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CPO-6 Federal Sanction Checks

POLICY NUMBER: CPO-6
EFFECTIVE DATE: November 1, 2007
LAST REVISION: September 2018
RESPONSIBLE OFFICER: Executive Vice President, Treasurer and Chief Operating Officer

I. Purpose

This policy supports the University's efforts to ensure satisfaction of federal requirements that Drexel University (Drexel) does not employ individuals who are under federal exclusion or debarment.

II. Applicability

This policy applies to all eligible Professional Staff Members and Faculty Members, excluding those Professional Staff Members who are affiliated with a collective bargaining unit.

III. Implementation

Implementation of this policy is the responsibility of the Department of Corporate Compliance, Privacy and Internal Audit.

IV. Administrative Oversight

The Executive Vice President, Treasurer and Chief Operating Officer is the Drexel University official responsible for the administration of this policy.

V. Policy

Drexel University's covered entities will conduct federal sanction list screenings as follows:

  1. All new prospective Faculty and Professional Staff Members of Drexel University's covered entities will be checked against the sanction list after position is offered.
  2. Ongoing sanction checks are conducted monthly on all of Drexel University's covered entities' current Faculty, Professional Staff Members, and vendors.

    Sanctions Checks include the following federal lists, which may be updated from time to time to comply with applicable federal and state law:
    • Office of Inspector General's (OIG) List of Excluded Individuals/Entities;
    • General Services Administration's (GSA) List of Contractors Excluded from Federal Procurement and Nonprocurement Programs;
    • Office of Foreign Assets Control's (OFAC) Specially Designated Nationals/Terrorist List;
    • U.S. Food and Drug Administration (FDA) Debarment List, Disqualified, and Restricted List for Clinical Investigators.
  3. The inquiries into the sanction status of all persons associated with Drexel University's covered entities are intended to comply with federal and state law and are required as per the organization's Corporate Compliance policies. (Federal law: 42 USC Section 1320a-7b (f))
  4. Drexel University's covered entities do not knowingly employ or retain persons in positions of trust who have demonstrated a propensity to engage in illegal activities. Drexel takes all reasonable and appropriate steps to comply with the laws requiring federal sanction checks. All persons covered under this policy have an affirmative duty to notify Drexel University's Chief Compliance Officer if they are under federal exclusion or debarment or otherwise on a federal sanctions list. If a person has been excluded from participation in a federally funded or state funded healthcare program or if the finalist is unwilling to submit to a background check or sanctions check he/she may not be considered for employment, placement or to perform any services for or on behalf of Drexel University's covered entities. All individuals found to have matching names found through the federal sanctions checks process shall have the right to review and deny any such findings and lists. The individual may provide information to clarify his/her identity as other than that of the listed individual and shall otherwise cooperate with the designated officials responsible for conducting the sanction checks.

VI. Definitions

Department Head is defined as the highest-ranking administrator in a department, center or college/school within the University (e.g., Senior Vice President, Dean, Director or department chair).

Faculty Member is defined as an individual employed by Drexel University in a tenured, tenure-track, non-tenured track or adjunct position who teaches at any college, school, center or institute in the University. A Faculty Member also is deemed to be exempt under the provisions of the Federal Fair Labor Standards Act (FLSA) and/or applicable state law.

Professional Staff Member is defined as an individual employed in any non-faculty category by Drexel University, including an individual who is deemed to be either exempt or non-exempt under the provisions of the Fair Labor Standards Act (FLSA) and/or applicable state law.

VII. Procedures

A. SCREENING AND HIRING PROCESS

  1. Human Resources and Hiring Departments
    • Human Resources is responsible for initiating the federal sanctions check process for new prospective Faculty and Professional Staff Members of Drexel University's covered entities after the offer is made. All finalists are required to complete the form for Sanction Attestation and Authorization for Release of Information. If the finalist is offered a position, a sanction check will be performed on the finalist through the Department of Corporate Compliance, Privacy and Internal Audit's ("Compliance Department") monthly sanction check process. Offers of employment or placement are made contingent upon satisfactory clearance.
    • Finalists who indicate that they have been excluded, debarred or placed on the sanction(s) list will submit with their application the following information:
      1. Details about the conviction(s) or sanction(s) including the date, their present status, e.g., debarred, fully sanctioned, reinstated, working under a Corporate Integrity Agreement.
    • The Chief Compliance Officer will verify the individual's identity through the utilization of a third-party sanction check application and/or, if necessary, with the government agency responsible for the sanction.
  2. Review Process Upon Discovery of Information
    • The Chief Compliance Officer notifies the individuals and entities upon discovery of a name match with the sanction list.
    • Upon acknowledgement of the sanction by the Faculty or Professional Staff Member: The Chief Compliance Officer will consult with the appropriate Department Chair, Dean/Director, Senior Vice President/Provost, as well as the Office of the General Counsel, and Human Resources before making decisions regarding an individual's employment at Drexel University.
      1. Upon denial of a sanction, the Chief Compliance Officer will confirm the sanction check results for applicability to the named individual. The Chief Compliance Officer will obtain verification (or denial) through the utilization of a third-party sanction check application or through the government agency assigning the exclusion or debarment as listed on the sanction report.
      2. Newly hired finalists will have their offer rescinded and will not be considered to perform any services for or on behalf of Drexel University covered entities if they are confirmed as the individual named on the OIG, GSA, OFAC or FDA lists.
      3. With respect to research related sanctions lists, it will be necessary for the hiring party to re-evaluate whether the finalist can still be offered a position or whether the individual can still be employed, placed or engaged. The evaluation will be done within the structure of the review process with consideration by the Senior Vice Provost for Research or designee in consultation with the Chief Compliance Officer and the Office of the General Counsel.

B. ONGOING FEDERAL SANCTIONS CHECKS

  1. The Chief Compliance Officer is responsible for the monthly screening of sanctions on applicable OIG, GSA, OFAC and FDA databases for all Faculty or Professional Staff Members and vendors of Drexel University's covered entities.
  2. Upon determining that a Faculty or Professional Staff Member or vendor name appears on the OIG sanctions list, a review will be performed by the Chief Compliance Officer to confirm or deny the identity of the sanctioned name as the named Faculty or Professional Staff Member or vendor according to the following procedures:
    • Ensure that the sanction report is accurate by verifying the identity of the person or vendor listed in the report.
    • Present the Faculty or Professional Staff Member or vendor with the findings.
    • Consider Faculty or Professional Staff Member or vendor response to the sanction listing.
    • Confirm Faculty or Professional Staff Member or vendor admission or denial of the sanction through the utilization of a third-party sanction check application or with the responsible government entity named in the sanction report.
    • File for the record if Faculty or Professional Staff Member or vendor denial of the sanction is accurate.
    • Discuss with Department Head if a Faculty or Professional Staff Member sanction is confirmed.
    • Inform the appropriate Department Head, Dean/Director, Senior Vice President as well as the Office of the General Counsel, Human Resources, and the Office of Research, if the sanction of the Faculty or Professional Staff Member or vendor is confirmed to enable appropriate personnel action (reassignment, suspension, termination) and required federal/state disclosure actions.

C. COORDINATION AMONG DREXEL UNIVERSITY AND ITS AFFILIATES

To ensure that this Policy is implemented and administered with consistency by Drexel University and its affiliates, the Chief Compliance Officer of Drexel University is authorized to delegate some or all of its responsibilities hereunder to the compliance staff, or other appropriate staff, within Drexel University to assist with management and support of the Sanctions Check program.

D. P-CARD RECONCILIATION PROCESS

  1. To prevent unknowingly doing business with a vendor that may be suspended or debarred, Procurement Card (P-Card) transactions are not allowed to automatically default to a grant fund. A P-Card cardholder can reconcile transactions to a grant fund during the monthly reconciliation, but a grant fund cannot be a default for a cardholder.
  2. Procurement Services will supply to the Office of Research Compliance with a monthly P-Card report of spending, identifying transactions reconciled to a grant.
  3. The Office of Research Compliance will screen vendors meeting the threshold to determine if any vendors have been suspended or debarred. Screenings are conducted through Visual Compliance, an automated compliance screening software.
  4. If a vendor is identified as suspended or debarred as part of one of those routine screenings, the P-Cardholder will be contacted and if the charge was made to a federally sponsored grant or contract, the P-Cardholder will be required to move the transaction to a non-grant related fund.

AT-WILL EMPLOYMENT NOT AFFECTED

Notwithstanding anything to the contrary stated in this policy, nothing herein is intended to alter the at-will status of any Professional Staff Member. Drexel University at all times retains the right to terminate any Professional Staff Member at any time for any lawful reason, or for no reason at all.