UT Dallas has achieved amazing growth and achievement in the last 40 years. However, with growth in any industry, there can also be an increase in noncompliance and fraud. What starts out as a small fraudulent act can snowball and eventually affect the whole campus. By reporting questionable incidents when they are first discovered, fraud and other inappropriate acts can be addressed before they become larger and even more harmful.

If you are aware of fraud, abuse of state resources or have witnessed anything that seems questionable, please report the incident immediately. If you feel uncomfortable reporting the incident to your supervisor for any reason, please make use of the Ethics and Compliance Hotline!

How does the hotline work? The Network, an outside company, receives the calls, so a greater degree of anonymity to the caller is ensured. Once a call is received by The Network, a report outlining the complaint is sent to the hotline team. The team reviews the report to determine which office would best be able to address the situation. In all cases, the complaint is handled as discreetly as possible. The hotline team then reports back to The Network, who relays the results of the investigation to the caller. More information can be found at:
utdallas.edu/audit-compliance/hotline_about.htm

House Bill 4189, signed into law on June 16, 2009, further protects hotline information by providing that hotline calls are not subject to public information requests.

Please help protect our campus by reporting questionable incidents as soon as they occur. The confidential hotline number is 1-888-228-7707 or tnwinc.com/webreport.

 

IDENTIFYING FRAUD IN THE WORKPLACE

What is fraud?
According to the Association of Certified Fraud Examiners, “Fraud includes any intentional or deliberate act to deprive another of property or money by guile, deception or other unfair means.”

What are some examples of fraudulent activities in higher education?

• When you accept or solicit gifts, favors or services that influence your decisions/actions.
• Theft of University property.
• Personal use of University equipment; i.e., phones, computers, tools, vehicles.
• Falsifying checks, time reports, payroll, travel vouchers, signing or forging someone’s name.
• Personal use of purchasing card.

What elements are necessary for a person to commit fraud?
Donald Cressey’s study of occupational fraud describes three elements in committing fraud, known as a “Fraud Triangle” — perceived opportunity, pressure and rationalization.

Example thoughts a fraudster might have related to each leg of the triangle:

Perceived Opportunity: “The department head never reviews my monthly p-card statement, so he will never notice that I purchased my son’s school supplies on my p-card.”

Pressure: “If my research study doesn’t have positive results, I’ll lose my funding next year. I’ll just inflate the numbers a little and no harm will come of it.”

Rationalization: “If we don’t spend our money by the end of August, we will lose it anyway. So it’s ok if I pay for my mother’s nursing home costs just this once.”

 

What are some of the warning signs?

• An employee who does not take vacation or who will not let someone else cover their job duties while they are gone.
• Account statements that are not reconciled and reviewed by supervisors.
• No separation of duties or one employee does it all.
• Documentation for travel and/or purchases that are not originals.
• Unclear description of business purpose on purchasing card reconciliation.
• Missing documents and/or reports.
• Weak supervision by management.
• Write-offs during annual inventory with little attempt to locate missing property/equipment.