Reconciliation of Monthly Operating
Statements
Issued August 2003
To: All Fiscal Officers:
We
recently completed an investigation involving over $6,000 of personal
long distance telephone calls charged to a University account. This
misuse of the University telephone system went on for over five years
because the person responsible for reviewing the monthly operating
statements was NOT DOING THEIR JOB.
As
Fiscal Officer, you are responsible for ensuring that processes
are in place for the review and reconciliation of monthly operating
statements for your organization (http://www.indiana.edu/~vpcfo/policies/accounting/home.html).
I would urge you, if you have not already, to look at how operating
statement reviews and reconciliations are occurring for your accounts
and ask yourself—if something like this occurred in your organization,
would it be detected on a timely basis?
Also,
remember that per IU financial policy I-30, Fiscal Misconduct
if you or any employee in your
organization “…. knows or suspects that other university
employees are engaged in theft, fraud, embezzlement, fiscal misconduct
or violation of university financial policies, it is their
responsibility to immediately notify the Internal Auditing department or
the appropriate campus police department.” (http://www.indiana.edu/~vpcfo/policies/accounting/i-30.html)
Thank
you for your attention to this very important issue.
Terry
Radke, CPA
Internal Audit
Director