But the protocols have been described as a "bare minimum" by a fraud expert, who was surprised the security checks were not already in place.
Jonathan Richard Kirkpatrick (53) appeared in the Auckland District Court yesterday on seven criminal charges, including false accounting and using documents to gain a pecuniary advantage.
The former chief executive of the AUT Business Innovation Centre is alleged to have stolen $665,985.25 by sending 82 invoices to the university from companies he was a director and shareholder in, including Enventure Ltd and Halsey Consulting Ltd.
Court documents show the alleged fraud started in 2002, the year he started at AUT, and ended in May.
The charge sheets also allege the former dean of St Paul's Cathedral in Dunedin entered false information into the AUT accounting system.
Inside court yesterday, his lawyer Russell Fairbrother said his client "takes full responsibility for his actions".
He anticipated Kirkpatrick would enter pleas to the charges at his next court appearance on August 18.
Kirkpatrick was released on bail but had to surrender his passport and was barred from entering AUT property.
Outside court, Kirkpatrick said he hoped the case would not drag on.
"What can I say? I'm intrigued as much as I'm scared of the whole thing." He said he intended to plead guilty at his next appearance.
Kirkpatrick's arrest came a week after it was revealed police were investigating him and resigned after "accounting discrepancies" were discovered.
AUT moved quickly to file legal action against Kirkpatrick in the High Court at Auckland to freeze his assets.
An AUT spokeswoman declined to comment yesterday as the case was before the courts.
But The New Zealand Herald has obtained an email from AUT general manager finance Judith McKay to staff which says the "vice-chancellor has requested that we strengthen our controls around employment and remuneration of consultants in the university".
Dated August 1, the email says all invoices must be coded to a specific account and be counter-signed by a senior manager in that department. Any invoices that are not countersigned would not be paid.
But a fraud expert described the new rules as the "bare minimum" needed and was surprised they were not already in place.
Gib Beattie is the former assistant director of the Serious Fraud Office and now runs a private forensic investigation firm, Beattie Varley and Associates.
He said the new AUT protocols should be "stock in trade" to prevent fraud and an "absolute no-brainer".
"Quite frankly, these are the sort of rules that you should see in a large organisation anyway. It is so easy for people employed by an organisation to covertly set themselves up as consultants and contract to the organisation using companies as a shield.
"Even if they are providing legitimate services, and they might not, there is still a massive conflict of interest." Mr Gibb cited $17 million Otago District Health Board fraudster Michael Swann as a "stark example".
Swann was the IT manager for the DHB and set up companies to invoice the DHB - but did not do any work. He was sentenced to 9 years in prison after being found guilty.
Kirkpatrick, who lives in Mt Roskill, is the former partner of former Labour MP Tim Barnett.
He has a long history in the Anglican Church and until recently had been the minister in charge of St Albans in Balmoral but no longer has any role of responsibility in the church, after news of the alleged fraud broke.
The charges
• With intent to obtain a pecuniary advantage used 32 invoices totalling $288,542.50
• With intent to obtain a pecuniary advantage used 36 invoices totalling $256,196
• With intent to defraud used nine invoices totalling $74,840.50
• With intent to obtain a pecuniary advantage used four invoices totalling $38,250
• With intent to defraud used an $8156.25 invoice.
• With intent to obtain a pecuniary advantage, made false entries in the AUT accounting system.• While a servant of AUT, made false accounting records for his own benefit.
TOTAL $665,985.25
