Fraud is a product of opportunity, pressures, and rationalization. A system of good internal controls will keep opportunities for fraud to a minimum and will, through appropriate documentation and procedures, assist in the identification of a person who commits fraud. The system protects the university’s assets and employees. Fraud symptoms include:

  • Missing or altered documents to support transactions
  • Excessive voided documents or transactions without supervisory approval
  • Transactions with inappropriate authorizations
  • Excessive complaints from customers or other employees
  • Unusual billing addresses or arrangements
  • Payments based on photocopied invoices or fabricated invoices
  • Vendor payments sent to an employee’s address

An employee who:

  • Is living beyond his or her means
  • Can’t manage money
  • Doesn’t take a vacation
  • Is dissatisfied with work
  • Is a take charge person
  • Has expensive habits
  • Has close relationships with customers or vendors

If administrators feels that an employee may be misusing funds, he or she should contact the Office of Internal Audit rather than try to conduct an investigation.

The presence of fraud symptoms does not mean that fraud is occurring but fraud will not occur without at least some of these symptoms.