Office of Audit and Advisory Services Coral Gables Campus – November 2016 Contact Information: Marina L. Garcia, CPA, CFF, CGMA, CBM Audit Manager Tel: 305-284-2605 Email: mlgarcia@miami.edu Web: www.miami.edu/audit-services

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

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.

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

Ensure an Open and Ethical U 1 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 (www.canewatch.ethicspoint.com) 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 Email by Joe Natoli, Sr. Vice President and CFO to Faculty and Staff

Completing a Report in ‘CaneWatch Access link www.canewatch.ethicspoint.com Select Make a report https://secure.ethicspoint.com/domain/en/report_company.asp?clientid=32533&override=yes&agreement=no 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

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

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

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

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