Fraudulent disbursements are the most common form of asset misappropriation. This type of disbursement occurs when an employee uses their position to make payment for an inappropriate purpose. They are on-book fraud schemes, which means that money in the form of checks leaves the entity fraudulently, but is recorded on the books and leaves an audit trail. In this way, entities can become victims of fraud, even when no cash is involved. Continue reading
Kennewick, Washington: The Benton-Franklin Health District building is a clean, modern facility, shining brightly from its location tucked behind a shopping center and other businesses. The waiting room is spacious, and the interior brims with helpful pamphlets about preventing common diseases, staying healthy and knowing when to visit your doctor. The facility is designed to put clients at ease as they wait for their appointments. Health District employees care about their clients and have designed their space around their clients’ comfort.
But what about the Health District’s internal processes? Employees, championed by District Administrator Jason Zaccaria, knew their day-to-day work could reflect the peaceful, client-centered flow of their external building. That’s why they contacted the Performance Center at the Office of the Washington State Auditor. Continue reading
Recently, the Performance Center provided several resources on accounting for capital assets to help local governments with financial reporting. Another group of assets, which fall below a government’s capitalization threshold, should also be considered when establishing and evaluating asset policies and other internal controls. In Washington, we frequently refer to these as “small and attractive assets,” but they these could be described using different terminology. For example, the Government Finance Officers Association refers to them as “controlled capital-type items” in its best practice guidance. Continue reading