Academic Affairs Manual (ACD)

Effective: 7/25/1985

Revised: 7/1/2007

ACD 123: Misuse of University Assets

Purpose

This policy is adopted for the following purposes:

1. defining and delineating responsibilities relating to the misuse of university assets
2. establishing protocols for reporting and handling of incidents involving alleged or actual misuse of university assets

   and

3. providing guidelines for corrective actions when the investigations confirm that misuse has occurred or is likely to occur.

Sources

Arizona Board of Regents Policy Manual

University policy

Applicability

All employees, students, and agents of Arizona State University

Background

Misuse of university assets is a violation of policies of the Arizona Board of Regents (ABOR), the Academic Affairs Policies and Procedures Manual (ACD), the Staff Personnel Policies and Procedures Manual (SPP), the Student Code of Conduct, and other policies of the university (collectively “board and university policies”). Therefore, this policy is in addition to, but does not substitute for other laws and policies governing employees and students at the university, whether currently in effect or whether established after the adoption of this policy. Employees and students are required to be familiar with all policies governing the appropriate use of university assets.

Disciplinary action against employees or students for misuse of university assets will be pursued under one or more of those policies, using the procedure applicable to that category of employees or students in connection with those policies.

Contents

Definitions

Responsibilities of All Employees and Students

Responsibilities of Administrators

Applicable Policies

Investigative Process

Disciplinary Actions

Actions When Findings Do Not Support Claim of Misuse

Cross-References

Policy

ASU is responsible for the appropriate use of its assets. In substantiated cases of misuse of those assets, it is the policy of the university to obtain full restitution, to impose administrative sanctions, and to refer violations of criminal statutes for prosecution.

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Definitions

Unless otherwise stated, language in this policy is to be given its ordinary meaning consistent with the remedial purpose of this policy. Examples are given by way of illustration only, and specially defined terms are not limited to the examples given. As used in this policy:

1. “Employee” means an individual who is employed by the Arizona Board of Regents under the classifications Faculty, Academic Professional, Classified Staff, Service Professional, and Administrator as those terms are defined in board and university policies, student employees, graduate students with research or teaching responsibilities, including instructors, whether the individual is paid or unpaid, or any individual who represents or acts on behalf of the university and whose actions may bind the university. For purposes of this policy, “employee” shall include all agents of the university.
2. “University assets” are items of tangible or intangible property owned by, leased to, licensed to, or in the possession of ASU. Examples include name, money, land, buildings, improvements, inventory, equipment, accounts receivable, supplies, library volumes, museum pieces, art objects, furniture, materials, intellectual property, confidential or proprietary information, campus electronic information resources or internet domain (asu.edu), software, tools, vehicles, and paid employee time. University assets also include items that should have rightfully become an asset of the university but did not due to misuse by an employee. An example is a patent that should have been assigned by an employee but was not.
3. “Misuse” includes the illegal use of university assets and uses that are prohibited under this or another university or board policy that result in loss, damage, or financial liability to the university or gain to the individual or a third party and no benefit to the university. Examples include but are not limited to using university assets for personal or non-ASU purposes; fraud, theft, or embezzlement, which violate provisions of criminal law of the state of Arizona; acts (such as disclosure of confidential, proprietary, or privileged information) that reduce the value of university assets or expose the university to legal or financial penalties, or are conflicts of interest that benefit the employee or a third party and have not been expressly authorized by ASU.
4. “Corrective Action Plan” (CAP) means a written plan developed by the management of the affected unit following a determination of misuse (or risk of misuse) of university assets in order to correct and protect the university from future losses or potential losses.

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Responsibilities of All Employees and Students

1. Employees and students may not misuse university assets.
2. Employees and students have a responsibility to report activities or significant incidents that appear to be misuse of university assets.
   
   
   1. Employees may report such suspected misuse to any manager or supervisor in the chain of authority (director, department/unit head, dean, or appropriate vice president) or may make a report directly to the chief financial officer.
   2. Employees need not report misuse to their direct supervisors if they make a report of alleged misuse to any supervisor, vice president, or the chief financial officer.
   3. Good faith reports of misuse of university assets are subject to the protection of the ABOR policy against reprisals for whistleblowing, as outlined in the ABOR Policy Manual.
   4. Reporters of violations of this policy should be aware that some misuses of university assets are de minimus, and do not rise to the level to which a university administrator, auditor, or the ASU Police Department (ASU PD) would consider the use a violation of this policy or of criminal law. However, if, combined with other incidents of reported misuse, the incident is not de minimus, the university supervisor, auditor, or ASU PD may consider the incident a significant misuse of university assets, warranting an investigation.

3. Supervisors receiving reports of suspected misuse may take action to satisfy themselves that there is a reasonable basis to suspect that misuse has occurred prior to reporting to their immediate superior or supervisor in the chain of authority. However, before doing so, supervisors should consult with a representative from the Human Resources Department, the ASU chief of police, the director of University Audit and Advisory Services, or the Office of the General Counsel, whose expertise in these matters may provide helpful insights to confirm the appropriateness of a preliminary evaluation or indicate the need for additional assistance.

   No department or individual should investigate a misappropriation on their own or enter into any kind of discussion regarding settlement or restitution without prior written approval from the Office of General Counsel.

4. Employees and students involved in any aspect of a preliminary evaluation by the administrator, supervisor or manager, or an investigation under this policy, are responsible for keeping all information regarding the alleged misuse confidential.

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Responsibilities of Administrators (Vice Presidents, Deans, Department/Unit Heads/Directors)

1. The chief financial officer has overall responsibility for matters concerning known or suspected misuse of university assets. If an allegation of misuse is made against a student, the dean of students shall have such responsibility. Attendant to this task is the responsibility for:
   
   
   1. ensuring that an investigation is conducted
   2. designating, in any case to which this policy applies, a person who is responsible for undertaking steps required under this policy
   3. ensuring preparation and implementation of a Corrective Action Plan when misuse of assets is confirmed
   4. coordinating the investigative process with the executive vice president and provost and other senior university officials
   5. notifying and updating the university president and general counsel of confirmed misuse of assets

      and

   6. effecting appropriate reporting to ABOR.

2. receiving reports of alleged misuse of university assets
3. exercising good judgment and carefully evaluating the alleged infraction to determine whether it is de minimus or whether it does not rise to the level to which a university supervisor, dean, director, or department head would consider reporting the infraction to the next level
4. consulting with appropriate administrator(s) to determine who in the chain of authority should be advised of the reported misconduct. In the event that a report of significant misuse of university assets has occurred, the administrator to whom a report has been made shall report the misuse to the chief financial officer
5. the responsibilities set forth in the section on “Responsibilities of All Employees and Students,” above
6. ensuring that matters pertaining to reports of investigation of misuse of university assets are treated as confidential, pending the completion of an audit or investigation
7. where an incident of misuse is confirmed following an investigation:
   
   
   1. administering appropriate disciplinary action in accordance with ABOR and university policies and procedures in effect at that time
   2. taking steps to recover assets
   3. taking steps to prevent recurrence

      and

   4. developing a Corrective Action Plan, which shall be reviewed and approved by an immediate supervisor.

8. when a person who is suspected or accused of misuse of university assets is the head of a department/unit/agency, consideration should be given to having all unit management responsibilities of that individual performed by the next higher authority
9. ensuring compliance with the provisions of this policy
   

   and

10. seeking advice from the Office of General Counsel regarding when the individual who is suspected of misuse of assets should be informed of his or her legal rights, including the right to retain counsel.

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Applicable Policies

The university and its administrators shall follow all applicable policies and procedures of the ABOR or the university regarding misuse of assets. By way of example, but without limitation, the following policies and those linked in the Cross-References may apply:

1. State of Arizona statutory law
2. policies of the Arizona Board of Regents Policy Manual and related policies in the manuals regarding the following:
   
   
   1. codes of ethics
   2. codes of conduct
   3. conflicts of interest
   4. financial transactions
   5. intellectual property
   6. university property
   7. protection of employees from reprisal for whistleblowing

      and

   8. procurement.

3. ASU Computer, Internet and Electronic Communications (ACD 125)
4. federal laws and regulations relating to ownership of data and equipment used for research

   and

5. any other policies currently in effect or effected subsequent to the adoption of this policy that address misuse of university assets.

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Investigative Process

1. General. As set forth in paragraph 2 of the section “Responsibilities of All Employees and Students,” above, employees and students are expected to report incidents involving significant misuse of university assets.
2. Confidentiality. Subject to applicable Arizona law, matters pertaining to reports and investigations of misuse of university assets shall be treated by ABOR and ASU as confidential pending the completion of any audit or investigation. University employees responsible for conducting any phase of a confidential investigation shall inform individuals contacted that their identities and the information they provide will remain confidential to the extent permitted by law.
3. Investigation.
   
   
   1. The University Audit and Advisory Services may conduct an investigation of the available evidence and related circumstances to determine whether a thorough or more extensive audit is necessary. If a more thorough or extensive audit is deemed necessary, the chief financial officer or his/her designee will determine who should conduct that audit.
   2. If, after consulting with general counsel, it appears to the relevant vice president or University Audit and Advisory Services that the matter may involve criminal misconduct, she or he shall request an investigation by ASU PD.
   3. The chief financial officer, ASU PD, University Audit and Advisory Services, deans, directors, and department heads have authority to take immediate action, as they determine necessary, to secure and protect university assets and any pertinent accounting and administrative records from misuse, destruction, or alteration.
   4. An individual who is accused of misuse or misappropriation of university assets may, at his or her expense, employ and be accompanied by legal counsel during any interviews or meetings with ASU PD, internal auditors or others charged by the university to investigate this matter. Should disciplinary action be initiated upon a finding of wrongdoing, the individual shall be entitled to the protections provided under applicable personnel rules of the university and ABOR policies.
   5. If permitted by applicable policies and procedures of the ASU, an individual who is subject to an investigation for misuse of university assets may be placed on administrative leave with pay while an investigation into wrongdoing is pending. Administrative leave with pay, if appropriate, may be imposed by any supervisor in the chain of authority, and shall be imposed in accordance with applicable university and ABOR policies, following consultation with the Human Resources Department, the provost and executive vice president, and the chief financial officer.

      and

   6. All investigations and every step thereof shall be conducted consistent with the constitutional rights of those persons being investigated.

4. Post-Investigation Actions.
   
   
   1. The officials conducting the investigation shall make a written report to the chief financial officer, subject to their right to expand the scope of their investigation to determine the extent of the misuse, to identify individuals responsible for the improprieties, or to include a review of internal controls of the area in which the misuse occurred.
   2. If the individuals or offices conducting the investigation determine that no further investigation is required, then they shall complete their report to the chief financial officer.
   3. If, after consultation with the general counsel, it appears from the investigation that the individual under investigation has committed a criminal act in violation of state or federal law, the chief financial officer shall advise ASU PD of this conclusion if ASU PD previously did not investigate the matter as a violation of criminal law, and thereafter, ASU PD shall notify and coordinate further actions with the relevant prosecuting agency.

5. After receipt of a written final investigative report, the chief financial officer will inform the relevant vice president, the general counsel, and the president of the final disposition of the investigation.
6. The relevant vice president shall inform appropriate subordinate supervisors, within their respective areas of responsibility, of the investigative results that affect their units, and direct, if appropriate, that they initiate disciplinary action, as set forth below in section on Disciplinary Actions.

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Disciplinary Actions

If the investigator(s) conclude that an employee or student is responsible for misuse of university assets, the administration or the dean of students shall initiate appropriate disciplinary action, in accordance with existing ABOR and university policies including any applicable provision regarding due process.

All other rules, regulations, and statutes governing university business operations shall also apply to disciplinary action taken against an employee for violation of this policy.

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Actions When Findings Do Not Support Claim of Misuse

At the conclusion of the evaluation or investigation, if either the supervisor conducting the evaluation of the allegation of misuse or the chief financial officer finds insufficient evidence upon which to determine that misuse occurred, or if she or he disagrees with the investigator’s findings and recommendations, the university, including the chief financial officer, a department head, director, dean or supervisor, will undertake diligent efforts to restore the reputations of persons alleged to have engaged in misuse under this policy. They also will make diligent efforts to protect the positions and reputations of those persons who, in good faith, made those allegations.

Cross-References

For information on codes of ethics, see:

1. ACD 204–01, “Faculty Code of Ethics”
2. the Purchasing and Business Services Policies and Procedures Manual—PUR 102, “Code of Ethics”

   and

3. the Staff Personnel Policies and Procedures Manual—SPP 813, “Code of Conduct for Business Activities.”

For information on codes of conduct, see:

1. the Arizona Board of Regents Policy Manual— ABOR 5-301 et seq.
2. ACD 204–01, “Faculty Code of Ethics”
3. ACD 204–02, “Standards of Professional Conduct for Faculty Members and Academic Professionals”
4. the Staff Personnel Policies and Procedures Manual—SPP 801, “Employee Conduct and Work Rules.”

   and

5. the University Student Initiatives Policies and Procedures Manual—USI 104–01, “Student Code of Conduct and Disciplinary Procedures.”

For information on conflicts of interest, see

1. ACD 204–08, “Conflict of Interest”

   and

2. the Research and Sponsored Projects Policies and Procedures Manual—RSP 206, “Objectivity in Research—Disclosure of Financial Interests and Management of Conflicts of Interest.”

For information on financial transactions, see

1. the Arizona Board of Regents Policy Manual— ABOR Chapter III, “Business and Finance”
2. the Financial Services Policies and Procedures Manual—FIN 124, “Misuse of Public Monies”
3. the Financial Services Policies and Procedures Manual—FIN 401–03, “Prohibited Transactions”
4. the Purchasing and Business Services Policies and Procedures Manual—PUR 104, “Gifts and Gratuities”

   and

5. the Purchasing and Business Services Policies and Procedures Manual—PUR 108, “Anti-Kickback Guidelines.”

For information on intellectual property, see:

1. the Arizona Board of Regents Policy Manual— ABOR 6-908, “Intellectual Property Policy”

   and

2. the Research and Sponsored Projects Policies and Procedures Manual—RSP 604, “Intellectual Property Management Implementation Policy.”

For information on the use of university property, see

1. the Property Control System Policies and Procedures Manual—PCS 902, “Personal Use of University Equipment”

   and

2. the Financial Services Policies and Procedures Manual—FIN 117, “Personal Use of University Resources.”

For information on whistleblowing, see the Arizona Board of Regents Policy Manual— ABOR 6-914, “Protection of Employees from Reprisal for Whistleblowing.”

For information on procurement integrity, see:

1. the Purchasing and Business Services Policies and Procedures Manual—PUR 102, “Code of Ethics”

   and

2. the Research and Sponsored Projects Policies and Procedures Manual—RSP 213–03, “Procurement Integrity.”

For information on insurance claims for property loss, see the Environmental Health & Safety Policies and Procedures Manual—EHS 705–01, “University Property Loss Insurance Recovery—Property Claims.”

For information on fraud in student financial aid, see the University Student Initiatives Policies and Procedures Manual—USI 301–11, “Handling Incidents of Fraud, Misrepresentation, and Misappropriation.”

For information on rules governing the use of university computing resources, see ACD 125, “Computer, Internet, and Electronic Communications Policy.”

 

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