Date enacted or revised:
Feb 24, 2014; Revised January 11, 2016
The purpose of this policy is to provide information and to provide procedures to be followed when misappropriation of public funds or assets have occurred.
State and System Reporting Requirements
Louisiana Revised Statute 24:523 requires Louisiana agency heads to immediately report actual knowledge of any misappropriation of public funds or assets to the Louisiana Legislative Auditor and to parish district attorney of the parish where the agency is domiciled.
University of Louisiana System Policy M-(1)-a provides general guidance for reporting the misappropriation of public funds or assets, and in addition to the reporting requirements of LRS 24:523, requires University Presidents (university agency head) or the President's designee to report misappropriations to the Louisiana Office of Risk Management and to the System Director of Internal Audit.
The System policy defines misappropriation as the intentional, illegal use of the property or funds of the university for one's own personal use or for unauthorized purposes. Examples include fraud, theft, and embezzlement.
University Policies and Procedures
To comply with Louisiana Revised Statute 24:523 and University of Louisiana System Policy M-(1)-a, employees should adhere to the following procedures:
- Upon knowledge of a suspected misappropriation of public funds or assets, employees shall immediately notify either the Office of Internal Audit or Campus Police. Internal Audit and Campus Police shall communicate and make a preliminary assessment of whether a misappropriation has occurred. If a reasonable suspicion of misappropriation is concluded, Internal Audit shall notify the President.
- Internal Audit will notify the Vice President of Business Affairs and University Services, and the Comptroller in the case of suspected misappropriated funds and the Director of Purchasing in the case of suspected misappropriated assets.
- In cases where forced entry or similar unauthorized access has occurred, departments will take a complete physical inventory of movable property to determine the extent of items missing and shall report the results of the physical inventory to the MSU Internal Auditor and MSU Director of Purchasing.
- The President will notify the Legislative Auditor, Calcasieu Parish District Attorney, the Louisiana Office of Risk Management, and the University of Louisiana System Director of Internal Audit as required by System Policy M-(1) a.
This policy is distributed via the Academic Advisory Council, the Administrative Advisory Council, the University Listserv, the Student Listserv, University’s website and through routine communication between departments.