A written cash
handling policy
is strengthening
Fresno State’s
efforts to ensure
consistency and
accuracy with
procedures
involving cash,
checks, money
orders, and
credit card
charges and
receipts.
Rise to
Excellence
Maintaining ethical citizenship and stewardship
As the start of 2012 marks the beginning of a new semester,
I want to thank you all for your hard work and remarkable
efforts that every day elevate our university to new heights of
achievement. Your dedication is even more appreciated as Fresno
State, like many schools in higher education, is dealing with
strained budgets and economic challenges.
At times such as these, we must maintain our vigilance in
protecting the campus’ assets and operations. More than 21,600
students depend on us for top-notch courses taught in modern
facilities. Our students deserve the best education we can give
them, and this responsibility includes making sure all university
procedures are conducted correctly.
Who should know about these procedures? Any state or
auxiliary employee who handles change funds, petty cash funds, collections,
reimbursements or advances of state funds. Also, any state employee who
handles auxiliary funds and/or third-party funds is required to follow this policy.
The policy outlines how frequently cash, checks and money orders should be
deposited. It addresses other safeguards, such as the use of vaults, safes or other
lockable receptacles for securing deposits and cash on hand.
Fresno State is launching a new initiative to focus on the
importance of these measures. Under my leadership, we will be
reviewing all policies and procedures pertaining to cash handling,
institutional controls and institutional accountability.
Other areas covered in the policy include the requirements for checks and money
orders (such as how checks must be made out to the university for payment) and
the processing of credit card charges and receipts.
We hope this newsletter provides you with useful information
as part of our efforts to fortify university operations. The issue
includes an article on TipNow, our newly implemented crimereporting system that takes advantage of modern mobile
technology by using text messaging.
The full cash handling policy, along with a frequently asked questions section,
can be found on the Accounting Services website at www.csufresno.edu/
accountingservices. Click on “Policies & Proceedures,” “Cash Receipts Policy,”
and then “Cash Handling Policy & Frequently Asked Questions.”
TipNow also guarantees anonymity. It provides a confidential
channel of communication for people who want to report
criminal behavior or suspicious activity to Fresno State Police
Department but don’t want to be identified. To briefly describe
the system, the tip is routed through an outside vendor before
being sent to police. What the campus police see is the the tip
and a numeric alias.
If you have any other questions, you can call University Controller Anthony R.
Forestiere, at 559.278.6820.
Whistleblower Policy
For more information, please visit the Whistleblower Policy web page — located
at www.csufresno.edu/hr — or call Human Resources at 559.278.2032.
• Who is likely
to commit fraud
• TipNow The anonymous
crime-reporting system
To our Fresno State colleagues:
This past fall, the University Controller and Accounting Services began informing
our campus community about the written cash handling policy. The procedures
for handling cash and deposits have previously been in place, so no changes
have been made to these steps. However, formalizing the policy in writing clearly
explains and clarifies the process, roles, and expectations.
State law and university policy encourage employees to report waste, fraud,
abuse of authority, violation of law, or threat to public health. Employees and
applicants for employment may make reports to the Associate Vice President for
Human Resources or the CSU Vice Chancellor for Human Resources.
Inside this issue
Fresno State
is a minority-serving
institution and a federally
designated Hispanic-Serving
Institution, reflecting the rich
diversity of Central California.
In addition, TipNow is a way to report concerns about suspicious
activity that needs administrative attention. We encourage
anyone who sees or learns of a questionable situation – but
wants to remain anonymous – to let Fresno State administration
know through TipNow.
You can text, call or email the TipNow number at 559.664.3204.
The system also takes anonymous tips via email, at:
fresnostate@tipnow.org.
This year, Fresno State begins its second century as one of Central
California’s leading educational institutions, and continues to
gain recognition on national and global scales. It is incumbent
upon each of us to help the university protect the programs and
assets that support its mission. When we each assume the daily
responsibilities of diligence and accountability, we maintain the
checks and balances that build a strong organization.
It also is our shared obligation to sharpen our focus in these
areas because, as a state university, we receive public funds.
Taxpayers place their trust in our abilities and skills to not only
oversee stellar academic programs and other collegiate activities,
but to competently manage the finances and operations of the
institution. They expect us to be efficient, consistent, accurate
and meticulous in watching over the functions of the university.
If you ever need clarification on a policy or procedure, please
seek information from your supervisor or administration. We
are all here to assist each other and nurture an environment of
cooperation.
Fresno State has forged a long and proud heritage in its first
100 years. Much of this is due to the talents and contributions
of faculty and staff. It is this wealth of experience that has
transformed Fresno State from a humble teachers college to a
respected regional leader.
We know that pride in our university will only grow in our next
century and that it extends to all aspects of campus operations.
This spirit of commitment – togetherness – will ensure future
accomplishments and success.
Cynthia Teniente-Matson
Vice President for Administration
and Chief Financial Officer
commit fraud?
“It often begins with the intention of paying it back. Then, it
becomes greater and greater. It becomes almost a cycle where
they are reliant on it,” Tomich said. “That leads to a second
mindset: They feel a sense of entitlement to this money or
whatever they’re taking or doing.”
Employees are the life blood of an organization. While the best
among them inspire trust and confidence, the worst ones can
destroy a business through incompetence or willful corruption.
The most common industries attacked are banking/financial
services, manufacturing and government/public administration.
More than two-thirds of all frauds were committed by employees
in one of six areas: accounting, operations, sales, executive or
upper management, customer service, and purchasing.
Who is likely to
Experts say the question employers must continuously ask
themselves is whether their workers fall into that first category
or the second. Occupational theft or fraud affects companies of
all sizes, and it is particularly devastating for small to mid-sized
businesses.
The challenge is identifying employees likely to commit fraud,
putting safeguards in place to prevent it and having policies that
regularly seek to determine whether fraud has been committed.
Every company can implement strategies that will protect their
assets – and maintain positive relationships with the workers
that help run the organization.
Those who commit fraud tend to be first-time offenders, so a
criminal check typically will not find any history of this behavior.
Many will display warning signs, such as living beyond their
means or admitting they are experiencing financial difficulties.
Tomich said her firm also has noticed a long-term trend of
perpetrators addicted to gambling, which creates large debts.
Fresno State Police Department has a new ally
to better protect the campus and community – texting.
The anonymous crime-reporting system is called TipNow, and
Fresno State students and employees are encouraged to add
TipNow’s phone number to their cellphones and smartphones
contact lists: 559.664.3204.
The 24/7 line provides a way for people – who don’t want their
identity known – to alert authorities about criminal or suspicious
activity through a text message. Tips can include details about
something you have witnessed, information pertaining to any
ongoing police investigation, or any other information that may
prevent crimes from occurring.
When a tip comes in through TipNow, the Fresno State Police
Department is immediately alerted and determines how to
handle it. The tip may warrant an immediate response, or it may
require action but not constitute an immediate threat.
(Keep in mind to call 9-1-1 for emergencies that pose a violent or
imminent danger, such as a fire, accident, assault or medical crisis.)
So how do you identify fraud if it has occurred?
Perhaps the most seminal work on occupational fraud and abuse
comes from the Association of Certified Fraud Examiners. The
industry group in Austin, Texas, created the standard for antifraud research in 1996 with its first “Report to the Nations on
Occupational Fraud and Abuse.” Its 2010 report studied 1,843
cases of worldwide occupational fraud that occurred between
January 2008 and December 2009.
One of the most effective methods is empowering employees
through a tip system, Tomich said. Having a hotline for employees
to call if they have suspicions of fraudulent activity is extremely
effective in catching and stopping theft. These lines should allow
employees to leave anonymous tips and provide confidentiality
for those who step forward.
One reason the report is so well-respected is the eye-opening
data it contains. For example, survey participants say the typical
business loses 5 percent of its annual revenue to fraud. This
fraud, which lasts a median of 18 months before being noticed,
usually costs a company $160,000. About 25 percent of cases
involved losses of more than $1 million.
“There are good people in organizations, and
they put a lot of hard work into a company,”
Tomich said. “They don’t want to see it taken
advantage of by an embezzler, and that’s why
these reporting systems work.”
The ACFE reports that most cases are asset misappropriation
schemes. These are defined as situations in which the perpetrator
steals or misuses the company’s assets. This can range from
skimming cash receipts to falsifying refunds or expense reports
to forging or stealing company checks.
These incidents start small, with one stolen check or office
supplies, said Zana Tomich, an attorney with the Bloomfield Hills,
Mich., firm of Dalton, Tomich, Pensler PLC.
The system – which is being used by other universities, law
enforcement agencies and other organizations in California
– guarantees anonymity. When someone texts in a tip, the
information is routed through an outside vendor before it is
sent to the police. What the police see is the tip and a four-digit
numeric alias. If the police need to ask more questions, contact
and interaction will occur through the numeric alias.
“It’s been working. I know that for sure,”
Simmons-Nielsen said. TipNow has led to at least
one arrest.
“Small to mid-sized businesses are the most
frequent victims,” said Daniel DiBardino,
founder of Bingham Farms, Mich., Recon
Management Group. RMG provides local,
national and international security services to
public and private organizations.
“These types of businesses often have no checks or balances. They
think everything is just fine until they get plastered. They wonder,
‘How could this happen to me?’” DiBardino said. “They take no
proactive stance to reduce the threat to these kinds of exposures.”
In a practical sense, then, TipNow broadens the police’s ability
to patrol Fresno State. Lt. Lupe Canales-Shrum told the Daily
Collegian newspaper last October: “We don’t have enough
officers to be constantly watching every portion of our 1,400acre campus and the surrounding businesses. If we get the
assistance of the students and the community, it is more likely
that we can stop a crime from happening.”
Companies that hold educational seminars on fraud and its longterm effect also help prevent occupational fraud, DiBardino said.
Training should focus on fraud definitions, the impact of fraud
on the company’s bottom line, and how to report suspicious
activity. Companies should encourage a culture of ethics and
accountability, he said.
“I tell employees, ‘They’re stealing from your future. The first
people to go out the door are not the top people. Stand up and
take some action,’” he said.
Campus officials also are asking employees and others to report
concerns about suspicious activity that could have a detrimental
impact on general campus operations. In these cases, the tip is
classified for administrative action.
TipNow has been receiving anonymous information since it
started in the fall 2011 semester. For the system to be fully
effective, more people need to know that the line is up and
running. The system not only has taken tips concerning Fresno
State but any that needed to be relayed to other jurisdictions,
such as the Fresno Police Department, because the information
involved possible incidents off campus.
“The more information the police department gathers, the better
we can serve the community,” said Monica Simmons-Nielsen,
a Fresno State Police Department dispatcher.
More than 2,100 people work at Fresno State, and more than
21,600 students were enrolled in the fall 2011 semester. Those
numbers, of course, don’t include the many people who visit our
campus each day.
Any tip that falls into the category of administrative action is
referred to police administration, which then relays the issue to
management overseeing the appropriate university department
or office.
When using 559.664.3204, tech-savvy students, employees and
others also can choose to call in a tip and leave a voicemail.
Users also have a third option:
emailing in a tip to fresnostate@
tipnow.org. Just remember that if
you have an email signature (which
is a block of text at the end of an
email that includes your name,
email address and/or business
contact information) erase it
before sending the tip.