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UTS 118 Dishonest or Fraudulent Activities

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Sec. 1 Purpose

The purpose of this Policy is to establish a U. T. System policy regarding internal investigations of suspected Dishonest or Fraudulent Activity that are supplemental to requirements for investigations established by law and the internal administrative policies at each institution.

Sec. 2 Principles

Good business practice dictates that every suspected Dishonest or Fraudulent Activity, be promptly identified and investigated.

Sec. 3 Policy Statement

Each institution shall establish and maintain structures, administrative procedures, and designated responsibilities for investigating, reporting, and communicating to appropriate parties any suspected Dishonest or Fraudulent Activity as defined by this Policy.  Allegations involving scientific misconduct will be investigated in accordance with controlling institutional policies.

Sec. 4 Establishment of Internal Controls

Management shall establish and maintain a system of internal controls that provides reasonable assurance that improprieties are prevented or detected and investigated.

Sec. 5 Coordination of Investigations

The Systemwide Chief Inquiry Officer for the U. T. System is the designated investigation coordinator responsible for tracking and coordinating investigations conducted by U.T. System of allegations of misconduct, including Dishonest or Fraudulent Activity.

Sec. 5A Institutional Investigations

In any investigation performed by U.T. System involving allegations of misconduct by institutional personnel, the institution’s President will be notified as soon as is practicable given the circumstances of the underlying issues.  Unless an investigation is requested by an institution, any investigation by U.T. System Administration of allegations of misconduct by institutional personnel must be authorized by the Chancellor.
In circumstances where an institutional president or institutional leadership cannot be notified in advance due to conflicts related to the investigation, U.T. System will utilize the protocol outlined in Section 5B  to secure institutional data.

Sec. 5B Protocol for Securing Institutional Data

Investigations or special reviews performed by U.T. System Administration may require System investigators to secure institutional electronic records without advance notice to institutional leadership or the subject(s) of the investigation or review.  Any institutional employees needed to fulfill these requests are required to maintain the confidentiality of such requests.  Such requests for data will be handled in accordance with this protocol.

a) Authorized Officials:  

The Systemwide Chief Inquiry Officer has authority to make requests for electronic records, files, documents, or e-mail of subject(s) related to investigations or special reviews directly to an institution’s Chief Information Officer or Chief Information Security Officer. If those individuals are involved parties, another individual will be identified to provide the requested records.

b) Scope of Request:

Prior to any request, the Systemwide Chief Inquiry Officer will submit a justification and scope of needed records to the Office of General Counsel for concurrence and approval. 

c) Notifications:

Involved parties will be notified only after all needed records have been secured, as determined appropriate based on the nature of the investigation or special review.

Sec. 6 Criminal Investigations

The Office of Director of Police or the appropriate institution police department must be notified immediately once probable criminal activity has been detected and will be responsible for the resulting criminal investigation.

Sec. 7 Internal Audit

When an internal audit involves allegations or reveals suspected criminal activity that may constitute a felony offense, the Institutional Chief Audit Executive will, when appropriate, immediately notify the Institutional President, Institution Police Department, and the U. T. System Chief Audit Executive.

Sec. 8 Investigations by Federal or State Agencies

All requests for information and assistance related to investigations conducted by auditors or investigators of Federal or State agencies that are concerned with potential Dishonest or Fraudulent Activities within the U. T. System, shall also be forwarded immediately to the Institutional Chief Audit Executive, who shall consult with institution legal advisors and notify the U. T. System Chief Audit Executive.  Institution legal advisors shall notify the Office of General Counsel.

Sec. 9 Notification of Loss and Approval of Claims

In accordance with the Board of Regents' Rules and Regulations, Rule 80601, the appropriate Chief Business Officer must notify the U. T. System Chief Compliance and Risk Officer as soon as it is known that a loss has occurred in order to obtain approval of all insurance and fidelity bond claims.

Sec. 10 Confidentiality for Those Who Report

To the extent possible and permitted by applicable law, confidentiality of those reporting Dishonest or Fraudulent Activities will be maintained.

Sec. 11 Additional Guidelines

The Systemwide Chief Inquiry Officer may establish and distribute guidance and best practices related to the reporting and investigation of allegations of Dishonest or Fraudulent Activity.

Definitions

Dishonest or Fraudulent Activity - these terms include but are not limited to any:

a) dishonest, illegal, or fraudulent act involving U. T. System Administration or a U.T. Institution;

b) fiscal irregularities;

c) forgery or alteration of checks, drafts, promissory notes, and securities;

d) forgery or alteration of employee benefit or salary-related items such as time cards, billings, claims, surrenders, assignments, or changes in beneficiary;

e) forgery or alteration of medical-related items such as reports, charts, prescriptions, x-rays, billings, or claims;

f) forgery or alteration by employees of student-related items such as grades, transcripts, or loan or fee or tuition documents;

g) misappropriation of funds, securities, supplies, or any other asset;

h) illegal or fraudulent handling or reporting of money transactions;

i) acceptance or solicitation of any gift, favor, or service that might reasonably tend to influence the employee in the discharge of his or her official duties; or

j) destruction or disappearance of records, furniture, fixtures, or equipment where theft is suspected.

Policy Details

Responsible Office(s)

Systemwide Compliance

Date Approved

Dates Amended or Reviewed