Approved by Board of Trustees
Effective Date: June 5, 2017
Responsible Division: Business and Finance
Responsible Office:  Business and Finance
Responsible Officer: Associate Vice President, Business and Finance

I.  Purpose

This policy establishes the process for reporting and resolution of institutional losses at Middle Tennessee State University (MTSU or University) as governed by the MTSU Board of Trustees (Board).

II.  Definition

Resources. Assets such as cash or other financial resources, supplies, inventories, equipment, other fixed assets, real property, intellectual property, or data.

III.  Introduction

A.  Administrators at all levels of management should be aware of the risks and exposures inherent in their areas of responsibility, and should establish and maintain proper internal controls to provide for the security and accountability of all assets and other resources entrusted to them.

B.  It is the responsibility of the University to establish a process to identify, report, and investigate losses of State or University funds, property, or other resources, whether by malfeasance or misfeasance.

C. Policy 71 Preventing and Reporting Fraud, Waste, or Abuse includes requirements for reporting suspected instances of fraud, waste, or abuse to Audit and Consulting Services, where such matters are subsequently reported to the Comptroller of the Treasury. T.C.A. § 8-19-501(a).

IV.  Reporting and Resolution Process

A.  Reporting Losses. For each reportable incident, the University must complete a Notification of Loss Report or Property Loss Report

1.  The Notification of Loss Report should be used to report single incidents of shortages or losses of any asset, resource, or data immediately upon occurrence or discovery. This report should be used to report the loss or shortage of any amount which is the result of acknowledged or suspected fraud, waste, or abuse by either an employee or a non-employee (for example, a vendor, contractor, or student).

2.  The Property Loss Report may be used to report property losses in any quarter in which losses occur and may include more than one (1) incident or loss of property. However, see Item 1 above if the property loss is a result of fraud, waste, or abuse.

3.  The University must also report covered property losses to the State of Tennessee, Department of Treasury Division of Risk Management.

B.  Reporting Resolution. The investigation unit identified on the notification report will file a Case Resolution Report at the conclusion of the investigation. Depending upon the nature and extent of the investigation, an Internal Audit Report may be issued in lieu of a Case Resolution Report.

C.  Distribution of Reports. Each notification and resolution report should be submitted to the following officials or offices:

1.  President,

2.  Vi