Fraud, Waste and Abuse
11:12:02 Fraud,Waste and Abuse
- Reporting Fraud, Waste or Abuse
- Chattanooga State Community College is committed to the responsible stewardship of resources. State law requires all public institutions of higher education provide a means by which students, employees, or others may report suspected or known improper or dishonest acts (T.C.A. § 49-14-103(a).
- Whether you are part of departmental management, a faculty or staff member, a student, or an interested citizen, we encourage you to report known or suspected fraud, waste, or abuse by employees, outside contractors, or vendors (T.C.A. § 8-50-116).
- What Should I Report? Dishonest or fraudulent acts, either known or suspected, should be reported, such as:
- Theft or misappropriation of funds, supplies, property, or other college resources
- Forgery or alteration of documents
- Unauthorized alteration or manipulation of computer files
- Improper or wasteful activity
- Falsification of reports to management or external agencies
- Pursuit of a benefit or advantage in violation of the college's conflict of interest policy
- Authorization or receipt of compensation for hours not worked
- TBR Policy
- See TBR Policy 4:01:05:50, Preventing and Reporting Fraud, Waste, or Abuse at www.tbr.edu.
- Be Reasonably Certain!
- Before making allegations of dishonesty, be reasonably certain of any claims. Such allegations can seriously and negatively impact the accused individual's life and can adversely affect the working environment of the department.
- T.C.A. § 39-16-502, False Reports, states that it is unlawful to make a false report if:
- The offense or incident reported did not occur;
- The person has no information relating to the offense or incident reported; or
- The information relating to the offense reported is false.
- Reporting Options
- Several options are available to all employees, students and others for reporting known or suspected fraud, waste, or abuse.
- Your supervisor or an Institution official
- Chattanooga State Community College Office of Internal Audit
- Phone: (423) 697-4749
- Email: firstname.lastname@example.org
- Website: chattanoogastate.edu/fraud-waste-abuse
- TBR Office of System-wide Internal Audit
- Phone: (615) 366-4441
- Email: email@example.com
- Website: http://tbr.edu/reportfraud
- Tennessee Comptroller's Hotline for Fraud, Waste or Abuse
- Phone: 1-800-232-5454
- Website: http://www.comptroller.tn.gov/hotline
- If you are a supervisor, department head, or campus official and you receive a report of fraud, waste, or abuse, do not investigate but contact Internal Audit at (423) 697-4749 for assistance.
- Internal Audit has reporting responsibility to the Audit Committee of the Tennessee Board of Regents. This reporting relationship enables Internal Audit staff to independently and objectively review matters involving any level of administration at the college.
- When Internal Audit receives allegations of dishonesty or other irregularity by an employee, outside contractor, or vendor, Internal Audit staff are required to conduct an investigation.
- Supervisors should not attempt to conduct investigations nor alert suspected employees of an impending investigation.
- The objectives include verifying the facts, maintaining objectivity and confidentiality, determining responsibility, and recommending corrective actions to help ensure that similar actions do not occur in the future.
- Protection Under State Law
- State law provides protection for individuals by prohibiting discrimination or retaliation of any kind against employees who report, in good faith, allegations of fraud, waste or abuse or for cooperating with auditors conducting an investigation. Internal Audit working papers, including allegations of fraud, waste or abuse and the individual reporting information to Internal Audit are confidential under T.C.A. § 10-7-504(a)(22), unless subject to court action requiring disclosure. If there is a separate legal obligation to investigate the complaint (e.g., complaints of illegal harassment or discrimination), anonymity or complete confidentiality cannot be guaranteed. T.C.A. § 49-14-103(b) directs that a person who knowingly and willingly retaliates or takes adverse action of any kind against any person for reporting alleged wrongdoing pursuant to the provisions of this part commits a Class A misdemeanor.
- Preventing Fraud, Waste and Abuse
- Chattanooga State Community College management is responsible for establishing and implementing systems and procedures to prevent and detect fraud, waste and abuse.
- The basic elements of a proper control system include:
- Creating a culture of honesty and high ethics
- Evaluating risks and implementing processes, procedures and controls to prevent, deter and detect fraud, waste and abuse
- Developing an appropriate oversight process
- Management at all levels of the College should review the information that is available from the American Institute of Certified Public Accountants in the document, Management Antifraud Programs and Controls: Guidance to Help Prevent and Deter Fraud, found as an exhibit in their Professional Auditing Standard AU 316 at the AICPA's website: www.aicpa.org.
- Internal Audit can provide assistance in reviewing risks, processes, procedures or controls, or in providing internal control training.
Chattanooga State Community College Internal Audit (423) 697-4749
TBR Office of System-wide Internal Audit (615) 366-4441
Tennessee Comptroller's Hotline 1-800-232-5454