Fraud Reporting Policy

The Internal Audit Department shall be notified in all cases where assets have been or are suspected to have been lost through defalcation or other security breaches in the financial and operating systems. Fraud encompasses any illegal acts characterized by deceit, concealment or violation of trust. Frauds are perpetrated by individuals and organiztions to obtain money, property or services; to avoid payment or loss of services; or to secure personal or business advantage.

Upon learning of a possible fraudulent situation, the Internal Audit Director shall immediately notify the President of the University, the Rector of the Board, and the Audit and Finance Committee Chairperson to report the potential loss and discuss an appropriate plan of action including whether notification should be given to the Auditor of Public Accounts and the Department of State Police as required by the Code of Virginia , Section 30-138.

After the loss has been verified, the Internal Audit Department shall have the responsibility to perform sufficient tests to identify the weaknesses in the financial and/or operating procedures that permitted the loss to occur and to make recommendations regarding corrective measures and improvements.

Approved this 17th day of November, 2001.

Signed by: Dr. William M. Anderson, Jr., President; Vincent A. DiBenedetto, III, Rector, Board of Visitors; Fred D. Thompson, Jr., Audit and Finance Committee Chair; and Helen C. Vanderland, Internal Audit Director