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CHAPTER VIII

1. ANTI-FRAUD PLICY AND REPORTING OF WRONGFUL OR FRAUDULENT CONDUCT

1.1 Anti-Fraud Statement.

The Texas State University System does not tolerate any type of fraud, waste, or abuse. The System is committed to ensuring that our organization maintains the highest standards of ethical conduct and integrity throughout all aspects of its operations. As public servants, System and Component faculty and staff are guardians of the resources entrusted to them and have a responsibility to students, parents, alumni, donors, and the citizens of Texas to ensure that those resources are used efficiently and for their intended purposes. The System does not tolerate any form of retaliation against individuals providing information concerning suspected fraud, material waste, abuse, or other unethical behavior.

1.2 Chancellor and President Responsibilities.

If the Chancellor has reasonable cause to believe that Component or System financial or inventoried resources may have been lost, misappropriated, or misused, or that other fraudulent or unlawful conduct has occurred in relation to the operation of the Component or System, he or she shall timely and promptly report the reason or basis for the belief to the Chair of the Finance and Audit Committee and to the Chief Audit Executive. If a President has such reasonable cause, he or she shall report the same to the Chancellor and to the Chief Audit Executive.

1.3 Employee Responsibility.

If an employee has reasonable cause to believe that Component or System financial or inventoried resources may have been lost, misappropriated, or misused, or that other fraudulent or unlawful conduct has occurred in relation to the operation of the Component or System, he or she shall timely and promptly report the reason or basis for the belief to the Component Internal Audit Director; to the System Chief Audit Executive; to EthicsPoint, the System’s internet-based fraud reporting hotline; or to the State Auditor’s Office.

1.4 EthicsPoint Fraud Reporting Hotline.

The System has established, through a private contractor, an internet-based reporting hotline, EthicsPoint, to provide individuals with a confidential avenue for reporting concerns about potential waste, fraud, and abuse of resources, the lack of compliance with laws and regulations, or violations of the System’s Code of Ethics. Reports filed through EthicsPoint are forwarded to and investigated by individuals who are independent of System management. EthicsPoint can be accessed through the Components’ and the System Office’s webpages. Except in rare circumstances, reports received through EthicsPoint will not be investigated if established complaint processes at the campus-level have not been utilized. The Texas Public Information Act shall govern rules on disclosure of documents and records.

1.5 Reports to State Auditor’s Office.

The Texas State University System, through the Chief Audit Executive, will report suspected fraud or unlawful conduct to the State Auditor’s Office (SAO) if he or she knows of facts pointing to fraud or unlawful conduct. Employees may report fraud involving state funds to the SAO through the System’s Hotline; by accessing the SAO Fraud Reporting webpage; or by mail to the SAO.