Purpose and Objectives
This policy defines Company position in relation to fraud and corruption, by:
- Acknowledging Company obligations to eradicate all instances of fraudulent and corrupt activities through appropriate control measures; and
- Establishing Company commitment to the promotion and proper management of the fraud and corruption management framework.
The policy objective is to:
- Protect Company assets and reputation
- Ensure a sound ethical culture of the Company
- Ensure senior management commitment to identify fraud risk exposures and establish procedures for prevention and detection
- Ensure management and staff are aware of their responsibilities in relation to ethical conduct.
The policy outlines the appropriate actions that must be followed to increase the awareness of, and the investigation of, fraud.
Scope/Coverage
This policy applies to any fraud or corruption, or suspect fraud or corruption, involving employees, contractors, consultants, volunteers, suppliers or any other party dealing with Company.
Introduction
Fraud is an intentional dishonest act or omission done with the purpose of deceiving, causing actual or potential financial loss to any person or entity. It includes theft of money or other property by employees or persons external to the entity.
This also includes the deliberate falsification, concealment, destruction or use of falsified documentation used or intended for use for a normal business purpose or the improper use of information or position.
Corruption is a dishonest activity in which an executive officer, employee or contractor of an entity acts contrary to the interests of the entity and abuses his/her position of trust in order to achieve some personal gain or advantage for him or herself or for another person or entity.
Responsibilities
Chief Executive Officer and Executive Managers
- Managers are responsible for:
- the oversight of the conduct of any employees whom they supervise;
- any property under their control and will be held accountable for such;
- reporting suspicions of fraud in accordance with Part 6 of this Plan;
- creating an environment in which fraud and corruption is discouraged and readily reported by employees. This should be fostered by the manager’s own attitude and behaviour’s to fraud and corruption and, by the accountability and integrity they both display and encourage from other employees;
- ensuring that new employees for whom they are responsible are aware of their responsibilities in relation to fraud and corruption and, of the standard of conduct expected from all employees as outlined in the Company Code of Conduct and Fraud Policy;
- identifying potential fraud and corruption risks; and
- leading by example to promote ethical behaviour.
Employees
Employees are responsible for:
- performing their functions and duties with care, diligence, honesty and integrity;
- conducting themselves in a professional manner at all times;
- adhering to these guidelines and other Council procedures that have been established to prevent fraud or corruption;
- taking care of Council’s property which includes avoiding the waste or misuse of Company resources;
- maintaining and enhancing the reputation of Company :
- remaining scrupulous in the use of Council information, assets, funds, property, goods or services; and
- reporting suspicions of fraud
Policy Statement
Company is committed to the control and elimination of all forms of fraud and corruption, and to create an ethical environment and culture that discourages and prevents fraud. Company has zero tolerance for activities related to fraud and corruption.
All employees are responsible for the prevention and detection of fraud and corruption and must comply with the Company Fraud Policy and Fraud Control Plan.
All allegations and suspicions of fraud will receive attention. All substantiated cases will be dealt with appropriately either by criminal, disciplinary or administrative mechanisms suitable to the particular case (having due regard for the rights of all persons, including any person reporting a fraud and of any alleged perpetrator of fraud).
Fraud and Corruption Management Framework
Company acknowledges that the Fraud Policy and accompanying Fraud Control Plan must be in place and address the ten elements of effective fraud control, identified in the Crime and Corruption Commission’s publication, Fraud and Corruption Control: Guidelines for Best Practice (2005).
The ten elements are:
- A clear and integrated suite of relevant policies
- Effective and continuing fraud and corruption risk management
- Internal controls with clear accountability and responsibility structures
- Effective internal reporting systems and procedures
- An effective system of external notification and reporting
- Robust public interest disclosure mechanisms
- A clear Code of Conduct and disciplinary standards
- Comprehensive staff awareness and appropriate training programs
- Competent investigation processes and standards
- Effective stakeholder and community awareness programs
Risk Assessment
Company will undertake a fraud and corruption risk assessment at least every two years. After each review, Company will update its Fraud Control Plan.
This objective is generally achieved by:
- identifying fraud and corruption risks;
- determining strategies to control those risks; and
- defining responsibility for and, the time frame within which the strategies will be implemented.
- Company will facilitate the systematic identification, analysis and evaluation of risks within its business operations. Company will maintain a fraud risk register documenting identified fraud risks and the controls that are in place to mitigate them.
The risk assessment considers the combined influences of the following factors on the activities of Company:
- the environment (both internal and external) within which the organisation operates ;
- the timeframe and deadlines in which the organisation operates; and
- an overall assessment of the organisation’s internal controls.
Managers must be alert to the potential of fraud and corruption to occur and remain wary of factors which may leave the Company vulnerable to fraud and corruption, including:
- changes to delegations;
- implementation of cost-cutting measures;
- contracting out and outsourcing;
- the impact of new technology; and
- changes to risk management practices.
Internal Controls
Company will maintain an internal control structure to minimise exposure to fraud and corruption. The primary mechanism for this control will be the Company internal control framework, operating in conjunction with established audit and financial management practices.
Reporting
Employees must report any concerns or suspicions that they have about fraudulent or corrupt activity to their immediate Supervisor. If the staff member believes that the Supervisor may be involved in the activity, then the report must be made to a more senior person or to the Chief Executive Officer.
Concerns and suspicions must be reported as soon as possible. An employee must not attempt to investigate the matter himself/herself.
Company must ensure that any report of suspected fraud or corrupt activity is treated confidentially to the fullest extent possible under the law.
Investigation
As statutorily required, Company will investigate or otherwise formally inquire into all instances of suspected fraudulent or corrupt conduct exposed as a result of receiving an allegation or detecting fraudulent or corrupt activities.
Investigations must be in accordance with the rules of procedural fairness or natural justice.
Appropriate actions will follow these investigations, including where applicable actions to recover money or other property should a cost-benefit analysis justify such action.
External Reporting
This includes reporting of fraud and recovery of proceeds of fraudulent activity to the Queensland Audit Office (QAO), Crime and Corruption Commission (CCC) and the Queensland Police Service.
By law, the Chief Executive Officer must report all allegations of fraudulent or corrupt conduct to the CCC, and the QAO as appropriate.