preventing fraud in georgia county governments
TRANSCRIPT
Protecting Your County From FraudMcNair, 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 your county
What you can do to protect your county
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 Officer or
Employee
Places Theft OccursNormal Processes
Lessons Learned
County Commissioners can't
control the operations of
constitutional officers
Auditors can't make anyone
change
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
Hotline1-800 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
AuditsCreate 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
ProcessesHighlight 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
Email: [email protected]
Blog: cpa-SCRIBO.com
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