Ya Got trouble… - PowerPoint PPT Presentation

Ya Got trouble…

“Well, either you're closing your eyes to a situation you do not wish to acknowledge,Or you are not aware of the caliber of disaster indicated by the presence of a pool tablefraud in your community.”

With apologies: Harold Hill – The Music Man

• Purchasing Card Fraud
• Theft of Equipment
• Travel Reimbursement Fraud
• Payroll Abuse

• Cardholder abuse and fraud
• Diversion of goods to personal use.
• Purchase from vendors with conflict of interest.
• Sale of goods to others (generally via internet)
• Purchase from cardholder’s own “store” at a markup

• Employee makes a

personal purchase on-line.

• Inadvertently selects the institution’s P-card as the method of payment.
• Notes the error and indicates in the explanation that it was a mistaken personal purchase and will be reimbursed.
• Fails to reimburse the

institution.

“I say, first, medicinal wine from a teaspoon,Then beer from a bottle. An' the next thing ya know, Your son is playin' for moneyIn a pinch-back suit.”

Show me the money!

• Noticing that the approver never questions her P-Card purchases, an employee buys items for personal use.
• Employee provides fictitious explanation for purchase.
• If supporting detail is requested, employee “doctors” the invoice to reflect a valid business purpose.
• Employee sells goods through her internet store which gets great ratings for service and value.

• Lost job at BYU
• Prosecuted for $53,000 of theft
• Plead guilty to all charges (felony)
• Required to pay back the loss

• Cardholder purchases computers, toner cartridges, etc.
• Sells the equipment on e-Bay™
• Items sell quickly because of the low price.

Inventory Control

• Lost job
• Prosecuted for $200,000 in theft
• Plead guilty to multiple felony counts
• To be sentenced in March 2010
• Will be required to make restitution

• Manager “can’t be bothered with the mundane activities associated with approval of purchasing card activity,” so delegates it to the cardholder.
• Over four years, the cardholder purchases over $150,000 in merchandise and sells it viae-Bay™.

• Turned over to police and county prosecutor
• Likely will be charged with multiple felony counts.

• Professor buys books, equipment, supplies needed for his class and for “course development.”
• Items include Nintendo Wii, video games, children’s books, how to books, etc.
• Items are gift-wrapped and given to professor’s children as Christmas gifts.

• No detailed receipt.
• Inadequate explanation in “notes” box.
• Name of book
• Business purpose
• Names of personnel being hosted
• Unusual level of purchasing activity.
• Purchases noted “personal-to reimburse.”
• Items appear to lack a good business purpose.

• No travel plans and/or expense reports.
• Duplicate reimbursement claims.
• Missing receipts.
• Personal travel claimed as university business.
• Upgraded rental vehicles while claiming standard.
• Lack of detailed explanation of business purpose.
• Absence of names of persons hosted.

• Frequent pattern of edits (corrections for not using time clock)
• Shifting time between pay period to avoid overtime (create comp. time)
• Routine or excessive overtime without prior approval.
• No documentation to support time-card edits.
• “Pat-my-back” approvers.
• Pattern of not using time-clock nearest to work station.

• Where was the controller?
• How are we disciplining the approvers?

User

Placing in Service

User

User

Management awareness and involvement.

• BYU.edu: Hotline
• https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=17652
• Ethicspoint.com

Ya Got trouble…

Heed the warning before it's too late!Watch for the tell-tale sign of corruption!The moment your son leaves the house,Does he rebuckle his knickerbockers below the knee? Is there a nicotine stain on his index finger?A dime novel hidden in the corn crib?Are certain words creeping into his conversation?Words like 'swell?"