Fraud and Corruption Policy and Procedures

Application

All members of the University community.

Purpose

To protect the University, its operations, its assets and all members of the University community from the consequences of fraudulent or corrupt activity.

Introduction

The University is committed to maintaining the highest ethical standards in its activities and operations and to preventing fraud and corruption and related misconduct.

As a public sector organisation the University is entrusted with public funds and its staff members are expected to maintain the public trust by exhibiting the highest standards of integrity and honesty.

The terms fraud and corruption are not limited to monetary or material benefits. Fraud and corruption typically involve a deliberate, dishonest or deceptive act or omission that may cause loss or disadvantage to the University or result in a direct or indirect gain or advantage to any person.

Policy

1. All members of the University community must maintain the highest ethical standards in their own activities and operations and must not participate in fraud or corruption or any related misconduct.

2. All managers at the University must promote and implement measures to prevent and detect fraud and corruption amongst their staff members and colleagues, and support robust fraud protection and risk management practices and programmes across the University.

Responsibilities

3. All members of the University community must take all practical steps to:

  • maintain the highest ethical standards in their activities and operations
  • report suspected fraud, corruption or related misconduct, and assist with the prevention and detection of such activities
  • support and protect any individual who seeks, in good faith, to report suspected fraud, corruption or related misconduct
  • ensure they gain an adequate understanding of how to detect and prevent fraud and corruption

4. Within their area of responsibility, all managers must take all practical steps to:

  • assess and minimise the risk of fraud
  • support the University’s internal control system and monitor the output of the detection (e.g. unusual transaction analysis or similar analytics) and other fraud risk management programmes
  • promote awareness of ethics and fraud prevention amongst staff members, and
  • ensure any reports received of fraud, corruption or related misconduct are dealt with in accordance with this policy, or otherwise as directed by the Registrar

5. The CFO must:

  • ensure adequate and effective internal controls are in place for relevant business processes, particularly those that are assessed as having a higher risk of fraud and corruption
  • ensure the regular review of internal controls
  • report all financial losses occurring as a result of fraud to the Registrar, Chair of the Audit and Risk Committee and to others as appropriate in the circumstances

6. The Registrar must:

  • where considered appropriate, appoint an investigator to investigate any allegation of fraud, corruption or related misconduct
  • decide on the level of seriousness of the potential fraud
  • determine whether the matter is to be reported to the Police or any other external authorities

Procedures

Detection and reporting

7. An individual who is aware or who suspects fraud, corruption or related misconduct must promptly report such activity to any of the following:

  • their line manager or another manager
  • Registrar
  • Whistleblower hotline (0800 100 526)
  • Risk Office

8. In the event that fraud is suspected, every effort must be made to preserve and protect all relevant evidence that may be required to support internal disciplinary action, or where appropriate, criminal prosecution.

9. All information collected or received during an investigation into fraud must be treated in confidence, except as necessary for the thorough investigation and resolution of the complaint, to meet the requirements of natural justice or otherwise required by law.

10. The Registrar is to determine whether to appoint an investigator.

Investigation

11. Where appointed by the Registrar, the investigator is to:

  • develop an investigation plan
  • investigate the allegation(s) of fraud, corruption or related misconduct
  • after reviewing the information available, determine whether relevant records should be secured with limited access (evidence protection strategy)
  • identify expertise and resources required for the investigation
  • manage all privacy and protected disclosure issues
  • gather information, including interviews
  • prepare a final report

12. The investigator is to report to the Registrar throughout the investigation as directed.

13. The investigator is authorised to examine, copy, and/or secure the contents of files, desks, cabinets, and other storage facilities, including digital storage facilities, on the campus without the consent of any individual. Personal property is excepted.

Consequences

14. When the investigation is complete, the investigator is to submit a final report to the Registrar.

15. Where the investigator’s report supports the allegation of fraud or corruption or related misconduct against a staff member, the Registrar is to refer the matter to the Director HR to determine whether the matter is to be dealt with under the applicable staff disciplinary policy and procedures.

16. In all other cases of alleged fraud, corruption or related misconduct, the Registrar is to determine how the matter is to be dealt with and/or what action, if any, is to be taken.

17. The recovery of any lost money or other property is to be pursued wherever practicable and appropriate.

18. In cases where the investigation indicates that criminal charges may be warranted, the Registrar is to determine whether law enforcement agencies will be notified.

19. The Manager Performance and Risk is to prepare a report recommending what, if any, improvements to internal controls are to be undertaken.

20. The Registrar is to provide the Audit and Risk Committee with a summary of the findings and any actions taken.

Definitions

The following definitions apply to this document:

Corruption refers to the abuse of entrusted power for private gain (e.g. soliciting or receiving gifts or other gratuities to perform part of an official function, or omit to perform an official duty).

It includes dishonest activity in which a manager, staff member or contractor of the University acts contrary to the interests of the University and abuses their position of trust in order to achieve some personal gain or advantage for him or herself or for another person or entity.

Fraud is an intentional and dishonest act involving deception or misrepresentation, to obtain or potentially obtain an advantage for themselves or any other person.

It includes the deliberate falsification, concealment, destruction or use of falsified documentation used or intended for use for a normal business purpose of the University or the improper use of information or position whether or not for personal benefit.

Where the context permits, the term ‘fraud’ will include corruption and other related misconduct.

Protected disclosure means a protected disclosure as defined in the Protected Disclosures Act.

Staff member refers to an individual employed by the University on a full or part time basis.

University means the University of Auckland and includes all subsidiaries.

University community includes all staff members (whether permanent, temporary or part time), honorary staff, students (whether full time or part time), contractors, subcontractors, consultants, alumni, associates, business partners or official visitors or guests of members of the University or UniServices. It includes contractors, visiting and adjunct staff members and any other person providing services to the University.

Key relevant documents

Include the following:

Document management and control

Owner: Registrar
Content manager: Manager Performance and Risk
Approved by: Vice-Chancellor
Approval date: 1 February 2018
Review date: 1 February 2023