6450 Professional Standards and Business Conduct - Reporting of Fraud, Theft of Services or Property
6450 Professional Standards and Business Conduct - Reporting of Fraud, Theft of Services o
2005 6450
Personnel
SUBJECT: PROFESSIONAL STANDARDS AND BUSINESS CONDUCT -- REPORTING OF FRAUD, THEFT OF SERVICES OR PROPERTY
Introduction
Sound business conduct requires that each employee, as a basic condition of employment, assume responsibility for safeguarding and preserving the assets and resources of the School District, particularly those for which he or she is responsible. The following policy statements serve to remind us of that basic commitment and responsibility.
- All revenues generated by the School District, and all expenditures for goods and services, must be recorded and accounted for within the financial accounting system of the institution.
- No false or artificial entries are to be made in the accounting records of the School District for any reason. Moreover, no payment on behalf of the School District is to be approved or made with the understanding that any part of such a payment is to be used for any purpose other than that descried by the documents supporting the payment.
- The use of School District funds or assets for any personal, unlawful, or improper purpose is prohibited.
- The use of any School District equipment, supplies, or facilities for a revenue generating activity that benefits an individual employee is strictly prohibited.
- No person in a supervisory or management position is to use the authority of that position to assign an employee to perform nonemployment related tasks.
- Managers have a responsibility to develop and implement controls to minimize opportunities for fraud to occur.
Policy
In conjunction with the policy guidelines stated above, each School District employee is further expected to report any instance of suspected fraud or theft of services or property to the School District. If an instance of suspected fraud is reported instead to a supervisor or other responsible person, that person is to report the instance.
If presented with reasonable evidence of a suspected fraud, the School District will conduct an audit to determine if the reported suspicions of fraud are valid. The supervisor of any employee under investigation will also be informed.
All determinations of fraudulent activities will be reported to the Board of Education, including:
- the amount of the fraud;
- the individual(s) involved;
- how the fraud was identified;
- how the fraud was perpetrated;
- how the School District chose to deal with the perpetrator; and
- the controls that have been implemented to prevent recurrence of the fraud.
Sound business conduct requires that each employee, as a basic condition of employment, assume responsibility for safeguarding and preserving the assets and resources of the School District, particularly those for which he or she is responsible. The School District will review all reports made and they will be taken seriously. The School District, in consultation with appropriate personnel, counsel and authorities, will determine whether an investigation is appropriate. The School District may investigate any reported fraudulent or misuse of School District resources or property, as well as any reported violations of School District policies or government laws and regulations or any suspected dishonest or fraudulent activity, which, in its opinion, may represent risk of significant loss of assets or reputation to the School District.
The School District may work with its internal auditor, independent auditor, legal counsel, and law enforcement agencies, as circumstances may require. These agents and agencies have full, free and unrestricted access to all records and personnel of the School District. Every effort will be made to effect recovery of School District loses from responsible parties.
The School District is available and receptive to receiving relevant information on a confidential basis whenever a fraudulent activity is suspected.
Any individual found to have engaged in fraudulent conduct, as defined in this policy, is subject to disciplinary action by the School District, which may include dismissal as well as prosecution by appropriate law enforcement authorities.
Definition of Fraud
For purposes of this policy, fraud generally involves a willful or deliberate act or failure to act with the intention of obtaining an unauthorized benefit Such acts include, but are not limited to:
- Making or altering documents or computer files with the intent to defraud.
- Purposely reporting inaccurate financial information.
- Misappropriation or misuse of School District resources, such as funds, supplies or other assets.
- Improper handling or reporting of money transactions.
- Authorizing or receiving compensation for goods not received or services not performed.
- Authorizing or receiving compensation for hours not worked.
- Knowingly submitting false information in order to receive a benefit from the School District.
- Accepting bribes or kickbacks from vendors or other parties in exchange for School District business or other benefits.
- Creating or allowing inappropriate conflict of interest conditions to exist.
It is a violation of this policy for any School District employee to make a groundless allegation of fraudulent conduct that is made with reckless disregard for truth and that is intended to be disruptive or cause harm to another individual or individuals.
General Protocol - Reporting Procedure
Anyone who believes fraud has occurred should report such incident. Employees are protected under Law from retaliatory actions by the employer.
Use the channel of communication with which you are most comfortable. Accordingly, you may report your concerns to your immediate supervisor, department head, and/or directly to the School District's Internal Auditor or the local Police Department. Immediate supervisors, department heads, and others must report all apparent cases of fraud brought to their attention to the Superintendent of Schools, and if appropriate, to the police department.
Responsibilities
School District administrators, directors and all levels of management are responsible for establishing and maintaining proper internal controls that provide security and accountability for the resources entrusted to them. Administrators, Directors and all levels of management should be familiar with the risks and exposures inherent in their areas of responsibility and be alert for any indications of improper activities, misappropriation, or dishonest activity.
Responsibilities of management and nonmanagerial staff for handling fraudulent activities include the following:
- Insure that notification promptly reaches the School District's Internal Auditor, and, if appropriate, the Police Department. Refer to "General Protocol - Reporting Procedure."
- If the situation warrants immediate action - for example, obvious theft has taken place, security is at risk, or immediate recovery is possible - management and nonmanagerial staff receiving reports should immediately contact the police department.
- Do not contact the suspected individual to determine facts or demand restitution. Under no circumstances should there be any reference to "what you did," "the crime," "the fraud," "the forgery," "the misappropriation," etc.
- Supervisors should consult with the Superintendent of Schools to determine if any immediate personnel actions are necessary.
- Do not discuss the case, facts, suspicions, or allegations with anyone, unless specifically directed to do so by the Superintendent of Schools, Police, or the School District's Internal Auditor.
- Direct all inquiries from any suspected individual, his or her representative, or his or her attorney to the Superintendent of Schools. Direct all inquiries from the media to the Superintendent of Schools.
Great care must be taken in the dealing with suspected fraudulent activities to avoid any incorrect accusations, alerting suspected individuals that an investigation is under way, violating any person's right to due process, or making statements that could lead to claims of false accusation or other civil rights violations.
Non-Fraud Irregularities
Identification or allegations of acts outside the scope of this policy, such as personal improprieties or irregularities, whether moral, ethical, or behavioral, safety or work environment related, or complaints of discrimination or sexual harassment, should be resolved by the respective area management in conjunction with Human Resources and/or reference to any other existing School District guidance or resource. Examples include the principles of employee conduct, the policy against intolerance, the sexual harassment policy, the acceptable use policy for use of computer resources, and the conflict of interest law (this list is not all-inclusive).
The Superintendent of Schools may be contacted if guidance is needed to determine if an action might constitute fraud as defined in this policy.
Adopted: 4/11/05