Anne Arundel public schools should send a strong message against fraud by establishing a confidential hot line for reporting unethical behavior.
“It provides a mechanism for people to not get in trouble or be intimidated by their boss,” said Legislative Auditor Bruce Myers, who added the school system wasn?t having a problem with fraud, but that the hot line, used in other school systems, was recommended in the audit of the school system by the state?s Department of Legislative Services, which also uses a fraud hot line.
The department?s confidential hot line gets about 300 calls a year with topics from fraud to the misuse of assets, he said. Some complaints turn out to be unfounded, but issues associated with Medicaid or workers? compensation, among others, are referred to state organizations that specifically deal with the fraud.
The Anne Arundel Board of Education is expected to discuss the feasibility of the fraud hot line, board President Tricia Johnson said.
Employees now can suggest or report better ways of handling situations to their superiors, she said.
“We encourage people to eliminate any waste we have,” Johnson said. “And especially with limited funds, we want to make sure we?re spending money efficiently.”
School system spokesman Bob Mosier could not be reached by press time to comment on the success of the current reporting techniques.
Other private and public entities that advocate a fraud hotline include the Institute of Internal Auditors and American Institute of Certified Public Accountants, the audit report said.
“The desire is to provide a confidential means for a person to call in and explain what they believe to be an issue,” said Dave Richards, president of the Institute of Internal Auditors, an international professional association whose members work on various issues from internal auditing to risk management.
A successful fraud hot line would use the services of a third-party provider that could take calls all day and would have experienced individuals asking the right questions regarding suspected abuses, he said.
AT A GLANCE
The state Department of Legislative Service?s audit of the Anne Arundel school system recommended a fraud hot line. Employees can report the following in confidential calls:
» Sexual harassment
» Expense abuses
» Conflicts of interest
» Inappropriate gifts
Source: Institute of Internal Auditors
