STATE AUDITOR ROB SAND SPOTLIGHTS TOP FORMS OF FRAUD IN PUBLIC AND PRIVATE SECTOR ORGANIZATIONS
November 14, 2023
Des Moines, IA – State Auditor Rob Sand is shining a light on fraud and the misuse of tax dollars during International Fraud Awareness Week, November 12-18, 2023, in partnership with the Association of Certified Fraud Examiners (ACFE) and the ACFE Des Moines Chapter.
“The vast majority of Iowa’s state, county, and municipal employees are honest, hard-working people,” said Sand. “Unfortunately, some take advantage of a lack of policies and procedures in the workplace that would otherwise prevent the theft of public funds and resources.”
Since taking office in 2019, Auditor Sand’s team has uncovered an average of $583,000 a month in fraud and misuse of tax dollars. The median loss per incident was more than $42,000. In more than 20% of the cases, losses topped $100,000.
The top forms of fraud include:
- Theft and Skimming – Receiving compensation without reporting transactions, undeposited collections, removing and selling inventory, cash, consumables, or information.
- Procurement Fraud – False invoicing, credit card misuse, receiving kickbacks for referring work to related parties.
- Fraudulent Expenditure Claims – Using false receipts to claim items such as travel and accommodation allowances.
- Payroll Fraud – Claiming overtime for hours not worked or adding fake employees to the payroll.
“It’s easier to prevent fraud than it is to recover the money after it’s stolen,” said Sand. “That’s why it is so important for organizations and government entities to develop an anti-fraud, anti-corruption culture.”
Sand, Iowa’s top taxpayer watchdog, encourages all Iowans to be fraud-fighting watchdogs in their workplaces and communities. To report the misuse of public funds or resources, email info@aos.iowa.gov or call 515-281-5834. Additional information on fraud prevention can be found on the Auditor of State website, Facebook, and X, formerly known as Twitter.
