Fraud and Asset Misappropriation Awareness Checklist

Vulnerable Areas

• Payroll
• Petty Cash
• Cash Receipts
• Long Distance Phone Calls
• Travel Vouchers

Consistent Patterns

• "Blind Trust"
• Lack of Separation of Duties
• Progressive
• Simple Methods
• Repeat Offenders
• Seldom takes leave
• No one performs duties when absent
• Works evenings and weekends

Payroll

• Overtime abused
• Leave inaccurately reported
• Supervisor knowingly allowed employee to backlog hours to avoid excessive overtime
• Supervisor pre-signed blank timesheets
• Accepted duplicated faxed timesheets and did not follow up by getting the original

Petty Cash

• Invalid purchases
• Divert receipts
• Hide disbursements
• Checks issued to cash or the employee

Cash Receipts

• Records altered to reduce accountability for receipts stolen
• Receipts stolen and records destroyed

Payroll Prevention

• Properly approved documents reconciled to FMS and budget records
• Overtime should be pre-approved in writing with reason and estimated hours documented
• Approved documents should be controlled
• Line through or cross out blank lines
• Supervisor approval should be timely
• Process only original documents
• Do not pre-sign blank or incomplete documents
• Do not supervise or control a relative's employment

Petty Cash Prevention

• All charges on FMS should be reviewed for appropriateness
• Line through or cross out blank lines on the form
• Control the document after approval
• Observe document for change in hand writing or unusual items
• Reconciliation and review of fund activity or bank statement

Cash Receipts Prevention

• Use pre-numbered forms
• Verify deposits to source documents
• Supervisory approval and designated forms for voids, paid-outs, refunds and non-cash credits

Long Distance Prevention

• Individual authorization codes
• Review charges promptly for reasonableness
• Individual validation of charges

Travel Prevention

• Approval by knowledgeable individual
• Consider reimbursement from other sources
• Attach original receipts