The Columbia (MO) Tribune has a story about how the University of Missouri is working to stop fiscal misconduct with a multi-layered program that even involves the public. The story focuses on the new fraud reporting hotline as well as other techniques like increased background checks. Let’s review what’s going on and how you can learn from it.
The University is trying to curb and catch “financial misconduct.” That phrase covers a number of offenses. They include theft and fraud, of course, but also statements or actions that violate internal financial policies, unlawful gifts, bribes, misuse of funds under grants or contracts, and, in some cases, the destruction of financial documents.
The tip line will be outsourced and it’s only one of a number of actions that the University is taking. They’re paying more attention to who they hire, for example.
The University has done pre-employment background checks for some time, but only for offenses committed in Missouri. Now they’ll be doing a national criminal background check as well as reviewing the Missouri Sex Offender Registry.
Also new is the policy of doing background checks on faculty. Before, only staff members were investigated and faculty members were, in essence, deemed to be above suspicion.
Staff will now be investigated as part of the hiring process, just like before. But they’ll also be subject to scrutiny when they are promoted or transferred outside their department.
Even though the tip line is getting most of the press, it the background checking that will be most effective in preventing financial crimes. Checking everyone is more effective than having a special class of people who are presumed to be so honest that you don’t need to check them. Checking nationally makes sense in a world where so many people move so often. Checking for criminal activity when people are promoted or transferred helps catch folks who may have gone bad since you hired them.