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State auditor: More than $8 million in public benefit fraud identified last year

Boston Herald

The state Auditor's Bureau of Special Investigations found 490 cases totaling $8.16 million in public assistance fraud in the last year, according to a report released Thursday. Hampden County, home of Springfield, had 241 cases of fraud, more than any other county, State Auditor Suzanne Bump said. Statewide, the average amount of fraud per case was $16,938.67. "In Massachusetts, we recognize the value of a strong social safety net to help people put food on the table, access medical care and more. While fraud makes up a small portion of total public assistance spending, it has a disproportionate negative impact on public trust in these programs," Bump said in a statement.

California failed to heed warnings of unemployment benefit fraud for months, state audit says

Los Angeles Times

California officials in charge of the state's unemployment benefits system failed for months to heed warnings of widespread claims fraud during the COVID-19 pandemic, resulting in billions of dollars paid out on fraudulent claims, a state audit said Thursday. The report by State Auditor Elaine Howle said at least $10.4 billion in fraud has been identified on the first $112 billion in benefits paid since the pandemic began. But more claims have been paid since the audit was finalized -- the number is now $114 billion-- so officials of the state Employment Development Department said earlier this week they now have confirmed more than $11 billion in fraud, and are investigating $19 billion in other, suspicious claims for potential fraud. "EDD did not take substantive action to bolster its fraud detection efforts for its [unemployment insurance] program until months into the pandemic," Howle wrote to the governor and Legislature. "Specifically, EDD waited about four months to automate a key anti-fraud measure, took incomplete action against claims filed from suspicious addresses, and removed a key safeguard against improper payments without fully understanding the significance of the safeguard."

Artificial Neural Networks and Case-Based Reasoning Systems for Auditing

AITopics Original Links

Audit sampling is selecting a group of items such as invoices for investigation to draw inferences about an account balance. Ratio analysis involves comparisons between two financial statement accounts such as current ratios and gross profit percentage. Reasonable tests involve using financial and nonfinancial data to estimate an account balance. An example would be multiplying items sold by price to determine expected revenue. However, there are audit engagement risks with current auditing techniques.

Minnesota probe finds no proof stolen money aided terrorists

FOX News

Lawmakers asked Legislative Auditor James Nobles to look into the issue after KMSP-TV reported last year that the Minnesota Child Care Assistance Program was defrauded out of as much as $100 million per year. The station, partly citing unnamed sources, also reported that state and federal agents had determined that some of the ill-gotten money had gone overseas and that they believed at least some of it likely ended up with terrorists. The station's reports, which also cited Scott Stillman, a former computer forensics expert for the state Department of Human Services, which administers the program, suggested that fraudulently obtained money had gone to the Somali-based terrorist group al-Shabab. In his report, Nobles said investigators couldn't substantiate that any of the money ended up with terrorists. He also said that while fraud in the child care program is a problem, investigators couldn't establish a reliable estimate of how much money has been defrauded from it, though they believe it's more than the $5 million to $6 million that prosecutors have been able to prove was stolen.

Audit documents state employees sleeping on the job, riding in limos, holding illegal raffle

Los Angeles Times

A University of California, Davis, professor spent $996 for three limousine trips and collected $197 of other improper travel reimbursements during two months in 2015, according to a new state report. A state Department of Industrial Relations employee who didn't have enough work to keep him busy was heard snoring at his work station and photographed more than 20 times sleeping, texting and reading on his personal cellphone, and reclining with his feet on his desk. The employee's estimated 328 hours of "downtime" in about a year-long period cost taxpayers an estimated $5,411. An administrative office within the Department of Corrections hosted an illegal raffle for charity in December 2016. Tickets cost $1 each, and prizes included gift baskets containing ammunition and alcohol.