Greetings! This University Policy Spotlight will focus on University Policy 5:7,
Improper Governmental Conduct, Crime, and Fraud. Please keep reading to learn more about this important policy.
Why is this policy in place?
This policy explains what university employees should do if they become aware of possible wrongdoing at the university. The policy was updated after a change in state law during the 2025 Legislative Session (SDCL 3-6C-27 through SDCL 3-6C-36), which expanded reporting requirements to cover not only fraud, but also improper governmental conduct and crime.
What does this policy say?
University employees must report suspected or known covered acts, as required by the policy and law.
What is meant by covered acts?
"Covered acts" is the term used in the policy for certain types of wrongdoing. These include improper governmental conduct, crime, and fraud.
What is the meaning of improper governmental conduct?
Under the policy, improper governmental conduct includes any conduct or omission that results in a conflict of interest prohibited by state law or South Dakota Board of Regents (SDBOR) policy, fraud, or theft of moneys or property belonging to or derived from federal, state, or university sources.
How is crime defined under the policy?
Under the policy, crime is defined as a criminal act attempted or committed by misusing an employee's access, duty, responsibility, or position as an employee.
What counts as fraud?
For purposes of this policy, fraud includes dishonest acts that happen within the scope of employment, appear to happen within the scope of employment, or involve false representations to the SDBOR, the university, or affiliated organizations. Examples include:
- Embezzlement;
- Misappropriation, misapplication, destruction, removal, or concealment of property;
- Theft of any asset (money, tangible property, etc.);
- Authorizing or receiving compensation for goods not received or services not performed;
- Authorizing or receiving compensation for hours not worked;
- Misrepresentation of fact.
How do I report a concern?
Any employee who has reasonable cause to suspect improper governmental conduct, crime, or fraud by another employee must promptly report it to a supervisor, as required by law. The supervisor does not have to be the employee's direct supervisor. Employees may also report directly to the University Internal Auditor.
Once a report is received, the supervisor must work with the University Internal Auditor or the Office of General Counsel to submit the information through the required reporting system to the Attorney General and Auditor General, as required by law.
What happens after a report is made?
The University Internal Auditor is responsible for sharing the suspected or known covered act with the Internal Systems Auditor for the SDBOR Office and for starting the internal investigation process in conformity with governing provisions. The University Internal Auditor may also work with the Office of General Counsel as needed during the investigation.
Will the investigation be confidential?
The university will handle investigations as confidentially as reasonably possible. However, names and information may need to be shared when necessary for the investigation or for legal action.
What do I do if I reasonably suspect that someone has committed a covered act but I am not completely sure?
Make a report. Employees who submit good faith reports of improper governmental conduct, crime, or fraud are protected by law.
What happens if someone is found to have committed a covered act?
If a covered act is confirmed, the university may take corrective or disciplinary action. Depending on the situation, that may include discipline up to and including termination of employment, restitution for losses, referral to law enforcement for possible criminal prosecution, and civil action to recover losses.
Who do I contact if I have questions?
The SDSU Office of General Counsel or the Internal Auditor are available if you have questions regarding this policy or applicable laws.
For additional information, please refer to University Policy 5:7. Additionally, you may contact the Office of General Counsel with any questions.
