University of Michigan employee uses card to swipe $160,000 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

University of Michigan employee uses card to swipe $160,000

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In the third known case of employees abusing University of Michigan credit cards, a former maintenance supervisor at the university has admitted stealing $160,000. He faces a hearing to determine restitution.
    The supervisor used the card to buy motorcycle parts, a television and a digital camera, among other things. He presented fraudulent invoices and receipts to the university.
    The university introduced the “P-Card” program in 1995 because it offers a lower cost per transaction than traditional purchase orders or travel advances, a spokesperson said.
    The university may have been penny-wise and pound-foolish. “Formal procedures for monitoring purchasing activities … do not exist,” a university audit concluded.
    Advice: Many employees simply cannot resist the temptation of a company line of credit. Protect your company with spending controls and audits, particularly on employee credit cards. 

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