Protecting Your County From Fraud
McNair, McLemore, Middlebrooks & Co., LLC
Overview
You can't fix what you don't control
Reasons fraud is more likely in county
governments
How fraud can occur in yo...
My First Fraud:
Theft by Tax
Commissioner
You can't fix
what you
don't control
What does the typical
agency fund's activity look
like?
Money is Collected
Money is Deposited
Money is Remitted
1. Stolen as
Received
2. Stolen
Before Deposit
3. Check written
to...
Lessons Learned
County Commissioners can't
control the operations of
constitutional officers
Auditors can't make anyone
ch...
Lessons Learned
Nice people steal
Segregation of duties are often
lacking in smaller offices
Reasons fraud
is more likely in
county
governments
County Cash
Collection Points
County Cash Collections
Landfill
Tax Commissioner
Probate Court
Magistrate Court
Sheriff's Office
County Cash Collections
Ambulance Service
Law Library
Drug Task Force
Commissioners' Office
Recreation Department
Uniformity=Safety
Lack of Uniformity =
Risk
Small offices often lack
sufficient controls
Who?
County Commissioner
Clerk of Superior Court
Sheriff's Office
Tax Commissioner
Payroll Clerk
How Funds Were Used
Vacation Expenses
Mortgage Payments
Build a Barn
Christmas Gifts
Waterslide
Fraud Occurrences
Fictitious Vendors
Kickbacks
Skimming
Inflated Payroll
Noncash (theft of physical assets)
What are the
largest threats?
36%
Corruption
23%
Fictitious Vendor
What you
can do to
protect your
county?
Fraud
Hotline
1-800 number to
anonymously report
fraud or suspicions
of fraud
43% of Frauds
Detected by Tips
Fraud
Training
Employees need to
know the red flags
of fraud
Surprise
Audits
Create a "camera"
effect
You want employees to
think "if I steal, I will be
caught."
Bank
Statement
Transparency
Possibly mail bank
statements to a
County Manager or
County Commissioner
Map Your
Processes
Highlight your
control weaknesses
Know Your
Risks
It's the unknown
risks that create the
greatest harm
Contact Information
McNair, McLemore, Middlebrooks & Co., LLC
Charles B. Hall, CPA, CFE, MACC
Direct line: 478-330-5248
Em...
Firm Information
McNair, McLemore, Middlebrooks & Co., LLC
P.O. Box One, Macon, Ga. 31202
22 partners
65 CPAs
125 employee...
Preventing Fraud in Georgia County Governments
Preventing Fraud in Georgia County Governments
Preventing Fraud in Georgia County Governments
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Preventing Fraud in Georgia County Governments

Slide presentation about how fraud occurs in Georgia county governments and how to prevent theft in those entities.
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Preventing Fraud in Georgia County Governments

  • 1. Protecting Your County From Fraud McNair, McLemore, Middlebrooks & Co., LLC
  • 2. Overview You can't fix what you don't control Reasons fraud is more likely in county governments How fraud can occur in your county What you can do to protect your county
  • 3. My First Fraud: Theft by Tax Commissioner
  • 4. You can't fix what you don't control
  • 5. What does the typical agency fund's activity look like?
  • 6. Money is Collected Money is Deposited Money is Remitted 1. Stolen as Received 2. Stolen Before Deposit 3. Check written to Officer or Employee Places Theft OccursNormal Processes
  • 7. Lessons Learned County Commissioners can't control the operations of constitutional officers Auditors can't make anyone change
  • 8. Lessons Learned Nice people steal Segregation of duties are often lacking in smaller offices
  • 9. Reasons fraud is more likely in county governments
  • 10. County Cash Collection Points
  • 11. County Cash Collections Landfill Tax Commissioner Probate Court Magistrate Court Sheriff's Office
  • 12. County Cash Collections Ambulance Service Law Library Drug Task Force Commissioners' Office Recreation Department
  • 13. Uniformity=Safety
  • 14. Lack of Uniformity = Risk
  • 15. Small offices often lack sufficient controls
  • 16. Who? County Commissioner Clerk of Superior Court Sheriff's Office Tax Commissioner Payroll Clerk
  • 17. How Funds Were Used Vacation Expenses Mortgage Payments Build a Barn Christmas Gifts Waterslide
  • 18. Fraud Occurrences Fictitious Vendors Kickbacks Skimming Inflated Payroll Noncash (theft of physical assets)
  • 19. What are the largest threats?
  • 20. 36% Corruption
  • 21. 23% Fictitious Vendor
  • 22. What you can do to protect your county?
  • 23. Fraud Hotline 1-800 number to anonymously report fraud or suspicions of fraud
  • 24. 43% of Frauds Detected by Tips
  • 25. Fraud Training Employees need to know the red flags of fraud
  • 26. Surprise Audits Create a "camera" effect You want employees to think "if I steal, I will be caught."
  • 27. Bank Statement Transparency Possibly mail bank statements to a County Manager or County Commissioner
  • 28. Map Your Processes Highlight your control weaknesses
  • 29. Know Your Risks It's the unknown risks that create the greatest harm
  • 30. Contact Information McNair, McLemore, Middlebrooks & Co., LLC Charles B. Hall, CPA, CFE, MACC Direct line: 478-330-5248 Email: chall@mmmcpa.com Blog: cpa-SCRIBO.com
  • 31. Firm Information McNair, McLemore, Middlebrooks & Co., LLC P.O. Box One, Macon, Ga. 31202 22 partners 65 CPAs 125 employees Offices in Macon and Perry Office phone: 478-746-6277

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