When a cyberattack occurs, we often want to point the finger at our technical staff. We assume there must be a hole in our organization's security, and that our IT employees weren't doing all they could to prevent the attack. In reality, the days of simply relying on firewalls and antivirus software to keep hackers out of your network are over.
The Governmental Accounting Standards Board (GASB) releases new accounting standards nearly every year, and local governments have to evaluate and implement them. We know it can be challenging and time-consuming to implement new standards properly. But as auditors, we also know that a poorly planned implementation can lead to financial statement errors and raise concerns about the quality of your internal controls.
FOR IMMEDIATE RELEASE
Sept. 20, 2022
OLYMPIA – Today the Office of the Washington State Auditor released a fraud report and audit of Mason County Fire District No. 12, showing almost $70,000 in misappropriated public funds, as well as $95,000 in unsupported expenses.
Auditors also documented an overall disregard for state laws at the District in areas including ethics and conflicts of interest, open public meetings and financial transparency.
Hello, WFOA 2022! The State Auditor's Office is excited to be reconnecting with our partners in government accountability at the first in-person WFOA annual conference in three years. We're bringing our ‘A' (audit) game this year with four pre-conference trainings and 13 sessions. Our staff are presenting sessions on new BARS updates and lease accounting requirements, payroll and credit card internal controls, tips for fighting and reporting fraud, and much more.
The Office of the Washington State Auditor's new performance audit – I-1163: Addressing testing barriers for home care aides – found that home care aides face several barriers to becoming certified, including access to fewer tests sites and long testing delays.
Government-issued credit card programs provide convenience to employees while reducing procurement costs for small, frequently purchased items. Not only do these programs decrease the administrative burden of processing employee reimbursements, they also reduce the hassle of creating purchase orders with various vendors. It's no wonder these programs are growing in popularity.
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?