Be fraud aware.
This week, we learned what fraud is, that it can occur anywhere, its impact on us, the role that internal controls play to limit the opportunity for fraud, and that our job responsibilities include fraud awareness and prevention. However, despite our increased awareness and best fraud prevention efforts, fraud can and will still happen.
Over 40% of all frauds are uncovered through tips.
The Association of Certified Fraud Examiners, in its 2016 Report to the Nations on Occupational Fraud and Abuse, found tips are the most common fraud detection method. This is, in part, why the statewide Code of Conduct Policy requires employees to report “any suspected code of conduct and ethics violations, significant internal control deficiencies, evidence of theft, embezzlement, unlawful use of public funds or property, or any other irregularities or wrongdoings.”
It is important state leaders Take Action Today to: 1) Be proactive about fraud prevention; 2) Follow established hiring procedures; 3) Train employees in fraud prevention; 4) Implement a fraud reporting mechanism; and 5) Increase the perception of detection to deter would be fraudsters.
It is important state employees Take Action Today to: 1) Be proactive about fraud prevention; 2) Follow established human resource procedures including requirements around Code of Conduct and Ethics training; 3) Train in fraud prevention as part of ongoing professional development; 4) Know the fraud reporting mechanism within your agency and take action when you know or suspect fraud; and 5) Increase the perception of detection among agency peers by knowing and performing assigned internal control responsibilities.
Detection is a pillar of fraud prevention.
If you sees something fraudulent, you must report it. Each of us must be familiar with our agency's specific channel(s) for reporting suspected fraud and internal control weaknesses. Employees must also report certain cases of suspected fraud to the Minnesota Office of the Legislative Auditor. State managers and supervisors must understand their agency’s reporting channels and be ready to assist if employees have something they wish to report. The state’s Whistle-blower Act protects any employees who report a suspected violation in good faith. Finally, check out the Fraud Reporting Resources page to find out how you can report suspected fraud.
Thank you for taking action to prevent fraud in Minnesota State Government.