Fraud in student organizations can occur in various forms and may cause significant harm to the organization, its members, and other related parties. Common types of fraud include misuse of funds, falsification of data, conflicts of interest, misappropriation of assets, and the acceptance of improper gifts or gratuities.

As part of the BINUS academic community, all student organization members are expected to uphold integrity, transparency, and accountability in carrying out organizational activities.

1. Misuse of Organizational Funds

The misuse of funds is one of the most common forms of fraud in student organizations. Financial management usually involves several officers, such as the chairperson, treasurer, and other members. Fraud occurs when funds intended for student activities are used for personal interests or purposes unrelated to the organization’s goals.

Examples of fund misuse include:
a. Embezzlement of funds
b. Unnecessary or inappropriate purchases
c. Manipulation of financial reports
d. Borrowing organizational funds for personal use

To prevent such practices, BINUS requires a dual control system in managing student organization finances. This includes the use of a joint bank account under the names of two authorized officers, which limits single-person access to organizational funds.

In addition, BINUS prohibits mixing organizational funds with personal funds or storing organizational money in personal bank accounts.

2. Falsification of Data and Reports

Another form of fraud is the falsification of data and reports, including financial reports, membership data, or activity reports. This is usually done to conceal discrepancies or to present a more favorable image than the actual condition.

Such practices violate organizational ethics and can damage the credibility of student organizations.

3. Conflict of Interest

A conflict of interest occurs when personal interests interfere with organizational interests.

For example, when a student organization rents a secretariat space owned by one of its officers, this situation may compromise objectivity in decision-making and result in unfair personal benefits.

Officers are expected to maintain professionalism and separate personal interests from organizational responsibilities.

4. Misappropriation of Assets or Resources

Misappropriation of organizational assets can occur when there is insufficient control over inventory or equipment. Assets may be used for personal purposes or even sold without the organization’s knowledge.

BINUS requires student organizations to maintain proper asset inventory records and to avoid storing valuable assets at the private residences of officers. This helps reduce the risk of misappropriation and ensures that assets can be properly utilized by the organization.

5. Acceptance of Gifts (Gratuities)

Student organizations often collaborate with external parties. This creates opportunities for gratuities, where officers receive gifts or personal benefits that influence organizational decisions.

For example, receiving personal or group benefits from sponsors that affect the selection of partners for product promotion or sales within the BINUS environment. Such practices undermine fairness, transparency, and organizational integrity.

Fraud in student organizations not only causes financial losses but also damages trust, reputation, and the values of integrity upheld by BINUS.

Therefore, all members are expected to:

• Manage organizational activities transparently

• Avoid conflicts of interest

• Maintain honesty in reporting

• Handle organizational assets responsibly

By upholding integrity and accountability, student organizations can serve as professional, ethical, and positive platforms for student development.