ANTI-FRAUD AND CORRUPTION POLICY 1.0

INTRODUCTION AND AIM

1.1

Weaver Vale Housing Trust (The Trust) is committed to high legal ethical and moral standards. All members of staff and board members are expected to share this commitment. This policy is established to facilitate the development of procedures which will aid the investigation of fraud and corruption.

1.2

The Trust takes a ZERO TOLERANCE approach to any fraud and corruption.

1.3

There is no definitive definition of Fraud. The Institute of Internal Auditors Fraud Position Statement provides the fraud definitions used by the Metropolitan Police Fraud Squad and the Law Commission, the first of which is quite concise and the second is somewhat broader. The principles of both definitions have been amalgamated below:Employees, Board Members or third parties intentionally:

Make false representations (ie the distortion, suppression or falsification of financial or other records – including expense claims, falsification of job application details and time sheets).



Abusing a position in which a person is expected to safeguard the financial interests and assets of the Trust and its clients.

This includes misappropriating, or assisting in misappropriating, the Trust’s money and property. 1.4

The definition of corruption is where someone is influenced by bribery (payment or benefit in kind) to unreasonably use their position to give an advantage to another (person or company). The Bribery Act 2010 identifies 4 offences:   

Bribing another person Where a person receives or accepts a bribe Bribing a foreign official Failure of organisations to prevent a bribe

The Trust does not and will not pay bribes to any one for any purpose, nor will it accept bribes for any purpose.

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1.5

The policy recognises the potential for fraudulent or corrupt activity to be perpetrated by Board Members and Management, by staff at all levels of the Trust, by other organisations with which the Trust might contract, employ or otherwise do business (eg contractors, suppliers, service providers) or by tenants.

1.6

The Trust will treat each case on its own merit when deciding whether it is material enough to be judged as a fraud or corruption.

1.7

One of the Trust core values is openness; this underpins the ‘proper use of funds’ which is a basic principle of organisations operating with the regulated housing sector. The Board is committed to maintaining an honest, open and harmonious atmosphere with the Trust. It is also committed to the elimination of any fraud or corruption occurring within the Trust and to the rigorous investigation of any such cases.

1.8

It is therefore important that all those who work for the Trust are aware of the risk of and means of enforcing its rules against fraud or corruption and other illegal acts involving dishonesty or damage to property. All staff has a duty to protect the assets of the Trust, which includes information and goodwill as well as property.

1.9

The Board wishes to encourage anyone having reasonable suspicions of fraud or corruption to report them. The Trust’s Whistle Blowing Policy will ensure that all members of staff, board members, tenants and members of the public will not be victimised as a result of reporting reasonably held suspicions of fraud or corruption.

1.10

Employees should be aware that when fraud or corruption has been proven, the Trust will take action within its Disciplinary Procedures which could result in dismissal and Legal proceedings being taken where appropriate. Likewise, the requirements of the Anti-fraud and Corruption Policy will be followed for any instances of potential fraud or corruption identified during the disciplinary process.

2.0

Anti-Fraud and Corruption Policy Anti-Fraud Co-ordinator

2.1

The Director of Resources has been designated as Anti-Fraud Co-ordinator and as such will be responsible for co-ordinating the action to be taken on all reported allegations and suspicions of fraud or corruption and on any confirmed instances of Fraud or Corruption. In his absence the Director or Organisation and People Development has been nominated as the deputy Anti-Fraud Co-ordinator. Receipt of Allegations and Suspicions of Fraud

2.2

All allegations or suspicions regarding fraud or corruption whether they be from employees, board members, tenants, other customers or members of 2

2.3

the public, must be promptly forwarded to the Anti-Fraud Co-ordinator, whereupon they will be recorded in a ‘Fraud Allegations/Suspicions’ Register. This register will be located in a secure location at all times. The Whistle Blowing Policy stipulates that the following nominated people are also authorised to receive suspicions and allegations of staff confidentially, and pass the details directly to the Anti-fraud Co-ordinator (they will not conduct any investigation themselves):

The Chair and the Deputy Chair of the Board (see paragraph 2.4 for details)



Chief Executive



Directors of Property Services, Housing & Community Services and Organisation and People Development



The Regulation & Assurance Manager



The Internal Auditors (Nicola Higginbottom, Senior Manager, PKF [email protected]

However, the receipt of allegations against a Director must be referred directly to the Chief Executive; any allegations against the Chief Executive must be referred directly to the Chair of the Group Audit and Assurance Committee (see paragraph 2.4). Any allegations against the Chair of the Group Audit and Assurance Committee must be referred directly to both the Chair of the Board (see paragraph 2.4 for contact details) and the Chief Executive. Any allegations against the Chair of the Board must be referred directly to both the Chair of the Group Audit and Assurance Committee and the Chief Executive. 2.4

The Chair and Vice Chair of the Board can be contacted via the following PO Box addresses – it is imperative that the exact addresses detailed below in bold are used and that no further data is added: 

Chair of the Board: J Boyd, PO Box 448, Northwich, CW8 2YJ



Deputy Chair of the Board Anita Millar, PO Box 228, Sandbach, CW11 5BL

2.5

Training will be provided to the Trust’s Complaints Co-ordinators to ensure that any suspicions or allegations raised by members of the public via the Complaints process are passed directly to the Anti-Fraud Co-ordinator. 3

Investigation Allegations and Suspicions of Fraud 2.6

The Anti-Fraud Co-ordinator will immediately upon receipt, notify the Chief Executive and the Chair of the Group Audit and Assurance Committee of all material allegations and suspicions received. Dependent upon the impact and materiality of the allegations and suspicions, it may also be appropriate to notify the Chairman of the Board. The Chairman should always be notified of any cases relating to Board Members or members of the Executive Management Team.

2.7

The Anti-Fraud Co-ordinator will decide on the initial investigative action required to establish whether the allegation/suspicion is likely to be corroborated and as such requires a full investigation. The outcome of this initial investigation will be documented and summarised in the Allegations/Suspicions Register and be reported to the Chief Executive, Group Audit and Assurance Committee (and Chairman if deemed appropriate).

2.8

The Anti-Fraud Co-ordinator will decide who is best placed to conduct the full investigation, the circumstances of each case will dictate who will be involved and when. Full consideration will be given to Disciplinary Action and Employment Law implications and to ensuring that there is not a conflict of interest. Immediate Line Managers will not normally lead the investigation. External advisors (ie lawyers, solicitors, investigators) will usually be used to investigate all allegations and suspicions against a member of Executive Management Team or Board Members.

2.9

The Anti-Fraud Co-ordinator will also be responsible for deciding whether the Police are to be informed.

2.10

It will be ensured that the Trust has the appropriate fraud and corruption insurance cover and that all of its requirements are fully adhered to.

2.11

Surveillance will not be undertaken without prior approval of the appropriate Director and the Director of Organisation and People Development.

2.12

Internal Audit’s role in relation to suspected and identified fraud will be restricted to:-

2.13



Investigating the causes of fraud or corruptions by reviewing the adequacy of existing procedures, and recommending improvements to prevent recurrence.



Assisting the investigation with specialist knowledge, where required.

The Anti-Fraud Co-ordinator will notify the Chief Executive and the Group Audit and Assurance Committee Chair (and the Chairman where appropriate) 4

of the outcome of the investigation and enter the details in the “Fraud Allegations/Suspicions” Register. Details of confirmed Frauds or Corruptions will also be updated in the Fraud and Corruptions Register. 2.14

Where allegations or suspicions are received via the Whistle Blowing Policy, the originator will be advised of the outcome of the situation, as appropriate.

2.15

This policy will be supported by guidance for conducting investigations internally. Confirmation of Actual or Attempted Fraud or Corruption

2.16

The Anti-Fraud Co-ordinator will inform the relevant regulator of all actual or attempted frauds or corruptions in excess of £5,000 or equivalent value; and any fraud or corrupt act by a Board Member or member of the Executive Management Team, irrespective of the value involved.

2.17

The Trust will take all reasonable action to recover any assets that have been lost and take appropriate action against staff or Board Members who commit fraud or corruption or whose conduct allows fraud or corruption to be committed.

Review of registers 2.18

Both the Allegations/Suspicions Register and the Fraud and Corruption register will be reviewed by the Chair of the Group Audit and Assurance Committee at each Group Audit and Assurance Committee meeting.

2.19

When submitting new cases of confirmed actual and attempted fraud/corruption, the Group Audit and Assurance Committee will be provided with a brief report on the nature and extent of the fraud and any implications for the Trust’s Internal Control system. Media

2.20

Any media enquiries or statements will be handled by the Trust’s PR Advisors. Feedback to Staff

2.21

Where practical and possible the Trust will feedback to all or specific members of staff the outcomes of any investigation.

3.

Equality and Diversity The Trust recognises that it must strive to meet any special needs of its disabled, infirm, elderly, minority ethnic and customers with diverse needs and will ensure that it does so within this policy by ascertaining and recording any special needs that may need to be met.

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4.

Responsibility The Director of Resources is responsible to the Chief Executive and Board for ensuring the effective implementation of this policy.

5.

Links and Interdependencies Whistle Blowing Policy, Financial Regulations, Group Code of Governance, Employees and Board member Code of Conduct, Disciplinary Policy, Risk Management Policy, Declarations of Interest, Gifts, Hospitality & Favours and Payments and Benefits.

6.

External Influences Trade Unions Legal and professional best practice.

7.

Reviewed Author of Policy

Date of Review

Andrew White

September 2011

Approved by ie EMT/ Review Date Board GAAC November 2014/15 2011 3 Years

September 2012 the following contact details were amended:  Paragraph 2.3 – new Internal Audit arrangements September 2013 the following contact details were amended:  Paragraphs 2.3 & 2.4 – new whistleblowing arrangements Deputy Chair of the Board replacing GAAC Chair

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