Caught an employee for his fraudulent activities - What Should I Do?

TO answer your question you should be professional, if your Admin friend is professional he would appreciate it.
The grave i see here is not about his performance or process, but his credibility, Admin & finance professional deal with lots of purchases and cash dealings ( iam not being judgmental) so one has to be very diligent and honest to the system.
As there are no written clauses about actions etc.
I believe, you have to get your senior to the confidence and both should jointly speak to him and making him realize that this is not right and he should do this with anyone ever and give him a chance to correct his mistake, this will be a good gesture as an employer and also a just action.

TO answer your question you should be professional, if your Admin friend is professional he would appreciate it.
The grave i see here is not about his performance or process, but his credibility, Admin & finance professional deal with lots of purchases and cash dealings ( iam not being judgmental) so one has to be very diligent and honest to the system.
As there are no written clauses about actions etc.
I believe, you have to get your senior to the confidence and both should jointly speak to him and making him realize that this is not right and he should NOT do this with anyone ever and give him a chance to correct his mistake, this will be a good gesture as an employer and also a just action.

Hi Sabyashachi,
First of all if the employee has done wrong then he should be guilty not you.
Secondly,that employee is working for the company since 1.5 yrs,u can check his credibility and if his is an asset for your company then you should ingore what he has done but at the same time you have to make him realise guility of what he has done.
Sometimes you have to think emotionaly also unless there is no harm from that.
This is what i suggest.
Regards,
Ritika

Thank you all for valuable comments & suggestions. I am very much glad to support from you. I am pleased to be a member of World wide Human Resource community. Regarding the above, all of Yours integrated suggestions & from my ethical point of view I already disclosed the matter to my boss & also post a humanitarian prayer to him like 'No Termination, If you have any other source....'.
That's All. I think, I am professionally correct , ethically clear & as a employee I have put my sympathetic corner also.
Thank you once again guys. Days will come, may be problem will come....... Hope all of we will provide ourselves proper guidance.
Sabyashachi
Executive - Admin & HR
An old & well established group of company, BD.