UBC administers large volumes of funds for research, teaching, operations, and other UBC-related purposes and is committed to maintaining sound management of its resources with integrity and honesty. Improper financial activity is contrary to UBC’s values, and damages UBC’s reputation and ability to carry out its mission. Therefore, UBC has in place a strong system of internal control, and other checks and balances, and continually strives for transparency and accountability throughout its operations.
Per UBC’s Financial Investigation Policy SC15, ERA’s Internal Assurance investigation mandate is to:
- prevent improper financial activity;
- investigate allegations of improper financial activity;
- provide effective reporting mechanisms for allegations of improper financial activity; and
- promote ethical financial conduct by UBC members
Resources
What is Financial Fraud?
Financial Fraud refers to any deliberate act of dishonest or deceptive behaviour committed, directly or indirectly, resulting in a loss to UBC and / or gain to the perpetrator.
Types of Financial Fraud
UBC may face both internal and external financial fraud:
- External: Financial fraud committed by third parties (e.g., vendors, customers, competitors, or cybercriminals)
- Internal: Financial fraud committed by UBC members (e.g., students, faculty, or staff). Internal financial fraud is considered a subset of improper financial activity, defined and encompassed in the Financial Investigations Policy (SC15).
Impacts of Fraud Activities
Fraud is damaging and can result in:
- Financial losses (current and future)
- Operational disruption and loss of productivity
- Reputational damage
- Legal / compliance issues
All organizations are susceptible to fraud. Proactive fraud risk management is crucial!
Examples of Improper Financial Activity
Examples of improper financial activity, includes, but is not limited to:
(a) Embezzlement – the theft of money, property or other assets by a person who is in a position of trust or responsibility over the assets.
(b) Unauthorized expense reimbursement including for items of a personal nature, items that are prohibited by UBC policy, items submitted on duplicate expense reports, or fictitious purchases.
(c) Payroll manipulation – claims for hours not worked, unauthorized pay rate changes or including fictitious (ghost) employees in payroll.
(d) Theft of petty cash or cash from registers at retail locations.
(e) Theft of intellectual property, trademarks, or patents.
(f) Unauthorized use of UBC inventory or assets.
(g) Financial statement fraud – intentional falsification of financial statements causing misstatement of revenue, expenses, or balance sheet amounts.
(h) Corruption – misuse of influence or position to the detriment of UBC, including bribery, procurement fraud or inappropriate hiring practices.
(i) Bribery – cash or non-cash payments, given or received, for an undue business advantage or personal gain. Examples include payments to obtain permits, licenses, or work visas; payment to receive funding or contracts; receiving bribes for admissions or paying bribes for academic rankings in prestigious journals.
(j) Procurement fraud – selection of an unqualified vendor or supplier in exchange for a cash inducement or due to a conflict of interest (e.g., vendor is a related party); bid rigging, collusion with a vendor or supplier to inflate pricing in exchange for a kickback, diversion of goods for personal use.
(k) Knowingly directing an individual to commit Improper Financial Activity.
(l) Breaches of the financial provisions of UBC rules, regulations, policies, including any procedures or rules issued in connection with such policies.
(m) Violation of the financial provisions of applicable laws and regulations with which UBC must comply.
(n) Providing false information to obtain personal financial gain.
Anti-fraud Tips Handout
UBC Financial Fraud Response Plan
Refer to the UBC Financial Fraud Response Plan for guidelines on how to respond to suspected instances of improper financial activity / financial fraud in a timely and consistent manner, in compliance with the relevant university policies.
This is a living document and will undergo periodic updates as necessary.