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Public entities should consider a mandatory vacation policy for employees – especially those with financial responsibilities. When an employee never takes a day off from work, it may be a red flag for fraud. Employees who engage in fraud may resist taking a vacation, fearing that someone else doing their job in their absence may discover the irregularities.

For a mandatory vacation to be effective as a fraud deterrent and detection tool, someone else must be cross-trained in the bookkeeping and cash functions and must perform the work during the mandated vacation.


Date this Avoiding Pitfall was most recently published: 02/05/2016

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