Unfortunately school fraud happens! The headlines are full of stories detailing fraud, waste, and abuse at school districts and universities across the United States. Examples of fraud include everything from small amounts of petty cash stolen by a bookkeeper to millions of dollars stolen by trusted teachers, principals, central office administrators, booster club presidents, and board members.
School districts nationwide are facing financial challenges. Many school districts are struggling with declining enrollments, which means less revenue. All districts are attempting to manage rising inflation (fuel and supply costs), labor shortages, and supply chain issues.
The Association of Certified Fraud Examiners (ACFE) in their biannual Report to the Nations, estimates that bewteen 5-7% of an organization’s revenue is lost to fraud, waste, and abuse. With school districts facing reduced revenue and increased costs, they must take steps to ensure that fraud is addressed in a relevant manner.
EduFraud is a tool to help school district’s combat fraud, waste, and abuse in these financially trying times. In future posts, we will address such topics as fraud detection and prevention strategies, common campus and departmental fraud schemes, how to investigate a suspected fraudulent event, and dissect real-life school districts fraud to determine lessons that can be utilized by districts today.
