Reporting Misappropriation of Public Resources
- February 17, 2012
- Finance and Administration
- President and Vice Presidents: February 17, 2012 Signature (pdf)
- Director of Business Services
State law (RCW 43.09.185) requires all state agencies to immediately notify the State Auditor's Office if they know or suspect a loss of public resources.
This includes situations in which disciplinary action against an employee is being considered due to known or suspected losses of public funds, fraud, illegal acts, or noncompliance with policies or procedures related to preventing losses of public funds, misappropriation or other illegal acts.
- Washington State Auditor’s Office on Fraud Reporting: http://www.sao.wa.gov/EN/Audits/Fraud/Pages/default.aspx
- RCW 43.09.185 http://apps.leg.wa.gov/rcw/default.aspx?cite=43.09.185.
All staff and faculty are responsible to report possible misappropriations of public resources to the Director of Business Services. The Director of Business Services is responsible to report incidents to the State Auditor’s Office. Incidents may also need to be reported to the Evergreen Police Department and College management. As soon as a suspected loss has occurred, protect any records (including but not limited to, financial records, e-mails) from loss or destruction until an investigation has been completed.
You are not required to report the following:
- Normal and reasonable “over and short” situations from cash receipting operations. Record these transactions in the accounting system as miscellaneous income and expense, respectively, and monitor this activity by cashier for any unusual trends.
- Reasonable inventory shortages identified during a physical count. Record inventory adjustments in the accounting system.
- Breaking and entering or vandalism of property.
Do not attempt to correct the loss without reporting to the authorities identified above. In addition, state law requires written approval of the State Auditor and Attorney General before state agencies and local governments make any restitution agreement, compromise, or settlement of loss claims related to a misappropriation.