350-13 Defalcations and Fraud

Effective Date: 1/1/92 (revised 2/1/97)
Office of Origin: Audit and Management Services

I. Purpose

This policy delineates the responsibilities of employees and Audit and Management Services with regard to suspected and actual losses as part of the University's responsibility to safeguard its assets, and to investigate any loss of University funds or property.


II. Definitions

Defalcation: misappropriation of funds held in any fiduciary capacity; failure to properly account for such funds.

Embezzlement: fraudulently converting to one's own use the money or property of another when acting as the agent or employee of another, or as a custodian of property of another.

Fraud: an intentional false representation of a material fact that induces someone to part with property to his or her financial detriment.

III. Policy


IV. Responsibility

Contact Office of Origin (see above) with any questions.


V. Related Policies


VI. References