Office of Audit and Advisory ServicesMedical CampusContact Information: Jill BaronUniversity of MiamiTel: 305-243-6589Email: jbaron@miami.edu

Internal Controls Reviews and Reconciliations

Perform frequent

reviews of financial

activity reflected

in FRS Report

90’s

• Closely review expenses reflected in accounts for your department/area.

• Look for inappropriate charges - Is the transaction allowable and appropriate to the funding source? Is it reasonable? Is it for legitimate purposes to help further the university’s mission?

• Review revenues, including cash receipts, for reasonability, outliers, anomalies, and trends.

• Optimal review entails comparing expense charge to supporting approved source document (e.g., Invoice, purchase order, contract, etc.).

• Question everything.• Do not accept an answer that does not make

sense.

Internal Controls

• The individual in charge of reviewing financial transactions in Report 90’s for a department/area should not be approving or recording expenses reflected in the account.

• The individual collecting cash should not be responsible for recording the deposits or for reconciling the collections to the Report 90’s.

• Involves performing a reasonability check or a review by an independent party (one with no access to cash, inventory, etc. and no approval authority). This could help mitigate a lack of segregation of duties as depicted above.

Segregation of duties

Compensating Controls

Ensure an Open and Ethical U

1

• Over the last several years, the U has been the victim of financial fraud perpetrated by its employees.

2• Fraud is an avoidable waste of University resources.

3

• There are things that each of us can do to maintain ethical standards and financial controls.

4

• Tell your supervisor or make an anonymous report to the ‘CaneWatch hotline (www.canewatch.ethicspoint.com) regarding any concerns about financial improprieties or irregularities.

5• You don’t need to be certain there’s a problem and may choose to remain anonymous.

6

• You can also report concerns to: Office of Audit and Advisory Services (8-2605) or Controller (8-6429).

7

• Source: 4/5/2012 Email by Joe Natoli, Sr. Vice President and CFO to Faculty and Staff

Detection Methods of Occupational Fraud and Abuse

TipManagement

Review Internal Audit By Accident

Account Reconciliation

Document Examination

External Audit Notified by Police

Surveillance/Monitoring Confession IT Controls Other

Guess what percentage Tips represents as the

detection method in reporting

occupational fraud and abuse

cases

Initial Detection of Occupational Frauds

• Tips are consistently the most common detection method for identifying cases of occupational fraud by a significant margin. This has been the trend since the ACFE first began tracking this data in 2002.

• Management review and internal audit follow as second and third.

Thank You

Turn Your Watchful EyeInto Responsible Action That Benefits

All Of Us