taxes, various charges and fees, and transfers from state and other local governments.
But not every revenue is predictable. Most governments also receive revenues from rebates, donations, collection agency payments, agreements with annual payments, or one-time fees. These revenues are infrequent or unanticipated, making them a prime target for misappropriation.
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 uses of public resources.
The Association of Certified Fraud Examiners (ACFE) recently reported that nearly a third of all fraud cases occur because of a lack of internal controls. When your government has anti-fraud controls in place, you not only increase your ability to detect fraud quicker, but also decrease potential losses resulting from fraud.
Elected officials and members of appointed boards have a responsibility to understand their government's operations. They also have a key role to play when it comes to preventing, detecting and responding to employee fraud. Employee fraud often comes as a shock to those charged with oversight of a government, but the reality is that any organization—from a large city government to a small special purpose district—is vulnerable to 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 2021, our Office examined 46 reported fraud cases, representing more than $647 million in misappropriated public resources. No matter the type or size of your government, fraud could happen to you and, if left undetected, it could have significant financial implications.
When frauds happen, people are often left in disbelief that someone they knew would choose to deceive and harm their organizations. We've all heard stories of the “trusted employee” who proved to be anything but trustworthy. Outside observers often have questions like “how could this have happened?” or “shouldn't someone have noticed?” Answers to these questions usually require a deeper understanding of the “human side” of fraud.