Fraud can be present in any entity including Government. Anyone suspecting improper activities should immediately contact the Office of the Inspector General. (Report Fraud)
All employees are responsible for reporting any possible improper activities.
Fraud Definition
The intentional deception perpetrated by an individual or individuals or an organization or organizations, either internal or external to state government, which could result in a tangible or intangible benefit to themselves and/or could cause detriment to others or the Commonwealth. Fraud includes a false representation of a matter of fact, whether by words or by conduct, by false or misleading statements, or by concealment of that which should have been disclosed, which deceives and is intended to deceive. Fraud is the misappropriation of assets, willful misrepresentation or receipt of unauthorized benefits
Dishonest or fraudulent activities include the following:
- Forgery or alteration of documents (transcripts, checks, timesheets, travel vouchers, contract agreements, purchase orders, budgets, etc.).
- Misrepresentation of information on documents.
- Misappropriation of funds, securities, supplies, or any other asset (including furniture, fixtures, computers, or equipment).
- Improprieties in the handling or reporting of money transactions.
- Authorizing or receiving payments for goods not received or services not performed.
- Authorizing or receiving payments for hours not worked.
- Personal use of Cabinet assets.
- Conducting personal business on state time.
- Violation of commonwealth procurement policies.
- Any apparent violation of federal, state, or local laws.
- Any process or activity similar to the above.
Waste
The intentional or unintentional, thoughtless or careless expenditure, consumption, mismanagement, use or squandering of Commonwealth resources to the detriment or potential detriment of the Commonwealth. Waste also includes incurring unnecessary costs as a result of inefficient or ineffective practices, systems or controls.
We all must be aware of other events and circumstances where inefficiencies and/or abuses occur:
- Mismanagement and waste of funds (i.e.: duplicate processes, unnecessary expenditures.)
- Management override of controls designed to protect assets.
- Standards of Conduct violations (i.e.: abuse of time and attendance.)
Abuse
Excessive or improper use of a thing, or to employ something in a manner contrary to the natural or legal rules for its use. Intentional destruction, diversion, manipulation, misapplication, maltreatment, or misuse of Commonwealth resources. Extravagant or excessive use as to abuse one's position or authority. Abuse can occur in financial or non-financial settings.
Prevention
Prevention of fraud, waste and abuse is everyone’s concern and responsibility. Several steps can reduce the risk of fraud occurring or not being detected in the work place.
- Reduce the opportunity available by implementing strong internal controls.
- Be alert and report any suspicions immediately to OIG via the fraud hotline or on the Fraud Reporting Form.
- Establish a positive environment and set an honest tone from the top.
- Ensure that all employees are familiar with reporting any potential abuses and understand their name will be kept in confidence.