DISHONEST ACTS AND FRAUD POLICY
For
United Way of South Hampton Roads
(UWSHR)
A. PURPOSE
The purpose of this policy is to advise the employees of UWSHR of their responsibility to
report suspected dishonest acts and fraudulent activity to the appropriate officials. The
policy also complies with independent financial audit requirements.
B. OBJECTIVES OF THE POLICY
The general objectives of this policy are to define acts that are considered dishonest or
fraudulent for the purposes of this policy and to provide a framework for the investigation
and resolution of suspected dishonest acts and fraud.
C. SPECIFIC GOALS
The specific goals of this policy are to:
1. Identify activities covered under this policy.
2. Outline the duties and responsibilities of the employees of UWSHR regarding activities
covered under this policy.
3. Require employees to notify officials of suspected dishonest or fraudulent acts.
4. Provide a framework for conducting an investigation of suspected dishonest or
fraudulent activity.
5. Identify the consequences of dishonest acts and fraudulent activity.
D. POLICY ELEMENTS
Authority in UWSHR is delegated as follows:
1. The Board of Directors of UWSHR will be responsible for reviewing and approving this
policy on an annual basis.
2. The President or designated officer will be responsible for investigating reported
incidents.
3. The President or designated officer will be responsible for obtaining any legal counsel
or assistance deemed necessary to proceed with the review or investigation of
allegations.
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4. In those instances where the investigation indicates possible criminal activity, the
President or designated officer will, if necessary, contact the appropriate law
enforcement agency and make any required reports to the regulatory authorities.
5. The President or designated officer will inform the Board of Directors of any
investigations of suspected dishonest acts or fraudulent activity and the results of such
investigation.
E. DEFINITIONS
1. Dishonest act or fraudulent activity. An intentional or deliberate act to deprive
UWSHR or a person of something of value, or to gain an unfair benefit using deception,
false suggestions, suppression of truth, or other unfair means which are believed and
relied upon. A dishonest act or fraudulent activity may be, but is not limited to, an
act or activity that is unethical, improper or illegal such as:
a. Embezzlement;
b. Misappropriation, misapplication, destruction, removal, or concealment of
property;
c. Alteration or falsification of paper or electronic documents, including the
inappropriate destruction of paper or electronic documents;
d. False claims and/or misrepresentation of facts;
e. Theft of an asset including but not limited to money, tangible property, trade
secrets or intellectual property;
f.
Inappropriate use of computer systems including hacking and software piracy;
g. Bribery, kickbacks, or rebates;
h. Conflict of interest or commitment.
Although a dishonest or fraudulent act may have criminal and/or civil law consequences,
UWSHR is not required to use a determination by a criminal or civil authority as the basis for
determining whether an act is dishonest or fraudulent, nor must the act rise to the level of a
crime or violation of civil law in order to constitute a violation of this policy.
F. DUTIES AND RESPONSIBILITIES
1. All employees are accountable for setting the appropriate tone of intolerance for
dishonest or fraudulent acts by complying with laws, rules, regulations and policies.
2. Employees in positions of managerial responsibility should be aware of the risks and
exposures in their area of responsibility and are responsible for adherence to internal
controls that will provide for the security and accountability of the resources
entrusted to them.
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G. REPORTING SUSPECTED DISHONEST ACTS OF FRAUDULENT ACTIVITY
1. Any employee who has a reasonable basis for believing a dishonest or fraudulent act
has occurred, or is occurring, has a responsibility to promptly notify their supervisor,
the Controller, the Chief Operating Officer or the President.
2. An employee acting in good faith to report suspected dishonest or fraudulent acts is
protected by State law against retaliation by UWSHR for making such a report:
however, any person determined to be making frivolous claims under this policy will
be subject to appropriate disciplinary procedures including termination from
employment.
3. Employees reporting suspected dishonest or fraudulent acts should refrain from
confrontation with the individual(s) involved and should not discuss the matter with
anyone other than their supervisor, the Controller, the Chief Operating Officer or the
President.
H. INVESTIGATING SUSPECTED DISHONEST ACTS OR FRAUDULENT ACTIVITY
1. The President or designated officer has the primary responsibility for investigating
reported incidents. To the extent possible under state and federal law, source
information will be kept confidential.
2. In those instances where the investigation indicates possible criminal activity, the
investigation may be turned over to the appropriate law enforcement agency.
Required regulatory filings and notifications will be the responsibility of the President
or designated officer.
3. The results of the investigation will be communicated to the Board of Directors.
I. SANCTIONS
1. Employees suspected of participating in dishonest acts or fraudulent activity may be
suspended without pay during the course of the investigation.
2. Employees found to have participated in dishonest acts or fraudulent activity will be
terminated as employees and may also be subject to criminal prosecution or civil
action.
3. Employees found to have knowledge of a dishonest act or fraudulent activity and who
knowingly failed to report the activity will be subject to disciplinary action up to and
including termination from employment.
Prepared/Approved: Financial Committee
Approved:
Board of Directors
Date: May 28, 2004
Date: June 22, 2004
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