Statement of Departmental Fraud Policy

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					     STATEMENT OF DEPARTMENTAL FRAUD POLICY

1.     INT RO DUCT IO N

1.1    The Dep art m ent r eq ui res al l st aff at al l t i m es t o act hones t l y
       and wi t h i nt egri t y, and t o safe gu ard t h e publ i c resour ces for
       whi ch t he y a re r esp onsi bl e. Fraud i s an ever p resent t hr eat t o
       t hose resourc es and hence m ust be a con cern t o al l m em bers of
       st aff. The Dep art m ent ’s pol i c y i s t hat al l al l egat i ons,
       anon ym ous or ot he rwi se wi l l be i nvest i gat ed, and st af f are
       assured t hat an y i nform at i on whi ch t he y provi de wi l l be
       t reat ed con fi dent i al l y .

1.2    The purpose o f t h i s st at em ent i s t o provi de a hi gh l evel
       fram ewo rk for t he devel opm ent , t hrough out t he Depart m ent , of
       pol i ci es and m easures t o count er f raud. It set s out t he
       responsi bi l i t i es of al l st aff r e gardi n g t he prevent i on of f raud
       and t he a ct i on t o be t aken wher e a fraud i s suspe ct ed or
       det ect ed.

1.3    The st at em ent cover s fraud and l oss wi t hi n t he Dep art m ent and
       i t s Agenci es, and a ppl i es t o st aff, m e m bers of t he publ i c and
       cont ract ors. W her e t he Depart m ent i s responsi bl e for t he
       di sbursem ent o f f unds t o out si de bodi es whi ch op e rat e
       aut onom ousl y i t i s t he r esponsi bi l i t y of sponsori ng b ran ches t o
       ensure t hat t hose bodi es have i n pl ace count er f raud
       arran gem ent s whi ch com pl y wi t h t he p ri nci pl es cont ai ned i n
       t hi s st at em ent .

1.4    As re gards pe rson al conduct , t he Depar t m ent subscri bes t o t he
       seven pri n ci pl es of publ i c l i fe co nt ai ned i n t he N ol an
       C om m i t t ee’s fi rst report , St andards i n Publ i c L i f e, set out i n
       Annex A.


2.     DE FINIT IO N O F FRAUD

2.1    The Fr aud Act 2006 has cre at ed t hre e m a i n offenc es of fr au d : -:
            (a) f raud b y f al se re present at i on,
            (b) fr aud b y fai l i n g t o di scl ose i nform at i on, and
            (c) f raud b y abus e o f posi t i on.
2.2   Fraud b y   fal se r epr e sent at i on
      A person    i s i n brea c h of t hi s sect i on of t he Fr aud Act i f h e : -
            (a)   di shonest l y m ak es a fal se repr esent a t i on, and
            (b)   i nt ends, b y m aki ng t he r epr esent at i o n : -
                      (i ) t o m ake a gai n f or hi m sel f or anot he r, or
                      (i i ) t o cause l oss t o anot her or t o ex pose anot her t o
                            a ri sk of l oss.

2.3   Fraud for f ai l i ng t o di scl ose i nform at i on
      A person i s i n brea c h of t hi s sect i on of t he Fr aud Act i f h e : -
            (a) di shonest l y fai l s t o di scl ose t o anot her person
               i nform at i on whi ch h e i s under a l e gal du t y t o
               di scl ose, and
            (b) i nt ends, b y fai l i ng t o di scl ose t he i n form at i on : -
                    (i ) t o m ake a gai n f or hi m sel f or anot he r, or
                    (i i ) t o cause l oss t o anot her or t o ex pose anot her t o
                          a ri sk of l oss.

2.4   Fraud b y us e of posi t i on
      A person i s i n brea c h of t hi s sect i on of t he Fr aud Act i f h e : -
            (a) oc cupi es a posi t i on i n whi ch he i s ex pect ed t o
                safe gua rd, or not t o act a gai nst , t he fi n a nci al i nt erest s
                of anot her p erson,
            (b) di shonest l y abus es t hat posi t i on, and
            (c) i nt ends, b y m ean s of t he abuse of t h a t posi t i on : -
                    (i ) t o m ake a gai n f or hi m sel f or anot he r, or
                    (i i ) t o cause l oss t o anot her or t o ex pose anot her t o
                          a ri sk of l oss.

3.    T H E DE PART ME N T ’S RE S PO NS IB ILIT IE S

3.1   C hapt er 5 of Gove rn m ent Account i n g No rt hern Ir el and out l i n es
      t he Depart m ent ’s re sponsi bi l i t i es as:

            devel opi ng and m ai nt ai ni ng ef fect i ve c ont rol s t o prevent
             fraud;
            carr yi n g out vi go ro us and prom pt i nvest i gat i ons i f fraud
             occurs;
            t aki ng app ro pri at e l egal and/ o r di sci pl i nar y act i on
             agai nst perpet r at ors of fraud;
            t aki ng di sci pl i nar y act i on a gai nst supervi sors wh er e
             supervi sor y fai l ur es have cont ri but ed t o t he c om m i ssi on
             of fraud;
            est abl i shi ng s yst e m s for reco rdi n g and subsequent l y
             m oni t ori ng al l di sco vered c ases of fraud ; and
            C onsi der an y cont ro l fai l ures and m ake recom m endat i ons
             on s yst em s and procedur es t o m i nim i se t he ri sk or
             recur renc e.
3.2   In t he fo rm ul at i on of pol i c y, l e gi sl at i on and associ at ed
      gui dan ce, and i n t he desi gn of ope rat i ng pro c edur es t he
      Depart m ent m ust en sure t hat :

            t he prevent i on of f r aud and l oss i s t ake n i nt o account ;
            t he ri sks of fr aud an d l oss are assess ed when ch an ges ar e
             bei ng consi dered; a nd
            weakness es are i dent i fi ed and re c t i fi ed when t he
             opport uni t y ari ses.

3.3   Al t ho ugh t he P erm anent S ecr et ar y as pri nci pal Ac count i ng
      Offi ce r bea rs overal l responsi bi l i t y and i s l i abl e t o be cal l ed t o
      account for sp eci f i c fai l ures, and A ddi t i onal and Age nc y
      Account i n g Offi ce r s bear responsi bi l i t y for t hei r respe ct i ve
      areas o f ac count abi l i t y, count er - frau d responsi bi l i t i es fal l
      di rect l y t o l i ne m ana gem ent and m a n y i nvol ve al l of t he
      Depart m ent ’s st a ff.

4.    THE   DE PART ME NT AL                     B O ARD         FR AUD           S UB -
      CO MMIT T E E

4.1   Assuranc es t hat A ccount i ng Offi c ers ’ responsi bi l i t i es are
      bei ng m et ar e provi ded t hr ough t he i nt e rnal audi t processes of
      t he Depa rt m ent and i t s Agen ci es and t he assessm ent s r epo rt ed
      b y t he ex t ernal aud i t ors i n Non Depart m ent al P ubl i c Bodi es.
      The Dep art m ent al Boa rd Fraud S ub -com m i t t ee whi ch i s
      chai red b y t h e Depu t y S ec ret ar y i n t he R esour ces, Housi n g and
      S oci al S ecuri t y G ro up and consi st s of st aff at seni o r l ev el fr om
      each busi ness are a and A gen c y m eet s t wi ce yea rl y or m ore
      frequent l y i f requi r ed . The S ub -C om m it t ee cont ri but es t o t he
      Depart m ent ’s C orpo rat e Gove rnan ce a rr angem ent s b y:

       prov i di ng a st r at e gi c ove rvi ew o f t he Depart m ent ’s count er
        fraud act i vi t i es wi t hi n i t s busi ness areas and spendi n g
        program m es;
       confi rm i ng t hat t he Depart m ent and i t s agent s have i n pl ace
        end t o end proce sses ai m ed at red uci ng subst ant i al l y,
        effe ct i vel y and p er m anent l y t h e oc cur rence of fraud and
        l oss;
       m oni t ori ng t he Dep art m ent ’s count er - fr aud a ct i vi t y t hrou gh
        anal ysi s o f t he resul t s of fraud i nvest i ga t ed; and
       m oni t ori ng l osses ca used b y fraud, and i nvest i gat i on cost s.


5.    PE RS O NNE L B RANCH E S ’ RE S PO NS IB IL IT IE S

5.1   The securi t y v et t i ng of perm anent st aff on appoi nt m ent is t he
      responsi bi l i t y of R ecrui t m ent S ervi ces, D FP . P erson nel
      Bran ches (or what ever Br anch wi t hi n t he busi ness are a i s
      consi dered m ost app ropri at e) are respon si bl e for:
       arran gi n g t he pe rso nal and s ecu ri t y v et t i ng of casu al st aff or
        st aff t ransf err ed t o a sensi t i ve post ;
       t he provi si on of wri t t en di sci pl i nar y proc edures f or
        fraudul ent and co rrupt act s ( as cu rrent l y out l i ned i n
        para gr aph 1093 of t he N IC S P a y and C ondi t i ons of S ervi ce
        C ode);
       m oni t ori ng of busi ness ar eas wi t h consi st ent l y hi gh l ev el s o f
        vacan ci es or si ck l eave t o det erm i ne i f t here ar e a n y
        personnel probl em s;
       t he provi si on of a C ode of Et hi cs out li ni ng t he st andards of
        conduct ex pect ed fr om st aff and t he act i on t o be t aken i n t h e
        event of a susp ect ed breach o f t he C ode;
       t he provi si on of com prehensi ve rul es about t he acc ept anc e
        of gi ft s and hospi t al i t y;
       t he provi si on of a regi st e r t o record an y out si de i nt ere st
        whi ch m a y be i n con fl i ct wi t h t he Depart m ent ’s i nt erest ; and
       ensuri ng t hat f raud aw ar eness i s i ncl uded as a com pet en ce i n
        t rai ni ng pro gram m e s for st aff at al l l ev el s.

6.    L INE MANAGE RS ’ RE S PO NS IB IL ITIE S

6.1   W hi l e overal l responsi bi l i t y l i es wi t h t he P erm anent S ec re t ar y
      as pri nci pal Accoun t i ng Of fi ce r, pri m ar y r esponsi bi l i t y fo r t he
      prevent i on and det e ct i on of fraud fal l s t o l i ne m anagers. T here
      i s a need for al l l i ne m ana gers:

       t o carr y out det ai l ed apprai sal s o f st aff duri n g t h e
        probat i onar y pe ri od;
       t o assess t he t ypes of ri sk i nvol ved i n t he oper at i ons for
        whi ch t he y ar e resp onsi bl e;
       t o en sure t hat ad e quat e s yst em s of i nt ernal cont rol ex i st
        wi t hi n t hei r areas of responsi bi l i t y, t a ki ng i nt o account t h e
        scal e of t he ri sk i n t he part i cul a r busi ne ss area;
       t o ensure t hat cont r ol s are bei n g com pl i ed wi t h;
       t o sat i sf y t hem s el ve s t hat t hei r s yst em s cont i nue t o operat e
        effe ct i vel y; and
       t o provi de assuran ce s on t hei r i nt ernal c ont rol s yst em s.

6.2   Li ne m an a ge rs ar e responsi bl e for ens uri ng t hat al l st aff are
      provi ded wi t h fraud awar eness t rai ni n g speci fi c t o t he busi ness
      area i n whi ch t he y a re em pl o ye d. Tr ai ni ng shoul d i ncl ude:

       awar eness o f t he ri sk of fr aud an d t he appropri at e count e r
        m easures av ai l abl e;
       m ana gem ent awa re ness i ncl udi ng pro fi l es of t h e t ype of
        peopl e m ost l i kel y t o com m i t fraud and ex am pl es of areas of
        pot ent i al fraud; and
       pract i cal ap proa ch es on ri sk                an al ys i s   and     eff ect i v e
        prevent i ve and d et e ct i ve cont rol s.

6.3   Li ne m an a ge rs m ust ensure t hat t he opp ort uni t i es for st aff t o
      com m i t fraud ar e m i ni m i sed. In t erm s of est abl i shi ng and
      m ai nt ai ni ng ef fe ct i ve cont rol s i t i s gen e ral l y d esi rabl e t hat :

       t here i s rot at i on of s t aff, part i cul arl y i n ke y post s;
       wherev er possi bl e t here i s a s epar at i on of dut i es so t h at
        cont rol of a ke y fun ct i on i s not vest ed i n one i ndi vi dual ;
       backl o gs ar e not al l owed t o ac cum ul at e; and
       i n desi gni n g an y new s yst em consi d erat i on i s gi v en t o
        bui l di ng i n safe gu ar ds agai nst i nt ernal a nd ex t ernal fraud.

6.4   As re ga rds t he perso nal conduct of st af f, l i ne m ana gers shou l d:

       ensure t hat st a ff under t hei r con t rol have r ead a nd
        underst ood t he cont ent of t he C ode of E t hi cs;
       ensure t hat st af f un der t hei r cont rol ar e awa re of t he rul e s
        rel at i ng t o confi dent i al i t y of i nform at i on ;
       ensure t hat st aff under t hei r cont rol have been m ade aw ar e
        t hat fraudul ent beh a vi our i s wrong;
       provi de and re gul ar l y r evi ew a re gi st e r t o reco rd gi ft s and
        hos pi t al i t y; and
       re gul arl y r ei nforc e t he rul es rel at i ng t o personal condu ct .

7.    S T AFF RE S PO NS I B IL IT IES

7.1   Ever y m em ber o f st aff has a dut y t o e nsure t hat publ i c fu nds
      are sa fe gua rded, whet her t he y are i nvol ved wi t h cash or
      pa ym ent s s yst em s, r ecei pt s, st ock s or de al i ngs wi t h cont ra ct ors
      or suppl i ers. As st e wards o f publ i c fun ds st aff m ust have, and
      be seen t o hav e, h i gh st and ards of p ersonal i nt e gri t y. S t aff
      shoul d:

       al ert t hei r l i ne m an ager wh ere t h e y bel i eve t he opport uni t y
        for fraud ex i st s because o f poor pr ocedures o r l ack of
        effe ct i ve oversi ght ;
       report d et ai l s i m m edi at el y t o t hei r l i ne m ana ger or n ex t m ost
        seni or person i f t he y susp ect t hat a fr aud has be en
        com m i t t ed or see an y suspi ci ous a ct s or event s;
       assi st i n an y i nvest i gat i ons b y m aki n g a vai l abl e a l l rel ev ant
        i nform at i on and b y co -oper at i ng i n i nt e rvi ews;
       i nform l i ne m ana ge m ent of an y out si de i nt erest whi ch m i ght
        i m pi nge on t hei r di s char ge o f dut i es; an d
       i nform l i ne m ana ge m ent of an y gi ft s, h ospi t al i t y o r ben efi t s
        of an y ki nd re cei ved from a t hi rd p art y.
8.          INVE S T IGAT IO N T E CH NIQ UE S

8.1         Fraud m a y be det ect ed t hrou gh spe ci fi c m ana gem ent checks or
            brought t o m ana gers ’ at t ent i on b y a t hi r d part y. Li n e m an a gers
            shoul d al so be al er t t o t he possi bi l i t y t hat unusual event s or
            t ransact i ons coul d b e s ym pt om s of f raud .

8.2         Each busi ness ar ea shoul d have i n pl ac e a fr aud r esponse pl an
            or ot her wri t t en i nst ruct i ons whi ch wi l l act as a gui de as t o t he
            act i on t o be t ak en i n i ndi vi dual cases, and prev ent st aff fr om
            t aki ng an y act i on whi ch woul d m ake prosecut i on di f fi c ul t .
            Thi s shoul d cover:

             prel i m i nar y enqui r y proc edures, i ncl udi ng t h e ne ed t o seek
              ex pert advi ce at an earl y st a ge;
             t he nam e of t he person t o whom t he suspect ed fraud shoul d
              be report ed;
             how t o secure t h e ev i dence;
             how t o prevent l oss es; and
             how t o i ni t i at e reco ver y act i on.

8.3         S t aff nom i nat ed t o car r y out i ni t i al enqui ri es or t h e m ore
            det ai l ed    i nvest i ga t i ons whi ch    foll ow     shoul d    recei ve
            appropri at e t rai ni n g, whi ch shoul d com pl y wi t h t he provi si ons
            of t he P ol i ce and C r i m i nal Evi dence (N I) Orde r (P AC E). Li nks
            shoul d be est abl i she d wi t h ot her bodi es concern ed wi t h cou nt er
            fraud a ct i vi t i es, for ex am pl e t he P ol i ce S ervi ce o f Nort h ern
            Ir el and ( P S N I), Fra ud Uni t (S t randt ow n) and t he S eri ous and
            Or gani sed C ri m e A genc y.

8.4         To prevent and det e ct cri m e busi ness ar eas shoul d ensur e t hat
            opport uni t i es t o m at ch dat a a cross s yst em s and dat ab ases are
            m ax i m ised, t aki ng i nt o account t he l egi sl at i ve posi t i on and
            codes of pr act i ce on t he subj ect .

9.          DISCIP LINAR Y AND P ROSE CUT ION P OLIC Y , A ND
            THE RE COVE RY OF LOSSES

9.1         Aft er prop er i nv est i gat i on t he D epa rt m ent and A gen ci es wi l l
            t ake di sci pl i nar y and/ or l e gal act i o n i n al l c ases w here
            appropri at e. W i t h t he ex cept i on of soci al securi t y fra ud,
            arran gem ent s for whi ch are cont ai n ed i n soci al secu ri t y
            l egi sl at i on, Dep art m ent al po l i c y i s t hat :

             where t her e i s knowl edge or bel i ef t hat a fraud has bee n
              perpet r at ed b y st aff or p ersons ex t ernal t o t he o r gani sat i on ,
              t he P ol i ce wi l l be not i fi ed at t he earl i es t possi bl e j unct ure 1;

      1
          DAO (DFP)12/06 Paras 5 and 6
        t he Depa rt m ent an d Agenci es wi l l c o -operat e ful l y wi t h
         P ol i ce enqui ri es whi ch m a y resul t i n t he offende r(s) bei n g
         prosecut ed;
        fraud i nvest i gat i ons wi l l al so consi der whet her t here has
         been an y fai l ur e o f supervi si on. W he re t hi s has oc curr e d
         di sci pl i nar y act i o n m a y b e i ni t i at ed a gai nst t ho se
         responsi bl e;
        l osses re sul t i ng f ro m fraud wi l l be r e covered, subj ect t o
         pol i c y on w ri t e -offs , i f necessa r y t hrou gh ci vi l act i on;
        t here wi l l be consi st ent handl i ng of cas es wi t hout r e gard t o
         posi t i on hel d or l engt h of se rvi ce ;
        i n gen eral al l f rauds wi l l be publ i ci sed as a det err e nt .

10.    INDE PE NDE NT AS S URANCE O F CO NT RO L S

1 0 . 1 Ind ependent assuran ces on t he count er - fraud s yst em s i n pl ace
        i n each busi ness area shoul d be p r ovi ded t o Account i ng
        Offi ce rs b y He ads of Int ernal Audi t who shoul d ensure t hat
        audi t s are ca rri ed out b y sui t ab l y qual i fi ed audi t ors i n
        accord anc e wi t h t he Governm ent Int e rna l Audi t Manual .

11.    CO NCL US IO N

1 1 . 1 S uccessful fr aud pr event i on i nvol ves c reat i n g an envi r onm ent
        whi ch i nhi bi t s fraud. It i s t he respon si bi l i t y of al l st aff t o
        ensure t hat such an envi ronm ent i s cre at ed.

1 1 . 2 The ci r cum st ances o f i ndi vi dual frauds wi l l var y, howev er i t i s
        i m port ant t hat al l ar e vi gorousl y and pr om pt l y i nvest i gat ed and
        t hat appropri at e act i on i s t aken.

1 1 . 3 A m ana ge r who i s al ert t o t he possi bi l i t y of fr aud and who a ct s
        acco rdi n gl y i s a po werful det err ent a ga i nst fraud.

       The Depa rt menta l Trade U nion Side has been consulte d
       about the conten t of this sta te ment.
                                                                                An n ex A


                      The Seven Principles of Public Life



Sel f l essness       Hol ders of publ i c offi ce shoul d t ake deci si ons
                      sol el y i n t erm s o f t he publ i c i nt erest . The y shoul d
                      not do so i n order t o gai n fi nanci a l or ot her
                      m at eri al ben efi t s f or t hem sel ves, t hei r fam i l y or
                      t hei r fri ends.

Int egr i t y         Hol ders of publ i c offi ce shoul d not pl ac e
                      t hem sel ves under an y fi n anci al or ot h er obl i gat i on
                      t o out si de i ndi vi dual s or organi s at i ons t hat m i ght
                      i nfl uence t hem i n t h e per form anc e of t hei r offi ci al
                      dut i es.

Obj ect i vi t y      In ca rr yi n g out pub l i c busi ness, i ncl udi ng m aki n g
                      publ i c appoi nt m ent s, awardi n g con t ract s, or
                      recom m endi n g      i ndi vi dual s for     rew ards    and
                      benefi t s, hol ders o f publ i c offi c e sh oul d m ake
                      choi ces on m eri t .

Account abi l i t y   Hol ders of publ i c offi ce a re a ccount abl e for t hei r
                      deci si ons and act i ons t o t he publ i c and m ust
                      subm i t t hem sel ves t o what eve r s crut i n y i s
                      appropri at e t o t hei r offi ce.

Openness              Hol ders of publ i c offi ce shoul d b e a s open as
                      possi bl e about al l t he deci si ons and a ct i ons t hat
                      t he y t ak e. The y s houl d gi ve re ason s for t hei r
                      deci si ons and rest ri ct i nform at i on onl y when t he
                      wi der publ i c i nt eres t cl earl y dem ands.

Hones t y             Hol ders of publ i c of fi ce h ave a dut y t o decl ar e an y
                      pri vat e i nt er est s r el at i ng t o t hei r publ i c dut i es an d
                      t o t ake st eps t o resol ve an y con fl i ct s ari si ng i n a
                      wa y t hat prot ect s t h e publ i c i nt erest .

L eadershi p          Hol ders of publ i c offi ce            shoul d pr om ot e        and
                      support t hese pri nci pl es             b y l ead e rshi p       and
                      ex am pl e.

				
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