As moneys become tight and budgets continue to be squeezed, financial vigilance must be increased. Anti-fraud controls must be developed. Systems must continue to be reviewed and analyzed to reduce the chance of fraud.
This problem at the Santa Clara Unified School District may have been averted with proper internal oversight. The link will also link to the actual audit report!
Tuesday, October 16, 2012
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Definitely agree that systems need to be developed and implemented to prevent fraud. If businesses check a potential customer's credit application before extending credit, this can significantly reduce fraud. Why do companies not take the time to check a customer's information before allowing purchases?
ReplyDeleteKaplan,
ReplyDeleteDid you even read the article and the audit? The issue involved one govt agency contracted to provide services at an agreed upon rate for two others, and the employees of the contracted agency were basically taking their salaries and billing the contracted firm for services while on govt time.