The purpose of these policies is to establish how a state agency must respond in the event of a suspected loss of public funds or property.

The authority for these policies is RCW 43.88.160, RCW 43.09.185 and RCW 43.09.330.

These policies are applicable to all agencies of the state of Washington as defined in RCW 43.88.020(4), unless otherwise exempted by statute or rule.

Agencies are responsible to establish procedures that detail how to address a suspected loss of public funds or property. The procedures are to identify appropriate personnel who should be immediately notified prior to contacting the outside agencies. This may include the agency head or deputies, chief financial officer, or internal auditor depending upon the circumstances.

Further in the event of a suspected loss of public funds or property, the agency should:

a. Take action to minimize the loss.

b. Ensure that investigations are not hampered.

c. Ensure that bond claims are not jeopardized.

d. Ensure that appropriate personnel actions are taken.

e. If appropriate, report the suspected loss to the Department of Enterprise Services Risk Management Office.

f. Comply with RCW 43.09.185 and immediately report losses to the Office of the State Auditor (SAO).

g. Comply with RCW 43.09.330 and include the SAO and the Office of the Attorney General in any loss settlement.