CHAPTER 2: INTERNAL CONTROL AND AUDITING PROCEDURES

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SUBSECTION 6.2.2.3
PROCEDURES TO BE FOLLOWED WHEN A LOSS IS SUSPECTED

6.2.2.3.1

General

Effective Date:

July 1, 1991

In the event of the suspected loss of public funds, it is important that correct procedures are followed in order to minimize the loss, ensure that investigations are not hampered, ensure that improvident settlements are not made, ensure that bond claims are not jeopardized, and ensure that incorrect personnel actions are not taken.

6.2.2.3.2

Agency Procedures

Effective Date:

July 1, 1991

6.2.2.3.2.a

Agency personnel not involved in the suspected loss should be notified prior to contacting the outside agencies. This may include the agency head or deputies, chief financial officer or internal auditor depending upon the circumstances.

6.2.2.3.2.b

Suspected losses are to be reported to your agency's Assistant Attorney General immediately. If your agency's assigned Assistant Attorney General is not immediately available, contact another Assistant Attorney General. In those agencies advised by more than one Assistant Attorney General, it is best to establish, in advance, which of the agency's assigned Assistant Attorneys General have been designated to handle cases of loss of public funds. If you are unsure which Assistant Attorney General to contact, contact the chief legal counsel for the agency or the central Office of the Attorney General.

6.2.2.3.2.c

Report the suspected loss to the Office of the State Auditor, Chief Examiner, Division of Departmental Audits.

6.2.2.3.2.d

Report the suspected loss to the Bureau of Risk Management, Department of General Administration.

6.2.2.3.2.e

If the agency is so advised by the Attorney General's Office, contact the appropriate local law enforcement officials.

6.2.2.3.2.f

Do not contact the insurance carrier directly.

6.2.2.3.2.g

Do not initiate any personnel actions without conferring with the Attorney General's Office and the agency's personnel officer.

6.2.2.3.2.h

Do not attempt to correct the loss without reporting to the above offices.

6.2.2.3.2.i

Do not destroy any pertinent records.

6.2.2.3.3

Attorney General’s Procedures

Effective Date:

July 1, 1991

6.2.2.3.3.a

Advise the agency sustaining the loss of the appropriate legal-related actions necessary.

6.2.2.3.3.b

Ensure that the following notifications are made as soon as possible:

Prosecuting Attorney, if appropriate.
State Auditor, Division of Departmental Audits.
Department of General Administration, Bureau of Risk Management.

6.2.2.3.4

State Auditor’s Procedures

Effective Date:

July 1, 1991

6.2.2.3.4.a

Review the findings of the agency's internal auditor and/or conduct an independent audit as appropriate.

6.2.2.3.4.b

Verify that the agency has notified appropriate officials; and, if not, ensure proper notifications are made.

6.2.2.3.4.c

Report any findings and recommendations of corrective actions to the appropriate officials.

Return to CHAPTER 2: INTERNAL CONTROL AND AUDITING PROCEDURES

6.2.2.3.2.a	Agency personnel not involved in the suspected loss should be notified prior to contacting the outside agencies. This may include the agency head or deputies, chief financial officer or internal auditor depending upon the circumstances.
6.2.2.3.2.b	Suspected losses are to be reported to your agency's Assistant Attorney General immediately. If your agency's assigned Assistant Attorney General is not immediately available, contact another Assistant Attorney General. In those agencies advised by more than one Assistant Attorney General, it is best to establish, in advance, which of the agency's assigned Assistant Attorneys General have been designated to handle cases of loss of public funds. If you are unsure which Assistant Attorney General to contact, contact the chief legal counsel for the agency or the central Office of the Attorney General.
6.2.2.3.2.c	Report the suspected loss to the Office of the State Auditor, Chief Examiner, Division of Departmental Audits.
6.2.2.3.2.d	Report the suspected loss to the Bureau of Risk Management, Department of General Administration.
6.2.2.3.2.e	If the agency is so advised by the Attorney General's Office, contact the appropriate local law enforcement officials.
6.2.2.3.2.f	Do not contact the insurance carrier directly.
6.2.2.3.2.g	Do not initiate any personnel actions without conferring with the Attorney General's Office and the agency's personnel officer.

6.2.2.3.2.h	Do not attempt to correct the loss without reporting to the above offices.
6.2.2.3.2.i	Do not destroy any pertinent records.

6.2.2.3.3.a	Advise the agency sustaining the loss of the appropriate legal-related actions necessary.
6.2.2.3.3.b	Ensure that the following notifications are made as soon as possible:
	Prosecuting Attorney, if appropriate. State Auditor, Division of Departmental Audits. Department of General Administration, Bureau of Risk Management.

6.2.2.3.4.a	Review the findings of the agency's internal auditor and/or conduct an independent audit as appropriate.
6.2.2.3.4.b	Verify that the agency has notified appropriate officials; and, if not, ensure proper notifications are made.
6.2.2.3.4.c	Report any findings and recommendations of corrective actions to the appropriate officials.