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Audit committee reviews plan to move fraud hotline in-house to save $3,000 a year
Summary
County staff proposed replacing an externally contracted fraud hotline with an internal system to save about $3,000 annually; commissioners raised privacy and anonymity concerns and asked that the state auditor's hotline remain available as an external option.
County staff told the Audit Committee on Nov. 3 that the contract for the external fraud hotline will be phased out and that IT will build and host an internal reporting system. The presenter said the change is intended to reduce annual costs and that the state auditor's hotline will remain available for reporters who prefer an external channel.
"What we're trying to do is just save a little bit of money to provide the same service," the agency official said when explaining the recommendation to bring the hotline in-house. The presenter said the county had paid about $3,000 a year for the external service and that complaint volume had been low (one to two complaints per year), with few actionable matters identified.
Several commissioners responded that anonymity and employee confidence are important. One commissioner asked whether the internal system preserves anonymity; the presenter replied that reporters do not have to give their names but cautioned the system cannot guarantee anonymity if the content makes the reporter easily identifiable. As a backstop, the presenter said the state auditor's external hotline would remain available for those who wish to report outside the county system.
The committee asked staff to include a communication plan to educate employees about the new internal reporting option and to outline how employees can use the state auditor's hotline if they prefer an outside channel.
