1. Office of Audit and Advisory Services Medical Campus
Jill

2. Goals – To Create Awareness of
Segregation of Duties and Compensating controls
‘CaneWatch Secure System for Reporting Improprieties
Audit and Advisory Services as a Resource

3. Segregation of Duties and Compensating Controls
Employee in charge of reviewing financial transactions in Report 90’s for a department/area should not be approving or recording expenses reflected in the account.
Employee performing the cash collecting function should not be responsible for recording deposits or for reviewing Report 90’s.
Compensating controls, such as performing a reasonability check or a review of inventory variances by an independent party (one with no access to cash, inventory, etc. and no approval authority), could help mitigate a lack of segregation of duties as depicted above.

4. Reviews and Reconciliations Recommended Steps
Closely review expenses reflected in accounts for your department/area on a monthly or frequent basis.
Look for inappropriate charges - is the transaction allowable and appropriate to the funding source? Is it reasonable? Is it for legitimate purposes to help further the university’s mission?
Review revenues, including cash receipts, for reasonability, outliers, anomalies, and trends.
Optimal review entails comparing expense charge to supporting approved source document (e.g., Invoice, purchase order, contract, etc.).
Question incomplete or partial documentation

5. Ensure an Open and Ethical U1
Over the last several years, the U has been the victim of financial fraud perpetrated by its employees. 2
Fraud is an avoidable waste of University resources. 3
There are things that each of us can do to maintain ethical standards and financial controls. 4
Tell your supervisor or make an anonymous report to the ‘CaneWatch hotline ( regarding any concerns about financial improprieties or irregularities. 5
You don’t need to be certain there’s a problem and may choose to remain anonymous. 6
You can also report concerns to: Office of Audit and Advisory Services (8-2605) or Controller (8-6429). 7
Source: 4/5/2012 by Joe Natoli, Sr. Vice President and CFO to Faculty and Staff

6. Completing a Report in ‘CaneWatch
Access link
Select Make a report
Select the type of issue noted (examples below)
-Accounting and Financial
-Athletics
-Discrimination and Harassment
-Information Technology
-Medical/UHealth Coding and Billing
-Privacy, Data Safety and Security
-Student Affairs
-Sexual Misconduct

7. Detection Methods of Occupational Fraud and Abuse
Tip
Management Review
Internal Audit
By Accident
Account Reconciliation
Document Examination
External Audit
Notified by Police
Surveillance/Monitoring
Confession
IT Controls
Other

8. Percent of Cases Initial Fraud and Abuse Detection Method
Source: Report to the Nations on Occupational Fraud and Abuse. Copyright 2016 by the Association of Certified Fraud Examiners, Inc.

9. Tips - the most common detection method in reported occupational fraud and abuse cases
CONCLUSION

10. At the U, we transform lives through teaching, research and service.
Thank You
At the U, we transform lives through teaching, research and service.