Reporting Of Fiscal Improprieties Policy
For policy interpretation, please contact: Vice President for Administration and Finance: 909-537-5130
CSU Executive Order No. 1104 (EO 1104) outlines the process for reporting fiscal improprieties. Section 20080 of the State Administrative Manual requires notification of the State Department of Finance, Office of State Audits and Evaluations, and the State Auditor of all cases of actual or suspected fraud, defalcation, or other irregularities involving state funds. This information may arise internally or by an outside referral and may involve either state employees or others.
The purpose of this policy is to outline campus procedures for complying with EO 1104. This policy applies to both State and auxiliary organizations.
CSUSB employees have the responsibility to report fiscal improprieties. Incidents of actual or suspected fraud involving state and/or non-state funds and amounting to $1,000 or more will be reported to the Vice President for Administration and Finance no later than the first business day following discovery of the irregularity. Since only limited information may be available at the time of the initial report, to the extent the information is available, the following will be included:
Means and time/date of discovery
Names and status of employees who have access to funds and/or records
Circumstances of discovery of loss
Actual or estimated dollar amount
Internal controls that failed
Immediate corrective action taken
Punitive actions taken or being considered
In an informal initial notification, the campus should swiftly contact the Audit and Advisory Services of the Chancellor’s Office (CO) as soon as it suspects a fiscal impropriety may have occurred.
A formal notification to the CO may be required. The campus shall follow instructions in EO 1104 to conduct an inquiry to determine if an incident is reportable. An incident is reportable when it is more likely than not that a fiscal impropriety has occurred, and the estimated loss is $5,000 or more. Once the campus has determined that an incident is reportable, the Vice President for Administration and Finance will notify the Chancellor, Executive Vice Chancellor/Chief Financial Officer, Vice Chancellor/Chief Audit Officer, and Chair of the Trustees' Committee on Audit within five business days. A notification must be sent to the State Department of Finance and the State Auditor for incidents involving state funds or state employees with an estimated loss of $50,000 or more. The appropriate prosecuting authority must also be contacted as soon as it’s determined with a reasonable degree of certainty that a fiscal impropriety has occurred with an estimated loss greater than $20,000.
An investigation should be performed to determine the full extent of the incident. A progress report will be due to the Vice President for Administration and Finance every 30 calendar days. A final report is due with five business days following completion of the investigation. This will allow the Vice President for Administration and Finance to file progress reports and a final report to the applicable parties in accordance with EO 1104.
Questions on this policy may be referred to the Office of the Vice President for Administration and Finance.