THREE RIVERS DISTRICT COUNCIL

ANTI-FRAUD AND CORRUPTION STRATEGY

1 STATEMENT OF THE COUNCIL’S POLICY ON FRAUD AND CORRUPTION

1.1 The Council is committed to maintaining a high level of service for the benefit of its community. As an integral part of this high level of service, the Council aims to prevent the occurrence of fraud and corruption in all its activities.

1.2 Unfortunately prevention is not always successful. The Council is also committed to investigate and detect fraud and corruption.

1.3 To achieve these broad objectives, the Council has established a range of supporting documents and procedures that explicitly or implicitly relate to the prevention, detection and investigation of fraud and corruption.

1.4 These documents and procedures are detailed in this Strategy and aim to ensure that, as far as is reasonably practicable:

· the motives, means and opportunities to perpetrate fraudulent or corrupt acts are minimised;

· internal controls will detect any material fraudulent or corrupt acts that may occur; and

· all cases of suspected fraudulent or corrupt acts are recorded and investigated in a proper manner, including any appropriate disciplinary, legal or other action.

2 DEFINITIONS

2.1 For the purposes of this strategy the terms fraud and corruption are used in their widest sense and are not directly related to those sections of the criminal law under which charges might be brought. However, for further clarification the following definitions are contained in both the CIPFA publication “The Investigation of Fraud in the Public Sector” and the Audit Commission’s “Fraud and Corruption Audit Manual”:-

Fraud

“The intentional distortion of financial statement or other records by persons internal or external to the organisation which is carried out to conceal the misappropriation of assets or otherwise for gain.”

Note: this strategy is also relevant to misappropriation or petty theft without the distortion of financial statements or other records - i.e. somewhat wider than the above definition.

Corruption

“The offering, giving, soliciting or acceptance of an inducement or reward which may influence the action of any person.”

Note: Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family or their friends.

2.2. Thus, fraud may be committed against the Council from the inside by its members (member fraud), employees (employee fraud) or from the outside by third parties (external fraud). In addition, frauds which are committed from outside the Council can be achieved by a third party influencing the actions of insiders (corruption).

2.3 Three main aspects are addressed, although in practice these are not necessarily mutually exclusive and may overlap or be part of a combined control:-

· prevention/deterrence of fraud and corruption

· detection of fraud and corruption

· investigation of suspected fraud and corruption

3. CONTROL ENVIRONMENT AND RESPONSIBILITIES

The Council has put in place a number of controls that individually and collectively contribute to the prevention, detection and investigation of fraud and corruption. These contribute to the Council’s strategies in respect of corporate governance. Different parties have varying responsibilities, these are listed below together with details of the relevant supporting documents.

3.1 Generally

The Council’s culture and ethical values encourage a willingness to admit problems and disclose information, together with a top-down commitment to, and ownership of, the control environment.

Features of the control environment are:

· sound systems of financial management;

· effective and well-documented internal controls;

· accountability through clear roles and responsibilities throughout the Council;

· effective communication systems, both within the Council and external to it;

· effective use of technology, and

· effective budgetary control and performance monitoring systems.

Key documents are:

Ø The Council’s Constitution including Contract and Financial Procedure Rules;

Ø The Council’s Computer Usage Guidelines.

3.2 Members

Members have agreed to be bound by the Code of Conduct which has been incorporated in the Council’s Constitution. The Council has a Standards Committee to consider and advise on complaints about the conduct of a Councillor.

Members will declare interests as appropriate.

3.3 Management

The Council has determined the ‘Proper Officer’ appointments under the Local Government Act 1972 (as amended), including the Director of Corporate Resources to be responsible for the administration of the Council’s financial affairs (Section 151).

There is an entire range of internal control systems implemented by management at all levels in respect of individual services and activities. The main objectives of these controls are defined by the Auditing Practices Board and CIPFA as;

· to ensure adherence to management policies and directives in order to achieve the Council’s objectives;

· to safeguard assets;

· to secure the relevance, reliability and integrity of information, so ensuring as far as possible the completeness and accuracy of records; and

· to ensure compliance with statutory requirements.

Additionally managers are expected to carry out risk assessments.

3.4 Employees

The Council will ensure that it has sound recruitment and disciplinary procedures.

The Council will ensure that it has effective procedures for training and maintaining competence, including training in fraud prevention, detection and investigation. Induction training will cover ethics and the code of conduct.

The Council will ensure that its officers are aware of this Strategy and the arrangements for ‘whistleblowing’ (see Annex 1 attached). The whistleblowing procedure aims to provide appropriate arrangements to receive complaints from staff and for concerns to be aired.

The Council’s disciplinary code incorporates the arrangements for handling breaches of the Constitution and Financial Procedure Rules.

Employees will declare interests as appropriate.

Key documents are:

Ø TRDC Formal Code of Conduct (for employees);

Ø TRDC Question and Answer Code of Conduct (for employees);

Ø TRDC Disciplinary Rules and Procedures; and,

Ø TRDC booklet “Conventions Between Political Groups and Officers”.

3.5 Investigating Officers

The Council will observe the law on Data Protection and the rules of confidentiality at all times. The Council will be correctly registered under the Data Protection Act 1998.

The Council will comply with the Regulation of Investigatory Powers Act 2000.

The Council will comply with the European Convention on Human Rights.

When investigating fraud, investigators will work within the guidelines of the Police and Criminal Evidence Act and apply the Council’s policies on equal opportunities and customer care. Officers will at all times apply appropriate procedures to maintain confidentiality.

Key document:

Ø Home Office Covert Surveillance Code of Practice Pursuant to Section 71 of the Regulation of Investigatory Powers Act 2000.

3.6 Internal Audit

Work is undertaken by internal audit under the Council’s statutory duty to maintain an adequate and effective internal audit. The audit programme includes appropriate risk assessments.

3.7 External Audit

The Council’s external audit is carried out in accordance with the ‘Code of Audit Practice’. The responsibilities of the auditor and the audited body (i.e. the Council) are set out in a statement accompanying the Code.

3.8 Contractors

The Council’s standard Terms and Conditions of Contract allow for the termination of a contract in the event of fraud or corruption.

3.9 The Public

The Council has a complaints procedure which provides arrangements for complaints from third parties to be received and for concerns to be aired. The complaints procedure ensures that officers responsible for dealing with complaints are alert to the potential for fraud and corruption.

4. INVESTIGATION PROCEDURES

Different procedures apply to:

· Benefit Fraud, and

· Other Fraud and Corruption

Benefit Fraud

The Council has adopted the ‘Verification Framework’ to prevent benefit fraud (see Annex 2 attached).

Any allegation of benefit fraud against a council member, an officer or a member of the public, must be referred to the Council’s Benefit Fraud Team under the supervision of the Exchequer Services Manager.

Other Fraud and Corruption

Any allegation of fraud or corruption (other than benefit fraud) against an officer of the Council or a third party must be referred to the Chief Executive or Director of Corporate Resources who will determine how the investigation will proceed in accordance with Financial Procedure Rule 13.

Any allegation against a member of the Council must be referred to the Monitoring Officer (Solicitor to the Council) who will decide whether the matter should be referred to the Standards Committee.

5. SANCTIONS

5.1 Benefit Fraud

The Council’s Housing Benefit/Council Tax Benefit Sanction Policy is attached at Annex 3

5.2 Other Fraud and Corruption

Consideration will be given to each case on its merits.

6. REVISING THE STRATEGY

Amendments to this strategy will be agreed by the Executive Committee.


Annex 1

THE COUNCIL’S WHISTLEBLOWING POLICY

1. INTRODUCTION

1.1 Employees are often the first to realise that there may be something seriously wrong within the Council. However, they may not express their concerns because they feel that speaking up would be disloyal to their colleagues or to the Council. They may also fear harassment or victimisation. In these circumstances, it may be easier to ignore the concern rather than report what may just be a suspicion of malpractice.

1.2 The Council is committed to the highest possible standards of openness, probity and accountability. In line with that commitment we encourage employees and others with serious concerns about any aspect of the Council’s work to come forward and voice those concerns. It is recognised that certain cases will have to proceed on a confidential basis. This policy document makes it clear that staff can do so without fear of reprisals. This Whistleblowing policy is intended to encourage and enable staff to raise serious concerns within the Council rather than overlooking a problem or blowing the whistle outside.

1.3 This policy has been discussed with the relevant trade unions and professional organisations and has their support.

2. AIMS AND SCOPE OF THIS POLICY

2.1 This policy aims to:-

· provide avenues for you to raise concerns and receive feedback on any action taken;

· allow you to take the matter further if you are dissatisfied with the Council’s response; and

· reassure you that you will be protected from reprisals or victimisation for whistleblowing in good faith.

2.2 There are existing procedures in place to enable you to lodge a grievance relating to your own employment. This whistleblowing policy is intended to cover concerns that fall outside the scope of other procedures.

That concern may be about something that:-

· is unlawful; or

· is against the Council’s Standing Orders or policies;

· falls below established standards or practice; or

· amounts to improper conduct.

3. SAFEGUARDS

3.1 Harassment or Victimisation

The Council recognises that the decision to report a concern can be a difficult one to make, not least because of the fear of reprisal from those responsible for the malpractice. The Council will not tolerate harassment or victimisation and will take action to protect you when you raise a concern in good faith.

3.2 This does not mean that if you are already the subject of disciplinary or redundancy procedures, that those procedures will be halted as a result of your whistleblowing.

3.3 Confidentiality

The Council will do its best to protect your identity when you raise a concern and do not want your name to be disclosed. It must be appreciated that the investigation process may reveal the source of the information and a statement by you may be required as part of the evidence.

3.4 Anonymous Allegations

This policy encourages you to put your name to your allegation. Concerns expressed anonymously are much less powerful, but they will be considered at the discretion of the Council.

3.5 In exercising the discretion, the factors to be taken into account would include:-

· the seriousness of the issues raised;

· the credibility of the concern; and

· the likelihood of confirming the allegation from attributable sources.

3.6 Untrue Allegations

If you make an allegation in good faith, but it is not confirmed by the investigation, no action will be taken against you. If, however, you make malicious or vexatious allegations, disciplinary action may be taken against you.

4. HOW TO RAISE A CONCERN

4.1 As a first step, you should normally raise concerns with your immediate manager or their superior. This depends, however, on the seriousness and sensitivity of the issues involved and who is thought to be involved in the malpractice. For example, if you believe that management is involved, you should approach the Chief Executive, Chief Financial Officer, Monitoring Officer, or Internal Audit. Where the matter concerns benefit payments the matter can be referred to the Benefit Fraud Team.

4.2 Concerns are better raised in writing. You are invited to set out the background and history of the concern, giving names, dates and places where possible, and the reason why you are particularly concerned about the situation. If you do not feel able to put your concern in writing, you can telephone or meet the appropriate officer.

4.3 The earlier you express the concern, the easier it is to take action.

4.4 Although you are not expected to prove the truth of an allegation, you will need to demonstrate to the person contacted that there are sufficient grounds for your concern.

4.5 Advice and guidance on how matters of concern may be pursued can be obtained from:-

Chief Executive,

Chief Financial Officer (Director of Corporate Resources),

Monitoring Officer,

Personnel & Training Manager.

4.6 You may invite your trade union or professional association to raise a matter on your behalf.

4.7 If you feel unable to raise the matter within the Council, please refer to paragraph 6.

5. HOW THE COUNCIL WILL RESPOND

5.1 The action taken by the Council will depend on the nature of the concern. The matters raised may:-

· be investigated internally;

· be referred to the Police;

· be referred to the external Auditor;

· form the subject of an independent inquiry.

5.2 In order to protect individuals and the Council, initial enquiries will be made to decide whether an investigation is appropriate and, if so, what form it should take. Concerns or allegations which fall within the scope of specific procedures (for example, child protection or discrimination issues) will normally be referred for consideration under those procedures.

5.3 Some concerns may be resolved by agreed action without the need for investigation.

5.4 Within ten working days of a concern being received, the Council will write to you:-

· acknowledging that the concern has been received;

· indicating how it proposes to deal with the matter;

· giving an estimate of how long it will take to provide a final response;