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Page Contents:

A. Introduction

B. Ghost employment

C. Employee responsibility

Related law and policies

Departmental Contacts:

Internal Audit

 

 

Fiscal Misconduct/Ghost Employment
AFSCME(BL) 2.3 • AFSCME(IN) 5.2 • AFSCME(SB) 2.2 • CWA 4.4 • PA/SS 5.2 • Hourly 3.3

Revised August 1, 2002

Employees covered by this policy
This policy applies to all Staff and Hourly employees at IU.

A. Introduction

1. Internal Audit investigates reported incidences of fraud, embezzlement, and ghost employment. It is authorized by the Board of Trustees to audit all parts of the university. When doing so, Internal Audit has full and complete access to any of the university's records, physical properties, and personnel.

B. Ghost employment

1. Indiana law makes it a criminal and civil law offense for IU to employ and pay an employee when that employee is not performing duties related to the operation of the employer.

   1. No employee is to receive salary or wages for work not performed in the exercise of duties for the institution.

   2. It is also unlawful for the employee to accept salary or wages in this situation.

   3. Both the employer and the employee are subject to civil and criminal penalties for violation.

C. Employee responsibility

1. IU financial institutional policy states, "If any employee knows or suspects that other university employees are engaged in theft, fraud, embezzlement, fiscal misconduct or violation of university financial policies, it is their responsibility to immediately notify the Internal Audit department or the appropriate campus police department."

2. All investigations will be conducted in the strictest of confidence. The names of those communicating information will only be revealed if legal action requires disclosure of names.

Related law and policies
This policy is based on Indiana Code 35-44-2, "Perjury, False Reporting, Impersonation, and Ghost Employment" and IU Financial Policy I-30, Fiscal Misconduct. See also, IU Financial Policy I-35, Fraud.