Definition of Financial Misconduct

1. Any material losses through criminal conduct, unauthorized, irregular, fruitless and
wasteful expenditure. The types of financial misconduct reported by departments were
categorized as follows:
2. Corruption, e.g bribery
3. Financial Mismanagement, e.g failure to follow procurement procedures
4. Fraud, e.g S&T claim fraud, Social grant fraud
5. Theft, e.g Theft of laptop, petrol, food, petty cash, cheques
6. Misappropriation and abuse, e.g abuse of GG vehicle
7. Gross negligence, e.g loss of state property, unauthorized expenditure
The PSC compiles an annual report on the basis of the data collated from the Departments.
The statistical overview is as follows:
DEFINITIONS AND EXAMPLES
Financial misconduct refers to any intentional misuse or conversion of Countyproperty or
resources to acquire financial gain. Financial misconduct typicallyinvolves theft, forgery, or
embezzlement. Examples of financial misconductinclude but are not limited to:
1. Falsification of records related to financial transactions funded by externalagencies (such as
Medicaid)
2. Falsification or alteration of various records related to accounting andfinancial reporting
3. Falsification or alteration of records related to employee tax reporting andemployee benefit
plans
4. Alteration of records including financial reports, attendance andtimekeeping reports
5. Submission of fraudulent business expenses for reimbursement
6. Acceptance or offering of bribes, kickbacks, or rebates.
7. Theft, destruction, or misappropriation of funds, securities, supplies,inventory or any other
asset