Page 18 - The Edge - Fall 2019

SUMMER CONFERENCE & EXPO WRAP-UP

BY DON HARRIS

Lack of Internal Controls Can Open the Door to Fraud

Fraud is committed by school employees under three prosecutors, including the Attorney General, and recommends
primary conditions – pressure, opportunity and rationalization. how school districts can improve their operations.
Investigators for the Arizona O ce of the Auditor General It begins with an allegation, which comes from various
told AASBO members that generally all three must be present sources, including mail, email and phone calls, and whether
for someone to decide to steal public money. At a breakout public money is involved. A report by the Association of
session during the AASBO Summer Conference and Expo, Certi ed Fraud Examiners indicates that nationally about 40%
Gretchen Augustine, Manager of the Auditor General’s of allegations come from anonymous tips.
Division of Financial Investigations, and Nikki Gill, a Financial e length of an investigation varies depending on the
Investigator, provided examples of school employees who broke complexity of the review. If the person is indicted, the issue
the law – and were caught – and o ered recommendations on becomes a public record. Augustine said 99% of the cases are
how to reduce the possibility of fraud. “pled out,” negating the need for a trial.
Augustine explained that her unit investigates allegations
of misuse of public money, provides a con dential report to CONTINUED ON PAGE 20

18 THE EDGE | FALL 2019