Financial Management

Do you remember the Nigerian prince scheme—that long-running internet fraud where the bad actor drains your bank account after obtaining your information? Fraudsters made $703,000 in 2018 alone on that one. While some fraudsters are still working that old scam, others have moved on to impersonating your employees and vendors to redirect Automated Clearing House (ACH) payments meant for payroll direct deposits or vendor payments. In fact, Washington governments reported $4.7 million lost to these schemes in 2020 and 2021.

It can be challenging to find the time to focus on improving your payroll process amid the constant demands and deadlines of payroll activities. While payroll may be a routine and repetitive process, it's still vulnerable to fraud and human error. Coupled with new and evolving ways to pay your employees and automate payroll, your process may not be as secure and efficient as it could be.

Wire transfers move money from one bank account to another. They are a fast way to send money and, if a fraudster intervenes, a fast way to lose it. Wire transfer fraud has dramatically increased in recent years, and more local governments are becoming victims of these scams.

Accounts payable is a process that delivers significant payments to vendors for goods and services and keeps local government operational. While the tasks that make up your accounts payable process may seem repetitious and mundane, they serve a critical business function—and they are vulnerable to fraud and error. When was the last time you took a hard look at your accounts payable process to ensure it's still designed appropriately and functioning properly?

The American Rescue Plan Act and the new Infrastructure Investment and Jobs Act are sending significant amounts of federal funds to Washington. This means that local governments will be spending more federal funds than ever. If you spend more than $750,000 in federal funds a year, you'll need a Single Audit examining your compliance with the requirements of your program(s).

Summer is here, and it's time for swimming, barbecuing and garage sales. If you have ever held a garage sale, you know that cash talks. Cash has the power to convince you to sell your worldly goods, but if you are not careful, it can also vanish into thin air. As auditors, we would say that if cash could really talk, it would tell you to protect it.

As part of “Cascadia Rising”—a series of exercises from June 13 to 16 to test Washington and Oregon's response and recovery capabilities to catastrophic earthquakes—SAO has compiled some steps governments can take to financially prepare for potentially large earthquakes and other natural disasters.

Originally published June 2, 2022. Updated August 9, 2023.

As local governments experience staffing shortages, such as for law enforcement, correction officers, paramedics, utility linemen and many others, existing employees may work increased overtime. Monitoring overtime is important, so we’re republishing this article that provides you with tools to do it.

Local governments track many assets with multiple objectives in mind. Whether your objective is accurate and complete financial reporting or safeguarding public assets, tracking all of your government's assets can quickly become a pain.

The American Rescue Plan Act (ARPA) established the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) program, administered by the U.S. Treasury, Assistance Listing Number 21.027. One eligible use of these program funds allows governments to replace lost revenue in order to avoid cuts in their services.