(A)
Policy
statement
The university of Toledo (UToledo) is
committed to the highest standards of ethical behavior. Acts of fraudulent
behavior can be financially costly and may erode the public's trust and
confidence in the integrity of the institution. In addition to the financial
fraud prevention policy, there are multiple university code of conduct and
conflict of interest policies.
(B)
Purpose of
policy
This policy provides all university
employees and third-party contractors, information about federal and state laws
pertaining to financial fraud, including protections for whistleblowers. The
university prohibits any kind of fraud, waste, and abuse of resources by any
trustee or employee, including but not limited to vendors and
contractors.
(C)
Scope
This policy applies to employees of all
university of Toledo campuses, as well as UToledo vendors and
contractors.
(D)
Financial fraud
Procedures pertaining to financial
fraud prevention are contained in the university's standards of ethical
conduct.
(1)
Financial fraud is defined as an intentional act that
results in a material misstatement in financial statements. There are two types
of financial fraud.
(a)
False statements arising from misappropriation of
assets (examples, theft of assets or fraudulent expenditures).
(b)
False statements
arising from fraudulent financial reporting (example, falsification of
accounting records).
(2)
Three "fraud
triangle" conditions present when fraud occurs.
(a)
Incentive or
pressure that provides a reason to commit fraud.
(b)
Opportunity for
fraud to be perpetrated (e.g., absence of controls, ineffective controls, or
the ability for management to override controls).
(c)
Individuals
committing the fraud possess an attitude that enables them to rationalize the
fraud.
(3)
Examples of fraud include but are not limited to
embezzlement or other financial irregularities.
Notes
Ohio Admin. Code
3364-15-18
Effective:
11/19/2020
Promulgated Under:
111.15
Statutory
Authority: 3364
Rule Amplifies:
3364
