4.72 Reporting Potential Fraud, Damage, or Theft of College Property

I. Purpose

Central Piedmont Community College intends to comply with the NC General Statute 143B-920 regarding reporting information or evidence of arson, theft, damage, embezzlement, or misuse of State property to the State Bureau of Investigation.

II. Rule

In order to ensure compliance with statutory provisions and State regulations, employees must report information or evidence of possible fraudulent or corrupt activity, and they must cooperate with investigations initiated under these regulations. Additional information on reporting possible violations involving the misuse of State property can be found at NC General Statute 143B-920

III. Definition

Fraud covers a number of illegal acts including intentional deception, theft, embezzlement, false representation, concealment, misappropriation of resources, manipulation of data, identity theft, and other inappropriate conduct.

IV. Procedures

A. Any employee who receives information or evidence of an attempted arson, or arson, damage of, theft from, or theft of, or embezzlement from, or embezzlement of, or misuse of any State-owned, College-owned, grant-funded, donated, or loaned personal property, buildings, or other real property must report this information or evidence as soon as possible, but not later than three days from its receipt, to the reporting employee's immediate supervisor and Central Piedmont Community College Security. Failure to report information or evidence within this three-day time period may result in disciplinary action.

B. The reporting employee must contact Central Piedmont Security, who will complete an Automated Records Management System (ARMS) Incident Report. Central Piedmont Security will notify Internal Audit immediately for incidents involving potential financial irregularities, misappropriation of funds, or embezzlement.

C. In the event that any person with a reporting obligation under this policy believes that there is a conflict of interest on the part of the person to whom the allegations of suspected improper activities are to be reported, the next higher level of authority shall receive the report.

D. Upon notification of the incident, Central Piedmont Security will:

1. Advise the Vice President for Finance and Administrative Services or designee of incidents involving potential financial irregularities, misappropriation of funds, or embezzlement within two business days of notification.

2. Notify Internal Audit of all applicable ARMS Incident Reports.

3. If warranted, prepare the State Property Incident Report (SBI-78 form), including information provided by Internal Audit where applicable, based on their preliminary investigation, for incidents involving potential financial irregularities.

4. If warranted, email the completed State Property Incident Report (SBI-78 form) to statepropertyincidentreports@ncdps.gov within ten days of the initial receipt of the information or evidence.

E. Upon notification from Central Piedmont Security, Internal Audit will:

1. Review ARMS Incident Reports and notify the Vice President for Finance and Administrative Services or designee and Central Piedmont Security if further investigation is necessary and if a State Property Incident Report is warranted.

2. Provide additional information, based on preliminary investigations, of the allegations of potential financial irregularities, misappropriation of funds, or embezzlement.

3. Review the State Property Incident Report (SBI-78 form) before it is filed for incidents involving potential financial irregularities.

4. Conduct an investigation as needed and review the results with the appropriate administrators. Make recommendations for improvements to the system of internal controls.

F. In order to maintain confidentiality and prevent compromising any related investigations, employees should not attempt to conduct investigations or discuss the facts, suspicions, or allegations with anyone, unless specifically directed.

G. Reports of known or potential fraud will be treated in the strictest confidence to the extent possible. Employees will not be subject to retaliation or retribution as a consequence of reporting known or suspected fraud.

H. Employees must direct all inquiries from the media or external parties to the Public Information Officer and Assistant to the President for Community Relations and Marketing Services.

I. Cases involving monetary losses to Central Piedmont will be pursued for recovery of losses. The College reserves the right to seek redress via civil proceedings against individuals whose fraudulent acts have resulted in financial loss to the College, whether or not the individual concerned is criminally convicted of that fraudulent act.

Changes approved by Cabinet on April 4, 2005; May 14, 2007; May 5, 2014; June 27, 2016