Q: What is fraud?

A: The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. Fraud is normally considered to be a criminal act, and employees who commit fraud may be terminated, fined, and/or imprisoned depending on the severity of the fraudulent act.  For additional information, see System Administrative Memorandum 01.C.04, Reporting/Investigating Fraudulent Acts (PDF).

Examples of fraud include:

• Stealing cash or checks
• Falsifying timesheets or workers comp claims
• Falsifying expense reimbursements
• Personal use of university credit cards or long distance codes
• Stealing property or supplies
• Personal use of university assets (occasional local phone calls are okay)
• Outside employment that conflicts with university employment
• Awarding contracts to friends or relatives
• Scholarships/grants awarded based on relationships (personal/financial) vs. merit
• Seeking or accepting gifts or favors from vendors or contractors in exchange for placing orders or awarding contracts
• Purposefully falsifying financial statements

Q: How can I report suspected fraud?

A: Report suspected fraud in one of the following ways:

1.  Notify your supervisor, who will notify one of the three below

2.  Notify the Chief Audit Executive (Phil Hurd)

• 713-743-8000

3.  Notify the Chief Compliance Officer (Sergio V. Leal)

• 713-743-7613

4.   Notify the Texas State Auditor’s Office

• or 1-800-892-3848
• Reporters can remain anonymous

5.  Use the Fraud & Non-Compliance Hotline

• or 1-866-843-4379
• Reporters can remain anonymous