Office of Risk Management

The University of Toledo is committed to maintaining an environment of integrity, accountability, and responsible stewardship of University resources. All members of the University community play an important role in identifying and reporting suspected fraud, waste, abuse, misconduct, or misuse of University resources.

What is Fraud?

Fraud generally involves intentional deception, misrepresentation, or concealment for the purpose of obtaining an improper benefit or causing a loss to another party. Fraud, waste, and abuse can occur in any organization, including colleges, universities, and healthcare institutions.

Examples of potential fraud or misuse may include:

• Misappropriation, theft, or misuse of University funds, equipment, supplies, or other assets
• Falsification or unauthorized alteration of documents, records, or electronic information
• Knowingly inaccurate or misleading financial reporting
• Improper handling, recording, or reporting of financial transactions
• Authorizing or receiving payment for goods or services that were not provided
• Payroll, timekeeping, purchasing, travel, reimbursement, or procurement irregularities
• Conflicts of interest or improper use of a University position for personal benefit
• Other suspected fraud, waste, abuse, or misuse of University resources

Understanding the Fraud Triangle

The Fraud Triangle is a commonly used framework for understanding conditions that may contribute to fraud. It identifies three factors that are often present when fraudulent activity occurs:

• Pressure or Incentive – A financial, personal, or organizational pressure that may motivate an individual to commit fraud.
• Opportunity – A weakness in internal controls, oversight, or accountability that allows fraud to occur or remain undetected.
• Rationalization – The individual's ability to justify or rationalize inappropriate behavior.

While organizations cannot always control an individual's pressures or rationalizations, they can significantly reduce opportunity through strong internal controls, appropriate segregation of duties, effective management oversight, transparency, and a culture of accountability.

Reporting a Concern

Approximately 43% of fraud cases were initially detected by a tip. Employees are encouraged to raise concerns through appropriate University channels when practical. When normal reporting channels are not appropriate or an individual wishes to report a concern confidentially or anonymously, the University provides a Fraud, Waste, and Abuse Reporting Line.

Reports should be made in good faith and provide as much information as reasonably available. Individuals do not need to investigate or prove suspected misconduct before reporting a concern.

Internal Audit remains available as a resource for individuals who have questions regarding potential fraud, internal controls, or the appropriate avenue for reporting a concern.