Fiscal Misconduct

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Student Financial Policies

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VOLUME: I	POLICIES RELATED TO ACCOUNTING ADMINISTRATION
SUBJECT:	Fiscal Misconduct
SOURCE:	Financial Management Services
DATE ISSUED:	May 1992; Revised March 2005
POLICY NO.:	I - 30
RATIONALE:	To establish the consequences of fiscal misconduct and the proper reporting mechanisms to be used for notification of known or suspected fiscal misconduct.
POLICY:	If an employee engages in fiscal misconduct, university disciplinary action will be imposed, in accordance with respective personnel policies for Academic, Staff and Hourly employees. Such disciplinary action may include termination from Indiana University. Final disciplinary action taken will be determined by the vice president or chancellor of the affected area, in collaboration with the Internal Audit Department, Financial Management Services (FMS), University Legal Counsel and University Human Resource Services (or the appropriate Academic Affairs Office for faculty). If any employee knows or suspects that other university employees are engaged in fiscal misconduct, it is his or her responsibility to immediately notify the Internal Audit Department and the Responsibility Center (RC) Fiscal Officer. If the RC Fiscal Officer is involved, or the employee has concerns about informing the RC Fiscal Officer, then the appropriate campus financial administration office and the Internal Audit Department are to be contacted. Any employee who has knowledge of fiscal misconduct by another employee and does not report such to university officials may himself/herself be subject to disciplinary action, including termination from Indiana University.
DEFINITIONS:	Fiscal Misconduct is a) an activity or set of activities that lead to the intentional spending of university resources that are not approved; b) inappropriate use of university resources including assets and personnel; c) knowingly violating university financial policy; d) manipulation of university data and documentation to allow spending where funds do not exist, or e) intentionally misreporting university transactions.. Campus Financial Administration are the financial administrators at the campus level responsible for the budgetary and fiscal affairs of the campus. University Administration (UA) is considered a campus in this definition and the University Budget Director serves in the role of the senior financial administrator for University Administration.
PROCEDURE REFERENCE:	Internal Audit will have primary responsibility for the investigating allegations of fiscal misconduct. Where appropriate, FMS, the University Budget Office and campus financial administration will be involved to provide expertise. The RC Fiscal Officer or the Internal Audit Department shall notify the appropriate university administration or campus financial office and a representative from Financial Management Services and University Human Resource Services. All investigations of allegations of fiscal misconduct will be conducted in the strictest of confidence. To the extent permitted by law, the names of those communicating information will not be revealed, unless the allegations turn out to be malicious in nature.
CROSS REFERENCE:	Accounting Administration Policies: I-1, Role of Fiscal Officer, Account Manager and Account Supervisor I-35, Fraud Human Resources Policy on Conflicts of Commitment
RESPONSIBLE ORGANIZATION:	Financial Management Services

Comments: vpcfo@indiana.edu
Copyright 2005, The Trustees of Indiana University