There's been a lot of news coverage in recent years about audits in the state of Utah. While the public may wonder if the audits are worth the trouble (and money), Utah auditors are actually saving taxpayers money in addition to reducing corporate waste, corruption and fraud and holding our leaders and corporations fiscally responsible and accountable.
Here are the top five reasons an audit has helped the state and could help your business.
The No. 1 reason to request an audit is to discover fraud, especially considering the current economic environment we all live in. For example, an audit of Utah’s liquor control agency discovered that the agency has been "incompetently managed." The audit recommends that the state consider criminal charges against its former director after years of bid-rigging, falsifying financial documentation and artificially splitting invoices — all violations of state law.
Another report by the Utah State Auditor's Office in Feb 2010 discovered improper spending by the Garfield County School District. The headline from the 36-page report is the identification of "improper and potentially fraudulent payments of over $88,000 to the former business administrator of the Garfield County School District" and "questionable payments of over $37,000 to the superintendent and others."
If you don’t think fraud is occurring in your organization because you have honest employees, think again. You are probably losing up to 7 percent of revenues due to fraud, according to the Association of Certified Fraud Examiners. Do yourself a favor and request an audit. It could save you money.
Preventing fraud and improving internal controls
Auditors are internal control experts, helping organizations ensure controls are in place to prevent inappropriate or fraudulent activities. According to a Utah legislative audit released in January 2012, the Utah Department of Alcoholic Beverage Control needs an internal audit division.
This audit took an expanded look at the department after a May 2011 audit found a $300,000 loss at a contracted retail outlet in Eden, Weber County. "We found that the problems associated with the Eden Packaging Agency were not isolated, but DABC has strengthened controls over package agencies since the Eden audit," the report from the Legislative Auditor General concluded.
Holding leaders fiscally responsible, accountable and compliant
Want to hold your managers more accountable? Utah State University fired its executive director of enrollment services after a March 2012 internal audit revealed irregularities in the way scholarships had been distributed. Those irregularities were discovered through an ongoing risk management process where the university audits various departments.
"We're regularly doing audits, and in this case the auditors decided to look at how scholarships are dispersed and found some irregularities," USU spokesman Tim Vitale said.
Requesting an audit to ensure your employees are complying with your own company’s policies and holding them more accountable could save your company from having to fire valuable employees.
Finding ways to save money and operate more efficiently
Who wouldn’t want to save money and run more efficiently? With state park systems across the nation under pressure to reduce the use of taxpayer funds, the Natural Resources Appropriations Subcommittee in Janurary of 2011 requested an audit to identify strategies for the Utah state park system to be more self-sufficient and reduce its reliance on the General Fund. For fiscal year 2010, $9.2 million was spent from the General Fund to support Utah’s state parks. Recommendations from this audit could save the state $4.5 million over the next three years.
- Verizon buys Yahoo for $4.83B, marking end of...
- Historic solar flight marks first...
- Judge set to decide on $15B Volkswagen...
- Former Oregon lumber town rides digital wave...
- US home prices rise at steady pace as sales...
- Stocks waver as investors monitor company...
- US stocks rise, helped by jump in Apple shares
- Fiat Chrysler raises outlook as Q2 profits...
- Get all your outdoors work done by... 13
- Verizon buys Yahoo for $4.83B, marking... 3
- Deseret News, KSL want court records in... 3
- Historic solar flight marks first... 1
- 5 things to do when quitting your job 1
- Panel recommends options to reduce... 1
- Judge set to decide on $15B Volkswagen... 0
- Former Oregon lumber town rides digital... 0