Office of Internal Audit
How to Report Fraud
According to the International Professional Practices Framework, promulgated by The Institute of Internal Auditors, fraud is “any illegal act characterized by deceit, concealment, or violation of trust. These acts are not dependent upon the threat of violence or physical force. Frauds are perpetrated by parties and organizations to obtain money, property, or services; to avoid payment or loss of services; or to secure personal or business advantage.” Examples of frauds designed to directly benefit the individual committing the fraud include:
- Authorizing or receiving compensation for hours not worked.
- Acceptance of bribes or kickbacks.
- Forgery or alteration of Foundation or University time or travel records.
- Theft or misappropriation of funds, supplies, property, or other University resources.
- Embezzlement, as typified by the misappropriation of money or property, and/or falsification of financial records to cover up a wrongful act.
- Forgery or alteration of academic, or other, credentials.
- Concealment or misrepresentation of events or data.
- Careless and reckless activity.
- Forgery or alteration of research project records.
Examples of frauds designed to benefit the organization include:
- Prohibited business activities such as those which violate State and Federal laws, University policies and regulations, or contracts.
- 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 related-party transactions in which one party receives some benefit not obtainable in an arm’s length transaction.
- Intentional, improper representation or valuation of transactions, assets, liabilities, income, or expenses.
If you suspect a fraud or dishonest or questionable act, do not try to question anyone or otherwise investigate the matter yourself. Report your suspicions to one of the following:
- Your Supervisor or Head of Department
- Director of Internal Audit: S. Mark Hall, (607)777-2156, firstname.lastname@example.org
- University Police: Timothy Faughnan, Chief of Police, (607)777-2393 (Non-emergency line), email@example.com
- Binghamton University Compliance Hotline: (607)777-5049
A written report is preferred but not necessary. All reported incidents are held in the strictest confidence and are handled with extreme discretion.
Think Before You Speak
Please think before making allegations of fraud or dishonesty and be reasonably certain of any claims. Such allegations can significantly and negatively impact the life of the accused individual and adversely affect the working environment of the department.
SUNY System Administration-Fraud Incident Report (.pdf, 5.57kb)
A fraud investigation may be performed by the SUNY System Administration, the Research Foundation, or University administrators. The conduct of each investigation is determined by the fraud policy of the agency performing the review.
When the reported fraudulent act is made on the campus, an initial review of any allegation is performed under the direction of the New York State University Police Department and the Director of Internal Audit. They will consult with the Vice President for Administration to determine if a formal investigation is necessary. The investigation is conducted in accordance with the Binghamton University Policy Number 209.