TO MEMBERS OF THE COMMITTEE ON COMPLIANCE AND AUDIT: DISCUSSION ITEM

Transcription

1 A3 Office of the President TO MEMBERS OF THE COMMITTEE ON COMPLIANCE AND AUDIT: For Meeting of September 11, 2012 DISCUSSION ITEM RESPONSE TO RECENT HIGHER EDUCATION EVENTS Overview While the release of the Report of the Special Investigative Counsel Regarding the Actions of the Pennsylvania State University Related to the Child Sexual Abuse Committed by Gerald A. Sandusky 1 (Report) has had a profound impact on the board of trustees, the administration, and the community of Pennsylvania State University (Penn State), the Report also holds far-reaching implications for other higher education institutions in the foreseeable future. The Report s findings and recommendations, addressed specifically to Penn State, may also be applied to the full continuum of higher education activities at other institutions, from governance, administration, legal counsel and compliance, to human resources, academic affairs and student athletics. If taken in a larger context of effective governance and senior leadership in other risk-based events, as well as the protection of minor youth on campuses, it can serve as an effective blueprint for the creation and maintenance of the structures and processes needed to promote a culture based in ethics and compliance. Background Even as the story unfolded in Pennsylvania on the child abuse scandal and lack of reporting criminal activities to appropriate authorities, the UC Office of Ethics, Compliance and Audit Services initiated a workgroup at the Office of the President to better understand UC s vulnerabilities, if any, in protecting youth on its campuses and to develop recommendations to mitigate potential risks. The Managing Youth Activities Work Group is composed of representatives from the Office of the General Counsel, Student Affairs, Risk Services, Agriculture and Natural Resources, Ethics, Compliance and Audit Services and UC Santa Barbara and has focused its efforts on identifying gaps, developing policies and procedures and recommending education and training. However, since the publication of the Report and its related observations and recommendations, the Office of Ethics, Compliance and Audit Services has worked to identify commonalities in existing UC governance and administrative structures as well as system and campus-level compliance-related programming and activities that align with the detailed recommendations of the Report. 1 Report on the Special Investigative Counsel Regarding the Actions of the Pennsylvania State University Related to the Child Sexual Abuse Committed by Gerald A. Sandusky, Freeh, Sporkin & Sullivan, LLP, July 12, 2012.

2 COMMITTEE ON COMPLIANCE -2- A3 AND AUDIT September 11, 2012 Key Observations and Recommendations The Report s findings and recommendations can be grouped under the following headings: (1) campus culture; (2) administration and general counsel: structure, policies and procedures; (3) board of trustees: responsibilities and operations; (4) compliance: risk and reporting misconduct; (4) athletic department: integration and compliance; (5) university policy department: oversight, policies and procedures; (6) and programs for non-student minors and access to facilities. The attached table includes, but is not limited to, key observations and recommendations from the report and listing of UC activities in response to the recommendations. (Attachment below)

3 Campus Culture Failure to communicate ethical values and standards of conduct to faculty and staff; Lack of transparency and accountability by senior management; Fear of retaliation by staff. Reinforce commitment of university members to protect children; Create stronger sense of accountability among leadership; Establish values and ethics-based decision-making by all faculty, staff and students; Promote transparency. Routine dissemination of Regents Statement of Ethical Values and Standards of Ethical Conduct through multiple media outlets; Mandatory systemwide trainings including the general Ethics and Compliance Briefing and Conflict of Interest for Researchers Compliance Briefing; Regents Systemwide Ethics and Compliance Program best practices in higher education ; Promulgation of UC Whistleblower Protection Policy on January 2012 an anti-retaliation policy to protect whistleblowers from retaliation; Campus climate and safety activities at each location. Administration and General Counsel: Structure, Policies and Procedures of reporting Insufficient resources to carry out duties Lack of coordination in development of University policies structures and make adjustments for greater efficiency and effectiveness; Integrate faculty and staff from different disciplines to increase exposure to other personnel, programs, challenges and solutions. UC General Counsel as Regental Officer; Office of General Counsel integrated with Campus Counsel; University Policy Office with policy process involving broad consultation on policy development and revision Office reports through ECAS; Moving to an electronic policy system which provides access at one location. Board of Trustees: Responsibilities and Operations Establish Chief Compliance Officer; Update and prioritize institutional risks and audit schedule; Assign full time responsibility for Clery Act compliance; Publicize methodologies for reporting alleged Review structure, composition, eligibility and term limits of Board members; Develop and implement a conflict of interest policy for the Board transparency; Conduct training on ethics and oversight responsibilities current regulatory environment. The Board of Regents Compliance and Audit Committee; The President s Compliance and Audit Committee; Regent s Resolution Mandating Systemwide Ethics and Compliance Program ; Appointment of Chief Compliance and Audit Officer (CCAO) in 10/2007; Annual Risk Assessment and Prioritization of Institutional Risks for Annual Work Plan; Compliance Plan and Report with bi-monthly update to President and Regents; 2 The Report of the Special Investigative Counsel Regarding the Actions of the Pennsylvania State University Related to Child Sexual Abuse Committed Gerald A. Sandusky, Freeh Sporkin and Sullivan, LLP, July 2012

4 Compliance: Risk and Reporting Misconduct Athletic Department: Integration and Compliance issues. Regular meetings with Chair and Vice Chair of Compliance and Audit Committee, Compliance & Audit Committee outside Advisors, and Senior Leadership. Lack of ethics and compliance assurance Lack of a comprehensive approach to compliance risk management Inadequate Investigations polices and anonymous reporting procedures Establish Chief Compliance Officer Update and prioritize institutional risks and audit schedule Assign full time responsibility for Clery Act compliance Publicize methodologies for reporting alleged issues structure to clearly define lines of authority, and reporting relationships; Evaluate security and access protocols for athletic, recreational and camp facilities Integrate where feasible academic support staff, programs and locations for student athletes; Office of Ethics, Compliance and Audit Services established as Regental Office in 2007 to maintain independence from management, but works closely with management on risk mitigation strategies, such as Managing Youth Activities and Clery Act compliance. Compliance and Audit organizational structure with assurance reporting lines from the Campuses/Academic Medical Centers/Lab to the Regents thru Chief Compliance and Audit Officer and the President s Compliance and Audit Committee Compliance & Audit Conducts annual compliance risk assessments and work plan development that is prioritized throughout the year. Compliance Director of Investigations responsible for coordinating, tracking, managing and/or conducting investigations, systemwide, who reports to the Chief Compliance and Audit Officer, and, when appropriate, functionally assists systemwide Locally Designated Official. We will be initiating campus focused work group to identify and compare current campus structure and processes of Student Athletics NCAA compliance programs Provide recommendations for improvements and ongoing monitoring Identify processes for integration of NCAA compliance with the systemwide UC Ethics and Compliance Program at both the system- and campus-levels Utilize systemwide task force with subject matter experts to assist with ongoing process improvement recommendations University Police Department: Oversight, structure to clearly define lines The newly-formed multi-departmental, systemwide Clery Act Conformance and Advisory Group (CACAG) will provide

5 Policies and Procedures of authority, and reporting relationships; Evaluate security and access protocols for athletic, recreational and camp facilities Integrate where feasible academic support staff, programs and locations for student athletes; guidance and resources for campus programs and activities CACAG will create a systemwide Clery Act web site for distribution of safety information, webinars, and campus links to Clery Act reports. Incorporate policy recommendations from the Robinson-Edley Report. Programs for Non-Student Minors and Access to Facilities Require abuse awareness and mandatory reporter training to appropriate staff; Increase physical security and access procedures Consolidate oversight of policies and procedures related to non-student minors. Managing Youth Activities Steering Committee (MYA) discussing these areas and identifying gaps Child Abuse and Neglect Reporting Policy mandated reporter guidance or policy PPSM 21 policy on faculty appointments to update provisions on background checks Best Practice Guidelines for Volunteers to address background checks for volunteers Minors in Labs policy Sexual Molestation Liability (SML) policy Risk and Insurance provided loss control training and policy development programs Camps Work Group recommendations