Section 9 – Auditing and Internal Control
Section 9.5 – Reporting and Investigation of Fraud or Misconduct
Date: 9/24/07 — Approved: Finance Board, editorial change 12/12/07
The purpose of this policy is to define employee and management responsibility for reporting fraud or potential fraud and to establish procedures for addressing wrongful conduct.
EMPLOYEE AND MANAGEMENT RESPONSIBILITY
The AS establishes guidelines for professional conduct and indicates those acting on behalf of the AS have a general duty to conduct themselves in a manner that will maintain and strengthen the public's trust and confidence in the integrity of the AS and take no actions incompatible with their obligations to the AS. AS employees are responsible for safeguarding AS resources and ensuring they are used only for authorized purposes, in accordance with AS rules, policies, and applicable law. It is a violation of AS policy for any employee to receive or use A.S. resources for non-AS purposes or personal gain. Management employees are responsible for detecting fraudulent activities or misconduct in their areas of responsibility. Each manager should be familiar with the types of improprieties that might occur in his/her area and be alert for any indication that improper or dishonest activity is or was in existence in his/her area. When dishonest or improper activity is detected or suspected, management should determine whether an error or misunderstanding has occurred or whether possible fraud exists. Management is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent the reoccurrence of fraud.
AS employees are required to cooperate with the SDSU Police/Public Safety, the CSU Internal Audit Office, and other involved law enforcement agencies in the detection, reporting, and investigation of fraud, including the prosecution of offenders.
NOTIFICATION
All losses of $25 or more must be reported within 12 hours of discovery of the loss to the AS Business Office. The report must include what happened and any changes to policies and/or procedures that will be implemented to prevent similar future loss. The University Auditor must be notified by the Business Office within 24 hours when the net book value exceeds $1,000. When evidence points to possible theft, the division must immediately also notify University Public Safety. A complete description of the equipment, including the manufacturer's serial number, should be provided. This report should also be provided to the Business Office and an “Asset Equipment Disposition” form should be completed and sent to the Accounting Office once it is determined that the lost or stolen asset will not be recovered.
All wrongful conduct must be reported immediately to the appropriate division director. The division director will then be responsible to reporting this misconduct to the Business Services Manager. If applicable, The University Center for Student Rights and Responsibilities must be notified within 24 hours.
PROTECTIONS FOR THOSE REPORTING WRONGFUL CONDUCT
Employees making disclosures are protected for the act of filing the disclosure. The reporting employee shall refrain from further involvement in the matter unless directed otherwise by the SDSU Police/Public Safety and/or the CSU Internal Audit Office. The AS will take appropriate disciplinary and legal action against employees who commit fraud. The AS actions may include termination of employment, mandating restitution, and/or informing the appropriate authorities in accordance with AS policies and procedures, and state and federal law.
DEFINITIONS AND EXAMPLES
Fraud generally involves intentional misuse or conversion of AS property or resources for personal non-AS uses. Employees are prohibited from obtaining an unauthorized benefit for themselves or others by deception, misrepresentation or other unethical means. Examples of fraud covered under this policy include but are not limited to such actions as:
- Embezzlement or other financial irregularities;
- Misappropriation, misapplication, destruction, removal, or concealment of property;
- Forgery, falsification, or alteration of documents (checks, promissory notes, time sheets, travel expense reports, contractor agreements, purchase orders, other financial documents, electronic files, etc.);
- Improprieties/misrepresentation in the handling or reporting of money or financial transactions, including P-Card;
- Theft, destruction, or misappropriation of funds, securities, supplies, inventory, or any other asset (including furniture, fixtures or equipment, trade secrets and intellectual property);
- Authorizing or receiving payment for goods not received or services not performed;
- Authorizing or receiving payments for hours/time not worked;
- Misuse of AS facilities, such as telephones, e-mail systems and computers;
- Accepting or offering bribes, kickbacks, or rebates;
- Assigning an employee to perform non-employment related tasks by persons in a supervisory or management position; and
- Actions related to concealing or perpetuating above mentioned activities.
Employee
Employee is defined as anyone who is compensated by the AS or paid a fee for services by the AS The term also includes any volunteer who provides services to the AS through an official arrangement with the AS
Management
Management is defined as any manager, director, supervisor, or other individual who manages or supervises AS resources.
Resources
Resources are defined as money, property, personnel or any other assets owned or controlled by the AS
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