White had sued Brett Favre
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- The Mississippi Supreme Court ruled that the Attorney General, not the State Auditor, has the sole authority to sue on behalf of the state.
- This decision stops Auditor Shad White’s legal efforts to reclaim interest on funds related to the state’s welfare fraud scandal.
- The court’s ruling clarifies the separation of duties, stating the auditor’s role is to audit and the attorney general’s is to litigate.
- The case stemmed from a dispute between Attorney General Lynn Fitch and Auditor Shad White over recovering money allegedly misspent, including funds involving Brett Favre.
The Mississippi Supreme Court unanimously sided with Attorney General Lynn Fitch…
PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)
Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.
- Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
- Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
- Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
- Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.