Finance department reports low fraud risk score; city wins GFOA certificate of achievement

City finance staff reported the results of the annual fraud-risk assessment required by the state auditor, saying that separation-of-duties controls, adopted written policies and certified accounting staff mitigate broad fraud risk. The presenter said the city scored 335 out of 395 and classified overall fraud risk as low.

The presentation described specific mitigation practices, including segregation of duties for check stock access, independent review of bank statements, separation of payroll authorization from payroll preparation, written IT and conflict-of-interest policies, and a staffed finance team that includes two certified public accountants who complete continuing professional education.

Staff also said the city maintains a fraud hotline administered by the state to receive and process reports. Crystal (Finance) said the hotline link is posted on the finance department’s web page.

At the meeting Mayor Mary Wood reported the city’s annual comprehensive financial report for the fiscal year ended June 30, 2023 qualified for the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting, the highest recognition in governmental accounting and financial reporting.

Nut graf: The finance presentation emphasized internal controls and professional staff as key fraud mitigations and highlighted external recognition for the city’s financial reporting.

Ending: The council received the reports with no further action requested; staff offered to answer questions and pointed to online resources for fraud reporting and the annual financial report.