South Salt Lake finance staff report low fraud risk but say annual ethics attestation not required

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At a Nov. 12 South Salt Lake City Council meeting, the finance department presented its annual fraud-risk assessment and reported the city’s overall fraud-risk score as 3.35 out of 3.95, which staff described as “low.” Crystal, the finance presenter, told the council the assessment follows guidance from the Utah Office of the State Auditor and is available on the city website.

Why it matters: The assessment examines separation of duties for cash handling, purchasing and payroll, and looks for written policies and appropriate staffing. Crystal said the city has mitigating factors including adopted IT and conflict-of-interest policies, two CPAs on staff who maintain continuing professional education, and a state-administered fraud hotline for reporting concerns.

Council members pressed on the ethics policy. A council member asked whether employees and elected officials are required to “annually commit in writing to abide by a statement of ethical behavior.” Crystal answered that employees attest to ethics on hiring and when employee manuals are updated, but the city does not require an annual written attestation for all employees; the department’s CPAs do attest to ethics requirements as part of licensure every two years.

On specific controls, Crystal said the finance department enforces separation of duties—for example, those who have access to check stock do not have signing authority—and has external review of bank statements and payroll authorizations. She also noted the department maintains multiple employees with higher-education credentials and certifications.

The presenter invited further questions and said the completed assessment is attached to the council agenda and available online. The council did not take formal action on the assessment; it was presented for information and oversight.