Internal Audit

How To Report Fraud

Fraud Policies | Fraud Investigation | Fraud Presentation

Fraud encompasses an array of irregularities and illegal acts characterized by intentional deception.  It can be perpetrated for the benefit of individuals of the organization or may be detrimental to the organization.  Fraud may be committed by persons outside as well as inside the organization.  It is intentionally and illegally obtaining a benefit.

Fraud designed to benefit the organization generally produces such benefit by exploiting an unfair or dishonest advantage that may also deceive an outside party.  Perpetrators of such frauds usually accrue an indirect personal benefit.  Examples of frauds designed to benefit the organization include:

  • Sale or assignment of fictitious or misrepresented assets.
  • Improper payment such as illegal political contributions, bribes, kickbacks and payoffs to governmental officials, intermediaries of government officials, customers, or suppliers.
  • Intentional, improper representation or valuation of transactions, assets, liabilities, income, or expenses.
  • Prohibited business activities such as those that violate government statutes, rules, regulation, or contracts.
  • Intentional, improper related party transactions in which one party receives some benefit not obtainable in an arms length transaction.

Fraud perpetrated to the detriment of the organization generally is for the direct or indirect benefit of an employee, outside individual, or another organization.  Some examples are:

  • Acceptance of bribes or kickbacks.
  • Falsification of Research, State, or UBF time or travel records.
  • Falsification of research project records.
  • Falsification of academic or other credentials.
  • Embezzlement, as typified by the misappropriation of money or property, and falsification of financial records to cover up the act.
  • Concealment or misrepresentation of events or data.

If you suspect a fraud or other dishonest or questionable act, do not try to question anyone or otherwise investigate the matter yourself. Report your suspicions to one of the following:

A written report is preferred but not necessary. All reported incidents are held in the strictest confidence and are handled with extreme discretion. The information reported is conveyed to the cognizant Vice President or the Provost.

Fraud Policies

Fraud Investigation

A fraud investigation may be performed by SUNY System Administration, the Research Foundation, or campus administrators. The conduct of each investigation is determined by the fraud policy of the agency doing the review.

When the reported fraudulent act is made at the campus, an initial review of any allegation is performed under the direction of the Controller and the Director of Internal Audit and in consultation with the Executive Vice President for University Support Services, to determine if a formal investigation is necessary. If a formal inquiry is deemed necessary, a fraud investigation team is formed. This team is chaired by the Associate Vice President and Controller and is comprised of staff from Human Resource Services, Internal Audit, University Police, and SUNY Legal Counsel. The investigation is conducted in accordance with the Campus fraud policy.

Fraud Presentation

The Internal Audit Department and the Department of Public Safety teamed to develop a presentation and discussion period on fraud which is available for presentation at campus units. This presentation takes approximately 30-45 minutes and discusses the meaning of fraud, common myths of fraud, who commits fraud, and how management encourages fraud. There is also a question and answer period. Managers and staff are encouraged to view this presentation. If you would like to see this slide show, please contact Donna Scuto at 645-2505 or Dan Jay at 645-2228.