INTRODUCTION
o DISCUSS ADOPTION OF FRAUD AND THEFT POLICY
o ASSIGNS RESPONSIBILITY FOR REPORTING FRAUD AND THEFT
o PROVIDES GUIDELINES FOR INVESTIGATIONS OF SUSPECTED
FRAUD OR THEFT
o FRAUD AWARENESS TRAINING REQUIREMENTS
o CONSEQUENCES - READ THE POLICY
o FRAUD, THEFT (AND WHISTLEBLOWER) HOTLINE AND WEBSITE
DEFINITIONS
WHAT ARE SOME EXAMPLES OF FRAUD?
 Forgery or alteration of a check, bank draft, or any other
financial document
 Theft of a check or other diversion of a payment made to
the city
 Improper or dishonest handling of funds, supplies or
other assets
 Improper handling or reporting of financial transactions
 Profiteering as a result of insider knowledge of City
operations
 Selling or using confidential City information in the
conduct of an outside business activity
DEFINITIONS
WHAT ARE SOME EXAMPLES OF THEFT?
 The act of taking something from someone
unlawfully
 Taking equipment or supplies belonging to the City
and keeping it for personal use
 Improper use of employee purchasing privileges (for
example: using ID card for personal use)
AUDITOR QUESTIONNAIRE:
DISCUSS QUESTIONNAIRE
- Sent to financial managers & to randomly selected
employees
RESPONSIBILITY TO REPORT FRAUD
EMPLOYEES OR VOLUNTEERS:
• IF YOU SUSPECT FRAUD OR THEFT, WHAT DO YOU DO?
oREPORT TO SUPERVISOR OR ETHICS OFFICER
(WHO IS THE ETHICS OFFICER ?) CITY ATTORNEY
o THE SUPERVISOR DOES NOT HAVE THE AUTHORITY TO
DETERMINE THE MERITS OF A REPORT OF KNOWN OR SUSPECTED
FRAUD OR THEFT; ONLY THE ETHICS OFFICER MAKES THIS
DETERMINATION; SUPERVISORS SHOULD MAKE REPORTS TO THE
ETHICS OFFICER FOR FURTHER INVESTIGATION
• IDENTITY OF COMPLAINANT WILL BE PROTECTED TO THE FULL
EXTENT ALLOWED BY LAW
-anonymous reporting makes this point moot (debatable)
• ANY FORM OF RETALIATION AGAINST COMPLAINANT WILL NOT BE
TOLERATED
ELECTED OFFICIALS:
• IF YOU SUSPECT FRAUD OR THEFT, WHAT DO YOU DO?
oREPORT TO ETHICS OFFICER OR CITY MANAGER
GUIDELINES
•DO NOT CONTACT THE SUSPECTED INDIVIDUAL
•ALLOW THE ETHICS OFFICER TO CONDUCT THE
INVESTIGATION
•OBSERVE STRICT CONFIDENTIALITY - DO NOT DISCUSS
WITH ANYONE OTHER THAN YOUR SUPERVISOR OR THE
ETHICS OFFICER
o Progress of investigation can be accessed by use of a
confidential code system
RESPONSIBILITIES OF THE ETHICS OFFICER AND
GUIDELINES FOR THE INVESTIGATION
•CONDUCT THE INVESTIGATION, DETERMINE IF THE REPORT IS
CREDIBLE AND DOCUMENT THE RESULTS
•MAKES EVERY EFFORT TO PROTECT THE IDENTITY OF THE
PERSON WHO, IN GOOD FAITH, REPORTED THE SUSPECTED FRAUD
DISCIPLINARY ACTION WILL BE TAKE IF:
•EMPLOYEE ENGAGES IN FRAUD OR THEFT
•EMPLOYEE SUSPECTS OR DISCOVERS FRAUD
AND FAILS TO REPORT
-could give the appearance of complicity
•EMPLOYEE INTENTIONALLY REPORTS FALSE OR MISLEADING
INFORMATION
FRAUD AWARENESS TRAINING
•ALL EMPLOYEES ARE REQUIRED TO ATTEND FRAUD AWARENESS TRAINING AT
LEAST ONCE EVERY THREE YEARS
•ALL EMPLOYEES IN FINANCIAL POSITIONS MUST HAVE TRAINING EVERY YEAR
ANNUAL REPORT
•INCIDENTS REPORTED TO AUDIT COMMITTEE
WHISTLEBLOWER POLICY
•FRAUD HOTLINE AND WEBSITE: THE WHISTLEBLOWER POLICY COVERS
SEVERAL OTHER AREAS IN ADDITION TO THEFT AND FRAUD
–hand out bill-fold card, and HR director information on other
areas of reporting
Questions and answers:
Speak Up for rCity Values of Integrity and Respect
Report Suspected Fraud or Theft
Telephone: 1-866-607-0157
Website:
https://WhistleblowerTipLine.alertline.com
Reports are confidential
Log in to report behaviors that violate the law and
rCity values.
• Harassment or discrimination
•Threats or violence
•Theft or fraud; accounting or financial irregularities
• Violations of laws or regulations
• On-the-job drug or alcohol abuse
It’s easy, confidential, and always available!