NUMBER:   BTRU 1.20

SECTION:  Board of Trustees                       



SUBJECT:  Dishonest Acts and Fraud           



DATE:     July 1, 2003

                   

Policy for:    All Campuses

Procedure for:  All Campuses

Authorized by:  Thomas L. Stepp

Issued by:      Board of Trustees



________________________________________________________________



Policy



The University of South Carolina System (USC), composed of all campuses, 

institutes, entities, sites, and properties under the governance of the USC 

Board of Trustees, is committed to the highest standards of moral and 

ethical behavior by faculty, staff, and administrators (University Community).  

The purpose of this policy is to prohibit dishonest acts and/or fraudulent 

activity by members of the University community, and to advise faculty, staff, 

and administrators of their responsibility to report suspected dishonest acts 

and fraudulent activity to the appropriate University offices.



Dishonest acts and fraudulent activity by students is governed by the 

applicable policies in the Carolina Community.



A.  Dishonest acts or fraudulent activity of any kind is strictly forbidden.



B.  Members of the University community who engage in dishonest acts or 

fraudulent activity of any kind, or who fail to report suspected dishonest acts 

or fraudulent activity, will be subject to appropriate disciplinary procedures 

and possible criminal prosecution and/or civil action.



C.  Definition

For purposes of this policy, the definition of a dishonest act or fraudulent 

activity includes but is not limited to:



1. An intentional or deliberate act to deprive USC or a person of 

something of value, or to gain an unfair benefit using deception, 

false suggestions, suppression of truth, or other unfair means 

which are believed and relied upon.



2.  A dishonest act or fraudulent activity may be, but is not limited 

to, an act or activity that is unethical, improper, or illegal such as:


a.	Embezzlement;

b.	Misappropriation, misapplication, destruction, removal, or 

	concealment of property;

c.  	Alteration or falsification of paper or electronic documents, 

	including the inappropriate destruction of paper or electronic 

	documents; 

d. 	False claims and/or misrepresentation of facts;

e. 	Theft of an asset including but not limited to money, tangible 

	property, trade secrets or intellectual property;

f. 	Inappropriate use of computer systems including hacking 

	and software piracy;

g. 	Bribery, kickbacks, or rebates;

h. 	Conflict of interest or commitment.



3.  Although a dishonest or fraudulent act may have criminal and/or 

civil law consequences, USC is not required to use a determination 

by a criminal or civil authority as the basis for determining whether 

an act is dishonest or fraudulent, nor must the act rise to the level 

of a crime or violation of civil law in order to constitute a violation 

of this policy. 





D.  Duties and responsibilities:



1.  Faculty, staff, and administrators at all levels are accountable for 

setting the appropriate tone of intolerance for dishonest or fraudulent acts 

by complying with laws, rules, regulations and policies.  



2.  Faculty and administrators should be aware of the risks and 

exposures in their area of responsibility and are responsible for 

establishing and maintaining proper internal controls that will provide 

for the security and accountability of the resources entrusted to them.



E.   Reporting Suspected Dishonest Acts or Fraudulent Activity



1.  Any member of the USC community who has a reasonable basis 

for believing a dishonest or fraudulent act has occurred, or is occurring, 

has a responsibility to promptly notify their supervisor, their department 

administrator, the Internal Audit Department, or the law enforcement 

department on their campus.



2.  Faculty, staff, and administrators who are acting in good faith to 

report suspected dishonest or fraudulent acts are protected by State law 

against retaliation by USC for making such a report; however, any person 

determined to be making frivolous claims under this policy will be subject 

to appropriate disciplinary procedures including termination from employment.



3.  Persons reporting suspected dishonest or fraudulent acts should 

refrain from confrontation with the suspect and should not discuss the 

matter with anyone other than their supervisor, department administrator, 

or those conducting an investigation of the allegations.



F.   Investigating Suspected Dishonest Acts or Fraudulent Activity



1.  The Internal Audit Department has the primary responsibility for 

investigating reported incidents; however, the Director of Internal Audit 

may contact other USC administrative officers such as the Director of Law 

Enforcement and Safety, the General Counsel, and the Vice President for 

Human Resources, as necessary or appropriate, to establish a team to 

proceed with the review or investigation of allegations.  To the extent 

possible under state and federal law, source information will be kept 

confidential by the investigative team.



2.  In those instances where the investigation indicates possible 

criminal activity, the investigation will be turned over to the USC 

Department of Law Enforcement and Safety or other appropriate law 

enforcement agency.



3.  The results of investigations conducted by the Internal Audit 

Department will be communicated orally and/or in writing to the Board 

of Trustees, the President of the University, and other appropriate 

administrators.



G.  Sanctions



1.  Faculty, Staff, and Administrators 


a. 	Faculty, staff, or administrators suspected of participating in 

	dishonest acts or fraudulent activity may be suspended without 

	pay during the course of the investigation, in accordance with 

	HR Policy 1.39, ADisciplinary Action and Termination for Cause@, 

	and the Faculty Manual..

b.	Faculty, staff, and administrators found to have participated in 

	dishonest acts or fraudulent activity will be subject to disciplinary 

	action up to and including termination from employment and 

	possible criminal prosecution or civil action.  

c. 	Faculty, staff, and administrators found to have knowledge of a 

	dishonest act or fraudulent activity and who knowingly failed to 

	report the activity will be subject to disciplinary action up to and 

	including termination from employment.

d. 	If disciplinary action is warranted, such action will be taken after 

	consultation with the Division of Human Resources, the Office of 

	the General Counsel, the Office of the Provost, and other offices 

	as necessary or appropriate.



2.  Associates of the University of South Carolina


a. 	The relationship of individuals or entities associated with USC 

	found to have participated in dishonest acts or fraudulent activity  

	as defined by this policy will be subject to review, with the possible 

	consequence of modification or termination of the relationship.

b. 	If action is warranted, the Office of the General Counsel and other 

	appropriate offices will be consulted prior to action being taken.

c. 	Criminal or civil action may be taken against individuals or entities 

	associated with USC that participate in dishonest acts or fraudulent 

	activity.

This page copyright © 2003, The Board of Trustees of the University of South Carolina.
URL http://www.sc.edu/policies/btru120.html