Fraud Response Plan - Anti-Fraud Policy And Fraud Response Plan - Freedom Of Information Act - About Us - Translink
Fraud Response Plan
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
The following paragraphs summarise the actions to be taken following the discovery of fraud or suspected fraud.
1. PURPOSE OF THE FRAUD RESPONSE PLAN
The purpose of this plan is to ensure that timely and effective action is taken in the event of a fraud. The plan aims to help minimize losses and increase the chances of a successful investigation.
The plan defines authority levels, responsibilities for action, and reporting lines in the event of a suspected fraud or irregularity. The plan acts as a checklist of actions and a guide to follow in the event of fraud being suspected. The plan is designed to enable Translink to:
(i) prevent further loss
(ii) establish and secure evidence necessary for criminal and/or disciplinary action
(iii) notify the Internal Auditor/Group Accountant immediately
(iv) enable the Internal Auditor/Group Accountant to contact the Director of Finance promptly
(v) determine when and how to contact the police and establish lines of communication
(vi) assign responsibility for investigating the incident
(vii) minimise and recover losses
(viii) review the reasons for the incident, the measures taken to prevent a recurrence, and determine any action needed to strengthen future responses to fraud
(ix) keep all personnel with a need to know suitably informed about the incident as the investigation develops
(x) help promote an anti-fraud culture by making it clear to employees and others that Translink will pursue all cases of fraud vigorously taking appropriate legal and/or disciplinary action in all cases where that is justified.
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1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
2. REPORTING TO THE DEPARTMENT FOR REGIONAL DEVELOPMENT
Details reported annually on the appropriate forms or otherwise as agreed.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
3. ACTION FOLLOWING DETECTION
When any member of staff suspects that a fraud has occurred, he/she must notify his/her Line Manager immediately. Speed is of the essence and this initial report should be verbal and must be followed up within 24 hours by a written report addressed to the Line Manager which should cover:
(i) The amount/value, if established.
(ii) The position regarding recovery.
(iii) The period over which the irregularity occurred, if known.
(iv) The date of discovery and how the suspected fraud was discovered.
(v) The type of irregularity and what led to it, i.e.:
- was there a breakdown in the systems of internal control, or
- is there any inherent weakness in the system of internal control which allowed it to occur?
(vi) Whether the person responsible has been identified.
(vii) Whether any collusion with others is suspected.
(viii) Details of any actions taken to date.
(ix) Any other information or comments which might be useful.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
4. CONSULTATION WITHIN TRANSLINK
On verbal notification of a possible fraud the Line Manager/Internal Auditor must immediately contact the Director of Finance. It is a matter for the Line Manager/Internal Auditor in consultation with the Director of Finance to decide whether there is prima facie evidence of fraud in which case the police should be notified immediately, normally by the Line Manager/Internal Auditor. On receipt of the follow up written report, the Line Manager should forward this to the Director of Finance.
Internal Audit also has an interest in fraud as the extent and nature of fraud within a Division can give an indication of the soundness of that Division's systems. The written report sent to the Director of Finance should therefore be copied to the Internal Auditor. The rapid discovery and proper reporting of fraud can also be an indicator of the strength of control within a Division.
The Director of Human Resources should also be informed or consulted as necessary.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
5. INITIAL ENQUIRIES
Before completing the report above it may be necessary for line management to undertake an initial enquiry to ascertain the facts. This enquiry should be carried out as speedily as possible after suspicion has been aroused: prompt action is essential. The purpose of the initial enquiry is to confirm or repudiate, as far as possible, the suspicions that have arisen so that, if necessary, disciplinary action including further and more detailed investigation (under internal disciplinary procedures and/or the police) may be instigated. Internal Audit is available to offer advice on any specific course of action which may be necessary.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
6. MANAGERS’ DUTY OF CARE
Managers conducting initial enquiries must be conscious that internal disciplinary action and /or criminal prosecution may result. If such action is later taken then under proper procedure the member of staff concerned has a right to representation and may have the right to remain silent. Utmost care is therefore required from the outset in conducting enquiries and interviews.
In addition, in order to protect Translink from further loss and destruction of evidence, it may be necessary to suspend the member of staff concerned immediately the allegation has been made or following the submission of the manager’s initial verbal report. Specific advice should be sought from Human Resources before proceeding.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
7. PROTECTION OF EVIDENCE
If the initial examination confirms the suspicion that a fraud has been perpetrated, then to prevent the loss of evidence which may subsequently prove essential for disciplinary action or prosecution, management should;
(i) take steps to ensure that all original evidence is secured as soon as possible;
(ii) be able to account for the security of the evidence at all times after it has been secured, including keeping a record of its movement and signatures of all persons to whom the evidence has been transferred. For this purpose all items of evidence should be individually numbered and descriptively labelled;
(iii) not alter or amend the evidence in any way;
(iv) keep a note of when they came into possession of the evidence. This will be useful later if proceedings take place;
(v) remember that all memoranda relating to the investigation must be disclosed to the defence in the event of formal proceedings and so it is important to carefully consider what information needs to be recorded. Particular care must be taken with phrases such as “discrepancy” and “irregularity” when what is really meant is fraud or theft.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
8. APPOINTMENT OF CASE MANAGER
Should the initial investigation indicate that there is prima facie evidence of fraud it is critical that the Line Manager requests the Internal Auditor to oversee and control the subsequent investigation. The request should be in writing and Terms of Reference should also be agreed. The Internal Auditor should arrange for an action plan to be put in place with, as far as is possible, a set timeframe and regular reviews. The Internal Auditor has full responsibility for progressing the case and whilst he/she can, and should, call on the assistance of various sources of help at all stages (technical assistance, personnel, external audit, solicitors etc.) ultimate responsibility and accountability in progressing the case should remain with that officer (the Internal Auditor may however appoint a suitably qualified and experienced Investigation Officer to carry out the detailed investigation work.) The Internal Auditor should therefore have the necessary authority (i.e. the appropriate rank and experience) to enable him/her to properly discharge these duties. The Internal Auditor should also be independent from the matter in question. It is the responsibility of the Internal Auditor to keep the Director of Finance abreast of developments. In particular the Internal Auditor should report all material developments promptly to the Director of Finance for onward reporting to the Executive Team and Audit Committee.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
9. POLICE INVOLVEMENT
If the Line Manager, in consultation with the Director of Finance is satisfied that there is prima facie evidence of fraud, then they must report the matter to the police. Consultation with the police at an early stage is beneficial allowing the police to examine the evidence available at that time and make decisions on whether there is sufficient evidence to support a criminal prosecution or if a police investigation is appropriate. Alternatively, the police may recommend that Translink conducts further investigations and, generally, they will provide useful advice and guidance on how the case should be taken forward.
If the police decide to investigate then it may be necessary for the Internal Auditor to postpone further internal action and make suitable adjustments to the action plan. However, the Internal Auditor should continue to liaise with the police at regular intervals and report on progress made.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
10. FRAUD REGISTER
The Internal Auditor should ensure that the Fraud Register, which is held by Director of Human Resources, is updated with all the appropriate details including the value of any loss to the Company as a result of the fraud.
1. Purpose of the Fraud Response Plan l 2. Reporting to the Department for Regional Development l 3. Action Following Detection l 4. Consultation within Translink l 5. Initial Enquiries l 6. Managers' Duty of Care l 7. Protection of Evidence l 8. Appointment of Case Manager l 9. Police Involvement l 10. Fraud Register l 11. Learning from Experience
11. LEARNING FROM EXPERIENCE
Following completion of the case, the Internal Auditor should prepare a summary report on the outcome and lessons learned circulating it to all other interested parties who must take the appropriate action to improve controls to mitigate the scope for future recurrence of the fraud.
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