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VENDOR/BUYER CONFERENCE

By Don Harris

Auditor General: Here’s HELPING

How to Steer Clear of

Conflicts and Illegal Gifts SCHOOLS

FOCUS ON
Avoiding conflicts of interest can be tricky, but
Arizona’s No. 1 auditor knows some tricks of her own.
At the annual Vendor/Buyer Conference, Lindsey
Perry, Arizona Auditor General, told AASBO members WHAT
and business representatives what
they can and can’t do and how
to spot potential problem areas MATTERS
regarding conflicts of interest and gift
prohibition.
Perry advised: “Protect yourself
and the people you supervise.” MOST
She mentioned six “red flags”
indicating a potential problem: if Lindsey Perry
an employee is living beyond their
means; having financial difficulties; has an unusually
close association with a vendor or customer; has a DELIVERING COMFORT AND
wheeler dealer attitude; wants total control and is UNIQUE FINANCIAL SOLUTIONS
unwilling to share duties; and had a divorce or other
family issues. THROUGH PERSONALIZED
“Know your employees,” Perry said. “If you see
something, follow up with law enforcement or TECHNOLOGY.
prosecutors. School districts are Number One as a
self-reporting entity for something that is not right. I
commend you all for doing that. “  Energy efficiency
Perry cited a survey indicating that typically 5 percent
of revenue is lost to occupational fraud each year.  Facility modernization
Corruption involves conflict of interest, bribery, illegal  Improved environment
gratuities and economic extortion.
What should be concerning to school business  Renewable energy
officials is that government and public administration
ranked third highest in those forms of corruption.  Self-funding resolutions
Banking/financial institutions and manufacturing were
first and second, respectively.
In addition, 70 percent of fraudulent acts are
perpetrated by someone in authority, and 80 percent
of perpetrators are male, mainly because they are in
positions of authority, Perry said.
Arizona’s conflict of interest statute states: “Any
public officer or employee of a public agency who
has, or whose relative has, a substantial interest in any
decision, contract, sale, purchase or service to such DEREK VAN ZIJLL | 480.272.3414
public agency shall make known that interest in the
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SPRING 2019 | THE EDGE 29