Fraud Reporting Policy

PURPOSE:

The Internal Audit Department shall be notified of any and all circumstances that suggest a fraudulent transaction or irregularity has occurred.  Fraud encompasses any illegal act characterized by deceit, concealment, or violation of trust.  Fraud may be perpetrated by an individual(s) or organization(s), internal or external to the University in order to benefit themselves, the University, or the Commonwealth.

PROCEDURE:

The Director of Internal Audit will perform a preliminary review of the facts of the allegations. Based on the findings, the President of the University and the Rector of the Board of Visitors will be notified to determine an appropriate plan of action to include notifying the Auditor of Public Accounts and the Department of State Police, as required by the Code of Virginia.  The Director of Internal Audit will also notify the University Police if the allegation might involve a violation of the law.

If there is determination that the University or the Commonwealth has suffered a loss, the Director of Internal Audit shall be responsible for performing a review.  The purpose of the review is to identify the weaknesses in the financial and/or operating procedures that allowed the loss to occur.  The review process shall include recommendations for corrective measures.

Approved by the Board of Visitors on February 20, 2009.