Maricopa County Community College District
FRAUD POLICY STATEMENT
PREMISE
Maricopa County Community College District (MCCCD, or the District) management is responsible for detecting defalcation, misappropriation, and other irregularities. Each member of the MCCCD management team is obligated to be aware of the types of improprieties that might occur within his or her area of responsibility, to be alert for any indication of irregularity, and to immediately report any irregularity that is detected or suspected to the Director of Internal Audit. All subsequent action will proceed expeditiously.
The Vice Chancellor for Business Services is responsible for the administration, interpretation, and application of this premise.
SCOPE
The conditions of this premise apply to any irregularity, or suspected irregularity, involving MCCCD employees, and others conducting District business with MCCCD employees.
Any required investigative activity will be conducted without regard to the suspected wrong-doer's length of service, position/grade, or relationship to other internal or external persons.
ACTIONS CONSTITUTING FRAUD
Any dishonest or fraudulent act is included under this policy. This includes, but is not limited to:
- Forgery or alteration of any document or account
- Forgery or alteration of a check, bank draft, or other financial document
- Misappropriation of funds, securities, supplies, or other assets
- Impropriety in the handling or reporting of money or financial transactions
- Accepting or seeking anything of material value from vendors or persons providing services/material to MCCCD
- Destruction or disappearance of records, furniture, fixtures, or equipment
- Any similar or related irregularity
NON-FRAUD IRREGULARITIES
Identification or allegations of personal improprieties or irregularities -- whether moral, ethical, or behavioral -- should be resolved by respective college or District Support Services Center unit management in coordination with the Manager of Employee Relations. The District Auditor may be contacted if guidance is needed to determine if an action constitutes fraud.
INVESTIGATION RESPONSIBILITIES
The Audit Department is responsible for the initial investigation. If this investigation reveals that fraudulent activities have occurred, the District Auditor will issue reports to the District General Counsel, the Manager of Employee Relations, the college President/Provost or the Vice Chancellor for the respective District Support Services Center unit, and if appropriate, to the Audit & Finance Committee of the Governing Board.
Decisions to prosecute or to turn the matter over to law enforcement authority and/or regulatory agencies for independent investigation, and all final decisions regarding the disposition of the case, will be made by District General Counsel in conjunction with the respective college President/Provost or the Vice Chancellor for the District Support Services Center unit, or their designee.
The Manager of Employee Relations may perform additional investigations before recommending disciplinary action, including a recommendation to terminate employment.
CONFIDENTIALITY
To protect MCCCD from potential civil liability, and to avoid damaging the reputations of persons suspected but subsequently found innocent of wrongful conduct, it is imperative that strict confidentiality be maintained. The Director of Internal Audit is open to receiving relevant information on a confidential basis from an MCCCD employee who suspects dishonest or fraudulent activity. Results of investigations conducted by the Internal Audit Department will be disclosed and discussed only with those persons associated with MCCCD who have a legitimate need to know in the performance of their job duties and responsibilities.
GENERAL PROTOCOL
Notification of potential fraud may come to the District Auditor from any source, but usually transpires at a senior management level. The Internal Audit Department responds by conducting an investigation and notifies District General Counsel of the fact.
1. If fraud is verified, a report of the findings is issued to the respective college President/Provost or the Vice Chancellor for the District Support Services Center, to the District General Counsel, and to the Manager of Employee Relations. Internal Audit will identify if modification to the Governing Board Policy would thwart future related fraudulent events and will include this in the report of findings.
Concurrent activity ensues:
a. District General Counsel and the unit President/Provost or Vice Chancellor will determine what, if any, legal action is needed. District General Counsel is responsible to contact the appropriate law enforcement agency if deemed necessary, but may designate another party (e.g., Assistant Counsel, etc.) to do so. The District General Counsel will inform the unit President/Provost or Vice Chancellor, the Manager of Employee Relations, and the Internal Audit Department of the final resolution of the case.
b. The Manager of Employee Relations may perform an investigation, will recommend disciplinary action to the unit President/Provost or Vice Chancellor, and will submit a final written report to the District General Counsel, to the President/Provost or Vice Chancellor, and to the Internal Audit Department.
2. If fraud is not verified, Internal Audit Department will issue a report to the unit President/Provost or Vice Chancellor, and forward a copy to the Manager of Employee Relations who is responsible to determine if non-fraud irregularities have occurred.
3. If non-fraud irregularities are identified, the Manager of Employee Relations will perform an investigation, and will recommend disciplinary action to the unit President/Provost or Vice Chancellor.
Note: While primary responsibilities rest with the District Auditor, District General Counsel, the respective college/center President/Provost or District Support Services Center unit Vice Chancellor, and the Manager of Employee Relations, designees may be assigned responsibility as required.
