Policy References:

To enable the Office of the State Comptroller (OSC) to carry out its fiscal responsibility under Article 2, Section 8 of the State Finance Law, State agencies must inform OSC of any suspected and/or known theft, loss, misuse or inappropriate action involving State funds, equipment, supplies and other assets. Improper transactions must be reported to OSC as soon as they are identified. It is not appropriate to wait until an investigation has been completed and/or forwarded to an investigative agency before notifying OSC.

Improper transactions include, but are not limited to, the following:

1. Unaccounted for cash in any amount, including inmate or patient cash;
2. Unaccounted for cash in agency cash advance accounts, including unrecovered salary or travel advances made to current or former employees;
3. Unauthorized cash withdrawals from agency bank accounts;
4. Unexplained discrepancies in cash balances and/or bank reconciliations;
5. Unauthorized or improper use of State credit cards;
6. Theft or loss of supplies, equipment or other physical assets in excess of $1,000 per occurrence;
7. Any indications that fraud may have occurred or improper expenditures have been made; or
8. Unauthorized or improper disbursements, including actions involving contractors, sub-grantees or other recipients of State funds.

Process and Document Preparation:

State agencies should have policies and procedures in place to help prevent, mitigate, detect, and monitor incidents of theft, loss or misuse of State assets. If an incident does occur, the agency must send a detailed explanation of the incident to: [email protected].

If an employee is involved in the theft or misuse of State funds, the agency must also refer the incident to the State Inspector General's Office for review.

If applicable, the agency must also notify the Office of General Services Bureau of Insurance to assist with recovery efforts under the provisions of a blanket fidelity bond.

Guide to Financial Operations

REV. 07/09/2020