Adoption of a Resolution Adopting City Council Policy 2010 002 Entitled Fraud Prevention. City of Culver City California Agenda Item Report Meeting Date: 06/28/2010 CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Adopting City Council Policy 2010 002 Entitled Fraud Prevention. Contact Person/Dept.: Jeff Muir/Finance Phone Number: (310) 253 5865 Item Number: C 12 Fiscal Impact: Yes No X General Fund: Yes No Public Hearing: Action Item: Attachments: X Commission Action Required: Yes No Date: _______________ Public Notification: (E Mail) Meetings and Agendas City Council (06/23/10) Department Approval: Jeff Muir (06/18/10) Chief Financial Officer Approval: Jeff Muir (06/18/10) City Attorney Approval: Carol Schwab (by H. Baker) (06/22/10) City Manager Approval: P. Lamont Ewell (06/23/10) RECOMMENDATION: Staff recommends the City Council adopt a Resolution adopting City Council Policy 2010 002 entitled Fraud Prevention. BACKGROUND: As part of the annual audit process the City s auditors (currently Mayer Hoffman McCann P.C.) provide feedback on any areas where they believe the City s internal controls could be strengthened. In a letter to the City Council in November 2009 one of the items identified by the auditors was the City s current lack of a formal Anti Fraud/Ethics Policy. While making inquiries with management as required by Statement on Auditing Standard No. 99 Consideration of Fraud in a Financial Statement Audit it was noted that while the City has a number of policies that set appropriate standards for employee conduct the City does not have a single formalized all encompassing fraud policy. A formal fraud policy can be an effective method of reinforcing an anti fraud culture within the City. A comprehensive fraud policy communicates to all employees the City s position and policy on matters such as the following: Risks that the City faces from fraud abuse and other forms of misconduct; An ethical code of conduct; Definitions of ethical misconduct including...
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