Anti-Fraud Policy & Fraud Response Plan

Transcription

1 ARMAGH BANBRIDGE AND CRAIGAVON DISTRICT COUNCIL Anti-Fraud Policy & Fraud Response Plan ARMAGH BANBRIDGE CRAIGAVON DISTRICT COUNCIL Document Number: Title of Policy: Reference SGC/P7.0/V1.0 Fraud Policy No of Pages (including appendices): Version: 23 One Issue Date: 21 January 2015 Policy Nominated Officer: Equality screened by: Michael Watson Michael Watson Equality screening date: 17 December 2014 Amendment Version Issue Date: Sent out by: Approved by: Review Date: AMENDMENT RECORD SHEET Remove and destroy old pages. Insert new pages as indicated. Revision Number Page Number Date Revised Description of Revision

2 CONTENTS 1. Policy Statement Introduction What the Policy Covers Prevention and Protection Reporting Suspicions Fraud Response Plan Summary of Roles and Responsibilities Appendix 1: Indicators of Fraud 2: Common Methods and Types of Fraud 3: Examples of Good Management Practices which may assist in Combating Fraud 4: Best Practice for Reporting Suspicions of Fraud and Irregularity Anti Fraud Policy & Fraud Response Plan Page 1 of 23

3 1. Policy Statement 1. Armagh, Banbridge and Craigavon District Council is committed to the prevention of fraud by developing, implementing and maintaining effective procedures and controls throughout the organisation. The Council expects the highest standards of conduct and integrity from all that have dealings with it including staff, Elected Members, contractors and the public. 2. The Council is committed to functioning in compliance with the law and will do its utmost to prevent the conduct of its business from being tarnished by law breaking whether it be generated from within the Council or perpetrated against the Council from an outside source. Robust control mechanisms to both prevent and detect fraud and corruption should be maintained and Line Managers have a responsibility for maintaining documented control systems and must be seen to be setting an example by complying fully with all procedures, regulations and controls. 3. The purpose of this policy is to reinforce the Council s commitment and provide guidance to anyone having dealings with the Council. All suspected or discovered cases of fraud will be rigorously investigated in strictest confidence and may result in disciplinary and/or legal proceedings. 2. Introduction 4. The Council s Anti-Fraud Policy sets out the actions we must take to help prevent fraud. It details responsibilities regarding the prevention of fraud and highlights the procedures to be followed in the event of a fraud being detected or suspected. 5. The Council requires all staff, at all times, to act honestly and with integrity, and to safeguard the public resources for which they are responsible. Fraud is an ever present threat to these resources and must be a concern to all members of staff. The Council takes a zero tolerance approach and will not therefore tolerate any level of fraud or corruption. Council policy is to thoroughly investigate all suspected frauds and allegations (anonymous or otherwise) and where appropriate, refer to the Police Service of Northern Ireland (PSNI) at the earliest juncture and seek recovery of all losses, if necessary through civil action. The Council is also committed to ensuring that opportunities for fraud and corruption are reduced to the lowest possible level of risk. 6. The Council s Chief Financial Officer is responsible for establishing and maintaining a sound system of internal control that supports the achievement of departmental policies, aims and objectives. The system of internal control is designed to respond to and manage the whole range of risks that the Council faces. The system of internal control is based on an on-going process designed to identify the principal risks, to evaluate the nature and extent of those risks and to manage them effectively. Managing fraud risk will be seen in the context of the management of this wider range of risks. Anti Fraud Policy & Fraud Response Plan Page 2 of 23

4 7. The aim of the Anti-Fraud Policy is to minimise fraud and its costs to the Council. The following objectives will support the aim: The development and continuous promotion of an anti-fraud culture Maximum deterrence of fraud Prompt detection of fraud Professional investigation of detected fraud Effective sanctions, including appropriate action against people committing fraud and effective methods for seeking redress in respect of money defrauded. 3. What the Policy Covers Fraud 8. Fraud is when someone obtains financial advantage or causes loss by implicit or explicit deception. Fraud is not a victimless crime and is generally used to describe such acts as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, concealment of material facts and collusion. The Fraud Act 2006 came into effect on 15 January The Act states that a person is guilty of fraud if someone is in breach of any of the following: Fraud by false representation, i.e. if someone dishonestly makes a false representation and intends by making the representation to make a gain for himself or another, or to cause loss to another or expose another to risk of loss; Fraud by failing to disclose information, i.e. if someone dishonestly fails to disclose to another person information which he is under a legal duty to disclose and intends, by means of abuse of that position, to make a gain for himself or another, or to cause loss to another or expose another to risk of loss; and Fraud by abuse of position, i.e. if someone occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person, and he dishonestly abuses that position, and intends, by means of the abuse of that position, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. Other Financial Impropriety 9. Other financial impropriety includes bribery, theft and potentially other unethical or improper practices which place Council assets at risk. 10. Bribery is giving or receiving a financial or other advantage in connection with the "improper performance" of a position of trust, or a function that is expected to be performed impartially or in good faith. Bribery does not have to involve cash or an actual payment exchanging hands and can take many forms such as a gift, lavish treatment during a business trip or tickets to an event. An example is bribery in order to secure or keep a contract. Anti Fraud Policy & Fraud Response Plan Page 3 of 23

5 11. Theft is the physical misappropriation of cash or other tangible assets. A person is guilty of theft if he or she dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it. 4. Prevention and Protection 12. Appendix 1 provides examples of Indicators of Fraud. In addition, Common Methods and Types of Fraud are included in Appendix 2, with examples of Good Management Practices which may assist in combating fraud detailed in Appendix The way in which the Council will seek to prevent and detect fraud or other financial impropriety is through: Effective risk management Effective internal controls Ensuring compliance with key policies and procedures Promoting fraud awareness through training Co-operating with other statutory agencies. Risk Management 14. A major element of good corporate governance is a sound assessment of the Council s business risks. The key to managing the risk of fraud is the same in principle as managing any other business risk and should be approached systematically at both the organisational and the operational level. The assessment of risk should be part of a continuous cycle rather than a one off event: as systems and the environment change, so do the risks to which departments will be exposed. Managers need to ensure that: Fraud risks have been identified within Risk and Control Frameworks encompassing all operations for which they are responsible; Each risk has been assessed for likelihood and potential impact; Adequate and effective controls have been identified for each risk; Controls are being complied with, through regular review and testing of control systems; Risks are reassessed as result of the introduction of new systems or amendments to existing systems; Where a fraud has occurred, or has been attempted, controls are reviewed and new controls implemented, as necessary, to reduce the risk of fraud recurring; and Fraud occurrences are quantified on an annual basis and Risk Registers/Risk and Control Frameworks updated to reflect the quantum of fraud within the Business Area. Where appropriate, strategies should be devised to combat recurrence of fraud and targets set to reduce the level of fraud. Anti Fraud Policy & Fraud Response Plan Page 4 of 23

6 Internal Controls 15. The prevention and detection of fraud and corruption is only possible where strong internal controls are present and constantly applied. Routine checks and monitoring by management to ensure that procedures are being followed are therefore essential. There are two benefits from implementing a culture of strong management controls: A deterrent effect when it is known that Management are actively involved in ensuring that procedures are followed, and The results of the checks will allow Management to identify any operational areas where controls are not being uniformly applied and investigate whether systems have been exploited. 16. It is managers responsibility (not Internal Audit) to prevent and detect fraud. However, internal auditors are alert in all their work to risks and exposures that could allow fraud. Individual audit assignments, therefore, are planned and prioritised to assist in deterring and preventing fraud by examining and evaluating the effectiveness of control commensurate with the extent of the potential exposure/risk. Risk and Control Frameworks are also reviewed as a constituent part of each audit assignment to ensure that management have reviewed their risk exposures and, where appropriate, identified the possibility of fraud as a business risk. 17. It is incumbent on all staff to continually improve the systems and processes for which they are responsible and to report any weaknesses which could lead to circumvention or fraud. Preventative measures, in particular internal control systems, within the Council have been designed to prevent and detect irregularities and should act as a deterrent to fraudulent activity. Heads of Services are responsible for all necessary controls within their services and to ensure that staff under their control are familiar with them. Advice on the efficiency and effectiveness of various internal controls is available from IA. 18. Strong deterrents and preventative controls should be applied wherever possible. Detective controls are established to detect errors, omissions and fraud after the events have taken place. There are a range of controls for example, physical security, supervisory checks, segregation and rotation of duties and clear roles and responsibilities which address risks, including theft. Policies and Procedures 19. The Council has a number of procedures and rules to make sure that its financial, working and organisational procedures are properly controlled. These are an important part of its internal control process, and it is important that all Members and staff are aware of them. The most important of these are: Standing Orders and Financial Regulations Code of Conduct Employees Condition of Service Accounting Manual Whistleblowing Policy Anti Fraud Policy & Fraud Response Plan Page 5 of 23

7 Training 20. Staff provide the best protection against fraud and financial impropriety. The lack of clear guidance and ignorance of procedures will often be the first excuse used by offenders. 21. Council recognises that a key preventative measure in the fight against fraud, theft and corruption is to take effective steps at the recruitment stage. The recruitment of suitable staff is the Council s first defence in preventing fraud. Best practice recruitment policies such as detailed application forms including a statement on criminal records, written and verbal communications with referees and past employers and verification of educational and professional qualifications will be strictly adhered to. 22. IA provides regular fraud awareness training to staff and management. Co-operating with Statutory Agencies 23. The Council is committed to working and co-operating with other organisations to prevent fraud. Wherever possible, it will be prepared to help and exchange information with other councils and organisations to deal with fraud. 24. The Council participates in the National Fraud Initiative, an exercise that is overseen by the Northern Ireland Audit Office (NIAO) that matches electronic data within and between public sector bodies to prevent and detect fraud. 5. Reporting Suspicions 25. It is the responsibility of every member of staff to report details immediately to their line manager, Director or IA if they suspect that a fraud has been attempted or committed, or see any suspicious acts or events. The Public Interest Disclosure (NI) Order 1998 (Whistleblowing) protects the rights of staff who report wrongdoing. If you are in any doubt, you should speak to a senior officer, or your Line Manager or Director. A Council Whistleblowing Policy has been developed and is available from Internal Audit or Human Resources. 26. The Councils Whistleblowing Policy is intended to encourage and enable staff to raise serious concerns. If an allegation is made in good faith, but is not confirmed by the investigation, no action will be taken against the originator. If however the allegation is demonstrably made for an ulterior and undesirable purpose it will be deemed not to have been made in good faith and disciplinary action may be considered against the individual making the allegation. 27. It should be stressed that fraud/corruption is so serious that, on all occasions the employee s Director or the Chief Executive must be contacted and informed of the employee s suspicions on discovery. Appendix 4 provides advice on best practice for reporting suspicions of fraud and irregularity. Anti Fraud Policy & Fraud Response Plan Page 6 of 23

8 28. The Fraud Investigation Team (FIT) is responsible for the external reporting of all discovered fraud, proven or suspected, including attempted fraud within the Council to the Northern Ireland Audit Office (NIAO). 6. Fraud Response Plan Introduction 29. The Council has prepared this Fraud Response Plan to act as a procedural guide and provide a checklist of the required actions, which MUST be followed, in the event of a fraud, attempted fraud or irregular activity being suspected. The objective of the fraud response plan is to ensure that timely and effective action is taken in the event of a fraud. Such plans can also help minimise losses and increase the chances of a successful investigation. The plan should reflect the likely nature and scale of losses and should be reviewed periodically and kept up to date. Preliminary Enquiry 30. In the event of a fraud, attempted fraud or other illegal act being suspected, the officer should immediately report the matter to their Line Manager/Head of Service. If there is concern that line management may be involved, the matter should be reported to the next appropriate level. Additionally, management should immediately report the fraud or suspected fraud to IA and the Fraud Investigation Team (FIT) which consists of the: Strategic Director Head of Human Resources & Organisational Development Head of Finance and I.T. Head of Performance and Audit 31. Membership of the FIT may change depending on the specific matter being investigated to ensure independence. 32. Line management should not undertake preliminary enquiries until any suspicion has been reported to and advice taken from IA or the FIT. It is imperative that enquiries should not prejudice subsequent investigations or corrupt evidence, therefore, IF IN DOUBT, ASK FOR ADVICE. 33. IA or the FIT will advise on who is responsible for completing the initial fact-finding exercise. This discreet preliminary enquiry should be carried out as speedily as possible after the suspicion being raised. The purpose of the initial fact finding exercise is to determine the factors that gave rise to suspicion and to clarify whether a genuine mistake has been made or if it is likely that a fraud has been attempted or occurred. This may involve discreet enquiries with staff or the examination of documents and may involve consideration of: the source of discovery of the suspected fraud the authenticity of the information initially received; and Anti Fraud Policy & Fraud Response Plan Page 7 of 23

9 line management s initial assessment of the circumstances involved 34. Any detailed internal investigation at this stage runs the risk of alerting the perpetrator and the destruction of evidence. Until there is sufficient evidence to support the accusation, the details of the case should be restricted to the FIT. All staff should be aware that they are obligated to co-operate fully with the FIT. 35. If staff are implicated at this stage and it would appear that there is sufficient evidence to justify future disciplinary action, the possibility of suspension must be considered. In such circumstances the Council s disciplinary procedure will apply. 36. If the preliminary enquiry confirms that a fraud has not been attempted or perpetrated but internal controls were deficient, management should review their control systems with a view to ensuring they are adequate and effective. A robust review of the Risk and Control Framework should be conducted and where appropriate the Corporate/Directorate Risk Register should also be reviewed. IA is available to offer advice and assistance on matters relating to internal control, if required. Formal Reporting Stage 37. If the preliminary enquiry confirms the suspicion that a fraud has been attempted or perpetrated, management must ensure that all original documentation is preserved in a safe place for further investigation. This is to prevent the loss of evidence, which may be essential to support subsequent disciplinary action or prosecution. The facts should be reported immediately, internally, to the Director, FIT and IA. 38. Once it is agreed that there is sufficient evidence to justify a further investigation, such an investigation will be undertaken by IA, supported as necessary by Council staff who may have the specialised knowledge required. A detailed remit will be agreed including deadlines for reporting and the investigation will seek information regarding: the type of fraud/corruption perpetrated the cause of the fraud the means of discovery the amount involved the potential for recovery the period over which the fraud/corruption was committed the date of discovery the position the perpetrator(s) hold(s) the action taken by the Line Manager or Senior Officer on discovery of the fraud the action to be taken to improve controls 39. This will be achieved by obtaining and analysing documents, interviewing staff and reviewing existing procedures. Provided the initial evidence appears bona fide and preliminary checking strongly suggests a fraud may have occurred the FIT will move to: Anti Fraud Policy & Fraud Response Plan Page 8 of 23

10 secure the evidence and ensure the preservation of records, both paper and electronic remove the suspect s access to computer systems, ensuring potential evidence, including computer files and record of amendments relevant to the case are retained securely and not disposed Ensure all aspects of the suspected fraud officers work is investigated, not just the area where the fraud was discovered Ensure control weaknesses discovered in procedures during the investigation are strengthened immediately Examine the extent, if any, of supervisory failures. 40. Of crucial importance in any fraud investigation is the need to conduct enquiries within the parameters of relevant laws and regulations. Employees have certain statutory rights and if infringed, the likely success of disciplinary action or prosecution is diminished. It is vital therefore that any interviews with suspects are undertaken strictly in accordance with established procedures. 41. There are three main actions which may be pursued as part of a fraud investigation: If the fraud involves criminality the investigation will be referred to the PSNI Seek redress of any outstanding financial loss through Civil Courts, if necessary Pursue a disciplinary process, which may, if there is clear evidence of supervisory failures, include other officials. 42. It is important that any civil disciplinary action does not impair a criminal investigation and vice versa. 43. The scope of the investigation will be determined by the FIT. Should further expertise be required, e.g. Solicitors, Forensic Accountants/Engineers, appropriate assistance will be engaged. To remove any threat of further fraud or loss, management should immediately change/strengthen procedures Liaison with the Police Service of Northern Ireland (PSNI) 44. In all cases of fraud, whether perpetrated or attempted by a member of staff or by external organisations or persons, the case will be referred to the PSNI, as necessary, at the earliest possible juncture. 45. The FIT should ensure that legal and/or police advice is sought where necessary. Where actual or attempted fraud is confirmed and is of a large or complex nature, the Organised Crime Branch may wish to carry out investigations. Smaller cases may be referred to the CID at local stations. Post Event Action 46. Appropriate steps will be taken to recover all losses resulting from fraud, if necessary through civil action or the Council s insurers. Anti Fraud Policy & Fraud Response Plan Page 9 of 23

11 47. Where a fraud, or attempted fraud, has occurred, management must make any necessary changes to systems and procedures to ensure that similar frauds or attempted frauds will not recur. Additionally, if an employee is suspected of involvement, the Line Manager/Head of Service will consider the appropriate course of action. This may range from close monitoring/supervision to precautionary suspension, however, it should be noted that suspension does not in any way imply guilt. Communication 48. The following communications should be observed in all cases: The Audit Committee should be kept informed as appropriate; (care will be taken as to the detail that is reported so as not to prejudice any future internal or external investigations). A lessons-learned document should be circulated throughout the Council, if appropriate; This Fraud Response Plan should be reviewed to determine whether it needs to be updated and if so, changes should be circulated throughout the Council; Consideration should be given to informing other public sector organisations, e.g. other Government Departments, NIAO, grant paying organisations. 49. The FIT is responsible for the external reporting of all discovered fraud, proven or suspected, including attempted fraud, within or against the Council to the NIAO. 50. IA will complete the Council s annual fraud return to the NIAO and ensure that updates on progress regarding the completion of investigations are provided to NIAO and the Audit Committee. Care will be taken in making such reports that potential future legal proceedings are not jeopardised. 7. Summary of Roles and Responsibilities Members Leadership Approval of policy Receipt and consideration of progress updates at the Audit Committee on investigations (as appropriate). Management The primary responsibility for preventing fraud lies with Management through: Identification of risks to which systems and procedures are exposed The implementation, documentation and operations of internal controls Establishing an environment that promotes compliance with internal controls Anti Fraud Policy & Fraud Response Plan Page 10 of 23

12 Promoting fraud awareness amongst staff Fostering an anti fraud culture. Line managers are responsible for ensuring that an adequate system of internal control exists within their areas of responsibility and that controls operate effectively. Responsibility for the prevention and detection of fraud, therefore, rests primarily with managers. In terms of establishing and maintaining effective controls, it is generally desirable that: There is a regular rotation of staff, particularly in key posts if feasible; Wherever possible, there is a separation of duties so that control of a key function is not vested in one individual; Backlogs are not allowed to accumulate; and In designing any new system, consideration is given to building in safeguards to prevent and/or detect internal and external fraud. Managers should inform Senior Managers or IA if they suspect fraud or financial impropriety. Staff Every member of staff has a duty to ensure that public funds are safeguarded and therefore, everyone is responsible for: Acting with propriety in the use of official resources and the handling and use of public funds in all instances. This includes cash and/or payment systems, receipts and dealing with suppliers; Conducting themselves in accordance with the seven principles of public life detailed in the first report of the Nolan Committee Standards in Public Life, ie selflessness, integrity, objectivity, accountability, openness, honesty and leadership; and Being vigilant to the possibility that unusual events or transactions could be indicators of fraud and alerting their line manager where they believe the opportunity for fraud exists. Staff must also assist any investigations by making available all relevant information, by co-operating in interviews and if appropriate provide a witness statement. Internal Audit Developing a fraud risk profile/assessment and undertaking a regular review of the fraud risks associated with each of the key Anti Fraud Policy & Fraud Response Plan Page 11 of 23

13 organisational objectives in order to keep the profile current. Designing an effective control environment to prevent fraud commensurate with the fraud risk profile. Offer advice and assistance on risk management/internal control issues, as well as advice and assistance in relation to cases of fraud or suspected fraud. Complete the annual fraud questionnaire for NIAO and submit to the Chief Executive for approval. Co-ordinate the Council s input to the National Fraud Initiative. Report as appropriate to the Audit Committee on investigations. Ensuring anti-fraud awareness training is provided as appropriate and, if necessary, more specific anti-fraud training and development is provided to relevant staff. Anti Fraud Policy & Fraud Response Plan Page 12 of 23

14 Appendix 1 INDICATORS OF FRAUD Missing expenditure vouchers and unavailable official records Profitability declining Excessive variations to budgets or Contracts Refusals to produce files, minutes or other records Increased employee absences Borrowing from fellow employees Covering up inefficiencies No supervision Staff turnover is excessive Figures, trends or results which do not accord with expectations Bank reconciliations are not maintained or can t be balanced Excessive movement of cash funds Multiple cash collection points Unauthorised changes to systems or work practices Employees with outside business interests or other jobs Large outstanding bad or doubtful debts Employees suffering financial hardships Placing undated/post-dated personal cheques in petty cash Employees apparently living beyond their means Heavy gambling debts Signs of drinking or drug abuse problems Conflicts of interest Lowest tenders or quotes passed over with scant explanations recorded Employees with an apparently excessive work situation for their position Managers bypassing subordinates Subordinates bypassing managers Excessive generosity Apparent personal problems Poor morale Excessive control of all records by one Officer Unusual working hours on a regular basis Non taking of leave Excessive overtime Absence of controls and audit trails Altering contract specifications Contractor paid for work not done Socialising with clients meals, drinks, holidays Favourable treatment of clients eg allocation of work Anti Fraud Policy & Fraud Response Plan Page 13 of 23

15 Appendix 2 COMMON METHODS AND TYPES OF FRAUD Payment for work not performed Claiming for overtime not worked Secondary employment during working hours Abuse of flexi Working while on sick leave Over claiming travel and expenses Running a private business with official assets, for example, departmental telephone and IT systems Forged endorsements Altering amounts and details on documents Collusive bidding Overcharging Writing off recoverable assets or debts Unauthorised transactions Selling information Cheques made out to false persons False persons on payroll Theft of official purchasing authorities such as order books False official identification used Damaging/destroying documentation Using copies of records and receipts Using imaging and desktop publishing technology to produce apparent original invoices Transferring amounts between accounts frequently Delayed terminations from payroll Bribes Skimming odd pence and rounding Using facsimile signatures False compensation and insurance claims Stealing of discounts Selling waste and scrap Altering stock records Altering sales records Cash stolen Supplies not recorded at all Stolen equipment and supplies Unrecorded transactions Transactions (expenditure/receipts/deposits) recorded for incorrect sums Anti Fraud Policy & Fraud Response Plan Page 14 of 23

16 Appendix 3 EXAMPLES OF GOOD MANAGEMENT PRACTICES WHICH MAY ASSIST IN COMBATING FRAUD All income is promptly entered in the accounting records with the immediate endorsement of all cheques Regulations governing contracts and the supply of goods and services are properly enforced Accounting records provide a reliable basis for the preparation of financial statements Controls operate which ensure that errors and irregularities become apparent during the processing of accounting information A strong internal audit presence Management encourages sound working practices All assets are properly recorded and provision is made known for expected losses Accounting instructions and financial regulations are available to all staff and are kept up to date Effective segregation of duties exists, particularly in financial accounting and cash/securities handling areas Close relatives do not work together, particularly in financial, accounting and cash/securities handling areas Act immediately on internal/external auditors reports to rectify control weaknesses Issue accounts payable promptly and follow-up any non-payments Set standards of conduct for suppliers and contractors Maintain effective security of physical assets; accountable documents (such as cheque books, order books); information, payment and purchasing systems Review large and unusual payments Perpetrators should be suspended from duties pending investigation Proven perpetrators should be dismissed without a reference and prosecuted Query mutilation of cheque stubs or cancelled cheques Store cheque stubs in numerical order Undertake test checks and institute confirmation procedures Develop well defined procedures for reporting fraud, investigating fraud and dealing with perpetrators Maintain good physical security of all premises Randomly change security locks and rotate shifts at times (if feasible and economical) Conduct regular staff appraisals Review work practices open to collusion or manipulation Develop and routinely review and reset data processing controls Regularly review accounting and administrative controls Set achievable targets and budgets, and stringently review results Ensure staff take regular leave Rotate staff Ensure all expenditure is authorised Conduct periodic analytical reviews to highlight variations to norms Take swift and decisive action on all fraud situations Ensure staff are fully aware of their rights and obligations in all matters concerned with fraud Anti Fraud Policy & Fraud Response Plan Page 15 of 23

17 Appendix 4 BEST PRACTICE FOR REPORTING SUSPICIONS OF FRAUD AND IRREGULARITY If staff become aware of a suspected fraud or irregularity, write down the concerns immediately. Make a note of all relevant details, such as what was said in phone or other conversations, the date, the time and the names of anyone involved. It may be necessary to hand over any notes and/or evidence you have gathered to the appropriate investigator. STAFF MUST NOT DO ANY OF THE FOLLOWING: Contact the suspected perpetrator in an effort to determine the facts. Discuss the case facts, suspicions, or allegations with anyone outside the Directorate. Discuss the case with anyone within the Department other than the people detailed in the Anti- Fraud Policy and Fraud Response Plan. Attempt to personally conduct investigations or interviews or question anyone. ACTION BY MANAGERS If Line Management have reason to suspect fraud or corruption in the work area, they should: Listen to the concerns of staff and treat every report received seriously and sensitively; Make sure that all staff concerns are given a fair hearing. Line Management should also reassure staff that they will not suffer because they have told you of their suspicions; Get as much information as possible from the member of staff, including any notes and any evidence they have that may support the allegation. Do no interfere with any evidence and make sure it is kept in safe place; and Do not try to carry out an investigation yourself; this may damage any criminal enquiry. Seek advice from Internal Audit or the FIT before taking any action. Report the matter immediately to Line Management/Head of Service, Director and Internal Audit. Anti Fraud Policy & Fraud Response Plan Page 16 of 23

18 Policy Screening Form APPENDIX 5 Policy Scoping Policy Title: Anti-Fraud Policy & Fraud Response Plan Brief Description of Policy (please attach copy if available). Please state if it is a new, existing or amended policy. New policy for ABC Council. The policy covers the Council s approach to managing the risk of fraud, including preventative arrangements and also the arrangements for reporting and investigating allegations of suspected fraud, bribery, theft or other financial impropriety. Intended aims/outcomes. What is the policy trying to achieve? To provide guidance on matters that should be considered when investigating suspected frauds or impropriety to ensure a consistent approach that will not prejudice subsequent investigations or corrupt evidence. Policy Framework Has the policy been developed in response to statutory requirements, legal advice or on the basis of any other professional advice? Does this affect the discretion available to Council to amend the policy? As per The Local Government (Accounts and Audit) (Amendment) Regulations (Northern Ireland) 2006 a local government body shall have a sound system of internal control which includes arrangements for the management of risk including fraud risk. Anti Fraud Policy & Fraud Response Plan Page 17 of 23

19 Are there any Section 75 categories which might be expected to benefit from the policy? If so, please outline. This policy will affect all stakeholders equally regardless of what equality group they fall within Who initiated or wrote the policy (if Council decision, please state). Who is responsible for implementing the policy? Who initiated or wrote policy? Internal Audit Who is responsible for implementation? Chief Executive and Strategic Management Team. Are there any factors which might contribute to or detract from the implementation of the policy (e.g. financial, legislative, other)? None foreseen. Main stakeholders in relation to the policy Please list main stakeholders affected by the policy (e.g. staff, service users, other statutory bodies, community or voluntary sector, private sector) All ABC Staff, Contractors/Consultants and service users. Are there any other policies with a bearing on this policy? If so, please identify them and how they impact on this policy. Whistleblowing Policy. Anti Fraud Policy & Fraud Response Plan Page 18 of 23

20 Available Evidence Council should ensure that its screening decisions are informed by relevant data. What evidence/information (both qualitative and quantitative) have you gathered to inform this policy? Specify details for each of the Section 75 categories. Section 75 category Religious belief Political opinion Racial group Age Marital status Sexual orientation Men and women generally Disability Dependants Evidence Needs, experiences and priorities Taking into account the information gathered above, what are the different needs, experiences and priorities of each of the following categories in relation to this particular policy/decision? Section 75 category Religious belief Political opinion Racial group Age Marital status Sexual orientation Men and women generally Disability Dependants Needs, experiences and priorities Screening Questions 1. What is the likely impact on equality of opportunity for those affected by this policy for each of the Section 75 categories? Category Policy Impact Level of impact (Major/minor/none) Religious belief None Political opinion None Racial group None Age None Marital status None Sexual orientation None Anti Fraud Policy & Fraud Response Plan Page 19 of 23

21 Men and women generally Disability Dependents None None None 2. Are there opportunities to better promote equality of opportunity for people within the Section 75 categories? Category If yes, provide details If no, provide reasons Religious belief None Political opinion None Racial group None Age None Marital status None Sexual orientation None Men and women generally None Disability None Dependents None 3. To what extent is the policy likely to impact on good relations between people of different religious belief, political opinion, or racial group? Category Details of Policy Impact Level of impact (major/minor/none) Religious belief None None Political opinion None None Racial group None None 4. Are there opportunities to better promote good relations between people of different religious belief, political opinion or racial group? Category If yes, provide details If no, provide reasons Religious belief None Political opinion None Racial group None Multiple Identity Generally speaking, people fall into more than one Section 75 category (for example: disabled minority ethnic people; disabled women; young Protestant men; young lesbian, gay and bisexual people). Provide details of data on the impact of the policy on people with multiple identities. Specify relevant s75 categories concerned. This policy will affect all stakeholders equally regardless of what equality category they fall within. Anti Fraud Policy & Fraud Response Plan Page 20 of 23

22 Disability Discrimination (NI) Order 2006 Is there an opportunity for the policy to promote positive attitudes towards disabled people? Is there an opportunity for the policy to encourage participation by disabled people in public life? Screening Decision A: NO IMPACT IDENTIFIED ON ANY CATEGORY EQIA UNNECESSARY Please identify reasons for this below This is a technical policy with no bearing in terms of its likely impact on equality of opportunity or good relations for people within the equality and good relations categories. B: MINOR IMPACT IDENTIFIED EQIA NOT CONSIDERED NECESSARY AS IMPACT CAN BE ELIMINATED OR MITIGATED Where the impact is likely to be minor, you should consider if the policy can be mitigated or an alternative policy introduced. If so, EQIA may not be considered necessary. You must indicate the reasons for this decision below, together with details of measures to mitigate the adverse impact or the alternative policy proposed. C: MAJOR IMPACT IDENTIFIED EQIA REQUIRED If the decision is to conduct an equality impact assessment, please provide details of the reasons. Anti Fraud Policy & Fraud Response Plan Page 21 of 23

23 Timetabling and Prioritising If the policy has been screened in for equality impact assessment, please answer the following questions to determine its priority for timetabling the equality impact assessment. On a scale of 1-3 with 1 being the lowest priority and 3 being the highest, assess the policy in terms of its priority for equality impact assessment. Priority criterion Rating (1-3) Effect on equality of opportunity and good relations Social need Effect on people s daily lives The total rating score should be used to prioritise the policy in rank order with other policies screened in for equality impact assessment. This list of priorities will assist the council in timetabling its EQIAs. Is the policy affected by timetables established by other relevant public authorities? If yes, please give details. Monitoring Effective monitoring will help the authority identify any future adverse impact arising from the policy. It is recommended that where a policy has been amended or an alternative policy introduced to mitigate adverse impact, monitoring be undertaken on a broader basis to identify any impact (positive or adverse). Further information on monitoring is available in the Equality Commission s guidance on monitoring Identify how the impact of the policy is to be monitored Policy will be reviewed on the completion of any fraud investigation should one arise. Anti Fraud Policy & Fraud Response Plan Page 22 of 23

24 Approval and Authorisation A copy of the screening form for each policy screened should be signed off by the senior manager responsible for that policy. The screening recommendation should be reported to the relevant Committee/Council when the policy is submitted for approval. Screened by Position/Job title Date Michael Watson, Carol Head of Audit, Governance & 19 December 2014 Rafferty Risk Services CBC, Internal Auditor - ACDC Approved by Position/Job Title Date Roger Wilson Chief Executive 19 December 2014 Please forward a copy of the completed form with policy attached to XXX Officer who will ensure that screening forms and policies are available on the Council website. This officer is also responsible for issuing reports on a quarterly basis on those policies screened out for EQIA. This allows stakeholders who disagree with this recommendation to submit their views. In the event of any stakeholder disagreeing with the decision to screen out any policy, the screening exercise will be reviewed. Anti Fraud Policy & Fraud Response Plan Page 23 of 23