We all know the difference between right and wrong. Sometimes a coworker may be doing something that everybody knows is wrong, but nobody says anything about it. In order to help identify situations which are considered fraud, waste, or abuse, definitions are provided below.
Fraud – A false representation of the facts, including making false or misleading statements, or trying to hide wrongdoing by an individual(s) or an organization. The deception is intentional and usually results in a benefit to the perpetrator and/or causes damage, harm, or loss to the State or others. Example: The falsification of financial records to cover up a theft of money or state property.
Waste – Unnecessary spending or careless squandering of the State’s resources, whether intentional or unintentional. Sometimes, inefficient or ineffective business practices may result in waste. Example: The expenditure of state funds to purchase items that have no business purpose.
Abuse – Intentional destruction, diversion, manipulation, misapplication, mistreatment, or misuse of State resources; or the extravagant or excessive use of a person’s position or authority. Abuse can occur in a financial or non-financial environment. Example: An employee taking time off from work without properly discharging leave time.