Portfolio Holder: Sidney Rajanayagam, Manager, Remuneration & Projects - Extn: 2131

ANTI-FRAUD POLICY SUMMARY

This is a Risk Management Policy and the full contents can be found at http://www.murdoch.edu.au/vco/audit/admin/polproc/AntiFraudPolicy.html
Deterring Fraud at http://www.murdoch.edu.au/vco/audit/admin/polproc/Deterfraud.html

POLICY SUMMARY

This policy covers the prevention, detection and management of fraud and fair dealing in matters pertaining to fraud.  It aims to raise the awareness of fraud and its prevention in the University environment and to give guidance to both the reporting of suspected fraud and how the investigation of that report will proceed.

 The eight policy objectives cover:

• management awareness of anti-fraud responsibilities
• employee guidance if fraud is suspected
• a statement forbidding misconduct
• investigation responsibilities
• assurance that fraud will be fully investigated
• protection guidelines for those reporting suspected fraud
• involvement of the Anti-Corruption Commission
• development of a suitable environment for fraud management.

The Office of Human Resources has responsibilities under this policy, for example, in the recruitment of staff; staff development and training, and ensuring that staff have an awareness of the Anti-Corruption Commission Act.

Recruitment of Staff

Recruitment policy and practices underpins fraud prevention.  Divisions/Schools/Offices in particular must support the human resource recruitment strategies aimed at fraud prevention.  These include:

• Criminal background checks on employees, where the position warrants it
  • Police clearances are required for the following positions:

Cashiers; Custodians of petty cash (handling over $1,000); Security Guards; Logistical Officers; Employees in the Child Care Centre; Pharmaceutical staff; staff working in Chemical Stores; summer school academics dealing with children; University Nurse; Counsellors.

• [1] Contacting previous employers and referees, and
• Verifying transcripts, qualifications, publications and other certification or documentation.

Staff Development and Training

Courses or seminars on the topic fraud, fraud detection and fraud prevention will be developed by the Office of Human Resources, with the assistance from the Office of Internal Audit.

Fraud prevention and detection issues will be included in other relevant staff development and induction activities.

Human Resources will implement suitable induction and awareness procedures relative to the Act.

Anti-Corruption Commission Act

At the commencement of each semester an appropriate notice shall be placed on the Web at the HR Home Page under HR News  by Human Resources as a reminder to employees that they may report such matters to the Commission.  This notice will refer to a page on the Murdoch University web home site at which will be located:

• Up to date references to relevant sections of the Act,
• Action which shall or may be taken when matters falling within the ambit of the Act come under notice.

Responsible Officers

The Anti-Fraud Management group is responsible for the control and administration of the University’s Anti-Fraud policy.  This group shall be selected from within the University and include: 

• Deputy Vice-Chancellor
• Director of Human Resources; and
• Director of Internal Audit.

In addition, the group shall be empowered to co-opt the services of other persons as appropriate.  The most likely investigator will be the Director of Internal Audit and the Deputy Vice-Chancellor shall promulgate and update the Anti-Fraud Policy.

Investigation of complaints  (Section 3.3 of Anti-Fraud Policy)

The Anti-Fraud Management Group will initially conduct a preliminary fact finding review.  Confidentiality concerning the complainant and the information will be maintained at all stages.

In order to avoid damaging the reputations of innocent persons initially suspected of wrongful conduct, and to protect the University from potential civil liability, the results of the audits/investigations will be disclosed or discussed only with those persons who require the knowledge in the proper performance of their office or function.

The Director of Human Resources shall initiate appropriate personnel action.  This action may cover suspension with pay while the matter is being investigated through to the termination of any staff member involved in the fraud.  Advice will need to be sought from the Employee Relations Manager. 

Compulsory Reporting  (Section 3.4.2 of Anti-Fraud Policy)

Section 14 of the Anti-Corruption Commission Act 1988 provides that the principal officer of the Unversity (the Vice-Chancellor) shall report to the Commission any matter –

• Which that person suspects on reasonable grounds concerns or may concern corrupt conduct, criminal conduct, criminal involvement or serious improper conduct; and
• Which is of concern to that person in his or her official capacity.

Written complaints

Employees are encouraged not to make complaints anonymously as anonymous complaints may be difficult to pursue if further information is required and they prevent reporting back to the complainant.  Well-founded anonymous complaints will, however, receive due and proper consideration.

Written, signed and dated summaries by the complainant should identify, where known/possible, the:

• Section and/or location of the alleged incident;
• Key person(s) involved;
• Nature of the alleged incident;
• Time period over which the alleged incident has occurred;
• Value associated with the alleged incident; and
• Documentary evidence in support of the alleged incident.

Prevention of Victimisation (Section 3.4.7 of Anti-Fraud Policy)

Section 53 of the Anti-Corruption Commission Act states that:

A person shall not –

• Prejudice, or threaten to prejudice, the safety or career of; or
• Intimidate or harass, or threaten to intimidate or harass; or
• Do any act that is, or is likely to be, to the detriment of, another person because the other person –
• Has assisted, is assisting or will or may in the future assist the Commission in the performance of its functions; or
• Has furnished, is furnishing or will or may in the future furnish information to the Commission; or
• Has been or is, or has been or is employed by or acting on behalf of, an independent agency or appropriate authority to whom or which an allegation has been referred under section 22(1); or
• Has exercised a power, or performed a duty, conferred or imposed by this Act on the other person or is exercising or performing, or will or may in the future exercise or perform, any such power or duty.

                   Penalties are defined in the Act.

Any person who considers that they are being victimised as a consequence of the assistance being provided to the Commission, should in the first instance contact the Director of Human Resources or nominee for guidance as to appropriate steps which may be taken to alleviate the situation.

Deterring Fraud 

This segment of the policy deals with common areas of fraud and some possible indicators of fraud that should be followed through by all staff to reinforce the message that fraud is not tolerated at Murdoch.

[1] Previous employers should only be contacted with the express approval of the applicant.  In cases where approval is denied, the Chair of a selection panel may ask the applicant for a reasonable explanation.

Responsibilities for Implementation of this Policy  (SECTION 2.2 of Anti- Fraud Policy)

All Administrative Heads must share responsibility for the prevention and detection of fraud and for the carriage of the anti-fraud strategy.

All employees have the responsibility to report suspected fraud.  Any employee who suspects fraudulent activity must immediately notify their supervisor or a member of the Anti-Fraud Management Group. 

RESPONSIBILITIES