Procedures to Report Fiscal Improprieties

These procedures outline the responsibilities of relevant units at San José State University and its auxiliary organizations for responding to reporting actual or suspected fraud, theft, embezzlement, and/or other fiscal improprieties. They supplement existing operating procedures that may be already in place in each unit and focus on coordination across units to ensure timely and accurate reporting.

Because of the often unique and complex nature of fiscal improprieties, it is impossible to predict which unit will first become aware of a problem. However, it is important that key managers be informed of the situation as soon as possible upon discovery of impropriety.  

MPPs of SJSU and managers of an auxiliary organization have the fiduciary duty to safeguard state assets and resources. Therefore, managers or supervisors of any unit that first discover or receive notification of an instance of suspected fiscal impropriety should immediately notify their direct supervisor and complete a Report / Notification of Actual or Suspected Fiscal Improprieties at SJSU and Auxiliary Organizations. The CFO and the Provost (if related to Academic) must also be informed promptly (within 24 hours, or 48 hours if it falls on a weekend).  

Whistleblower Exception

If the issue is reported through the California State Whistleblower Program, the same upward notification is required. However, to protect anonymity, the campus central administration will conduct the investigation confidentially.

The CFO is the main campus authority to investigate and, as necessary, to report fiscal improprieties as required by CSU EO 1104. The Senior Manager of Audit and Business Continuity is responsible for supporting the CFO in the investigation and the reporting. In response to a reported incident of fiscal impropriety, the CFO will:

1. Convene an ad-hoc fiscal improprieties committee that will oversee the investigation.

• • The committee will be chaired by the CFO and may include:
    • • Management representative from the unit where the impropriety occurred.
      • UPD representative.
      • As needed, management representatives of the Divisional VPs where the impropriety occurred.
      • The campus Senior Manager of Audit and Business Continuity.

• • The first objective of the investigation is to determine if there is prima facie evidence indicating that there was a fiscal impropriety. 
  • Based on the result of the fact finding, the committee will determine if an official police case should be opened thereby officially putting the incident under the university police jurisdiction. 
    • • Determine if, in fact, criminal actions have occurred and investigate based on this determination.
      • Report in the standard manner to the appropriate prosecutorial office for adjudication.  

2. Make appropriate and timely disclosures.

• • This work will be supported by the Senior Manager of Audit and Business Continuity, who will:
    • • Support the affected unit in identifying potential enhancements to internal controls and associated business processes to reduce risk of future occurrences.
      • Provide policy interpretation as needed.
      • Consult with the Chancellor Office to determine reportability of the incident.
      • Prepare the draft report with information items as required by the CSU Executive Order 1104.

3. Notify University Public Affairs, who will be responsible for preparing information releases, if necessary, to media representatives.