Procedure for Investigating Fraud and Misconduct

Effective Date:

June 30, 2012

Function

Office of Compliance Services

Contact:

Joshua Toas

Vice President of Compliance and Chief Compliance Officer

518-434-7145

Joshua.Toas@rfsuny.org

Definitions:

Fraudulent or Dishonest Conduct: A deliberate act or failure to act with the intention of obtaining an unauthorized benefit or misleading a Research Foundation representative, government official, vendor or other entity doing business with the Research Foundation. Examples of such conduct include, but are not limited to:

Basis for Procedure:

This procedure supports the RF’s Fraud and Whistleblower Policy and is used to conduct an investigation into an allegation of Fraudulent or Dishonest Conduct as defined in that policy.

Procedure Summary:

All credible allegations of Fraudulent or Dishonest Conduct must be reviewed and investigated. All suspected Fraudulent or Dishonest Conduct shall be referred to Office of Compliance Services for review using the Fraud Incident Report. Office of Compliance Services has the primary responsibility for the coordination and documentation of an investigation of all suspected Fraudulent or Dishonest Conduct. A representative of Office of Compliance Services will review the underlying facts and consult with Internal Audit and the Office of General Counsel, as needed, to determine whether and what type of investigation is required, and if so whether the investigation should be conducted under the general supervision of the Office of General Counsel if it is determined that any report may result in legal liability.

Office of Compliance Services will organize a review team to investigate the allegation. The team may include other Research Foundation or SUNY staff from any Research Foundation or SUNY department or location and may be supported by outside consultants, such as independent auditors and attorneys.

Members of the investigative team will have free and unrestricted access to all Research Foundation records and premises and the authority to examine, copy, and remove all or any portion of the contents of files, desks, cabinets, computer files and other standard or electronic storage facilities without prior knowledge or consent of any individual who may use or have custody of any such items or facilities when it is within the scope of their investigation.

Office of Compliance Services will maintain a permanent record of all investigations or reviews. Documentation should include all material and relevant facts, along with statutory and regulatory guidance or requirements, policies and procedures, legal analysis, and other relevant considerations and a final report outlining the outcome or final determination. Any records subject to the attorney-client privilege or the attorney work-product doctrine will be marked as privileged and only released with the approval of the Office of General Counsel.

If an allegation relates to a Member of the Board of Directors, a referral will immediately be made to the Chair of the Audit Committee for a determination on how to proceed.

If an allegation relates to an Officer of the RF, notice will be provided to the Chair of the Audit Committee and an investigation will be conducted in a manner consistent with this procedure.

If the investigation substantiates that Fraudulent or Dishonest Conduct or similar misconduct has occurred, Internal Audit, the Office of General Counsel and/or Office of Compliance Services will issue reports to appropriate designated personnel and to the Board of Directors through the Audit Committee.

Any complaint or allegation that relates to discrimination or harassment should be reviewed pursuant to the RF’s EEO Policy, Nondiscrimination and Nonharassment Policy, and Workplace Discrimination or Harassment Complaint Procedure. If the complaint or allegation was reported through the RF’s ethics hotline, then a final report should be submitted to Office of Compliance Services.

Findings and Corrective Action

Appropriate corrective action will be taken, if necessary, and findings will be communicated back to the reporting person and his or her supervisor, if appropriate. Allegations received through the Research Foundation’s ethics hotline will be entered into the hotline database, as required.

Referral to Law Enforcement or Regulatory Agencies

Decisions to prosecute or refer the examination results to appropriate law enforcement and/or regulatory agencies for independent investigation will be made by management in consultation with the operating location’s Operations Manager or designee.

Inquiries During a Pending Investigation

All inquiries concerning the activity under investigation from the suspected individual, his or her attorney or representative, or any other inquirer should be directed to Office of Compliance Services.

Procedure Steps

Step

Expected Outcome/Result

Role or Responsibility

Comments

Allegation received

Initiate Review of Allegation

Office of Compliance Services

 

Determine proper investigation team lead

Identification of Office of Compliance Services, Audit, Legal, or HR as lead investigator

Office of Compliance Services in consult with Audit and Office of General Counsel

 

Fact finding and investigation

Gather and review relevant facts and regulatory/policy guidance

Lead investigator

 

Document review/investigation

Create and file permanent corporate records documenting the allegation and investigation

Lead investigator/Office of Compliance Services

 

Ethics Hotline

Properly monitor and document

Office of Compliance Services

 

Final determination

Issue and document final report

Lead investigator

 

Action

Disclosure, Board or management report, discipline as warranted

Management

 

Related Information:

RF Code of Conduct; RF Conflicts of Interest Policy; Fraud and Whistleblower Policy; EEO Policy; Policy against Discrimination, Harassment, and Retaliation; and Procedure for Resolving Allegations of Workplace Discrimination, Harassment, and Retaliation Complaints.

Forms:

Fraud Incident Report

Change History

Date

Change History

June 30, 2012

New Procedure

 

 

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