The Risks of Fraud in Managing Student Organizations
Last Updated : 13 January 2026 11:29- ASO School of Engineering
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Student Organizations play an important role in supporting students’ personal and professional development, as well as contributing to campus life. Therefore, BINUS strongly supports the establishment of Student Organizations that are not only active in carrying out programs, but also professional in managing their operations.
One of the key principles applied is Good Organization Governance, which emphasizes transparency, accountability, and responsibility. However, even with these principles in place, the risk of fraud or misconduct cannot be completely eliminated.
For this reason, it is important for every Student Organization to understand the risks of fraud and implement effective preventive measures to ensure proper, transparent, and accountable management.
The Risks of Fraud in Student Organizations
Fraud within Student Organizations can lead to several negative impacts, including:
1. Financial Loss
Irresponsible officers may misuse organizational funds for personal interests, manipulate financial reports, or commit embezzlement.
To prevent this, BINUS requires the implementation of a dual control system in financial management.
2. Damage to Organizational Reputation
Student Organizations involved in fraud cases may lose their credibility, making it difficult to gain trust from BINUS and external partners for future collaborations.
In addition, such organizations may face difficulties in attracting new members in the following periods.
3. Risk of Sanctions
When fraud occurs, the university may take necessary actions for guidance and discipline, including the imposition of sanctions based on the type of violation and its impact.
Efforts to Prevent Fraud in Student Organizations
To minimize the risk of fraud, the following preventive measures should be implemented:
1. Establishing an Internal Control System
Organizations should have clear regulations regarding the rights, obligations, authorities, and responsibilities of each officer, including decision-making and operational procedures.
BINUS requires every Student Organization to have:
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Articles of Association and Bylaws
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Financial reports
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Accountability reports for each program conducted
2. Officer Training
Fraud is closely related to personal integrity and ethics. Therefore, BINUS consistently provides training and instills institutional values, especially for Student Organization officers.
3. Regular Organizational Audits
Each Student Organization will undergo routine audits conducted by the BINUS Student Affairs Department at least once a year as part of monitoring and evaluation.