Policy 1303: Reporting of Fraud to the Auditor  Responsible Office: Internal Audit  Responsible Area: President's Office

I.       PURPOSE

The purpose of this policy is to provide procedures for handling all suspected incidences of fraud 
within the University.   

II.     POLICY  

This institution establishes the following procedures for reporting fraud to the Internal Auditor.

III.    PROCEDURE

A.  Section 2.1-155.3 of the Code of Virginia requires the head of an agency or institution to 
notify the Auditor of Public Accounts (APA) and the Department  of the State Police of all 
incidences of fraud within their agency or institution.

B.  In addition to compliance with the Code of Virginia, the institution should notify the Internal 
Audit Department in cases that circumstances suggest the possibility that assets have, or are
thought to have, been lost through defalcation or other breaches in the financial and operating
systems.  Upon such notification, the Internal Audit Department should ensure that proper 
authorities within the institution have been  notified and that they are aware of the reporting 
requirements under the Code of Virginia.

C.  Although it is not mandatory that Internal Audit Department investigate each situation, 
it should be informed and make a judgment regarding the impact of the situation on internal 
controls and on future audit testing.  

Approved by the Board of Visitors November 1988.
Revised and approved by the Board of Visitors, September 7, 2002.

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