4-4: Fraud, Waste, and Abuse

Policy Overview

Santa Fe Community College (SFCC or College) has established this fraud, waste and abuse policy to ensure that all workers clearly understand their obligations as College employees.

Scope and Applicability

This policy applies to all employees of SFCC.

Policy Statement

Honesty and integrity are important values at SFCC. The College works to earn the trust of the public, its students, and its employees. To accomplish this, all employees must perform their duties in a professional, honest and ethical manner avoiding situations that would be considered fraudulent, wasteful or abusive of College assets.The College expects its employees to be reliable and trustworthy. All employees must act honestly and responsibly and exercise good ethical judgment in the performance of their duties.

A. Responsibility for Detection and Prevention

1.Supervisors have an additional responsibility to be aware of the types overindulgent activities, waste and/or abuse that may occur within their department and to establish and maintain controls to prevent them.
2.If fraud is suspected within a department, all supervisors shall cooperate fully with College authorities and any other agencies investigating the activity. If fraud is discovered, all supervisors shall take appropriate action and implement appropriate systems to prevent recurrence.

B. Discipline and Restitution

1.An employee who violates this policy may be subject to disciplinary action up to, and including, termination. The discipline imposed will depend on the severity of the violation and the circumstances of the situation. If appropriate, the College will report any activity that appears to violate any local, state or federal law to the appropriate authorities.
2. If the fraud, waste or abuse involves a financial loss to the College, SFCC may seek restitution from any individuals involved in the activity.

C. No Retaliation

SFCC strictly prohibits retaliation for reporting suspected fraud. Any employee who believes they have been retaliated against should report their concern to the Office of Human Resources (OHR). Any employee who directly or indirectly retaliates against another employee for reporting suspected fraud may be subject to disciplinary action.


  1. Abuse Involves behavior that is deficient or improper when compared with behavior that a prudent person would consider a reasonable and necessary business practice given the facts and circumstances. Abuse includes misuse of authority or position for personal financial interest or those of an immediate or close family member or business associate.
  2. Fraud An intentional act to deceive, steal or cheat, ordinarily for the purpose or result of causing a detriment to another and/or bringing about some benefit to oneself or others.
  3. Waste An act resulting in the expenditure, consumption, mismanagement, and use or squandering of institutional assets or resources to the detriment or potential detriment of the institution. Waste may also result from incurring unnecessary expenses due to inefficient or ineffective practices, systems or controls.

Associated Procedures