• Association of Government Accountants published a four-part series regarding best practices for government credit cards Part 1, Part 2, Part 3, Part 4

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        Ohio Auditor of State Mary Taylor is requiring all state and local government agencies to report any federal stimulus dollars they receive, as well as their expenditures of those funds, to her office.

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Protecting Public Tax Dollars

Nine Tips for Preventing Bank Account Fraud in Government

1. Conduct periodic surprise audits and annual reviews of procedures.

2. Provide for the physical security of all checks:

  • Maintain check images in preference to paper copies.
  • Keep check stock in a locked and secure location
    with a formal inventory listing maintained.
  • Secure check stock daily. Remove continuous check
    stock from printers. Lock and secure check specific printers.
  • Physically void returned checks and check copies, and retain
    in a locked and secure location or destroy on a schedule.
  • Provide for the temporary physical security of electronically deposited checks, including storage in a secure facility, timely destruction via secure shredding and incineration, and dual control of the process. (The depositing government is liable for any fraudulent usage of these checks.)

3. Ensure appropriate security over signature plates,
cards and software.

4. Require additional review process for all checks
over a specified amount.

5. Require two-party authorizations (initiation and release)
on all wires and ACH files.

6. Require daily staff reconciliation of wires and ACH releases.

7. Ensure proper segregation of duties among staff initiating, authorizing, preparing, signing and mailing payments and reconciling bank statements.

8. Review signature cards and authority levels whenever any
changes occur and annually at a minimum.

9. Remove individuals from bank transaction authority immediately
upon resignation or termination.

[Source: Government Finance Officers Association, http://www.gfoa.org/downloads/bankaccountfraudcash.pdf]