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Municipal Misappropriation

Online Exclusives ​Emily E. Kidd, CIA, CGAP Nov 14, 2019

By exploiting legacy system knowledge, a key finance employee siphons county funds to his personal account.

X​avier County billed its residents monthly for their utility use through its finance division using in-house legacy software, which was not up to the rigors of modern billing and reconciliation processes. Unfortunately, the county had a “We have always done it this way” mindset, so there were no plans to upgrade the system.

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​Emily E. Kidd, CIA, CGAP

​Emily E. Kidd is director of internal audit at the City of Reno, NV.