Policy 5:7 – Improper Governmental Conduct, Crime and Fraud

Policy Contact: University Controller

  1. Purpose

    This policy is subject to and implements SDBOR Policy 4.8.2 and sets forth the guidelines for reporting improper governmental conduct, crime, or fraudulent acts at the University. This policy does not displace policies surrounding academic misconduct.

  2. Definitions
    1. The definitions in SDBOR Policy 4.8.2 and applicable laws are incorporated into this policy.
  3. Policy
    1. The University has designated the University Internal Auditor as the contact for University employees to make internal reports that are subject to this policy.
    2. University employees are responsible for reading and understanding this policy. Additionally, University employees must report suspected or known covered acts to their respective supervisor or to the University Internal Auditor. University employees may also report directly to the Internal Systems Auditor of the SDBOR Office.
    3. Supervisors are responsible for:
      1. Communicating the provisions of this policy to all staff;
      2. Taking no action without consulting the University Internal Auditor;
      3. Recommending appropriate temporary disciplinary action with the support of Human Resources where there is evidence of wrong-doing; and
      4. If suspension or termination is recommended, consulting with an appropriate campus representative.
    4. The University Internal Auditor is responsible for communicating the suspected or known covered act to the Internal Systems Auditor of the SDBOR Office and for initiating internal investigative actions of the suspected or known act.
    5. The Internal Systems Auditor of the SDBOR Office is responsible for investigating suspected or known acts in cooperation with the University Internal Auditor.
    6. The University Internal Auditor or University General Counsel shall work with the supervisor to submit a timely report of the suspected or known fraudulent act, improper governmental conduct, or crime to the Attorney General and Auditor General, or other appropriate law enforcement authority, as required by applicable law, along with any known evidence of documentation permitted by applicable law to be disclosed.
    7. The University shall maintain an internal control environment to protect the University from loss or other damages as a result of covered acts.
    8. False allegations of suspected fraud with the intent to disrupt or cause harm to another will be subject to disciplinary action according to procedures in place for their respective employment classification. Employees who submit good faith reports of improper governmental conduct, fraud, or crime are entitled to the protections provided by law.
    9. Appropriate and timely action shall be taken against those proven to have committed a covered act. These remedial actions include, but are not limited to:
      1. Disciplinary action (up to and including termination of employment);
      2. Restitution for all losses, including investigation and legal expenses;
      3. Forwarding information to the appropriate authorities for criminal prosecution; and
      4. Institution of civil action to recover losses.
    10. Where the University elects to take corrective or disciplinary action, it shall proceed under the procedures in place under SDBOR or University policy for the respective employment classification.
    11. The University may take corrective or disciplinary action without awaiting the resolution of criminal or civil proceedings arising from the fraudulent conduct.
    12. All investigations shall be conducted in confidence insofar as reasonably possible. Employees, supervisors, and the University Internal Auditor will seek legal support from the University General Counsel, or designee. The name or names of those communicating information about a fraudulent act and the name or names of those suspected of a fraudulent act will be revealed when required in conjunction with the investigation or legal action.

  4. Responsible Administrator

    The Assistant Vice President for Financial Services, successor, or designee, is responsible for the annual and ad hoc review of this policy. The University President is responsible for approval of this policy.

Approved by President on 08/29/2014. Revised; Approved by President on 10/06/2020. Revised 01/30/2024 (clerical). Revised; Approved by President on 03/11/2026.

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