Fraud Risks

Council must create a policy to review and go over the risk of fraud as part of its review of other risks.

This policy must state that the First Nation must report and document any activities that may lead to the risk of the following:

  • intentionally wrong reporting of money or property
  • intentionally wrong reporting of other items
  • to put resources, valuables, or money to a wrong use
  • intentionally wrong conduct by those in power
  • illegal acts

This policy must also states that the First Nation must create and document ways to watch for risks and keep them under control or manage them when they are seen including the risk of fraud coming from the following:

  • items or rewards that are given as part of completing a goal or task
  • being pushed or forced to complete a goal or task
  • poor design or use of activities to watch for risk
  • using First Nation resources, valuables, or money without the proper permission and approval
  • poor administration that leads to things being overlooked
  • ignoring the rules and steps that have been set up by policies or standards
  • technology or systems that are unable to complete tasks or perform tasks badly
  • ignoring laws that could directly or indirectly cause errors with financial reporting
  • incorrect actions being claimed as good based on attitude and explanations
  • management displaying favoritism
  • the level and type of guesses and judgements used in financial reporting
  • the location of the First Nation within the geographic region
  • the type of technology being used and the way in which management can change information using that technology
  • any strange or complicated deals or agreements that need management’s input and control
  • how easy it is for management to change or ignore the rules and standards

Continue to learn more on Multi-year Financial Planning »