Misuse of university resources by employees, customers, vendors, or others outside of the organization.
Examples of fraud include:
- Fraudulent travel and entertainment (T&E) reports, inappropriate p-card expenditures, theft of university property, false time reporting, and undisclosed conflict of interest.
Prevent
- Develop strong internal controls to prevent, detect, and respond to fraud.
- Set the tone from the top. Management should set appropriate ethical examples for employees.
- Set up written policies and procedures for employees to follow and ensure that they are regularly reviewed.
- Provide training and communications to ensure that every employee is aware of what constitutes a fraudulent activity and what the consequences are.
- Ensure employees know what to do if they suspect fraud and where to report it.
Detect
- Carry out inventory counts on a regular basis and verify against the asset registry.
- Review purchases for trend analysis and investigate irregularities.
- Perform a three-way match of invoice, purchase order and receiving report to ensure the organization is paying for correct and legitimate purchases.
- Secure access to physical equipment.
- Consider separating ordering from receiving and management of supplies to increase the number of touchpoints.
- Consider locked storage and regular inventory counts for expensive supplies
- Limit high cost product ordering to no more than two items, one for use and one for backup.
- Review BearBuy reports to determine if expenses are appropriate for those that have by-passed approval process.
- Review and have a robust approval process for any changes to bank account and routing numbers. An example would be:
- Prior to making bank account changes, a call should be made to the vendor to substantiate both the old bank account and routing number and the new bank account and routing number. Retain and review supporting documentation.
- Implement a control - reviewing budget to actual and investigating variances.
- Segregate cash handling functions to different individuals: authorization, recording, and custody.
Inform
If you suspect fraudulent activity leading to the theft of assets or information:
- Tell your direct supervisor, unless you suspect they are involved
- Contact Audit & Advisory Services at [email protected]
- Contact the UC Whistleblower Hotline or call 1-800-403-4744 to report anonymously