Local governments

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).

SAO's resource database offers dozens of free guides, checklists, best practices and tools to help Washington governments improve their internal controls, grant management, procurement practices, financial reporting and cybersecurity. And last week, we replaced it with something better!

Summer is in full swing and, hopefully, you'll enjoy some well-earned time off to relax and recharge your batteries with a peaceful vacation or just some hours on the golf course. Whatever you have planned, don't forget to take time to recharge your leadership battery.

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.

Sally is a new cashier for the county's district court. On her first day, she pockets some cash and posts an adjustment to the customer's account. No one notices, so she does it again the next day and the one after that. No one is reviewing her work, so days turn into years, and what started as a petty theft turns into a multi-thousand dollar fraud.

A successful financial reporting season is one where you act to achieve your objectives rather than react to problems. To get there, you need the right kind of planning so you can spot the trouble ahead and take control early. Performing an annual risk assessment may be the ticket to help you achieve a successful reporting season.