Pleasant Grove reports low fraud risk score; assessment to be posted to state auditor site

Pleasant Grove officials told the city council on Tuesday that a routine fraud risk assessment required by the state auditor shows the city scored 355 out of a possible 395 points, which staff characterized as a low fraud-risk level.

Denise, the staff member presenting the assessment, said the score reflects several points categories including separation of duties, completion of a clean external audit, personnel policies, and internal controls. She said the city recently updated policies including a cellphone policy and a credit-card policy and that training and a fraud hotline listing on the city website contributed to the score.

Denise said she and Scott, in his role as city manager, will sign the assessment and post it to the state auditor’s transparency website; she anticipated posting the document on the auditor’s site the following day. She also said the auditors had asked that the assessment be presented in a council meeting so members would be aware of the city’s compliance status.

Why it matters: The annual or periodic fraud risk assessment helps the state auditor and the public evaluate municipal internal controls, policy currency and exposure to fraud risk. A low-risk finding indicates current controls and policies are meeting the assessment’s criteria and that staff training and reporting mechanisms are in place.

Speakers and evidence: Denise presented the assessment and Scott (city manager) was referenced as the other signer. Denise said the city had a fraud hotline link on the website and that staff training and audit completion contributed to the score.

Ending: Denise said she would sign the assessment with the city manager and publish it to the state auditor’s website the next day.