Detecting & Deterring Financial Fraud

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W hitppr : Dtting & Dtrring Finnil Fru in th hlthr inustry As muh s w lik to liv vryon is honst n trustworthy, somtims tht s not th s. In ft, thr r vrious typs of fruulnt tivitis tht n (n o) our in th hlthr inustry. Fortuntly, thr r lso tionl stps you n tk to tt n/or prvnt fru from ffting your usinss. This whitppr ovrs th risk ftors/wrning signs to look for, intrnl ontrols you shoul hv in pl to tr fru, rl-lif xmpls of fru ss, n svrl hklists to hlp you implmnt this knowlg to prott your usinss from frustrs. krftps.om/hlthr.htm

Hlthr Hlpings: Dtting & Dtrring Finnil Fru Whn vluting th potntil for fru, most usinss ownrs n mngrs think tht it will nvr hppn to thm. A frustr is likly to look for on of th lst srutiniz spts of n ntity s finnil rporting in hops tht thir fruulnt ts will go unnoti. Csh olltions, ptint rfuns, n xpns r rs rip for fru. Thr r ommon risk ftors n wrning signs tht, if tt, oul lrt mngmnt to potntilly fruulnt tivity. Also, thr r rtin ontrols mngmnt n implmnt to mitigt th hns of fru ing ommitt. Fru risk ftors Whn vluting th potntil for hlthr fru, thr r thr fru risk ftors to onsir: inntivs n prssurs, opportunitis, n ttitus n rtionliztions. You shoul vlut ll mploys for ths risk ftors, ut spifilly thos who hv ss to sh, illing, n ounts pyl funtions. 1 2 3 Inntivs & Prssurs prsonl finnil iffiultis ffting mploys rsponsil for prforming trnstions tnsion twn mngmnt n thos prforming trnstions potntil hngs to mployr work for (.g., lyoffs, t.) flings of ing improprly ompnst or rsti hngs in mploy portion of ompnstion lk of ommunition twn mployr n mploys rgring promotions or ompnstion Opportunitis poor orgniztionl ontrols lk of intrnl ontrols surrouning finnil trnstions no ovrsight y thos hrg with govrnn in rgr to trnstions ronilition of rvnu n posits lk of intrnl ontrols surrouning th rtion of vnors or issun of ptint rfuns inqut informtion thnology ss ontrols lk of finnil rporting n ovrsight Attitus & Rtionliztions isrgr shown for th n to ru or monitor risks onsistntly ovrriing xisting ontrols not orrting known fiinis in intrnl ontrols opn islik or isrspt for mployr giving th pprn of living yon on s mns Svrl mploys my hv t lst on risk ftor. For xmpl, if your ntity os not hv strong intrnl ontrols or lks propr sgrgtion of utis, thn th opportunity risk is inhrnt. Th opportunity risk lon my not ris suspiion, ut oupl opportunity risk with on or mor of th othr risk ftors (inntivs/prssurs or ttitus/rtionliztions), n th potntil for fru inrss. KrftCPAs PLLC 555 Grt Cirl Ro Nshvill, TN 37228 krftps.om 1

Wrning signs of fru Hlthr Hlpings: Dtting & Dtrring Finnil Fru Unrstning fru risk ftors n lrt you to th potntil for fru. Knowing spifi wrning signs will hlp you isovr fru tht hs tkn pl. Crtin triggrs, if thy our, shoul ris r flgs to point you in th irtion of fru, inluing: ptint omplints inonsistny in xpnss rport on finnil sttmnts ontrolling hvior: Only I n o it. lk of ss to trnstion tils signifint vrins whn ompring ripts to posits irrgulr trnstions not whn suprvisory rviw is prform lrg or unusul xpnss with unuthoriz vnors Rl-lif xmpls of hlthr fru A prti ministrtor took vntg of n Amrin Exprss offr to n itionl r-holr. Fruulnt hrgs m y th ministrtor inlu furnitur for his hous n fmily vtion. Th rl ru ourr whn h ws trmint; th prti isovr tht thy oul not ru his finl pyhk for th mount of th thft (wg n hour lws rquir tht mploys pi for tim work). Fru n our in ll typs of hlthr trnstions. Thus, it is importnt to hv sgrgtion of utis surrouning ll trnstions. A prti offi mngr pokt th sh from ily posit with th intntion of rpling it with prsonl hk. Th mngr ws not l to rpl th sh n, to ovr up, ispos of th ntir posit n lm th nk for losing th posit. A prti offi mngr woul writ hks to rogniz vnors (i.., mil supply ompnis) n woul hng th py to hrslf for th hk ws mil. Whn th nk sttmnt (with nl hks) ws rturn to th prti, sh woul hng th nm on th hk k to th vnor. Sh ws ught whn on of th hks ws not rvrs n th ountnt qustion th mount pi to th offi mngr for mil supplis. Bfor th fru shms not ov hppn to you, wht intrnl ontrols n you put into pl to mitigt risk n lt you slp wll t night? KrftCPAs PLLC 555 Grt Cirl Ro Nshvill, TN 37228 krftps.om 2

Hlthr Hlpings: Dtting & Dtrring Finnil Fru Mitigting Risk With Intrnl Controls Rgulrly vlut n rviw prti mngmnt rports. Do pymnts rport on th prti mngmnt systm gr with nk posits? Do rfun hks issu ronil with orrsponing ntris to ptint ounts? Do justmnts post to ptint ounts sm rsonl? Prform timly pprovl of nw vnors n vnor hngs n thorough rviw of ounts pyl isursmnts. Ar vnor hngs pprov in th systm in timly mnnr n rflt urtly whn pross? Is thr systm for nw vnor st up? Ar purhss pprov n oumnt s on prst ollr limits? Ar purhs orrs us? Ar ounts pyl invois pprov n sign y uthoriz mploys? Thr r mny risk ftors n wrning signs ssoit with finnil fru, ut thy n mitigt n potntilly prvnt with soun st of intrnl ontrols n ovrsight. Though not ll ntitis hv th rsours to nsur proprly funtioning intrnl ontrol strutur, it is importnt to t lst hv sgrgtion of utis surrouning ss to funs, pprovl of ll trnstions, posting to th gnrl lgr systm, pyroll, n rviw n ronilition of sttmnts n trnstions. With xtnsiv xprin in hlthr n uit, th KrftCPAs hlthr tm n rsour to hlp you strngthn your intrnl ontrols. If you lik n inpnnt ssssmnt of your intrnl ontrols or hlp stting up poliis n prours to hlp ru th risk of fru, pls ontt us. Sott Mrti Luy Crtr, CPA Jssi Soutn, CPA, CFE, MAFF CHFP, FHFMA, CMPE Mmr & Prti Lr, Snior Mngr, Fornsi & Prsint Hlthr Inustry Tm Invstigtiv Aounting Krft Hlthr KrftCPAs Consulting, PLLC 555 Grt Cirl KrftCPAs Ro PLLC Nshvill, TN 37228 krftps.om KrftCPAs PLLC 3

Fru Prvntion Chklists

Fru Prvntion: Pyroll & Employ Rimursmnt Common Pyroll & Employ Rimursmnt Fru s. Ghost Employs. Ovrpymnt. Wg & Pyroll Tx Divrsion. Pyhk Thft. Employs Writing Chks to Thmslvs f. Emzzling Withholing (Othr Thn Txs) g. Formr Employs Kpt on Pyroll h. Crit Cr Fru i. Expns Rport Fru Intrnl Control Poliis & Prours,,, g 1. Hv th ownr/mngr or nothr signt mploy rviw pyroll rgistrs., 2. Don t llow th mploy rsponsil for pyroll ounting to lso hnl th gnrl lgr funtion. 3. Don t llow th mploy(s) rsponsil for prpring th pyroll to lso hnl prsonnl utis (.g., timkping, n hiring mploys). Rstrit ss to othr pyroll t or sh., f 4. Th mploy(s) rsponsil for opning th mil shoul not lso hnl th pyroll funtion. 5. Hv n mploy tht osn t hnl pyroll srv s th ntity s ontt with txing uthoritis.,,,,, f, g 6. Rquir mploys rsponsil for prsonnl n pyroll tk mntory vtions uring pyroll yl. Cross-trin nothr mploy so tht thos jos r hnl y somon ls uring th vtion prio. 7. Dsignt somon inpnnt of th pyroll prossing funtion s th ontt with th srvi orgniztion (if on is us)., 8. Mk sur th totl of pyhks/irt posits ronil with pyroll rgistrs. i 9. Hv somon othr thn th hk prprr istriut sign xpns hks. 10. Kp prsonnl fils lok up. 11. Mk ll isursmnts y hk or irt posit rthr thn sh (xpt in prsri irumstns).. 12. Us multi-prt hks., 13. Pr-numr hks. Kp thm in numril orr n prioilly look for hks tht r out of orr or missing., 14. Kp unus hks lok up., 15. Kp signtur stmps or plts lok up n/or psswor prott ltroni signtur ss., 16. Don t llow pyroll hks to sign if thy r lnk.,,,, g 17. Utiliz irt posit whn possil. Hv th ownr/mngr or nothr signt mploy rviw irt posit rors (inluing mploy ount numrs). 1

Fru Prvntion: Pyroll & Employ Rimursmnt f Intrnl Control Poliis & Prours 18. Stor unlim pyhks in sf. Whn istriuting thos hks, otin signturs, vin of mploymnt n othr intifition, s n. 19. Conut n invntory ount for ll unus pyroll hks to ount for th squn of ll hks. Compr th rsults to th pyroll hk rgistr. 20. Us th pproprit physil or softwr ontrols to voi unuthoriz ss to t fils, hk writing funtions n pyroll pplitions. 21. Rquir pprovl from suprvisor for mploy trmintions n/or itions. 22. Rquir suprvisor to rviw vry hng to th pyroll mstr fil. 23. Rquir suprvisor s oumnt pprovl for hngs in wg rts. 24. Rquir sign uthoriztion forms from mploys for pyroll utions. Kp opis of ths forms in th pproprit prsonnl fils., f 25. Rquir suprvisor to pprov hngs in pyroll ution mounts. g 26. Rquir sign Form W-4s n othr pproprit oumnts to st up withholing. 27. Hv n mploy vrify tht nw hirs r not list on th OIG Exlusion Dts or Dth Mstr Fil, n rviw ths tss on qurtrly sis to nsur tht thr hv n no pplil itions. 28. Mk hourly mploys utiliz tim loks. 29. Hv n pproprit mploy pprov tim shts/rs for hourly mploys. 30. Hv th ownr/mngr or nothr signt mploy pprov th pyroll rgistr. 31. Rquir finl intrviws with th prsonnl prtmnt on th lst y of mploymnt for ll trminting mploys.,, 32. Dposit only th mount n to ovr pyroll for h spifi prio into sprt imprst nk ount. 33. Do not stroy voi hks; kp thm lok up in n pproprit lotion. 34. Rstrit th us of mnul hks. 35. Invstigt, voi, n rissu hks tht hv n outstning mor thn 90 ys. 36. Kp n rgulrly upt list of unlim pyroll n xpns hks. 37. Mk sur th nt py mounts pr h pyroll tx rturns ronil with th pyroll rgistrs n th gnrl lgr. 38. Mk sur th totl W-2 wgs ronil with th gnrl lgr n pyroll rgistr. 39. Hv th ownr/mngr or nothr signt mploy rviw th ronilition of th pyroll sh ount (s prpr y n mploy who os not prpr th pyroll/pyroll hks) h month. 2

Fru Prvntion: Pyroll & Employ Rimursmnt Intrnl Control Poliis & Prours, g 40. Hv th ownr/mngr or nothr signt mploy rviw pyroll hk rgistrs to look for unusul itms, inluing uplit pymnts to mploys n/or unusul py or withholing mounts pi to th pyroll lrk, mong othrs., g 41. Hv th ownr/mngr prioilly ompr tul to ugt pyroll mounts n invstigt ny sustntil vrins.,, g 42. Kp n upt ount of th numr of popl on th pyroll h py prio; ompr th tul mount of pyroll hks/irt posits) to tht numr., g 43. Hv th ownr/mngr or nothr signt mploy ompr urrnt pyrolls with prvious pyrolls in orr to tt n invstigt mjor vrins. i 44. Mintin n ronil ontrol totls to informtion riv from th pyroll srvi orgniztion (if on is us). 45. Us prprint xpns rport forms tht rquir signifint til. h, i 46. Rquir originl ripts to sumitt for h trnstion list on xpns rports n rit r sttmnts. h i i i i i 47. Mk sur monthly rit r invois ronil with xpns rports. 48. Hv signt mploy rviw n pprov xpns rports for rimursmnts r m 49. Don t llow hk signrs to pprov thir own xpns rports. 50. Ensur tht sh vns r los out on t lst monthly sis. 51. Estlish poliis rgring ir trvl, hotl, ml guilins n ntrtinmnt limits. Invstigt ny vitions from thos poliis. 52. Hv th ownr/mngr or othr signt mploy prioilly rviw sumitt xpns rports ginst xpt n/or ugt mounts. 53. Compr milg rimursmnts ginst th prvious yrs rqusts to hk for isrpnis. 54. Kp rquir opis of govrnmnt-issu oumnts from nw hirs, suh s rivr's linss, pssports, n soil surity rs, to prov thir intifition. 55. Prform kgroun vrifitions/hks on ll nw hirs. 56. Hv n mploy sprt from th ounting funtion rviw th til ronilition oumnts s wll s ny justing ntris m to th ooks. 57. Sumit omplt n urt tim rors to th pyroll srvi orgniztion (if on is us). 58. Hv suprvisor prform rviw of ll pyroll rgistrs. 3

Fru Prvntion: Pyls & Disursmnts Common Pyls & Disursmnts Fru s. Kikks. Fls/Inflt Vnor Invois & Chk Altring. Exss Purhsing. Duplit Pymnts. Chk Thft f. Csh/Wir Trnsfr Thft,,,,, f Intrnl Control 1. Bon ll prsonnl tht hnl purhsing, sh isursmnts, wir trnsfr, n ounts pyl prossing funtions. 2. Sprt rsponsiility for purhsing from riving. 3. Sprt ontrting uthority n invoi pprovl uthority. 4. Sprt rsponsiility for ounts pyl n invoi prossing from rsponsiility for th gnrl lgr funtion. 5. Sprt rsponsiility for ounts pyl, invoi prossing, gnrl lgr, sh ripts, n sh isursmnts funtions from rsponsiility for rquisitioning, purhsing, n riving funtions. 6. Sprt rsponsiility for ounts pyl, hk prossing, n vnor prossing funtions.,,, 7. Sprt rsponsiility for vnor mstr fil mintnn from rsponsiility for hk stok ustoy, hk prprtion, hk signing, nk ronilition, n ounts pyl prossing funtions. 8. Don t rturn sign hks to th mploy(s) rsponsil for ounts pyl/hk prprtion. Hv somon inpnnt of ths funtions mil th hks., 9. Sprt rsponsiility for nk sttmnt ronilition from rsponsiility for sh ripts, ounts rivl, n ounts pyl funtions.,,,,, f 10. Rquir mploys rsponsil for ounts pyl prossing, purhsing, isursmnt n othr rorkping to tk mntory vtions t th n of n ounting yl. Cross-trin othr mploys so tht thos jos r hnl y somon ls uring th vtion prio. 11. Limit uthoriz signrs to orport offirs or to thos mploys who on t lso initit, pprov or riv purhss, prpr hks, or hnl sh ripts, ounts pyl n sh rorkping. 12. Rquir two signturs on hks for mor thn st ollr mount; nsur tht hks r not ountrsign in vn n lft for th othr signr to omplt., 13. Hv nk sttmnts snt irtly to th ownr/mngr or nothr signt mploy who os not hv rsponsiility for th isursmnt rors n sh ripts. 1

Fru Prvntion: Aounts Rivl Common Aounts Rivl Fru s A. Lpping B. Fls Crits, Disounts & Othr Writ-offs C. Unuthoriz Shipmnts D. Kikks E. Colltion Agny Shms Intrnl Control, 1. Don t llow th mploy who prprs th posit tikt to lso mk th posit. 2. Don t llow th mploy with rsponsiility for sh ripts, ounts rivl, n ounts pyl to lso hv rsponsiility for roniling th nk sttmnt., 3. Don t llow th mploy who hnls rivls olltions to lso hnl rivls rorkping. 4. Don t llow th mploy who hnls ounts rivl to lso hnl posting to th gnrl lgr. 5. Don t llow th mploy who hnls posting pymnts to lso hnl posting nonontrtul justmnts. 6. Utiliz ltroni rmittn from pyrs., 7. Prform ily ronilition of ovr-th-ountr pymnts, mil pymnts n EFTs with pymnts post to th prti mngmnt systm., 8. Us lok ox.,,, 9. Limit ss to sh ripts, pymnt posting, n posting non-ontrtul justmnts using softwr ontrols., 10. Don t llow th mploy rsponsil for invstigting ptint omplints to prform ily posit, illing, ounts rivl, n sh hnling rsponsiilitis. 11. Hv n mploy who is not rsponsil for th ounting funtion rviw th nk ronilition oumnttion n ny justing ntris m to th ooks.,,, 12. Hv somon inpnnt of sh ripts, sh hnling, n ounts rivl ror kping ronil nk posits to pymnts ror on th prti mngmnt systm monthly., 13. Stmp "For Dposit Only" on ll hks s thy r riv., 14. Don t llow mploys involv in mking th nk posit to opn th ily mil, ount th sh/hk th mounts riv, n prpr list of ily sh ripts., 15. Hv n mploy inpnnt of sh ripts ompr th ily list to th mount posit. 16. Hv mngr without rsponsiility for th ounts rivl funtion, rviw llowns for outful ounts, justmnts n g ounts rivl monthly ompr to historil norms n nhmrks. 1

Fru Prvntion: Csh Common Fru s. Dily Dposit Thft. Lss Csh. Trnstion Skimming. Vois & Rturns. Csh-on-Hn Thft Intrnl Control,, 1. Sprt rsponsiility for riving sh pymnts n posting pymnts to th ptint ount. 2. Pr-numr ripts givn to ptints.,,, 3. Don t llow th mploy rsponsil for invstigting ptint omplints to prform illing, ounts rivl, n sh hnling rsponsiilitis. 4. Look for mjor isrpnis twn xpt/historil sh ripts volums n urrnt sh ripts volums. 5. Us spottrs or othr survilln mthos. 6. Post notis offring gifts to ptints if thy rport tht thy in t riv ript or if thir ript hs inorrt informtion. 7. Crt toll-fr hotlin numr n post it so ptints r l to mk omplints. (Ensur th prson riving/hnling th omplints is inpnnt of sh-rlt rsponsiilitis.),, 8. Don t llow th sm mploy to rsponsil for opning ily ripts, prpring posits, mking posits, roring pymnts, n originting nonsh rits to ptint ounts., 9. Stmp "For Dposit Only" on ll hks s thy r riv. 10. Don t llow th sm mploy to rsponsil for ounts rivl, sh ripts, n sh isursmnts AND rsponsiility for roniling th nk sttmnt.,, 11. Hv n mploy (not th shir or somon in A/R) mk ll posits intt ily., 12. Stor lrg-volum sh ripts in lokox., 13. Kp sh ripts sprt from sh funs., 14. Us sf to stor ny unposit funs., 15. Hv n rmor gur ollt th ily posit if pting lrg mounts of sh.,, 16. Don t llow mploys involv in mking th nk posit to opn th ily mil, ount th sh/hk th mounts riv, n prpr list of ily sh ripts.,, 17. Hv n mploy inpnnt of sh ripts ompr th ily list to th mount posit n th ustomr ount postings. 1

Fru Prvntion: Csh Intrnl Control, 18. Hv th mploy rsponsil for roniling th ount to th rlt gnrl lgr ount riv nk sttmnts not thos rsponsil for prpring posits or roring sh tivity in th gnrl lgr., 19. Hv th ownr/mngr or nothr signt prson rviw th nk ronilition on monthly sis., 20. Hv th ownr/mngr or nothr signt prson mk inpnnt omprisons of th posits shown on nk sttmnts to th vlit posit tikts, s wll s th postings on th gnrl lgr n th pymnts post to th prti mngmnt systm., 21. Us multi-prt posit tikts; ompr th mount shown on th in-hous opis of th posit tikts to th mounts tully posit (shown on th nk sttmnt). 22. Hv sprt rgistr rwr for h shir, if possil, n los out h rgistr t th n of h shift., 23. Hv shirs omplt n sumit ily sh ronilition form with opy of th ily los-out tp. A signt mploy shoul ompr th tp totls to oth th ronilition form n th posit., 24. Rviw th los-out tp for unusul ptint trnstions, inluing xssiv "no pymnt" ntris for ptint visits., 25. Hv h shir ount n ronil thir funs t th los of h shift. Hv suprvisor rviw th ronilitions n invstigt unusul trnstions, ovrgs n shortgs. 26. Kp n ongoing "ovr" n "short" list for h mploy hnling trnstions; invstigt oth on rgulr sis. 27. Kp n qut, ut not xssiv, mount of sh in h rgistr uring ll shifts. 28. Hv tim-lok sf ispns hng for lrg ills, n rquir lrg ills to posit in th sf immitly ftr thy r riv.,,, 29. Rott rsponsiility for physil ustoy of ily ripts to vrious prsonnl. 30. Kp n qut, ut not xssiv, mount of ptty sh on hn. 31. Kp th ptty sh fun lok up. 32. Us stnr tikt for h trnstion. 33. Rquir usrs of ptty sh to sumit originl ripts to support isursmnts; rviw th ripts losly. 34. Ronil ptty sh monthly n rplnish to th stnr mount. 2

Fru Prvntion: Aounts Rivl Intrnl Control 17. Hv th ownr/mngr or nothr signt mploy rviw th monthly ronilition of ll nk ounts., 18. Us multi-prt posit tikts; ompr th mount shown on th in-hous opis of th posit tikts to th mounts tully posit (shown on th nk sttmnt). 19. Look for mjor isrpnis twn xpt/historil sh ripts volums n urrnt sh ripts volums. 20. Rgulrly ronil th ounts rivl totl ln to th lult ln s on tivity (hrg, pymnts, justmnts). 21. Prpr n justmnt rport y justmnt typ on monthly sis for rviw y mngr not involv in th ounts rivl funtion. 22. Rquir tht mploys rsponsil for ounts rivl n sh-hnling funtions tk mntory (two-wk) vtions t th n of n ounting yl. Cross-trin nothr mploy so tht thos jos r hnl y somon ls uring th vtion prio. 23. Hv suprvisor pprov ll non-ontrtul justmnts., 24. Bon th mploys who r rsponsil for hnling sh ripts n mking posits. 25. Prform monthly rviw of g rit ln rports y pyr typ for omplin with govrnmntl ovrpymnt. 26. Hv th ownr/mngr ompr ging rports to th gnrl lgr h month to hk for unusul or inorrt itms. 27. Hv suprvisor pprov ll rfuns; tth oumnttion to support th rqust (.g., opy of EOB, srnshot of ount, orrsponn). 28. Missing tikt rports shoul prpr n rviw ily to nsur tht ll hrgs for srvis provi r ptur. 29. Invntory shoul mintin n ronil monthly for ll supplis us in th trtmnt of ptints (.g., high pri rugs, DME, t.)., 30. Compr th volum of justmnts to ptint ounts ross prios s on hrg volum. 31. Prioilly ompr hrgs post to ptint ounts to th ily shul n/or sign-in sht. 32. Rviw hrgs post from systms link to th ltroni hlth ror to nsur tht hrgs r not suspn u to oumnttion n rquir sign-offs. 33. Doumnt pprovl for ll ounts intifi s ning to snt olltions. 2

Fru Prvntion: Pyls & Disursmnts Intrnl Control, 14. Hv n mploy who os not prpr or sign hks prform monthly nk ount ronilitions., 15. Hv th ownr/mngr or nothr signt mploy rviw th monthly ronilition of ll nk ounts., 16. Crt toll-fr hotlin numr n notify vnors so thy r l to mk omplints. (Ensur th prson riving/hnling th omplints is inpnnt of ounts pyl n rlt funtions.) 17. Inlu in ll ontrts right-of-uit n ss to vnor's ooks lus. 18. Us th pproprit physil or softwr ontrols to voi unuthoriz ss to th ounts pyl n hk writing systms., 19. Crt n utiliz n pprov vnor list. Hv mngmnt pprov ny hngs m to th vnor mstr fil., 20. Us pr-numr purhs orrs, purhs rquisitions, n riving rports. Kp thm in numril orr n prioilly look for oumnts tht r out of orr or missing. 21. Kp ny unissu purhs orrs n riving rports lok up. 22. Us pr-numr, multi-prt hks n pr-numr it/rit mmos. Kp thm in numril orr n prioilly look for oumnts tht r out of orr or missing. 23. Don t llow hks to sign if thy r lnk., 24. Kp unus hks lok up. 25. Kp signtur stmps or plts lok up n/or psswor prott ltroni signtur ss.,, 26. Hv th prsonnl rsponsil for riving purhs itms ompr th rns, quntitis, n prout intifition of goos riv to thos purhs n thos shown on th ript/ill of ling/pking slip.,, 27. Hv signt inpnnt iniviul trmin if ontrts hv n stisftorily fulfill n otin oumnttion tht th goos/srvis r ptl prior to pying vnors. 28. Vrify tht vnor invois r mthmtilly urt. 29. Rquir originl riving rports n invois., 30. Compr purhs orrs n riving rports to vnor invois., 31. Atth purhs orrs, vouhrs or vnor invois, n riving oumnts to ll hk rqusts. Mk sur thy r ll stmp "pi" n mrk with th orrt hk numr. 2

Fru Prvntion: Pyls & Disursmnts Intrnl Control 32. Hv prsonnl rsponsil for pproving or prossing vnor invois look out for orrs of xssiv quntitis of supplis (.g., opy ppr, ppr towls) n/or lowr qulity goos thn tritionlly purhs. 33. Rquir tht ll pymnts to mploys (inluing mngrs) uthoriz. 34. Hv th ownr/mngr or signt mploy rviw ronilition of th ounts pyl tril ln to th ontrol ount. 35. Hv somon inpnnt of th purhsing prtmnt rviw purhs pris prioilly. 36. Ronil th ounts pyl tril ln to vnor sttmnts on monthly sis. 37. Hv th ownr/mngr or signt mploy rviw ronilition of ging rports (for ounts pyl) to th gnrl lgr; look for unusul mounts or unknown vnors. 38. Us monthly ugts; ompr tul xpnss with ugt mounts n followup on mjor iffrns. 39. Hv th ownr/mngr or nothr signt mploy ompr tul sh isursmnts with ugt mounts. 40. Compr ptty sh rimursmnt rqusts to rgulr rimursmnt rqusts to nsur mploys rn't ttmpting to otin uplit rimursmnt. 41. Ronil sh isursmnt rors to th ounts pyl opn invoi fil. 42. Mk ll isursmnts y hk or wir (xpt for ptty sh)., 43. Rstrit th us of mnul hks., 44. Df voi hks n kp thm in n pproprit lotion for insption. 45. Don t llow hks to writtn to "sh" or "rr" (unlss n xption xists for ptty sh rimursmnts). 46. Invstigt, voi, n rissu hks tht hv n outstning for mor thn 90 ys. f f f 47. Rquir psswors for wir trnsfrs; ssign psswors to uthoriz iniviuls. 48. Rquir nk ll-k vrifitions for trnsfrs xing st ollr mount. Hv th ownr/mngr rviw trnsfr tivity on th nk sttmnt; look for trnsfrs just unr th st ollr limit. 49. Sujt wir trnsfrs to th sm ontrols ovr othr isursmnts (.g., rquiring originl invois). 50. Us systm to trmin if thr r uplit invoi numrs sumitt for pymnt. 3