This policy is available to download as a PDF.
1.1 The University of Wolverhampton (the "University") is committed to the proper use of the University's finances and resources, including the finances and resources of the University's subsidiary companies and to the protect them from fraudulent acts. The University wishes to ensure transparent and accountable working practices for all staff and it is the central to this policy that employees feel able to report any concerns over suspected fraud. The University operates a zero tolerance policy towards fraud and will act to combat fraudulent activity wherever it is found.
1.2 The purpose of this policy is to state the University's policy towards fraud and to detail how instances of suspected fraud will be dealt with by the University.
1.3 Fraud, for the purposes of this policy, includes theft, false accounting, money laundering, forgery, deception, collusion or any other financial malpractice involving the resources of the University or resources for which the University is responsible by contract or licence.
1.4 This policy applies to all employees of the University. For the purposes of this policy, the terms "employee" and "staff" means all members of University staff including permanent, fixed term and temporary staff, governors, student workers (including work experience and graduate placements), secondees, any third party representatives, agency workers, volunteers, interns, agents and sponsors engaged with the University in the UK or overseas. This policy also applies to all members of staff working for any of the University subsidiary companies.
1.5 All employees are responsible for upholding the University's high standards of legal, moral and ethical behaviour and should act with the utmost personal integrity at all times. Staff are responsible for reporting any suspicious or actual fraudulent behaviour and should be aware that failing to report fraudulent activity may itself be actionable.
1.6 All allegations of fraud will be investigated. However, when considering the scope of investigation and appropriate action to be taken, the value and risk will be relevant factors.
1.7 Any prima facie evidence of fraud on the part of an employee will be the subject of an investigation and disciplinary proceedings. The University may involve the Police at any stage of an investigation into fraud or suspected irregularity. This will be without prejudice to the disciplinary proceedings or any action for civil redress via the courts.
1.8 This policy should be read in conjunction with the University's policies on conflict of interest, anti-bribery and corruption, financial regulations, whistleblowing, declaration of interest and the staff disciplinary procedure.
2.1 The fraud response plan detailed below clarifies how staff may disclose their concerns about actual or suspected fraudulent activity within the University and how those will be handled.
2.2 The University will:
i. Investigate and secure evidence for possible criminal, civil and internal disciplinary
proceedings;
ii. Notify HEFCE of incidents in accordance with its prescribed duties as HE charity
regulator and will similarly inform other relevant bodies;
iii. Undertake disciplinary and any related investigations within the University where
appropriate;
iv. Seek redress for ascertained financial loss;
v. Identify areas of system weakness or failure giving rise to a fraudulent act and take
corrective or preventative action to avoid future incidents; and,
vi. Ensure compliance with Proceeds of Crime Act 2002, Money Laundering Regulations
2007, Bribery Act 2010, Charities Act 2006 and any other relevant legislation.
3.1 Staff must report all actual or suspected incidents of fraudulent activity. If you are aware of fraudulent behaviour and fail to report it, you may be suspected of complicity and thereby subject to disciplinary procedures. Whilst every circumstance will be different, if you suspect there may be fraudulent activity taking place at the University, the following guidance should be used:
i. At the earliest stage, share your concern with a manager or by using the Whistleblowing
procedure. Be aware however that your suspicions may have a plausible and/or legitimate
explanation so do not tackle the suspect directly. Try to ensure that your judgement is not
influenced by your relationship, good or bad, with that individual.
ii. If possible, try to safeguard any evidence. If appropriate and necessary, discreetly take
copies of documents as the suspect may try to destroy evidence.
iii. Maintain confidentiality. Do not discuss the matter with your colleagues.
3.2 If you suspect or discover any irregularities, you may report your concerns to one of the following members of staff:
i. Your line manager - if you feel able to, report your concerns to your line manager. They must immediately inform a member of the Fraud Response team.
ii. Alternatively, if you feel unable to inform your line manager you may inform any member of the Fraud Response Group (see below) or,
iii. The University's designated individuals under the "Whistleblowing" policy.
All reasonable steps will be taken not to breach confidentiality or to reveal the identity of the discloser. However, confidentiality will be maintained only where this is compatible with a thorough investigation. It may be that at some point during the investigation, the identity of the discloser may need to be revealed and the discloser may be required to make a statement for evidential purposes. If a criminal investigation ensues, the discloser may also be asked to give a sworn witness statement and evidence in Court. The University will however, seek to protect you from any subsequent victimisation as a result of a disclosure made in good faith, in accordance with the Whistleblowing Policy.
4.1 If evidence of fraud has arisen during the course of another University investigation, the individual conducting that investigation should make an immediate disclosure to a member of the Fraud Response Group to enable a fraud response investigation to commence.
5.1 Once a disclosure has been made, the Fraud Response Group will meet to decide on the appropriate subsequent courses of action. This group will be comprised of:
5.2 It is extremely important that no conflict of interest arises when investigating any allegations of fraud. If any member of the Fraud Response Group is implicated in any way, he/she will withdraw from the investigatory process.
5.3 The Vice Chancellor and Chair of Audit Committee will be informed when an allegation of fraud has been made and the matter will be recorded in the Fraud Register (see below).
6.1 The first responsibility of the Fraud Response Group will be to undertake an initial "fact finding investigation". This will establish whether there is a case of fraud to answer.
6.2 The initial responsibilities of the group are to:
i. Appoint an Investigating Team with a lead Investigating Officer. In the absence of any
conflict of interest, this will ordinarily be the Finance Director accompanied by up to two
members of the Fraud Response Group and may include a representative of the Internal
Audit Service.
ii. Consider the seriousness of the allegation, including the value, risk and scale of the
allegations. If the matter is complex, consideration will be given to whether specialist
technical expertise is required at this initial stage. If so, the Fraud Response Group may on
the recommendation of the Investigating Officer appoint a relevant expert to lead or assist the
investigation.
iii. Consider whether there is a requirement for a suspect to be suspended as a means of
carrying out further enquiries. Suspension will only be implemented to enable a thorough
investigation of the facts and/or where it is clearly undesirable for the employee to remain on
duty. If the employee is not initially suspended, this will remain under review at all
stages through the investigation.
iv. Identify reporting dates and deadlines.
v. Decide if it is appropriate to contact the Police or HEFCE's Head of Assurance at this
stage. If the matter is a serious fraud, the University will immediately notify the Head of
Assurance at HEFCE in accordance with its obligations as a charity.
vi. Decide if it is appropriate to inform External Auditors or other relevant agencies at this
stage.
vii. In serious, complex matters, the group will give consideration to whether independent
legal advice is required.
viii. The appointed Investigating Officer will submit a confidential report on findings to Group
and to the Vice Chancellor and Chair of Audit Committee detailing the nature of the
disclosure and any recommendations for action.
7.1 The Investigating Officer and accompanying team members will first establish a course of action, the reporting process and ensure strict confidentiality is maintained.
7.2 The Investigating Officer has responsibility for preparing the report(s) to the Group and to the Vice Chancellor and Chair of Audit Committee detailing the initial disclosure and recommendations.
7.3 Most importantly, the Investigating Officer has responsibility for opening and maintaining a file of the investigation which will be open for the life of the investigation. This file must be secured at all times to ensure it is not altered or destroyed. The file will contain all records of telephone conversations, discussions in person, all evidence, records, documents, computer files, any tests undertaken (including results and conclusions), primary documents, certified copies of documents, physical items, computer data or statistics or any other evidence or supporting documentation. All documents and records, no matter how minor, must be kept.
7.4 The Investigating Officer is responsible for completing a log of events throughout the course of the investigation.
8.1 There may be four possible outcomes to the investigation.
a) No Fraud: The report may conclude that the allegations of fraud are not substantiated. In
these circumstances the Finance Director will ensure all relevant parties are informed. If a
member of staff has been suspended, the Director of HR will be responsible for lifting the
suspension and ensuring a return to work.
b) Fraud: The report may conclude that the allegations were substantiated and fraud did
take/is taking place. The Vice Chancellor will ensure that action under the University's formal
disciplinary procedures is undertaken. The Fraud Response Group will ensure that any
notification to HEFCE's Head of Assurance is immediately sent, if not already done so. The
report may also recommend that the matter is referred to the Police, if not already done so
and/or that civil action is undertaken to recover the losses incurred. In these circumstances
the Secretary to the Board will report the matter to the Police and/or instruct the University's
Solicitors in respect of civil action. The matter will also be reported formally to Audit
Committee, if not already done so.
c) Misconduct: The investigation may reveal that fraud was not committed but an individual's
conduct merits disciplinary action. This may be the case where the individual failed to
safeguard University assets, for example. In these circumstances, the fraud investigation will
be closed by the Finance Director and the matter will be referred to the Director of HR.
d) Process Improvement: The investigation may reveal in conjunction with a) to c) above or
entirely independently that University systems or processes require adjustment to prevent a
reoccurrence. Such process change will be undertaken in conjunction with the Internal Audit
Service and monitored by them for compliance/effectiveness. The Audit Committee will
receive reports on such change as noted below.
9.1 Once the investigation has concluded, a report on the matter will be presented to the next Audit Committee meeting. This report will contain details of the nature of the allegations, the investigation, the findings and outcome and remain compliant with the Data Protection Act.
9.2 If the investigation is underway at the time of the Audit Committee meeting, an interim report will be provided to Audit Committee confirming an allegation of fraud has been made, an investigation is underway and give details of what stage the investigation has reached (initial fact finding or full investigation) and the timescales for reporting.
10.1 If the Police decide to investigate the matter, all information held by the University in connection with the investigation and alleged fraud will be made available to the Police.
11.1 The Secretary to the Board is responsible for maintaining a register which is available for inspection, including the date of the complaint, nature of the fraud, potential cost to the University and status of the investigation. This register must be kept in accordance with the Data Protection Act 1998 and take into account the Freedom of Information Act 2000.
Policy approved by Audit Committee on 7th June 2012.
