Office of Audit and Advisory Services Medical Campus Contact Information: Jill Baron University of Miami Tel:

Internal 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.

Internal Controls The 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. The individual collecting cash should not be responsible for recording the deposits or for reconciling the collections to the Report 90’s. Involves performing a reasonability check or a review by an independent party (one with no access to cash, inventory, etc. and no approval authority). This could help mitigate a lack of segregation of duties as depicted above. Segregation of duties 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 Tip Management Review Internal AuditBy Accident Account Reconciliation Document Examination External Audit Notified by Police Surveillance/ Monitoring ConfessionIT Controls Other

Guess what percentage Tips represents as the detection method in reporting occupational fraud and abuse cases

Initial Detection of Occupational Frauds Tips are consistently the most common detection method for identifying cases of occupational fraud by a significant margin. This has been the trend since the ACFE first began tracking this data in Management review and internal audit follow as second and third.

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