University of Illinois

University Ethics Office

Reporting and Investigation of Fraud or Misconduct

Business and Financial Policies and Procedures Manual - Section 9.5

Date: September 2005
Approved: Senior Associate Vice President for Business and Finance


The purpose of this policy is to define employee responsibility for reporting fraud and to establish procedures for addressing wrongful conduct.

EMPLOYEE AND MANAGEMENT RESPONSIBILITY

The University's Code of Conduct establishes guidelines for professional conduct and indicates those acting on behalf of the University 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 University and take no actions incompatible with their obligations to the University. University employees are responsible for safeguarding University resources and ensuring they are used only for authorized purposes, in accordance with University rules, policies, and applicable law. It is a violation of University policy for any employee to receive or use University resources for non-University 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.

University employees are required to cooperate with the University Ethics Office, Office of University Audits, University Police/Public Safety, the Office of the Executive Inspector General, and other involved law enforcement agencies in the detection, reporting, and investigation of fraud, including the prosecution of offenders. The University Ethics Office, Office of University Audits, University Counsel or University Police/Public Safety will direct management involvement in any University investigation.

ROLE AND AUTHORITY OF THE INSPECTOR GENERAL

The State Officials and Employees Ethics Act (Ethics Act) (5 ILCS 430) created Executive Inspectors General within the State of Illinois. Inspectors General have authority to receive and investigate allegations of fraud, waste, abuse, mismanagement, misconduct or other violations of the Ethics Act. An Inspector General's office can only conduct investigations as a result of a formal complaint being filed with their office by a named complainant. In the event of an investigation, the Ethics Act requires employees, to cooperate fully with the Office of the Executive Inspector General.

PROTECTIONS FOR THOSE REPORTING WRONGFUL CONDUCT

Employees making disclosures are protected under Section 9.6, Disclosure of Wrongful Conducy and Protection from Reprisal (Whistleblower Protection) for the act of filing the disclosure. The reporting employee shall refrain from further involvement in the matter unless directed otherwise by the University Ethics Office, the Office of University Audits, University Counsel, or University Police.

The University will take appropriate disciplinary and legal action against employees who commit fraud. The University's actions may include termination of employment, mandating restitution, and/or informing the appropriate authorities in accordance with University policies and procedures, and state and federal law.

DEFINITIONS AND EXAMPLES

Fraud generally involves intentional misuse or conversion of University property or resources for personal non-University 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 University facilities, such as telephones, e-mail systems and computers;
    • Intentional violation of the State Purchasing Act, including dishonest or improper reporting of results, selective reporting, or omission of conflicting data for deceptive purposes;
    • 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 University or paid a fee for services by the University. The term also includes any volunteer who provides services to the University through an official arrangement with the University or a University Related Organization.

Management - Management is defined as any administrator, manager, director, supervisor, or other individual who manages or supervises University resources.

Resources - Resources are defined as money, property, personnel or any other assets owned or controlled by the University.


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