Internal Controls Office

 

Red Flags (Not to be confused with Identity Theft Red Flags)

Certain errors can risk the University’s reputation or reputation of its managers. Errors can come in the form of key irregularities. These irregularities can include:

• Noncompliance with laws and regulations
• Noncompliance with contract requirements
• Inefficiency such as wasted time and effort
• Undetected errors
• Unauthorized transactions
• Overpayments
• Inadequate documentation
• Misappropriation of funds or equipment

 

Fraud – Red Flags (You may have seen these flags perpetrated sometime in your career)

• Taking stamps and office supplies
• Falsifying timesheets
• Failing to complete a leave form
• Forging someone else’s signature
• Taking cash
• Paying for personal items with university funds
• Recording fictitious entries to cover up theft
• Taking university equipment for personal use
• Using university cell phone for person calls
• Purchasing in excess of needs

 

Other Fraud – Red Flags (Unsuspected at first, but easily recognizable in hindsight)

• Providing unreasonable responses to questions
• Easily annoyed at reasonable questioning
• Bragging about significant new purchases
• Refusing to let someone else do certain functions
• Carrying unusually large amounts of dollars
• Increased staff complaints
• Lack of timeliness in job performance
• Rumors or conflict of interest
• Using copies when original documents are missing
• Excessive borrowing money from co-workers
• Excessive debts

 

The existence of Fraud and Other Fraud Red Flags does not automatically indicate a fraud has been committed. Managers should however, note any fraud ‘red flags’ listed and keep a careful watch on department operations, whether financial or operational.