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Washington State Auditor’s Office Fraud External Investigation Review Checklist

June 2011 (Revised 10/30/2011)

Fraud Case Number F-13-253

Client Seattle School District

Investigator SEATTLE ETHICS AND ELECTIONS COMMISSION

Date Reviewed May 21 2013

Objective: Audit Policy 1410 may allow all or a portion of an investigation to be performed by a client, law enforcement agency (LEA) or other third party. In such cases, fraud investigators will review this work using the external fraud review checklist to determine if the investigative methods and conclusion can be relied on or if additional procedures are needed. Investigators will contact Sarah Walker, Fraud Manager, if you have questions or concerns during your review.

Notification of Suspected Loss

1 When was our Office notified of the suspected loss? If we identified the suspected loss, when and how?

No suspected loss was identified.

2 What was the amount or potential amount of the suspected loss?

0

3 What is the suspected method used to perpetrate the loss?

Shredded all supporting documents for receipts of cash.

4 Does the individual suspected in the loss have access to other accounting and financial systems? If yes, describe.

No

5 Was the individual suspected in the loss placed on administrative leave?

No. The individual was transferred to a different job that does not require any cash handling.

Objectivity and Competence

6 Who conducted the investigation? Name, Title Seattle Ethics and Elections Commission

7 In your judgment, is the individual investigating able to conduct an objective investigation? If no, describe.

Yes

8 Does the individual have the experience and/or knowledge necessary to conduct the investigation? If no, describe.

Yes

9 Has our Office had any prior concerns working with the individual investing? If yes, describe.

No

Scope, Methodology, and Evidence

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What was the scope and methodology of the investigation?

Existing records of deposits for School years 2010, 2011 and 2012 Interviews, record review and analysis

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11 Did the individual investigating address the “what else” question?

Yes

12 Were any subpoenas issued? If yes, describe. No

13 Describe analytical procedures performed. Are any other analytical procedures necessary?

Analysis of cash deposits was performed. We don’t believe that it is necessary or possible to perform any additional analytics.

14 Were tests of transactions conducted using the lowest possible original source documents?

Transactions cannot be tested because source documents were not maintained or destroyed.

15 Were interviews conducted of entity personnel? Yes

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Was the individual in question interviewed or given the opportunity to respond to the allegations? In cases where the individual is not interviewed, is the justification documented?

Yes

17 Did the individual in question admit to the suspected loss? If yes, when and how much?

The individual in questions denied allegations stating that money were used for various school needs.

18 Is there an overall summary including a schedule of the fraudulent activities and amounts misappropriated? Is the summary supported by work performed?

There is a summary of findings of investigation that lists wrong doing. No schedule of fraudulent activities, just violations of policies and procedures.

19 Is there fixed responsibility? Do you agree with the methodology used to assign fixed responsibility?

Yes.

20 When did the individual investigating complete the investigation?

May 2013

21 What are the results of the investigation and the amount of the loss?

No loss was identified by investigation

22 Who received the results of the investigation? When? District’s Management. In May 2013

Conclusions

23 Do you have any concerns about the work or evidence obtained? If yes, describe.

No

24 Do you agree with the conclusions? If no, describe. Yes

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Document how any concerns noted during this review will be resolved. If you think additional procedures should be performed, please describe and contact Sarah Walker, Fraud Manager, to discuss and obtain approval for the investigative plan and budget.

We do notice any concerns during our review that were not already resolved by investigator. We do not expect to perform any additional work on this investigation.

26 E-mail a copy of this review checklist to Sarah Walker, Fraud Manager.

e-mailed on 6-10-14