Fraud

The Camas-Washougal Economic Development Association resisted audits for years, lost public funds and lacked even basic financial documentation since its inception, the Office of the Washington State Auditor found in two reports issued today.

“Public funds need oversight and they need regular audits. Unfortunately, this is an example of the danger to tax dollars and public trust when accountability is shortchanged,” said State Auditor Pat McCarthy. “I hope it serves as a reminder of the importance of transparency and independent auditing, regardless of circumstance.”

In December, we published the results of Washington's largest public fraud investigation on record. This week, the person we identified as having misappropriated $6.9 million from a local government was indicted on federal charges.

It is a good example of the complementary but separate roles of the State Auditor's Office and law enforcement.

TACOMA – Today, the Office of the Washington State Auditor released its report on a major fraud investigation involving the Pierce County Housing Authority. The finding, nearly $7 million in misappropriated public funds, is the largest case of its kind on record for a Washington local government.

By Team IT Audit

Estimated reading time: 3 minutes

By Team Audit Management

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Users of our audits, such as the public, rely on our reports to inform them of important audit results. These stakeholders have consistently communicated to us that fraud in government is an important topic they want to know about.

Today the Office of the Washington State Auditor released a pair of reports regarding King County Drainage District 5, including a fraud investigation.

A “bank sweep” is a process where you check with financial institutions to make sure no bank accounts exist for your organization that you aren't aware of.

Local governments should ensure they protect against cybersecurity frauds in which an employee's direct deposit payroll gets redirected to a fraudster's bank account.

While cash transactions might be less frequent than those involving credit or debit cards, or have individual low dollar values, over time small daily losses can add up. According to the Association of Certified Fraud Examiners' (ACFE) 2016 Report to the Nations, the average median loss when cash was misappropriated ranged from $25,000 to $90,000.

Estimated reading time: 3 minutes