4.12 Reporting Suspected Theft, Financial Dishonesty, or Fraud
Like all organizations, MCAD is faced with the risks that come from theft, financial dishonesty or other fraud by MCAD volunteers and employees. MCAD manages these risks and their potential impact on MCAD in a lawful, ethical and professional manner. The impact on MCAD of theft, financial dishonesty or other fraud may include:
- the actual financial loss incurred
- damage to the reputation of MCAD
- the cost of investigation
- loss of employees
- loss of customers
- fines and penalties
MCAD is committed to the deterrence, detection and correction of theft, financial dishonesty and other fraud by MCAD employees. The discovery, reporting and documentation of such acts provides a sound foundation for the protection of innocent parties, the taking of disciplinary action against offenders up to and including dismissal where appropriate, the referral to law enforcement agencies when warranted by the facts, and the recovery of losses and other expenses.
Definition of Theft, Dishonesty and Other Misconduct
For purposes of this policy, theft, financial dishonesty and other fraud, includes, but is not limited to:
- theft or other misappropriation of assets of MCAD students, customers, suppliers or others with whom MCAD has a business relationship
- intentional misstatements in the financial records of MCAD
- forgery or other alteration of documents
- fraud and other unlawful acts
MCAD specifically prohibits these and any other illegal activities in the actions of its employees related to their employment by MCAD.
Employees and volunteers who believe that theft, financial dishonesty and other frau have been committed by an MCAD employee ("Concern") should report such Concern in accordance with this policy. Each employee of MCAD has an obligation to report in accordance with this policy questionable or improper accounting or auditing concerns.
This policy is intended to encourage employees to raise concerns within the College for investigation and appropriate action. With this goal in mind, no employee who, in good faith, reports a concern shall be subject to retaliation or adverse employment consequences because of the report of a concern. Moreover, an employee who retaliates against someone who has reported a concern in good faith is subject to discipline up to and including dismissal from the volunteer position or termination of employment.
Employees should first discuss their concern with their supervisor. If, after speaking with their supervisor, the individual continues to have reasonable grounds to believe the concern is valid, the individual should report the concern to the Vice President Finance/CFO. In addition, if the individual is uncomfortable speaking with their supervisor, or the supervisor is a subject of the concern, the individual should report their concern directly to the Vice President Finance/CFO.
If the concern was reported verbally to the Vice President Finance/CFO, the reporting individual, with assistance from the Vice President Finance/CFO, will put the concern in writing. The Vice President Finance/CFO is required to promptly report the concern to the Chair of the Audit Committee of the Board of Trustees, which has specific and exclusive responsibility to investigate all Concerns. If the Vice President Finance/CFO does not promptly forward the concern to the Chair of the Audit Committee, the reporting individual should directly report the concern to the Chair of the Audit Committee.
Employees who would prefer to report their concerns about theft, financial dishonesty and other fraud anonymously can contact Lighthouse, a third-party organization, which is available 24 hours a day, 7 days a week. Concerns will be reported to the College for evaluation and investigation on an anonymous basis. Lighthouse will make every effort to protect the reporter's identity. Please note, however, that because the information provided in the report to MCAD may be the basis of an internal and/or external investigation by MCAD into the issue being reported, it is possible that the reporter's identity may become known to MCAD during the course of the investigation. NOTE: Reports of sexual harassment, sexual violence, and grievances should not be made through Lighthouse, but through the processes described in those policies.
|firstname.lastname@example.org (include MCAD's name in your report)|
|Fax||215-689-3885 (include MCAD's name in your report)|
Responsibility and Authority for Follow Up and Investigation
The Audit Committee has the primary responsibility for all investigations under this policy. The Audit Committee has the primary responsibility for investigating, and making appropriate recommendations to the President, with respect to all reported concerns under this policy. Designated members of the investigative team will have:
- free and unrestricted access to all MCAD records and premises; and
- the authority to examine, copy and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities (whether in electronic or other form) without the prior knowledge or consent of any individual who might use or have custody of any such items or facilities when it is within the scope of investigative or related follow up procedures.
Reported Incident Follow Up Procedure
Care must be taken in the follow up of suspected theft, financial dishonesty or other fraud to avoid acting on incorrect or unsupported accusations, to avoid alerting suspected individuals that follow up and investigation is underway, and to avoid making statements which could adversely affect the College, an employee, or other parties. Investigative or other follow up activity will be carried out without regard to the suspected individual's position or level or relationship with the College.
Accordingly, the general procedures for follow up and investigation of reported incidents are as follows:
- Employees and others must immediately report all factual details regarding the reported concern.
- All records related to the reported incident will be retained wherever they reside.
- The employee reporting the concern should not communicate with the suspected individual(s) about the matter under investigation.
- Neither the existence nor the results of investigations or other follow up activity will be disclosed or discussed with anyone other than those persons who have a legitimate need to know in order to perform their duties and responsibilities effectively.
- All inquiries from an attorney or any other contacts from outside MCAD, including those from law enforcement agencies or from the employee under investigation, should be referred to the Audit Committee Chair.
Acting In Good Faith
Anyone reporting a concern must act in good faith and have reasonable grounds for believing the information disclosed indicates an improper accounting or auditing practice, theft, dishonesty or other financial misconduct. The act of making allegations that prove to be unsubstantiated, and that prove to have been made maliciously, recklessly, or with the foreknowledge that the allegations are false, will be viewed as a serious disciplinary offense and may result in discipline, up to and including termination of employment. Such conduct may also give rise to other actions, including civil lawsuits.
Reports of concerns, and any investigations relating to them, shall be kept confidential to the extent possible, consistent with the need to conduct an adequate investigation. Disclosure of reports of concerns to individuals not involved in the investigation will be viewed as a serious disciplinary offense and may result in discipline up to and including termination of employment. Such conduct may also give rise to other actions, including civil lawsuits.