Fraud Prevention

The American Institute of Certified Public Accountants’ Auditing Standards Board issued Statement of Auditing Standard, No. 99 (SAS #99): CONSIDERATION OF FRAUD IN A FINANCIAL STATEMENT AUDIT in October 2002 and it became effective for audits of financial statements for periods beginning on or after December 15, 2002.

The HCDE Fraud Prevention Model and Awareness Program supports SAS #99 by communicating to management and others an awareness and understanding of fraud, and educating management about fraud and the types of controls that will deter and detect fraud. The Business Services division alone cannot prevent and/or detect all the types of fraud that may be perpetrated within HCDE. It takes all HCDE employees being aware and knowledgeable that fraud could occur to possibly prevent fraud from occurring or even detecting a fraud that has occurred.

All HCDE personnel, especially management personnel, have the responsibility to:

  1. safeguard HCDE resources: financial, physical, and human, and
  2. to be aware of the risks of fraud.

This program is a great way to bring awareness to management personnel of their responsibilities in this area. This program is also one of the ways the independent auditors have to evaluate HCDE internal controls.

HCDE Fraud Prevention Model and Awareness Program

Checklist of Handouts

Tab 1. Introduction

Tab 2. HCDE Internal Control Structure: A Primer for Safeguarding Assets and Preventing Fraud

Tab 3. Risk Assessment Checklist - Review of Key Risk Areas in HCDE

Tab 4. Board Policy: CAA LOCAL - Fiscal Management Goals and Objectives - Fraud Policy

Tab 5. Board Policy: CH LOCAL - Purchasing and Acquisition

Tab 6. Board Policy: CH LEGAL - Purchasing and Acquisition

Tab 7. Accounting Procedure: Contract Monitoring and Compliance Procedure

Tab 8. Accounting Procedure: Grant Monitoring and Compliance Procedure

Tab 9. Accounting Procedure: Authorization for Electronic Purchasing Procedure

Tab 10. Purchasing Procedure: Processing Temporary Personnel Services

Tab 11. Accounting Procedure: In-County Mileage Reimbursements

Tab 12. Flow Chart: Procedures for Initiating a Purchasing Commitment

Tab 13. Quick Reference Guide to HCDE Purchasing Policies

Tab 14. HCDE Signature Authority Forms - Finance - Required Annually

Tab 15. HCDE Signature Authority Forms - Payroll - Required Annually

Tab 16. Conflict of Interest Disclosure - Budget Managers - Required Annually