The city of Dixon, Illinois has dramatically changed many of its practices to ensure nobody has the extent of power Rita had to commit fraud for so long. After she was fired, the city hired a new finance director who reorganized the city’s finances and restructured the department. She implemented more internal controls so that no one person could complete an entire process by him- or herself—including her. Today the city has hired more clerks who specialize in specific areas such as payroll and billing. Mail is no longer picked up by one person. Instead, it is delivered straight to City Hall.

In terms of Rita Crundwell’s assets, they were auctioned off. The auction of Crundwell’s prize-winning horses was major news to the industry, and many breeders came from all around the world. Her horse Good I Will Be, which had won several championships, sold for \($775,000\). Her 767 trophies and 122 plaques were also auctioned, as well as her numerous possessions. The money went toward the city.

Many people in the town are relieved that Rita Crundwell is in prison. Those who were acquainted with her, even those who had worked with her for years, felt like they never truly knew her. Interestingly, Crundwell still earns \($13,000\) to \($14,000\) a year in royalties from her horses. This money has been frozen by the government. Eventually, officials hope to give the funds to the city. In the meantime, city business has gone on as usual but with a new structure to make certain that no one person has exclusive power over city finances.

Questions:-

1. What were some of the red flags that fraud was occurring?
2. Describe some of the ways that Rita Crundwell was able to get away with the fraud for so long.
3. What are some of the internal controls Dixon, Illinois has implemented to prevent fraud in the future?