Anti Theft Policy

Human Fertilisation & Embryology Authority
Counter Fraud and Anti Theft Policy

In this policy: Counter Fraud and Anti-Theft Strategy
1 2 Introduction Protecting the Authority from the risk of Fraud and Theft
Counter Fraud and Anti-Theft Policy

3 4 5 6 7 Introduction Definitions of Fraud and Theft Avenues for Reporting Fraud and Theft Responsibilities References
Doc name: Counter Fraud and Anti Theft Policy Doc reference: HR004 TRIM reference: 2010/03996 Version: 1 st Release date: 1 July 2010
1. Introduction
1.1 This strategy has been produced in order to promote and support the framework within which the HFEA tackles fraud and theft. It sets out the aim and objectives of the Authority with respect to countering fraud and theft, whether it is committed externally or from within. Awareness of, and involvement in, counter-fraud and anti-theft work should be a general responsibility of all, and the support of all staff is needed. Definitions 1.2 Fraud has three general elements: false representation; failing to disclose information; and abuse of position. Fraud also includes obtaining services dishonestly and possessing, together with making and supplying articles for use in frauds. A person is guilty of theft if he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it. Aim 1.3 It is the Authoritys aim to generate an anti-fraud and theft culture that promotes honesty, openness, integrity and vigilance in order to minimise fraud and theft and its cost to the Authority. Objectives 1.4 In respect of the risk of fraud and theft, the Authority seeks to: promote and support an anti-fraud and theft culture; deter, prevent and discover fraud and theft effectively; carry out prompt investigations of suspected fraud and theft; take effective action against individuals committing fraud and theft; support the core values and principles set out in the Civil Service Code.
2. Protecting the Authority from the Risk of Fraud and Theft

Promoting and supporting an anti-fraud and theft culture 2.1 The Authority seeks to foster an anti-fraud and theft culture in which all staff are aware of what fraud and theft are, and what actions constitute fraud and theft. Staff should know how to report suspicions of fraud and theft with the assurance that such suspicions will be appropriately investigated, and any information supplied will be kept in confidence. 2.2 Two key elements of an effective anti-fraud and theft culture are promotion and awareness, to ensure staff understand what fraud and theft is and know what standards of behaviour are expected. This will be achieved on an ongoing basis through: induction materials to ensure all new starters are clear about the Authoritys attitude to fraud and theft, and who they should contact if they have any suspicions; in house presentations to provide information on the nature of fraud and theft, and how it applies to the Authority and its employees; case studies to provide real examples of frauds and thefts and to demonstrate its prevalence within public sector organisations; maintenance of a counter-fraud and anti-theft intranet page to provide further information, including links to any relevant policies and procedures; presentations at Senior Management meetings, and any other meetings which may provide a suitable forum for promoting counter-fraud and anti-theft awareness, tailored to particular areas to make them more pertinent; maintenance of up to date policies and procedures, to ensure that the roles and responsibilities of all staff are clear, with special emphasis placed on the process for reporting suspicions of fraud and theft.
Deterring, preventing and discovering fraud and theft 2.3 The preferred way of minimising fraud and theft is to deter individuals from trying to perpetrate a fraud or theft in the first place. An anti-fraud and anti - theft culture whereby such activity is understood as unacceptable, combined with effective controls to minimise the
opportunity for fraud and theft, can serve as a powerful deterrent. The main deterrent is often the risk of being caught and the severity of the consequences. One of the most important aspects about deterrence is that it derives from perceived risk and not actual risk. 2.4 If it is not possible to deter individuals from committing frauds and thefts, then the next preferable course of action is to prevent them from succeeding before there is any loss. Potential/possible frauds and thefts will be identified and investigated through: a defined counter-fraud and anti-theft assurance programme addressing the areas where the Authority is most vulnerable to fraud and theft. Any gaps in control or areas where controls are not being applied properly that are identified by this work will be addressed accordingly; and routine use of Computer Assisted Audit Techniques (CAATs) as a standard part of the internal auditors toolkit, to identify transactions warranting further investigation.
2.5 It is the responsibility of managers to ensure that there are adequate and effective controls in place. Internal Audit will provide assurance on the adequacy and effectiveness of such controls. In addition to the annual programme of internal audits (which provide assurance on the controls identified in the Strategic Risk Register), Internal Audit will also carry out advisory work on request, and seek to ensure appropriate controls are built into new systems and processes through its project assurance role. 2.6 It will not always be possible to prevent frauds and thefts from occurring. Therefore, the Authority must have the means to discover frauds and thefts at the earliest opportunity. All staff should be vigilant and aware of the potential for fraud and theft and report any suspicions in accordance with the Authoritys Whistle Blowing Policy. Prompt investigation of suspected frauds and thefts 2.7 All suspected and actual frauds will be investigated promptly in line with the Whistle Blowing Policy. The effective investigation of suspected and actual frauds depends upon the capability of the appropriate staff or internal auditors conducting these investigations.
2.8 All thefts should be reported to the relevant line manager for action to be taken in line with the Authorities policies.
Taking effective action 2.9 In the case of a proven allegation of fraud or theft, effective action will be taken in respect of those investigated in accordance with the Authoritys Disciplinary Policies and Procedures. The Authority will always seek financial redress in cases of losses to fraud and theft and legal action will be taken where appropriate.
Counter Fraud and Anti Theft Policy 3. Policy Statement

3.1 The HFEA requires all staff at all times to act honestly and with integrity and to safeguard the public resources for which they are responsible. The Authority will not accept any level of fraud, corruption or theft. Consequently, any suspicion or allegation of fraud or theft will be investigated thoroughly and dealt with appropriately. The Authority is committed to ensuring that opportunities for fraud, corruption or theft are reduced to the lowest possible level. Staff should have regard to related policy and procedures including: a. HFEA Standing Financial Instructions and Financial Procedures b. HFEA Staff Handbook c. Disciplinary and Whistle Blowing Policies 3.3 This Policy applies to all staff including contractors, temporary staff and third parties delivering services to and on behalf of the Authority. The circumstances of individual frauds and thefts will vary. The Authority takes fraud and theft very seriously. All cases of actual or 5
3.2
3.4
suspected fraud or theft against the Authority will be thoroughly and promptly investigated and appropriate action will be taken.
4. Definitions of Fraud and Theft

4.1 The Fraud Act 2006 created the general offence of fraud which can be committed in three ways. These are by false representation, by failing to disclose information where there is a legal duty to do so, and by abuse of position. It also created offences of obtaining services dishonestly and of possessing, making and supplying articles for use in frauds. A person is guilty of theft if he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it.
4.2
5. Avenues for reporting Fraud and Theft

5.1 The Authority has a Whistle Blowing Policy that sets out how staff should report suspicions of fraud, including the process for reporting thefts. All frauds, thefts, or suspicions of fraud or theft, of whatever type, should be reported in accordance with the Whistle Blowing Policy. All matters will be dealt with in confidence and in strict accordance with the terms of the Public Interest Disclosure Act 1998. This statute protects the legitimate personal interests of staff.
6. Responsibilities
6.1 The responsibilities of Authority staff in respect of fraud and theft are determined by the Treasury publication Managing Public Money (MPM), supplemented by the Authoritys policies and procedures for financial and corporate governance. These documents include Standing Financial Instructions, Financial Procedures; Standing Orders, the Financial Memorandum, and the Management Statement.
Accounting Officer (Chief Executive) 6.2 As Accounting Officer, the Chief Executive is responsible for managing the organisations risks, including the risks of fraud and theft, from both internal and external sources. The risks of fraud or theft are usually measured by the probability of them occurring and their impact in monetary and reputational terms should they occur. In broad terms, managing the risks of fraud and theft involves: a. assessing the organisations overall vulnerability to fraud and theft; b. identifying the areas most vulnerable to fraud and theft; c. evaluating the scale of fraud and theft risk; d. responding to the fraud and theft risk; e. measuring the effectiveness of managing the risk of fraud and theft; f. reporting fraud and theft to the Treasury; g. In consultation with the Chair, Director of Finance and Facilities, and Legal Services, reporting any thefts against the Authority to the police. 6.3 In addition, the Chief Executive must: a. be satisfied that the internal control applied by the Authority conforms to the requirements of regularity, propriety and good financial management; b. ensure that adequate internal management and financial controls are maintained by the Authority, including effective measures against fraud and theft. 6.4 The Chief Executive will be responsible for making a decision as to whether: a. an individual who is under suspicion of fraud or theft should be suspended; b. criminal or disciplinary action should be taken against an individual who is found to have committed a fraud or theft. Such decisions should be taken in conjunction with the relevant Director, HR Manager and Internal Audit, with advice from Legal
Services and Finance where appropriate, to ensure consistency across the organisation. Should there be any disagreement over the appropriate action to be taken, the Chief Executive will be the final arbiter in deciding whether criminal or disciplinary action should be taken against an individual. Director of Finance and Facilities 6.5 Responsibility for overseeing the management of fraud and theft risk within the Authority has been delegated to the Director of Finance and Facilities, whose responsibilities include: b. ensuring that the Authoritys use of resources is properly authorised and controlled; c. developing fraud and theft risk profiles and undertaking regular reviews of the fraud and theft risks associated with each of the key organisational objectives in order to ensure the Authority can identify, itemise and assess how it might be vulnerable to fraud and theft; d. evaluating the possible impact and likelihood of the specific fraud and theft risks the Authority has identified and, from this, deducing a priority order for managing the Authoritys fraud and theft risks; e. designing an effective control environment to prevent fraud and theft commensurate with the fraud and theft risk profiles. This will be underpinned by a balance of preventive and detective controls to tackle and deter fraud, corruption and theft; f. ensuring that appropriate reporting of fraud and theft takes place both within the organisation and to the Audit and Governance Committee, and to the Assurance Control and Risk (ACR) team within H M Treasury, to which any novel or unusual frauds must be reported, as well as preparing the required annual fraud return of the Authority to H M Treasury which also includes a requirement to report actual or attempted thefts; g. forward to the Department of Health an annual report on fraud and theft suffered by the Authority; notify any unusual or major incidents as soon as possible; and notify any changes to internal audits terms of appointment, the Audit and Governance Committees terms of reference or the Authoritys Fraud and Anti Theft Policy.
h. measuring the effectiveness of actions taken to reduce the risk of fraud and theft. Assurances about these measures will be obtained from Internal Audit, stewardship reporting, control risk self assessment and monitoring of relevant targets set for the Authority; i. establishing the Authoritys response to fraud and theft risks including mechanisms for: developing a counter-fraud and anti-theft policy, a fraud response plan and a theft response plan; developing and promoting a counter-fraud and anti-theft culture; allocating responsibilities for the overall management of fraud and theft risks and for the management of specific fraud and theft risks so that these processes are integrated into management generally; establishing cost-effective internal controls to detect and deter fraud and theft, commensurate with the identified risks; developing skills and expertise to manage fraud and theft risk effectively and to respond to fraud and theft effectively when it arises; establishing well publicised avenues for staff and members of the public to report their suspicions of fraud and theft; responding quickly and effectively to fraud and theft when it arises using trained and experienced personnel to investigate where appropriate; establishing systems investigations; to monitor the progress of
using Internal Audit to track all fraud cases and drawing on their experience to strengthen control to reduce the risk of recurrence of frauds and thefts; reporting thefts to the policy in accordance with the theft response plan; seeking to recover losses; continuously evaluating the effectiveness of counter-fraud and anti-theft measures in reducing fraud and theft respectively;
working with stakeholders to tackle fraud and theft through intelligence sharing, joint investigations and so on. j. as Director of Finance, enforcing financial compliance across the organisation while guarding against fraud and theft and delivering continuous improvement in financial control.
k. In consultation with the Chief Executive, Chair and legal services, reporting any thefts against the Authority to the police. Management 6.6 Managers are responsible for: a. ensuring that an adequate system of internal control exists within their areas of responsibility and that controls operate effectively, in order to assist in their role of preventing and detecting fraud and theft; b. assessing the types of risk involved in the operations for which they are responsible; c. reviewing and testing the control systems for which they are responsible regularly; d. ensuring that controls are being complied with and their systems continue to operate effectively; e. implementing new controls to reduce the risk of similar frauds and thefts taking place; f. ensuring that all expenditure is legal and proper; g. authorising losses of cash including theft and fraud in accordance with Financial Delegation limits ; h. reporting any fraud, or suspicion of fraud in accordance with the Whistle Blowing Policy; Staff 6.7 All staff, individually and collectively, are responsible for avoiding loss and for: a. acting with propriety in the use of official resources and the handling and use of public funds whether they are involved with cash or payments systems, receipts or dealing with suppliers;
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b. conducting themselves in accordance with the seven principles of public life set out in the first report of the Nolan Committee Standards in Public Life. These are: Selflessness: 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; Integrity: Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties; Objectivity: In carrying out public business, including making public appointments or recommending individuals for rewards and benefits, holders of public office should make choices on merit; Accountability: Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office; Openness: Holders of public office should be as open as possible about all the decisions and action that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands it; Honesty: Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest (CCE 4); Leadership: Holders of public office should promote and support these principles by leadership and example.
c. being alert to the possibility that unusual events or transactions could be indicators of fraud or theft; d. reporting details immediately through the appropriate channel if they suspect that a fraud or theft has been committed or see any suspicious acts or events; e. co-operating fully with whoever is conducting internal checks or reviews, or investigations of fraud or theft.
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6.8 Staff are specifically not responsible for investigating any allegations of fraud or theft. These are to be undertaken in accordance with the Authoritys Whistle Blowing Policy. Board Members 6.9 The Authoritys Board Members have a responsibility to: a. comply at all times with the Code of Practice that is adopted by the Authority and with the rules relating to the use of public funds and to conflicts of interest, and declare any interests which are relevant and material to the board. b. not misuse information gained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations. c. comply with the Authoritys rules on the acceptance of gifts and hospitality and of business appointments. Internal Audit 6.10 Matters in relation to fraud and/or corruption will involve the Authoritys Internal Auditors. Internal Audits primary responsibilities in relation to fraud are: a. delivering an opinion to the Chief Executive on the adequacy of arrangements for managing the risk of fraud and ensuring that the Authority promotes an anti-fraud culture; b. assisting in the deterrence and prevention of fraud by examining and evaluating the effectiveness of control commensurate with the extent of the potential exposure/risk in the various segments of the Authoritys operations; c. ensuring that management has reviewed its risk exposures and identified the possibility of fraud as a risk; d. assisting management by conducting fraud investigations; 6.11 Under its approved terms of appointment, the Internal Auditors may be tasked with responsibility for investigating cases of 12
discovered fraud and corruption within, or operated against, the Authority. Audit and Governance Committee 6.12 The Audit and Governance Committee is responsible for: a. Receiving reports on losses and compensations, and overseeing action in response to these; b. Ensuring that the Authority has in place an appropriate fraud policy and fraud response plan.
7. References
Managing Public Money Chapter 4 and Annex 4.7 (HM Treasury) ; Managing the Risk of Fraud (HM Treasury) : www.hm-treasury.gov.uk Core Values and the Civil Service Code : www.civilservice.gov.uk/about/values/index.aspx Related Authority Corporate Documents Financial Memorandum Management Statement Standing Financial Instructions Financial Procedures Standing Orders Disciplinary Policy & Procedure Whistle Blowing Policy Staff Handbook Audit and Governance Committee Terms of Reference
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Doc Name and Reference HR004 Counter Fraud and Anti Theft Policy number: TRIM number: Latest Version No: Release date: Author: Approved by: Next review due: Total pages:* 2010/03996 1 1 July 2010 Rachael Henry Rachel Hopkins 1 July 2011 14
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Human Fertilisation & Embryology Authority

Counter Fraud and Anti Theft Policy

Counter Fraud and Anti-Theft Policy

2. Protecting the Authority from the Risk of Fraud and Theft

Counter Fraud and Anti Theft Policy 3. Policy Statement

4. Definitions of Fraud and Theft

5. Avenues for reporting Fraud and Theft

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