Below I provide useful governmental internal controls that you need to know.
Why am I providing this list of useful controls? Most small governments struggle with establishing sound internal controls. So, the list provides a foundation for preventing theft in your government. While not a comprehensive list, I thought I would share it.
Many of the internal controls listed below are also pertinent to nonprofits and small businesses as well. You will find this same checklist in The Little Book of Local Government Fraud Prevention (available on Amazon) which provides many more fraud prevention ideas.
I am providing general fraud prevention controls and then transaction-level controls for:
What additional controls do you recommend? Share your thoughts below.
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Charles Hall is a practicing CPA and Certified Fraud Examiner. For the last thirty years, he has primarily audited governments, nonprofits, and small businesses. He is the author of The Little Book of Local Government Fraud Prevention and Preparation of Financial Statements & Compilation Engagements. He frequently speaks at continuing education events. Charles is the quality control partner for McNair, McLemore, Middlebrooks & Co. where he provides daily audit and accounting assistance to over 65 CPAs. In addition, he consults with other CPA firms, assisting them with auditing and accounting issues.
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