Any governmental agency that handles cash, checks, gift cards, or money orders is at high risk of fraud or theft. Fraud and theft can be committed by more than just current employees; Vendors and even past employees who still have access to government systems run the risk of perpetrating these crimes. Therefore, it’s paramount that state and local governments implement strong cash controls in order to discourage theft and fraud.
There are three critical areas of opportunity where fraud is likely to occur, they include:
- Weak internal controls
- Lack of segregation of duties
- Management’s ability to override preventive controls
If your agency is lacking in any of the above areas, we suggest reading the full article here: Implementing cash controls to discourage theft and fraud. Here you can find further information on the subject, as well as control implementation suggestions that will weaken your susceptibility to fraud.
If have further questions please contact Paul Nielson at Isler CPA and he will be happy to help you with any additional questions.