All faculty, staff, students, and other individuals associated with the University (e.g., contractors, vendors, and others working or acting on behalf of the University) must immediately report observed, suspected, or apparent Fraudulent Transactions, regardless of the source of funds. This report ordinarily must be made to the supervisor of the Person reporting a suspected Fraudulent Transaction. The supervisor must immediately report the suspected Fraudulent Transaction to the Office of Audit and Compliance. In some cases, it may not be appropriate to report to a supervisor or manager such as when that person may be involved in the transaction. In those cases, the Office of Audit and Compliance may be notified directly (434-924-4110). If anonymity is desired, one may call or fill out an online form with the Office of the State Inspector General Fraud, Waste, and Abuse Hotline (800-723-1615) or https://www.osig.virginia.gov/program-areas/citizen-services/state-fraud-waste-and-abuse-hotline/complaint-form/.

Substantiated fraudulent activities will be reported to the appropriate local, state, and/or federal authorities as specified in Section 1 below.

1. Responsibilities:

   1. The Office of Audit and Compliance is responsible for:

      • Receiving complaints for investigation.
      • Coordinating with the University Police Department as needed in resolving complaints.
      • Investigating allegations that do not involve the University President, internal audit department or staff, or any other parties stipulated in Code of Virginia Section 2.2-309.B.
      • Establishing whether allegations are substantiated based on the investigation’s procedures, including collaboration with relevant offices and subject matter experts as needed.
      • Determining if there is a “reasonable possibility” that a Fraudulent Transaction has occurred (in consultation with the Office of the University Counsel).
      • Drafting the written notification to other state agencies such as the Auditor of Public Accounts, the State Inspector General, and the Superintendent of State Police, as required by Code of Virginia Section 30-138.A. and submitting it to the University President if the Office of Audit and Compliance concludes that there is a reasonable possibility that a Fraudulent Transaction has occurred.
      • Communicating informally with the Office of the State Inspector General prior to the issuance of a written notification.
      • Providing a written report to the affected area to address any identified misconduct or policy deviations and copying the responsible executive vice president. Copies of such reports may be provided to University Human Resources – Employee Relations, the Office of University Counsel, or other officials to help address the identified issues.
      • Communicating with the Audit, Compliance, and Risk Committee of the University Board of Visitors as needed on matters related to an investigation and results of its investigations of suspected Fraudulent Transactions.
      • Reporting incidents involving students to the Vice President & Chief Student Affairs Officer and the University Judiciary Committee.
      • Reporting incidents involving research or sponsored awards to the Office of Sponsored Programs.
      • Serving as investigative liaison to other state agencies as needed on non-criminal fraud investigations.

   2. The University Police Department is responsible for:

      • Making determinations of fraud in suspected fraud cases and conducting criminal investigations as needed.
      • Communicating informally with the Virginia State Police prior to the issuance of the written notification required by Code of Virginia Section 30-138.
      • Serving as investigative liaison to other state agencies on criminal fraud investigations.

   3. The Office of the University Counsel is responsible for:

      • Assisting the Office of Audit and Compliance in determining whether there is a “reasonable possibility” of fraud in a transaction.
      • Reviewing draft notifications under Code of Virginia Section 30-138 as prepared by the Office of Audit and Compliance.
      • Consulting with the University Police Department and other University officials in the determination of fraudulent activity and advising on the associated legal and administrative actions to be taken.

   4. The University President is responsible for submitting the notifications to other state agencies required under Code of Virginia Section 30-138.A if there is a reasonable possibility that a Fraudulent Transaction has occurred involving funds or property under the control of the University.

   5. All persons are responsible for fully cooperating with individuals performing investigations.

   6. All managers and executives required to respond to an investigative report are responsible for:

      • Implementing corrective measures and working with the Office of Audit and Compliance to implement such measures.
      • Working with University Human Resources – Employee Relations to take any disciplinary actions necessary to address the findings.
      • Regularly reporting to the Office of Audit and Compliance all corrective measures and disciplinary actions until such actions are completed.

2. Compliance with Policy:
   Failure to comply with the requirements of this policy may result in disciplinary action up to and including termination or expulsion in accordance with relevant University policies. The willful failure to report certain Fraudulent Transactions as required by Code of Virginia Section 30-138 shall constitute a Class 3 misdemeanor.

   Questions about this policy should be directed to the Office of Audit and Compliance.