Financial Misconduct Policy

Applicability:

The Financial Misconduct Policy applies to the following individuals and groups of people:

• Faculty, staff, and students of Claremont McKenna College;
• Members of the Board of Trustees;
• Consultants, contractors, and others, when performing services for the College or interacting with members of the CMC Community, acting on behalf of the College, or otherwise required under contract to comply with this Institutional Statement; and
• Individuals who perform services for the College as volunteers.

Related Policies:

Institutional Statement of Ethics and Values

Responsible Officials:

Vice President for Business and Chief Financial Officer

Policy Statement:

The College places a high value on the utilization of sound and prudent judgment and practices in relation to all of the College’s business and operations.  Thus, the College expects that its resources will be used in support of its operational and business functions and will not be used for personal gain (beyond that which is incidental and reasonable in light of the Community member’s responsibilities on behalf of the College).

Individuals are strongly encouraged to bring forward information and/or complaints about violations of state or federal law, College policy, rules or regulations, and financial misconduct. Retaliation against any individual or group who, in good faith, reports or participates in the investigation of alleged violations is prohibited.

Any employee ultimately found to have engaged in financial misconduct is subject to disciplinary action by the College, which may include dismissal as well as prosecution by appropriate law enforcement authorities.

Definitions:

Retaliation is defined as an adverse employment action against an individual because of the individual’s good faith report. This includes, but is not limited to: threats of retaliation, discharge, discrimination in compensation, or discrimination in conditions of employment that are as a result of the disclosure of such information. Retaliation does not include good faith actions lawfully pursued in response to a report of misconduct.

Financial misconduct is defined as fraud, gross negligence or intentional or willful misconduct that could impact the College’s finances. This includes, but is not limited to: accounting misrepresentations, auditing matters, accounting omissions, misappropriation of grant funds, kickbacks, theft of college assets or use of such assets for personal benefit, and falsification of time records.

Procedure for Reporting and Confidentiality of Reports:

Reports of suspected financial misconduct should be made to one or more of the following administrators:

Erin Watkins
500 East Ninth Street
Claremont, CA 91711
(909) 607-7085
erin.watkins@cmc.edu

Marcie Gardner, General Counsel
500 East Ninth Street
Claremont, CA 91711
(909) 607-0348
marcie.gardner@cmc.edu

Reports of suspected financial misconduct may also be made directly to the Chair of the Audit and Compliance Committee of the Board of Trustees through the College’s Office of the General Counsel, who shall oversee the receipt, retention and resolution of such reports. The Chair of the Audit and Compliance Committee will work with the Office of the General Counsel, the Administration and outside advisors to ensure that these reports receive the appropriate attention. Please reference the College’s Report a Concern page for additional reporting information. 

The protection of employees who submit reports of suspected financial misconduct is a critical part of this Policy, as is maintenance of the confidentiality, objectivity and independence necessary to appropriately resolve complaints. The Chair of the Audit and Compliance Committee, the Office of the General Counsel, and the Administration share responsibility for maintaining these features of the policy, although, depending on the nature of the discipline or the actions of law enforcement agencies, confidentiality cannot be guaranteed.

Audit and Compliance Committee Reports:

The College’s Office of the General Counsel shall prepare periodic summaries of complaints received for review by the Audit and Compliance Committee.  As appropriate, reports regarding the status of specific complaints may be reported on a more frequent basis.

The Audit and Compliance Committee shall evaluate annually the effectiveness of this Policy and recommend and/or adopt changes as necessary.

False Reports of Financial Misconduct:

It is a violation of this policy to knowingly make false allegations of financial misconduct with the intent to cause harm to another individual.  Those making false allegations are also subject to disciplinary action, up to and including termination.

Reporting Questions or Concerns:

General Questions: Office of the General Counsel (909) 607-0348