The Audit Connection Blog

Gaps in accountability led to $315,000 misappropriation by Employment Security Department employee

A former state Employment Security Department (ESD) employee misappropriated at least $315,282 in 2020, according to a fraud report released today by the Office of the Washington State Auditor. The investigation also identified $121,503 in questionable unemployment benefit payments associated with the same employee. ... CONTINUE READING

FIT Data Stories: COVID-19’s effect on revenues in border towns and special districts

In this bonus edition of our FIT Data Stories series on COVID-19’s effect on our cities and towns’ revenues, we use our Financial Intelligence Tool (FIT) to take a deep dive into how the pandemic affected Washington’s border towns and special districts. ... CONTINUE READING

Lack of subrecipient monitoring is leading to an increase in audit issues. Learn what you can do today

Earlier this summer, SAO published an article on subrecipient monitoring with information on the various requirements. But as governments continue to make subawards using funds from the Coronavirus Relief Fund or the Coronavirus State and Local Fiscal Recovery Fund, we want to emphasize some important points your government should keep in mind so you can avoid audit issues in the future. ... CONTINUE READING

Fraud features: A list of movies, videos and podcasts to help you understand the ‘human side’ of fraud

To round out the 2021 International Fraud Awareness Week, the State Auditor’s Office has put together a list of our favorite documentaries, short videos and podcasts to help you understand the "human side" of fraud. ... CONTINUE READING

Beware of employee fraud in the digital payment age

Local governments are moving away from traditional paper checks to more efficient and lower-cost digital payments, like direct deposit, automated clearinghouse (ACH) payments, electronic funds transfers (EFT), and wire payments. And the benefits are clear: You can pay a variety of vendors seamlessly, process employee payroll faster, and easily transfer funds between multiple bank accounts. ... CONTINUE READING

Protect your government from credit card fraud

The COVID-19 pandemic has likely forever changed how we purchase goods and services—at home and at work. E-commerce and contactless payment options have become the norm, and many governments have transitioned to using credit cards for the majority of purchases and for receiving payments. But as more online transactions occur, fraudsters also have more opportunities to steal credit card information. And judging from loss reports to the State Auditor's Office, the fraudsters are finding success in their schemes. ... CONTINUE READING

Board members have a role to play in fighting fraud

Electeds and boards are responsible for ensuring management has designed and put in place effective controls to manage fraud risk. In this article, we examine the role of electeds and boards – shorthanded throughout as “boards” – in preventing fraud, and offer tips to implement customized policies and best practices. ... CONTINUE READING

City of Wapato’s operations continue to struggle, recent audits show

While the city of Wapato’s financial safeguards have improved somewhat since the city’s last audits, the Office of the Washington State Auditor found significant weaknesses in two audits released today. ... CONTINUE READING

Fraud trends and emerging risks in a post-pandemic work environment

With International Fraud Awareness Week kicking off on Nov. 14, now is a great time to look back at how the COVID-19 pandemic affected the level of fraud in the workplace and understand the roadblocks to preventing and detecting fraud in a post-pandemic work environment. ... CONTINUE READING

Find ways to improve your accounts payable process with our new guide

The Center for Government Innovation at the State Auditor’s Office is excited to announce our new Accounts Payable Guide for local governments. Use this guide to find ways to improve your operations and discover best practices. ... CONTINUE READING