EXECUTIVE DIRECTIVE NO. 2003-2

January 2, 2003
TO: Department Directors
FROM: Governor Jennifer M. Granholm
RE: Reporting Irregularities and Discrepancies Involving Public Funds or Property

Since the administration of Governor G. Mennen Williams, it has been the practice of Michigan's governors to issue instructions to state departments regarding the reporting of irregularities and discrepancies involving public funds or property. This issue is of the highest priority to this administration. Accordingly:

  1. Employees in the Executive Branch shall immediately report any irregularities or discrepancies involving public funds or property to their department director or agency head. This responsibility extends to purely internal matters as well as external matters involving the public. Directors and agency heads should remind employees of their protections under the Whistleblowers' Protection Act, 1980 PA 469, MCL 15.361 to 15.369;

  2. Department directors or the heads of autonomous agencies shall be responsible for the preliminary examination and investigation of reports from Executive Branch employees of irregularities or discrepancies in the handling of public funds or property. If, following a preliminary examination and investigation, the department director or agency head finds that evidence of irregularities or discrepancies of more than $100 exists, or that further investigation is otherwise warranted, a special report must be submitted to the Legal Counsel to the Governor, who will then notify the Auditor General and the Director of the Department of Management and Budget. In the event that the alleged irregularity involves the department director or the head of an autonomous agency within a department, the department director or agency head shall recuse himself or herself from the matter and the preliminary examination or investigation shall be conducted by the next ranking person in the department or agency;

  3. If criminal activity is suspected, regardless of the dollar amount involved, the department director or agency head shall immediately submit a report to the governor, the attorney general, and the auditor general in the same manner required under section 487 of the Management and Budget Act, 1986 PA 272, MCL 18.1487;

  4. Department directors and agency heads shall instruct their employees that irregularities or discrepancies involving public funds or property are to be reported objectively and promptly so as to eliminate any attempts to thwart discovery or to obscure or discolor the facts. Department directors and agency heads shall also instruct their employees that care must be taken to maligning the character of persons who may be involved solely on the basis of unsubstantiated allegations or rumors. Department directors and agency heads shall exercise discretion and judgment in making their preliminary examinations and investigations, with the knowledge that irregularities and discrepancies involving public funds or property will not be tolerated; and

  5. Department directors shall circulate this directive widely, including to all employees under their direction and to any autonomous agencies within their departments.

Your cooperation in complying with this directive is appreciated.

______________________________
Jennifer M. Granholm
Governor