Fraud
1. PURPOSE
This policy establishes the Brigham Young University–Hawaii's ("BYU–Hawaii" or "university") position with respect to fraud; outlines reporting processes and requirements; describes protections for those who, in good faith, report suspected fraudulent activity; and defines consequences for fraudulent activity.
As used in this policy, fraud is the intentional use of deceit or dishonest means to deprive BYU–Hawaii of its money, property, or a legal right.
2. POLICY
The university has adopted the Church Educational System (CES) Honor Code, which applies to all university-associated personnel (e.g., full and part-time faculty, administrative, staff, temporary, volunteer, etc.) and students. The university Personnel Conduct Policy also applies to all university-associated personnel. Fraudulent activity at the university constitutes a serious violation of the CES Honor Code and the Personnel Conduct Policy and may result in disciplinary action.
Fraud deterrence at the university is the responsibility of all members of the campus community, particularly academic and administrative management. To effectively fulfill this charge requires the establishment of and adherence to effective policies, procedures, and internal controls. Periodic audits, systems reviews, and other special analyses can assist management in its responsibility. However, these aids should not be a substitute for the establishment and monitoring of effective controls that ensure the integrity of day-to-day university processes and operations. The Church Auditing Department is available to perform audits in coordination with university management.
Persons who cover up, obstruct the reporting of, or fail to report a fraud of which they are aware, may be subject to disciplinary action up to and including termination of employment as well as possible legal consequences.
3. IMPLEMENTATION
3.1 Duty to Report
All university personnel have a duty to report reasonable suspicions of fraud in the workplace to their direct supervisor, to the Chief Compliance Officer (Compliance@byuh.edu or phone 5-3368), or through the university’s compliance reporting service, EthicsPoint, at (888) 238-1062 or online at Compliance Hotline at EthicsPoint.
Management and supervisors must promptly report all such concerns to the Chief Compliance Officer (5-3368). If the Chief Compliance Officer determines there is a reasonable basis for the allegation, he or she shall share the information available and actions taken to-date with the Office of the General Counsel and the Administrative Vice President and determine how to best proceed. The Administrative Vice President will notify the Church Auditing Department of all reports of fraud unless an investigation is initiated and directed by the Office of the General Counsel or a case is initiated by or referred to government law enforcement agencies. The Chief Compliance Officer shall, when appropriate, notify those with ultimate supervisory responsibility (e.g., Dean, Director, or equivalent manager) for the unit in which the alleged fraud occurred and/or the vice president with responsibility for that unit. If the Chief Compliance Officer is the subject of a report of a reasonable suspicion of fraud, the university president, in consultation with the Office of the General Counsel, may designate an investigator. Nothing in this section (Duty to Report) should be understood to prevent university personnel from reporting reasonable suspicions of fraud in the workplace to their line managers.
3.2 Protection for Reporting
3.2.1 Confidentiality
The university will keep confidential the identity of the person making a report under this policy except in the following circumstances:
- The person consents to disclosure voluntarily or a governmental agency compels disclosure (e.g., as per applicable law, lawfully issued subpoenas, warrants, court orders, or other investigatory documents issued by a court of competent jurisdiction); or,
Maintaining such confidentiality would interfere with the conduct of an investigation of the specific allegations or with taking corrective action.
Confidentiality means disclosure will be made only to university employees or agents who have a legitimate need to know in order to perform their responsibilities to the university or contribute to the investigation.
3.2.2 Retaliation
Retaliation against an individual who has made a good faith report of suspected fraud is strictly prohibited. No adverse action or threat of action may be taken against an individual for raising a concern in good faith under this policy; for reporting a reasonable suspicion of fraud in the workplace to a government authority; or for participating in a judicial, administrative, legislative, or university proceeding related to such allegations. As used in this policy, adverse action is broadly defined as any act or decision, including a failure to take appropriate action, by a supervisor or higher-level authority that might prevent or dissuade a reasonable person from making or supporting an allegation of fraud in the workplace.
3.2.3 Violations
Violations of this section (Protections for Reporting) must be reported to the Chief Compliance Officer. Violations by the Chief Compliance Officer must be reported to the Human Resources Department.
3.3 Sanctions
University employees who violate the terms of this policy may be subject to disciplinary action up to and including termination of employment (see the Progressive Discipline Policy) as well as possible legal consequences.
3.3.1 Non-student Employees
Normally, involvement in fraudulent activities by non-student employees will result in termination of university employment, legal prosecution, and/or restitution. After considering all available information (e.g., response of the subject employee, gravity of the fraudulent activity, investigation reports, meaningful consultation with other university administrators), the responsible line vice president will make the final determination as to the disciplinary action to be taken against the employee. Should a vice president be found to have been involved in the fraudulent activity, the President will make the final determination as to the disciplinary action to be taken. Legal consequences may occur independently of any university intervention.
3.3.2 Student Employees
The involvement of student employees in fraudulent activities may result in suspension or termination of employment and suspension or expulsion from the university’s academic programs. After considering all available information, the Office of Honor will recommend the disciplinary action to be taken. The Dean of Students, in consultation with the Student Life Vice President, will make the final determination and approve all disciplinary actions. Legal consequences may occur independently of any university intervention.