Your Wake-up Call: THE MINNESOTA STATE COLLEGES and UNIVERSITIES EMPLOYEE CODE OF CONDUCT

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Your Wake-up CallTHE MINNESOTA STATE COLLEGES
and UNIVERSITIES EMPLOYEE CODE OF CONDUCT

• Gail M. Olson, General Counsel
• John Asmussen, Internal Auditing
• June 2008

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What is it?

• The MnSCU Employee Code of Conduct is a system
  procedure, effective 7/1/2008 see
  http//www.mnscu.edu/board/procedure/1c0p1.html
• It is a compilation of various existing statutes
  and policies that apply to employees.
• Also contains introduction describing
  expectations for employees.

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Where did it come from?

• Leadership Council Human Resources Committee
  created Ethics Task Force.
• Task Force studied other agency codes, other
  institutions, etc.
• Many conduct policies were already in place, but
  not easy to find.
• Wanted to create a comprehensive, codified
  resource.

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Other Codes of Conduct

• Not to be confused with the Department of Finance
  code of conduct related to financial statements.
• The system procedure supersedes any conflicting
  campus codes of conduct.

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Goals of the MnSCU Employee Code of Conduct

• Reinforce the importance of ethical behavior.
• Create a unified reference for major employee
  conduct policies.
• Provide better tools for training, enforcing
  ethics issues.
• Make policies more accessible for supervisors and
  employees.
• Establish laudatory goals as well as proscribed
  behavior.

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Part 1. Purpose and scope.

• Applies to all employees
• administrators, faculty, staff, students
  employees, FT or PT, temporary or permanent.
• Employees also subject to standards for their
  particular discipline.

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Part 2. General.

• System to provide high quality education with
  sound stewardship.
• Employees to act with integrity, fairness,
  respect, inclusivity.
• Employees to be honest, trustworthy, efficient
  and effective, accountable and compliant with
  law, policy.

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Part 3. Employee ethics.

• Compensation, benefits, gifts from other sources
• Personal advantage
• Use of state property
• Political influence
• Purchasing state property

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Part 4. Other policies.

• Nondiscrimination1B.1
• Fraud and other dishonest acts
• Intellectual property
• Nepotism
• Weapons and safety
• Acceptable use of computers/technology
• Information security and privacy
• Alcohol and drug use

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Part 5. Reporting fraud.

• Board Policy 1C.2 requires reporting suspected
  fraud and abuse.
• Refers employees to supervisor, manager, Office
  of Internal Auditing, Office of the Legislative
  Auditor.

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Reporting Fraud Who?

• An employee with a reasonable basis for believing
  fraudulent or other dishonest acts have occurred
  has a responsibility to report the suspected act
  in a timely manner. (Board Policy 1C2, Part 4)

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Reporting Fraud What? Fraud Indicators

• Accounting Anomalies
• Missing Receipts
• False or altered documentation
• Duplicate payments
• Highly unusual items
• Unreconcilable shortages
• Complaints and Tips

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Reporting Fraud How?

• To supervisor or manager
• Unless linked to incident, then to a higher level
  employee
• Institutional Fraud Contact
• HR Director
• MnSCU Office of internal Auditing
• Legislative Auditor

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Reporting Fraud How to report to law
enforcement?

• For emergencies, report incident immediately to
  law enforcement
• Robberies
• Break-in thefts
• Other matters, report to Internal Auditing
• Consultation with General Counsel
• Referral to USDOE when warranted

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Reporting Fraud When?

• Internal reporting channel
• Incident Inquiry
• Escalate if respondent is uncooperative,
  belligerent, or unduly argumentative
• Report to Internal Auditing
• Inquiry Investigation

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Case Study Texas Southern University

• Dr. Priscilla Slade, President
• 650,000 in university funds spent on landscaping
  on personal residence, kitchenware, a bar tab gt
  100,000
• Very fearsome leader who intimidated underlings
• Charmed the governing board and enjoyed their
  absolute trust
• March 2008
• Plead no contest, repaid 126,000, 10 years of
  deferred adjudication, 400 hours of community
  service

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Case Study Texas Southern University

• Quintin F. Wiggins, Vice President for Finance
• May 2007, found guilty on one count of
  misapplication of fiduciary property with a value
  of over 200,000
• Felony conviction
• Sentenced to 10 years in prison

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Whats next?

• Effective 7/1/08 to provide campuses time to
  review policies, practices.
• On-line training is being developed.
• Roll-out in conjunction with compliance program.
• FAQs will also be on line.

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Compliance Program

• Assistant General Counsel Nancy Joyer is the
  Compliance Coordinator.
• Proactive approach to compliance with laws and
  policies.
• Will foster developing good practices rather than
  be regulatory in nature.
• Projects will involve cross-section of campus
  representatives.
• Watch for more information.

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Test your knowledge!

• Frequently asked questions will be online, linked
  to Code of Conduct.
• FAQs include topics often raised by employees,
  supervisors.
• FAQs still in draft form but will be final by
  7/1/08.

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1. Accepting free books.

• Q. I received a free textbook or software or
  other course materials from a publisher to
  review for possible use in one of my courses and
  am not required to return the textbook to the
  publisher. May I accept the textbook?

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2. Selling free textbooks.

• Q. Am I permitted to sell the free textbook
  sent to me by the publisher and keep the proceeds
  from the sale?

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3. Outside employment--private college.

• Q. I am a faculty member in a highly
  specialized field. I have been asked by another
  institution to teach one course per semester in
  this field, similar to courses I teach at my
  current institution. Accepting this employment
  would not interfere with my regular teaching
  duties at my current institution. May I accept
  this outside employment?

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4. Romantic relationships with students.

• Q. I team teach an evening graduate course
  geared toward secondary teachers wishing to
  complete a masters degree. All of the students
  are mature adults. The other instructor in the
  course is interested in asking one of our
  students for a dinner date following class some
  night. Is that permissible?

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5. Gift from outside source.

• Q. In the course of my work as a college
  employee, I work with the local country club to
  plan an annual college foundation golf
  tournament/fundraiser. The country club has
  offered me 18 free holes of golfing because of my
  working relationship with staff there. May I use
  the free round of golf?

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6. Free meal.

• Q. As part of my job duties at the
  university, I meet frequently with local
  officials. May I accept a meal provided by the
  city manager or other city officials with whom I
  am meeting?

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7. Travel paid by vendor.

• Q. I just received a vendor invitation to a
  February training seminar about their new product
  line. The vendor is offering to pay all travel
  and accommodation expenses for three employees
  the product is of a type we use regularly. May I
  accept this travel? If so, what approval process
  must I go through? Does it matter where the
  seminar is held?

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8. Cell phone use.

• Q. Because my position frequently requires me
  to be away from my office, my college provides me
  with a cellular phone. May I use my business
  cell phone for personal calls during the free
  call periods under the plan or if I reimburse
  the college for the personal calls Ive made?

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9. Employee discounts

• Q. Am I allowed to take advantage of a
  special discount offered by a local business to
  government employees?

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10. Bookstore sale of faculty textbook.

• Q. Our college operates its own bookstore on
  campus. One of our faculty members has authored
  and published her own texts for use in her class,
  and use of the textbook has been approved by her
  dean. May the bookstore sell the faculty
  members textbook?