What is Fraud?
Fraud and related misconduct involves a willful or deliberate act or failure to act with the intention of obtaining an unauthorized benefit.
Fraud is the deliberate misrepresentation of fact for the purpose of depriving the University permanently of property or legal right to property. Examples include, but are not limited to:
- Corruption: conflicts of interest, bribery, illegal gratuities, and economic extortion.
- Cash asset misappropriation: larceny; skimming; check tampering; and fraudulent disbursements, including billing, payroll, and expense reimbursement schemes.
- Non-cash asset misappropriation: larceny; false asset requisitions; destruction, removal or inappropriate use of records and equipment; inappropriate disclosure of confidential information; and document forgery or alteration.
- Fraudulent statements: financial reporting, employment credentials, and external reporting.
- Fraudulent actions by customers, vendors or other parties include bribes or inducements, and fraudulent (rather than erroneous) invoices from a supplier or information from a customer.
University of Kansas administrators and all levels of management are responsible for preventing and detecting instances of fraud and related misconduct and for establishing and maintaining proper internal controls that provide security and accountability for the resources entrusted to them. Administrators are also expected to recognize risks and exposures inherent in their area of responsibility, and be aware of indications of fraud or related misconduct.
Deans, Directors and Chairs – University Management - have been delegated authority for financial and human resources and are accountable to the public for the proper use of these resources*, as well as compliance with all relevant Federal, State and University regulations, rules, policies and procedures.
Management at all levels of the University are responsible for knowing the exposure to fraud in the area under their responsibility and the prevention of fraud, misappropriations, similar irregular acts and other inappropriate conduct.
Management designs policies to support effective program implementation within the framework of an appropriate internal control environment. Many aspects of this framework exist to protect the University from fraud and inappropriate use of University funds.
Judgment should be utilized by any University employee in a fiscal role in determining if expenditures are appropriate, given the fund group and the mission of the University. Purposeful misuse should be immediately reported to Internal Audit.
Internal Audit exists to assist management in prevention, detection, and investigation of fraud. Any fraud (confirmed, attempted or suspected), loss of cash, or loss of property either belonging to the University or for which it has custody, when first identified, when reported, will be investigated and handled for disposition in accordance with the appropriate University policies and procedures.