Office of Audit and Advisory Services Coral Gables Campus Contact Information: Marina L. Garcia University of Miami Tel:

Controls - Reviews and Reconciliations Perform frequent reviews of financial activity reflected in FRS Report 90’s Closely review expenses reflected in accounts for your department/area. 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 everything. Do not accept an answer that does not make sense.

Examples of Other Controls Individual 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. Individual 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. Segregation of duties and compensating controls

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 ( 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

Detection Methods of Occupational Fraud and Abuse TipManagement ReviewInternal AuditBy Accident Account ReconciliationDocument ExaminationExternal AuditNotified by Police Surveillance/MonitoringConfessionIT ControlsOther

Guess the percent attributed to Tips as the detection method in reported occupational fraud and abuse cases

Initial Detection of Occupational Frauds As Figure 11 demonstrates, tips are consistently the most common detection method for cases of occupational fraud by a significant margin, which has been an observed trend since the ACFE first began tracking this data in Management review and internal audit follow tips, which was also true for the 2010 and 2012 Reports. Source: ACFE 2014 Global Fraud Study

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