Reporting Improper Activities

Notification of Actual or Suspected Fraud and Irregularities 
(State Administrative Manual [SAM] Section 20080)

This document is provided to clarify the procedures necessary in the reporting of thefts and irregularities.  As a matter of policy, the California State University follows SAM Section 20080 as it relates to campus activities using state funds.

SAM Section 20080 states that an agency will notify the California Department of Finance, Office of State Audits and Evaluation (OSAE) (916-322-2985), and the Bureau of State Audits (BSA) (916-445-0255) of all cases of actual or suspected fraud, defalcation, or other irregularities it has become aware of either internally or by referral. This requirement applies to all incidents over $1,000 involving state assets, whether alleged against state employees or others.

"Notification will be made to the OSAE and the BSA in writing no later than the first business day following the actual or suspected fraud, theft, or irregularity. The notification will include, at a minimum, the sequence of events, the internal controls that failed, the means of discovery, the corrective actions taken, the actual or estimated dollar amount, and any punitive actions taken or being considered. In those instances where complete information is not available by the first business day following discovery, a preliminary notification will be made. A complete notification will be made within thirty days. If not completed within thirty days, a progress report will be submitted every thirty days until completed."
(SAM Section 20080)

In addition to SAM, the Office of the Chancellor Executive Order No. 813 outlines further requirements. Specifically, campuses are also required to notify the chancellor within 24 hours of all cases of actual or suspected theft, defalcation, or fraud. Notifying the chancellor applies equally to state and non-state (including auxiliary organization) funds. Such notification shall also be made to the executive vice chancellor/chief financial officer, the university auditor, and the chair of the Trustees' Committee on Audit. To assist you in meeting these requirements, the following document has been prepared: "What You Need to Know About EO 813."

For questions concerning the reporting of fiscal improprieties to state agencies, please contact the Office of the University Auditor at
(562) 951-4430.