REG 07.40.02 – Reporting Misuse of University Property and Resources

Authority: Issued by the Chancellor. Changes or exceptions to administrative regulations issued by the Chancellor may only be made by the Chancellor.

History: First Issued: February 1, 1995. Last Revised: August 29, 2023.

Additional References:
SBI-78 Form
IRM Auto Accident Reporting
University Police Department Online Crime Reporting
NC State EthicsPoint Hotline
Annual Notices – Misuse of State Property

Contact Info: Office of General Counsel (919-515-3071); Internal Audit Division (919-515-8862)

1. REPORTING

1.1 University employees who have information or evidence about actual, attempted, or suspected misuse of North Carolina State University (“NC State”) property or resources must report such information or evidence to the University Police, Internal Audit or their immediate supervisor within three (3) days of learning about the alleged misuse. The immediate supervisor, University Police and/or Internal Audit must in turn report the matter to the Office of General Counsel as soon as possible. Crimes in progress are to be reported to University Police immediately. If an employee believes their supervisor is engaged in the misuse, the employee should report the concerns to management above the employee’s supervisor. Alternatively, employees may report concerns directly to Internal Audit or University Police or, anonymously to NC State EthicsPoint Hotline or the Office of the State Auditor’s Hotline.

1.2 Misuse of NC State property or resources includes arson, damage, theft, embezzlement or unauthorized use of any NC State owned buildings or real property, office space, purchasing cards (“Pcards”), equipment, tools, supplies, electronics, laptops, mobile communication devices, tablets or other electronics, telecommunications, IT infrastructure, vehicles, NC State funds, or other state resources. An illustrative, but not exhaustive list of activities to be reported include:

• suspected theft or misuse of University property
• misuse, mismanagement, or misappropriation of funds, supplies, or any other asset
• intentional misuse of funds for other purposes
• conflicts of interest, commitment, and ethics violations
• authorizing or receiving payments for hours not worked
• personal use of university Pcards, materials, or assets
• falsification of documents or reports
• falsification of timesheets, leave reports, etc.
• any other suspected fraud, waste, or abuse of State resources.
.

1.3 Federal law, North Carolina General Statutes, and NC State policy provide employees who make good-faith reports of actual or suspected misuse of NC State property or resources with protection from retaliation related to having made the report.

1.4 The Chancellor delegates to the Vice Chancellor and General Counsel the responsibility for reporting information or evidence of misuse of state property to the State Bureau of Investigation (“SBI”), after appropriate consultation with Internal Audit and University Police.

2. INVESTIGATIONS

2.1 University Police is responsible for the investigation of all crimes that occur involving university property or resources. University Police will coordinate with and seek assistance from Internal Audit as needed, but especially in relation to matters involving allegations of fraud and embezzlement. The assistance of the SBI, local law enforcement or the State Auditor in reviewing or investigating the allegations may be requested in particular cases.

2.2 Employees, regardless of appointment type, are required to cooperate with any investigation.

2.3 The results of University Police and/or Internal Audit reviews of alleged misuse and investigations will be reported to the Vice Chancellor and General Counsel. In consultation with the Director of Internal Audit and the Chief of Police, the Vice Chancellor and General Counsel will determine whether or not it is appropriate to notify the SBI of any misuse within ten (10) days of being notified of the possible misuse.

3. NOTIFICATIONS

3.1 If the Vice Chancellor and General Counsel determine that notification to the SBI is appropriate, the Vice Chancellor and General Counsel will send written notification to the SBI (“SBI Notification”). Copies of each SBI Notification shall be sent to University Police, Internal Audit and the Vice Chancellor for Finance and Administration.

3.2 If the allegations of misuse involve an identified department or employee, copies of the SBI Notification will also be sent to the appropriate Executive Officer to which the unit reports, and the Associate Vice Chancellor for Human Resources. The supervisor of the unit in which the suspected misuse is alleged to have occurred also may be notified, as appropriate. Each Executive Officer and unit supervisor will consult with the designees of the General Counsel, University Police, Internal Audit and Human Resources, as appropriate, to address resolution of personnel and other issues relating to the reported allegations. For personnel matters, the applicable disciplinary procedures will be followed.

3.3 If the allegations involve a student, a copy of the SBI Notification will also be sent to the Vice Chancellor and Dean for Academic and Student Affairs for handling in accordance with the Code of Student Conduct.

3.4 The Vice Chancellor and General Counsel and/or the Director of Internal Audit shall inform the Chancellor of all significant misuse matters.

3.5 The Director of Internal Audit and the Chief of Police may make other reports to state or local government units as are otherwise necessary and appropriate for the performance of their respective professional responsibilities. The Vice Chancellor and General Counsel and/or the Director of Internal Audit shall inform the Chancellor of all significant misuse matters.

3.6 A decision to file criminal charges will be determined at the conclusion of an investigation by the applicable district attorney’s office, in consultation with the Chief of Police.