Safeguarding Small Town Purse Strings From Financial Fraud

Abstract

For small towns three common factors for financial fraud are most apparent: inadequate trained staff, elected official's failure to institute strict audit budgetary controls, and the willingness to appoint an entrusted administrator to assume complete control over the financial managerial process. This is conference paper investigates the cultural-organization factors that allowed for publicly appointed officials to perpetrate such budgetary fraud of public monies and the financial safeguards that may prevent and discourage such fraudulent behavior.