RESPECT | TRUST | INCLUSION | DISCOVERY | EXCELLENCE
Reckless Charges and Scant Review:
Procurement Card Madcap
A campus department staff has a Procurement card (P card) to use for various department events. They routinely order meals or other items for events. An area administrative director is her P card reviewer. Though they always attach receipts, some receipts do not fully match the charges.
The staff realizes their approver is not closely reviewing these charges and increases her usage of the card.
Though each of the charges is not notable in amount, the number of charges increases. The Employee Travel and Reimbursement (ET&R) team questions some of the charges when the timing of the charges and the events do not appear to match. The administrative director then realizes many more of the charges were not tied to real events and then suspects the cardholder has been using the card for personal purchases.
The department and ET&R contacted the Speak Up Program.
Business Practices: We are all stewards of Duke’s resources and reputation, and we strive to conduct all business discussions, activities and decisions fairly and with appropriate transparency. Seek advice when expectations are not clear or when we question what is “right” or “allowed.”
Fact finding and intervention:
The appropriate Duke office performed a thorough review of card activity with the accompanying documentation, including scanned receipts and notes.
During the review, it became apparent the approver was not examining the charges, receipts and timing carefully enough to determine the charges did not align with any department events. The validity of the receipts could not be verified.
The employee had misused the P Card for many transactions over multiple months. Purchases included meals, airline tickets, personal services, household goods and transportation.
Resolution and action plan:
- Evidence of the employee’s conduct regarding the P card activity was transferred to Duke Police
- Duke pursued criminal fraud/theft charges fraud and sought restitution from the employee
- Duke terminated the employee
- The director responsible for reviewing the charges was notified they held significant responsibility in the matter
- Those with responsibility to review expenses are a key control with regards to financial accuracy and in avoidance of fraud
- If a charge does not seem right, the approver can contact their Chair or division lead, ET&R or the Speak Up Program
*This vignette is loosely based on real cases received through Duke’s Speak Up program and/or other investigatory offices. Creative license was taken to protect the identities of those involved.*