A UTSA High Risk
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Ex-employee admits defrauding Columbia University of $180K –
March 31, 2009
◦ “A former Columbia University science department manager has admitted bilking the
school of more than $180,000 to pay for his Poconos wedding and other personal
expenses.” Prosecutors say the manager “signed off on payments for medical studies
that were never done. Prosecutors say he also bamboozled Columbia into reimbursing
$25,000 in expenses for his wedding at the Skytop Lodge in Skytop, Pa.”
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Penn State - Charges filed in fraud cases – March 18, 2009
◦ “the three employees are alleged to be responsible for defrauding the University out of
more than $65,000 through unauthorized use of purchasing cards, filing false expense
reports, appropriating University property and other means.”
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Georgia System - Administrator steals $350,000 on P-card – January
25, 2008
◦ “a Tech administrator had charged as much as $350,000 to Tech in national grant funds
over a six-year period.”
◦ Examination ordered by the USG chancellor found the “P-card program had little
oversight. Missing receipts, poor documentation and the oversight problems were found
to be the norm in many organizations.”
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Reputation
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Required for assurance of sub-certifications
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Reliability of financial statements
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Monetary loss
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Identify Risks (completed)
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Management Plans (completed)
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Inspections/QARs (completed)
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Report to ECC
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Not safeguarding departments assets
 Cash receipts are misappropriated
 Department funds used for personal purposes
 Business related transactions that are
inappropriate
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Provides management with assurance
that internal controls in a department are
in place and are operating effectively
Validates the responses to the
management certifications
Validates the responses in the financial
sub-certification
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Segregation of duties and cash handling
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Purchasing
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Capital assets management
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Gifts
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Human Resources
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Emergency Preparedness
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Information Security
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Account administrators are selected
based on a risk assessment of several
criteria:
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Level of expenditures and revenues
Audit and QAR history
Organizational change/turnover
Receipt of cash or checks
Fiscal Management Sub-certification responses
Management Certification concerns
Requested by VP
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QAR results are provided to the account
administrator and their immediate supervisor
The VP is also provided a final overall summary
report of all QARs completed in their area
QARs that contain a significant overall risk level
are scheduled an on-site follow-up in 90 days
Reports of all significant findings are given to
the Institutional Fraud Officer (VPBA) and the
Financial Reporting Officer
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What do the Dots mean?
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Significant departure from university policy,
procedures and/or best practices
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Moderate departure from university policy,
procedures and/or best practices
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Compliant with or non-significant departure
from university policy, procedures and/or best
practices
◦ ! Important Information