Responsible Office(s):  Internal Audit Department                                           University Police Department

Effective:        February 24, 2003 Supersedes:   November 1, 1990

Purpose  Scope Policy Employee Reporting Requirements Management Reporting Requirements Director of Internal Audit Reporting Requirements University Police Reporting Requirements Human Resources Reporting Requirements University Counsel Reporting Requirements Assistant to the Chancellor for University Relations Reporting Requirements Property Insurance Coverage Reporting Requirements Financial Impact Upon University Departments Investigation

This policy has been materially revised.  Revisions are not marked  due to the numerous modifications made.

Purpose

Sets forth policies and procedures for the reporting and investigation of misuse and/or theft of University property.

Applies to all University employees.

Employee Reporting Requirements

Agency Heads of UNC Wilmington are required by North Carolina General Statute 114-15.1 to report any information or evidence of an attempted arson, or arson, damage, theft, embezzlement, or misuse of any State-owned personal property, buildings, or other real property to the State Bureau of Investigation. To comply with this requirement, the information or evidence must be communicated to the University Police Department and/or Internal Audit within 72 hours. The Internal Audit Department is responsible for reporting (in writing) suspected crimes against State property to the Director of the SBI within 10 days of receiving the initial report. The SBI has the right to conduct an investigation.

Employees who, in good faith, report suspected criminal activity to an appropriate management of the University are protected against retaliation by the University for making such a report. Employees who are aware of criminal activity against the University and fail to report it may be subject to disciplinary action or prosecution, as appropriate. Employees are required to cooperate with any audit investigation, and may be requested by the University or an investigative unit to keep their knowledge of the investigation confidential, pending conclusion of any investigation.

Management Reporting Requirements

Management has the same reporting requirements as other employees. In addition, if management receives an allegation or information about suspected theft, fraud, etc., from an individual who has not already contacted the Director of Internal Audit or University Police directly, management is responsible for reporting such allegations or information, to those offices. Management is responsible for facilitating police or audit investigators' prompt access to employees, facilities, and records within their divisions. Management is also responsible for ensuring that no retaliatory actions are taken by the university against those persons who report suspected criminal activity.

Director of Internal Audit Reporting Requirements

The Internal Audit Department is responsible for reporting (in writing) suspected crimes against State property to the Director of the SBI within 10 days of receiving the initial report.

The Director of Internal Audit is normally responsible for all investigations that involve suspected falsification of receipts, embezzlement, or other fraud perpetrated through University operations and records. The Director of Internal Audit will consult with those administrative and senior officers responsible for the controls over the transactions, employees, or operations under investigation.

The Director of Internal Audit will notify the Chief of Police of all incidents involving criminal violations of North Carolina General Statutes for investigation.

When there is clear evidence of employee culpability, the Human Resources Director and University Counsel will be notified.

When federal funds for research are involved, the Director of the Office of Sponsored Programs will be notified.

When there is the potential for publicity about the allegation or its investigation, the Assistant to the Chancellor for University Relations will be notified.

The Director of Internal Audit is responsible for reporting to the Chancellor and senior officers the results of such investigations, including an analysis and related recommendations, if applicable, regarding the University's system of internal control.

University Police Reporting Requirements

The Chief of Police is responsible for the investigation of all crimes that occur on University properties or holdings. The Chief of Police will notify the Director of Internal Audit when the loss implies a need to strengthen preventive or detective internal controls, or when the loss involves an employee's violation of fiduciary responsibilities. The Chief of Police will consult with the Director of Internal Audit for assistance when needed, and will provide the Director of Internal Audit and the Associate Vice Chancellor - Business and Support Services with a summary report at the conclusion of investigations that involve loss or damage to University property. If the investigation concludes that employee misconduct is involved, the Chief of Police will notify the Director of Human Resources concerning any situation that involves employee misconduct.

Human Resources Director Reporting Requirements

The Human Resources Director is normally responsible for working with department management to resolve allegations of employees' personal improprieties (moral, ethical, or behavioral) that have a serious negative impact on operations or individuals in the University community, including situations involving misuse or theft of University property. The Human Resources Director is responsible for notifying the Director of Internal Audit of allegations of employee misconduct involving theft or misuse of state property, and for coordinating administrative discipline or employee terminations related to charges of misconduct with the appropriate supervisors, senior officers, and University Counsel when necessary. The Human Resources Director is also responsible for notifying University Police when the misconduct involves a suspected criminal violation of North Carolina General Statutes.

University Counsel Reporting Requirements

The University Counsel will normally advise senior officers and the Director of Internal Audit concerning the conduct of investigations and legal considerations--including issues of liability--pursuant to an investigation. The University Counsel is responsible for coordinating with the UNC Office of the President on matters related to the prosecution of UNCW employees within state and/or federal jurisdictions.

Assistant to the Chancellor for University Relations Reporting Requirements

The Assistant to the Chancellor for University Relations is the authorized spokesperson for the University and will normally be responsible for making or authorizing any statements to the media or other external parties about matters related to internal investigations.

Property Insurance Coverage Reporting Requirements

The University maintains extended insurance coverage for wind, hail, explosion, fire, smoke, and riot. Individual departments may elect to purchase supplemental coverage through their departmental budgets to insure against theft. The Director of Financial Services is the contact person for filing claims and arranging supplemental theft insurance. (See ACG 2.10.)

Financial Impact Upon University Departments

Any University department having supplemental theft coverage and experiencing a loss due to theft must absorb the $1,000 deductible. Departments without supplemental theft coverage must cover a loss due to theft from their departmental budget. Any proceeds recovered as a result of filing a loss claim will be deposited into the proper account of the department sustaining the loss.

Investigation

The University Police Department will investigate all reports involving criminal violations of North Carolina General Statutes. Additionally, Internal Audit will investigate all reports of financial fraud. It is the policy of UNCW to investigate specific allegations of employee misconduct or allegations of fraud involving University accounts or operations, and to hold employees responsible for any illegal acts they commit against the University or on University property. Investigations shall be conducted so as to protect the civil rights for those who are the subject of allegations of fraudulent activity.

If evidence supports the allegations, appropriate disciplinary action will be taken, up to and including termination.

The Division Vice Chancellor has primary responsibility for administrative discipline or employee terminations regarding employees who are accused of "gross misconduct." Such decisions will be made in consultation with the University Counsel, Director of Human Resources, and the Director of Internal Audit and shall be reported to the Chancellor before final disciplinary action, if any, is imposed.

Individuals will not be eligible for rehiring by the University if they are discharged for reasons of "gross misconduct" or if they resign and are subsequently determined to have acted while employed at the University in a manner that would have resulted in their discharge for "gross misconduct" had they not already resigned. Employee misconduct involves intentional behavior, which violates established policy, procedures, regulations, laws, or the rights of other members of the University community.

For purposes of this policy, "gross misconduct" includes but is not limited to any criminal act; fraudulent representations and actions; intent to defraud; misappropriation of University assets; or flagrant abuse of supervisory authority, signature authority, or fiduciary trust.

The decision to file criminal charges will be determined at the conclusion of the investigation by the Chief of Police, with consultation of District Attorney's Office as needed.