amie Petrone worked at Yale University for more than ten years $($Vigdor$,2022).$ Beginning in $2008,$ Petrone was employed by the Yale University School of Medicine $($Yale Med$),$ Department of Emergency Medicine, and Administration for the Department of Emergency Medicine. She was perceived to be a good employee and received a series of promotions before landing as the Director of Finance and Administration within the Department of Emergency Medicine. Petrone's job responsibilities included supporting medical researchers which allowed her to authorize purchases as long as they were below the $$10,000$ threshold $($Lambert$,2022).$

In $2013,$ Petron began to make a series of technology purchases under the $$10,000$ threshold. Instead of having the products seemingly purchased for the department of medicine, the units delivered to the University, they were diverted to an out of state company that resold the equipment $($ Lambert, B$,2002$; United States Attorney's Office District of Connecticut, $2022).$ The funds were then wired to Maziv Entertainment and into the hand's of its CEO Jamie Petrone $($United States Attorney's Office District of Connecticut, $2022).$ As Petrone grew more confident, she began to make larger purchases that she allocated to different units within the school. At the end of ten years, Petrone had bilked Yale University out of more than $$40$ M $($United States Attorney's Office District of Connecticut, $2022).$

Thinking about the principles of accounting $($including budgeting$)$ that you have learned so far, how could Yale University have protected itself from this type of fraud?

Case Study Framework:

I. Summarize the Case

II$.$ The Fraud Triangle$--$how does it apply to Petrone$-$Codrington?

II$.$ Describe the fraud scheme

III. Internal Controls

Which internal controls were violated

What improvements should be made

IV$.$ The Budget

What is a budget, and how do you think it applies to a school?

Considering what you have learned about budgets, how should this misappropriation come to light?

V Conclusion