
If someone in your district is alerted to potential fraud, there are at least seven steps to take
If someone in your district is alerted to potential fraud, there are at least seven steps to take
Red flags reported? Respond with these seven steps
Public school districts can face many different types of fraudulent schemes, and perpetrators could come from any level in the organization. The damage done to your district and your budget by fraud, waste, abuse and corruption can be enormous: not just financial loss, but also losses in organizational effectiveness, reputation, credibility and public confidence.
If one of your accounts payable staff reported a series of suspicious transactions, would your employees know what to do next? Early missteps in responding could create human resources issues; worse, mistakes could jeopardize a future criminal prosecution, if one becomes necessary.
What are some common conditions that can lead to fraud, waste, and abuse?
Years may elapse between the beginning of a fraud scheme and its detection. The fraud may come to light in various ways, from an anonymous hotline tip to pure happenstance. If fraud is suspected, make sure employees know what to do.
Seven steps
If someone in your district is alerted to potential fraud, these are the steps to take:
The smell of smoke can indicate burned toast as well as a bonfire, and not every red flag indicates a fraud scheme. You may discover, instead, an opportunity to improve internal controls or fix an outdated process. Either way, it is wise to have a response plan in place so that everyone knows what to do what that flag goes up.