Utah Council implements fraud risk assessment best practices for government entities

Hurricane City Council is taking significant steps to combat fraud within local government operations, emphasizing the importance of ethical behavior and robust internal controls. During a recent meeting, council members discussed a comprehensive fraud risk assessment guide designed to help all levels of government implement best practices to mitigate potential abuses.

The guide outlines several key recommendations, starting with a strong commitment to ethical behavior. Council members stressed the necessity of having a clear policy that defines inappropriate conduct, reminding officials and employees of their duty to prioritize public interest over personal gain. This foundational step aims to establish a culture of accountability within the government.

Written policies and procedures were highlighted as essential tools for ensuring predictable and controlled actions. The council provided templates for various policies, including conflict of interest, procurement, and IT security, to help local entities safeguard their assets effectively.

Hiring qualified staff is another critical focus. The council advocates for each government entity to employ or contract with certified financial professionals, such as CPAs, to ensure sound financial management. Ongoing training for staff in financial responsibilities is also recommended to maintain high standards of competence.

To facilitate transparency, the council proposed the establishment of a reporting mechanism for unethical behavior, which could be as simple as an email address or voicemail. This system would allow for impartial reporting and ensure that complaints are handled objectively.

The discussion also included the importance of an internal audit function to verify compliance with both internal policies and external regulations. The council suggested that internal audits could be conducted collaboratively between neighboring entities to share resources and expertise.

Finally, the formation of an audit committee was recommended to enhance financial oversight. This committee would ensure that independent audits are performed and that internal audit functions are adequately resourced.

By implementing these strategies, Hurricane City Council aims to create a more transparent and accountable government, ultimately reducing the risk of fraud and enhancing public trust. The council encourages all local entities to utilize the resources provided in the fraud risk assessment guide to strengthen their operations.