Purpose
The University of Georgia is committed to maintaining the highest professional standards in its administrative operations; promoting ethical practices among its faculty and staff; and ensuring a level of accountability appropriate for a public institution. This policy and related procedures for the investigation, reporting and resolution of fiscal irregularities and employee malfeasance are established as an integral part of the university's efforts to ensure that all faculty and staff conduct themselves in accordance with high ethical standards and that university performance with respect to these matters is consistently applied.
Definition
Fiscal irregularities and employee malfeasance include violations of law and Board of Regents and University fiscal policies and procedures. Employee malfeasance generally includes instances of embezzlement, misappropriation, alteration or falsification of documents, false claims, theft of any asset, inappropriate use of computer systems to include hacking and software piracy, bribery or kickback, etc.
Policy
Fiscal irregularities, employee malfeasance and related misconduct will not be tolerated. Employees found to have participated in employee malfeasance, fraudulent acts and/or gross misconduct will be subject to disciplinary action, up to and including termination, as well as criminal penalties, pursuant to applicable policies, rules and legal requirements. The University System of Georgia requires institutions to report all instances of fiscal irregularity and employee malfeasance to the Office of Internal Audit of the University System of Georgia.
Responsibilities
Administrators, Faculty and Staff
Administrators and all levels of management are responsible for preventing and detecting instances of fiscal irregularities, employee malfeasance and related misconduct. In addition, administrators are expected to recognize risks and exposures inherent in their area of responsibility and to be aware of indications of fraud and related misconduct. In order to establish and maintain proper internal controls that provide security and accountability for the resources, administrators should ensure that they and their staff receive adequate fiscal management training for their level of responsibility.
Administrators, faculty and staff who know or suspect that other employees are engaged in theft, fraud, embezzlement, employee malfeasance, fiscal misconduct or violation of University financial policies have a responsibility to report it to their supervisor and the Controller’s Office or to the Compliance, Ethics and Reporting Hotline: http://www.tnwinc.com/uga/ or 1-877-516-3467.
Management and staff should not confront the individual under suspicion or initiate investigations on their own, as such actions could compromise any ensuing investigation. All employees are to cooperate fully with those performing an investigation pursuant to this policy.
Investigative Procedures
When a fiscal irregularity is reported, the Senior Vice President for Finance and Administration and the cognizant vice president(s) will be advised. In those instances where the Senior Vice President for Finance and Administration and cognizant vice president(s) determine that an investigation, either by UGA’s Internal Auditing Division or the Police Department, is needed, the Controller will consult with Legal Affairs, Internal Audit and/or the University Police Department to determine appropriate interim administrative action that should be taken by the cognizant administrators to protect University faculty, staff, students and property. The Controller’s Office will communicate these recommended actions to the cognizant administrators and notify the cognizant administrator that it is his/her responsibility to secure all University resources and to place appropriate personnel on administrative leave (paid or unpaid depending on the circumstances of the case), while the investigation is pending. The Controller’s Office will also inform Human Resources when administrative leave actions are being taken by the cognizant administrator. Exceptions to placing personnel on administrative leave must be approved by the Senior Vice President for Finance and Administration and the Senior Vice President for Academic Affairs.
The University is not authorized to negotiate a promise not to report employee malfeasance in return for the employee’s resignation, restitution, etc. The decision not to prosecute rests with the Attorney General’s Office.
The Controller’s Office will report, in a confidential manner, the following to the Office of Internal Audit at the University System of Georgia:
· Institutional point of contact, telephone and email address,
· Description of the incident to include incident date and time, location, improper activity, estimated loss to the institution, etc.,
· Known suspect information including employee name, title, employment status (administrative leave, pending termination, etc.); and
· Current case status to include law enforcement and the results of any internal investigation.
Once the audit or investigation is complete and circumstances surrounding the irregularity or impropriety have been determined, responsibility shall be assigned for taking appropriate personnel action and operating action to minimize the likelihood of recurrence. The Controller’s Office, at the direction of the Senior Vice President for Finance and Administration, will initiate one of the following steps:
- Consult with the Office of Legal Affairs if a legal issue is involved, then both offices will determine jointly the next action to be taken.
- If a legal issue is not involved but internal action is needed, refer an occurrence along with a copy of an audit or report of investigation to the cognizant Vice President who will have responsibility for taking appropriate personnel action and action to minimize the likelihood of a recurrence. The Office of the Senior Vice President for Finance and Administration will be available to assist and advise.
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