Red flag Friday - The Maintenance Guy

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 It’s #redflag Friday. Each Friday, I will share a specific indicator to be on the lookout for fraud, waste, corruption, or other misconduct. 

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Purchase cards are helpful to expedite and obtain needed supplies, repair services, and smaller items that may not need to go through a longer, formal procurement process. But they can be misused just as any credit or debit card. One recent case involved a Director of Maintenance who approached vendors to provide him with regular cash payments of approximately $1,000 to $2,000 per month; in exchange for those payments, the vendors falsely billed his employer using their purchase card system for items that the vendor sold but ultimately never provided (or never intended to provide). Because the false purchase charges covered the cash payments, they also provided a substantial amount of fraudulent income to the vendor. What purchase card controls are in place? Who actually has them (and do they REALLY need them)? How often are they audited? And what is the relationship between purchase card holders and the vendors they routinely use? All good questions to explore. 


#compliance   #fraudawareness 

#fraudprevention #oversight 

#publicintegrity #fraudsandscams 

 #oig #cigie #inspectorsgeneral 

 #investigation #redflagfriday 

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