VIII710 - USM

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  287.0 VIII-7.10 - POLICY ON REPORTING SUSPECTED OR KNOWN FISCAL IRREGULARITIES
 
 
  (Approved by the Board of Regents, June 21, 1990)
 
 
  1.   The Chief Executive Officer of each institution and
       component of the University System shall establish a
       comprehensive internal control structure that ensures
       financial accountability.
 
  2.   As part of a comprehensive internal control structure, the
       Chief Executive Officer shall establish internal procedures
       concerning suspected or known fiscal irregularities such as
       embezzlement, theft, falsification of documents, and
       financial conflicts of interest.  The procedures shall
       identify the institutional official responsible for
       determining the appropriate course of action when there is a
       report of suspected financial misconduct.  The official so
       identified shall immediately notify the Chief Executive
       Officer, the Chancellor, the System Administration Internal
       Audit Office, the manager of financial operations where the
       fiscal irregularity allegedly occurred, and the Office of
       Attorney General.  Irregularities involving the loss of
       assets with a monetary or fair market value of $100 or less
       need not be reported to the Chancellor and Internal Audit
       Office unless they occur in departments that routinely
       handle cash or cash equivalents, occur in departments that
       routinely handle other valuable assets such as inventories,
       accounts receivable, and marketable securities, or involve
       personnel responsible for major fiscal functions such as
       payroll, procurement, accounts payable, or bookkeeping.
 
  3.   The responsible official shall immediately investigate the
       report of alleged misconduct.  When a preliminary
       investigation has been completed, the responsible official
       will report the findings to the Chief Executive Officer who,
       in consultation with the Office of Attorney General, shall
       determine a course of action, e.g., discipline, restitution,
       or discharge. The determination of the Chief Executive
       Officer shall be reported to the System Administration
       Internal Audit Office and the Chancellor.  The Office of
       Attorney General will independently make a determination
       concerning criminal prosecution.
 
  4.   A person who suspects financial misconduct may initially
       report the suspicion to the Internal Audit Office of System
       Administration for investigation.  Preliminary findings will
       be reported by the Internal Audit Office to the Chancellor
       and to the Chief Executive Officer for further action.
 
  5.   In no case may University System officials promise known or
       suspected offenders that the University System will forego
       criminal prosecution and in no case may the officials enter
       into written agreements that preclude criminal prosecution.
 
  6.   Federal requirements shall be followed if the financial
       misconduct involves federal grant funds.
 
  7.   Every effort shall be made to ensure the confidentiality of
       any person reporting the suspected financial misconduct, and
       every effort shall be made to ensure that no retaliation of
       any kind will be tolerated against any individual who, in
       good faith, furnishes information about known or suspected
       fiscal irregularities.
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