FLINTSHIRE COUNTY COUNCIL
Fraud and Irregularity Response Plan
DRAFT - yj^-A-2- December June-2019
(with Tracked Changes)
Flintshire County Council—
Fraud R e spons e and Irregularity Response Plan
Contents
1 .
Introduction
2
2.
Objectives
2
3.
Whistleblowing Policy
2
4.
Responsibilities
3
5.
What Happens Next?
5
6.
How will the Investigation Proceed?
6
7.
Investigation Outcome (Recovery and Sanctions)
6
8.
Conclusion
8
9.
Monitoring
8
10 .
Response Plan Flow Chart
9
Policy Owners
Internal Audit Manaaer
Date Implemented
April 2007
Date Last Reviewed
November 2014
Current Review:
Approved bv Audit Committee ( Version 1.7)
February 2019
Approved bv Constitution and Democratic Services
June 2019
Committee ( Version 1.8)
Approved bv Council (Version 2)
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Fraud R e spons e and Irregularity Response Plan
1. Introduction
1.1 This document provides guidance to all employees (including centrally employed
teachers) of Flintshire County Council (as defined by the Employment Rights Act) and
is commended to School Governing Bodies and other associated employers as best
practice e.q. NEWydd, Aura. The document also applies to Third Party individuals
(Partners, Consultants, Suppliers, Volunteers, Contractor and employees of
Council suppliers and contractors, who are employed to deliver a service /
goods to the Council) This docum e nt prov i d e s guidanc e to , and e mp l oy ee sstaff
and manag e m e nt in th e e v e nt of th e ir b e coming awar e of, or susp e ct i ng a fraud
or corrupt act b e ing committ e d in F l intshir e by a Counc il M e mb e r, m e mb e r of
staff, contractor or a supp l i e r.
1.2 A one page flowchart is also included at the end of this document, to provide
an at-a-glance summary of the process.
1.3 The plan is not intended for use where there is suspicion of child abuse. Where
concerns are noted in relation to child protection, these should be referred in
the first instance to the Duty and Assessment Team, Social Services on 01352
701000 for a preliminary discussion. Additionally if concerns raised relate to
modern slavery and trafficking or any safeguarding issues please contact Social
Services on 01352 701053 (Children) or 01352 702540 (Adults).
2. Objectives
2.1 The objectives of this a fraud Fraud and irr e gu l arity Irregularity r e spons e
Response p lan- Plan are to ensure that timely and effective action can be taken
to:
• e nsur e establish there is a clear understanding over who will lead any
investigation and to ensure local managers, Internal Audit and People and
Resources are involved as appropriate;
• prevent further losses of funds or other assets where fraud has occurred
and maximise recovery of losses;
• e nsur e demonstrate there is substance and evidence to support any
allegation against an employee before that employee is subject to
disciplinary action;
• minimise the risk of inappropriate action or disclosure taking place which
would compromise an investigation or recovery of losses;
• secure evidence and e nsur e containment of any information or knowledge
of any investigation into the matter reported;
• identify the perpetrators and maximise the success of any disciplinary /
legal action taken.^and
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3. Whistleblowing Policy
3.1 If you prefer to raise your concerns confidentially the Council has a
Whistleblowing Policy (available on the infonet) in accordance with the
provisions of the Public Interest Disclosure Act 1998. The policy provides the
individual with a method of raising concerns about any financial or other
malpractice in the Council.
3.2 Under that policy, if you ask us to protect your identity by keeping your
confidence, we will not disclose it without your consent apart from exceptional
cases. For example this could be in cases when the person raising the concerns
will need to provide a statement and potentially appear as a witness in
subseguent legal proceedings, or may be reguired to give evidence in a
disciplinary hearing. It is also possible that the investigation itself may serve to
reveal the source of information, although this will be avoided where possible.
3.3 Subject to the constraints of Data Protection Legislation and the Council’s duty
of confidentiality to the workforce staff and Councillors, we will give you as much
feedback as we properly can within an agreed timescale.
4. Employ ee Responsibilities
4.1 As an e mp l oy ee individual (employee, member or third party individual of the
Council) , there are a number of actions you may be required to take depending
on who is involved in the fraud or irregularity corruption . You should remember,
however, that when you know of or suspect a fraud or irregular eofmet ac^ you
must not discuss it with other individuals or work colleagues either before or
after reporting it to the appropriate person so that the investigation is not
compromised.
4.2 An irregularity is an administrative or financial mismanagement that comes
about either by act or omission.
4.32 You should never confront the suspected individual or act in a manner which
might draw their attention to your suspicions.
4.42 At the earliest opportunity you should clearly record all the activities you have
witnessed and information you have received or are aware of. It is important to
record as much information as possible to inform any subsequent management
assessment or investigation, including dates, times and sequences of events.
Suspected Fraud by another Council Employee
4.54 As an employee i ff a work colleague is giving rise to suspicions that she / he is
committing a fraudulent or corrupt act within the Authority, then under normal
circumstances you should report it to your line manager. However, you may
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not wish to report to your line manager, particularly if you suspect them of
committing a fraud or corrupt act, or having an involvement in what you have
observed. Therefore, the option exists to report your concerns to any of the
following officers:
• Your line Manager’s Manager^
• Your Chief Officerf
• The Internal Audit Manager
In addition, suspicions can be reported to your Trade Union, see Para 4.
Suspected Fraud by an Elected Member
4.6§ If you need to report a suspicion^-o^an actual fraud or corrupt act by a
Councillor, you should report this to one of the following officers in the Council:
• The Chief Officer Governance, who is the Council’s Monitoring Officer^
• The Internal Audit Manager
Suspected Fraud by a
or a memb e r Member of the pufetioPublic
, supp lie r Supplier , Volunteer
4.7§ If the fraud or corrupt act is being committed in your Service area, then under
normal circumstances you should report your concerns to your line manager.
If your suspicions do not relate directly to your area, then you should not ignore
the information you have, but should report the matter directly to the Internal
Audit Manager. This could include information that comes into your possession
through your profession or social life.
Whist le b l owing policy
- If you pr e f e r to ra i s e your conc e rns confid e nt i a ll y th e Counci l has a
Whist le b l owing po l icy (avai l ab le on th e intran e t) in accordanc e with th e
provisions of th e Pub l ic I nt e r e st Disc l osur e Act 1998. Th e po l icy provid e s
e mp l oy ee sstaff with a m e thod of raising conc e rns about any financia l or oth e r
ma l practic e in th e Counci l .
- Und e r that po li cy, i f you ask us to prot e ct your id e nt i ty by k ee p i ng your
confid e nc e , w e w ill not disc l os e it without your cons e nt apart from e xc e pt i ona l
cas e s. For e xamp le this cou l d b e in cas e s wh e n th e p e rson raising th e conc e rns
wi ll n ee d to prov i d e a stat e m e nt and pot e ntia ll y app e ar as a w i tn e ss i n
subs e qu e nt le ga l proc ee dings, or may b e r e qu i r e d to giv e e vid e nc e in a
discip l inary h e aring. It is a l so possib le that th e inv e stigation its el f may s e rv e to
r e v e a l th e sourc e of information, a l though this wi ll b e avoid e d wh e r e possib le .
843- Subj e ct to th e constraints of Data Prot e ction le gis l ation and th e Counci l ’s duty
of confid e ntia l ity to e mp l oy ee sstaff and Counci ll ors, w e wi ll giv e you as much
f ee dback as w e prop e r l y can within an agr ee d tim e sca le .
4.8 5 Members Trad e Union Rote Responsibilities
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4.8 Where Members come into possession of information which may indicate that
a fraudulent or corrupt act is being perpetrated against Flintshire County
Council, they must report this to either the Chief Executive, the Internal Audit
Manager, the relevant Chief Officer, or the Council’s Monitoring Officer
(Chief Officer Governance). The officer in receipt of the report should ensure
that any subsequent investigation follows the requirements of this fraud
response plan.
4.9 Under no circumstances should a Member discuss a suspected fraud with other
Members or the press
Shou l d any e mp l oy ee who is a m e mb e r of a r e cognis e d Trad e Union hav e any
conc e rns r e garding th e ir own b e haviour, or that of oth e rs, in r el ation to any
pot e ntia l fraudu le nt activity th e n th e y can s ee k advic e and assistanc e from th e ir
Trad e Union.
§4?- Whi l st discussions b e tw ee n th e Trad e Union m e mb e rs and th e ir Trad e Union
ar e confid e nt i a l , th e disc l osur e of any pot e ntia l fraudu le nt activity to a Trad e
Union Officia l wi ll r e su l t in it b e ing disc l os e d to th e Organisation for th e m to
inv e stigat e it fu ll y. Disc l osur e of information to th e Trad e Unions wi ll prot e ct th e
id e ntity of th e individua l making th e disc l osur e and th e y wi ll of cours e r e c e iv e
th e fu ll support of th e ir Trad e Union throughout th e e nsuing proc e ss.
4 .96. Trad e Un i on M e mb e rs R e sponsib il it ie s
- Shou l d any e mp l oy ee who i s a m e mb e r of a r e cogn i s e d Trad e Un i on hav e any
co nc e rns r e gard i ng th ei r own b e hav i our, or that of oth e rs, i n r el at i on to -any
pote nt i a l fraudu le nt act i v i ty th e n th e y can s ee k advic e and assistanc e from t heir
Tr ad e Union.
Wh il st d i scuss i ons b e tw ee n th e Trad e Un i on m e mb e r and th ei r Trad e Un i on
are conf i d e nt i a l , th e d i sc l osur e of any pot e nt i a l fraudu le nt act i v i ty to a T rade
Uai on Off i c i a l w ill r e su l t i n i t b ei ng d i sc l os e d to th e Organ i sat i on for th e m to
in v e stigat e i t fu ll y. D i sc l osur e of i nformat i on to th e Trad e Un i ons w ill prot e ct th e
ide nt i ty of th e i nd i vidua l making th e disc l osur e and th e y w ill r e c ei v e th e fu ll
su pport of th e ir Trad e Union throughout th e e nsuing proc e ss Wh e r e M e mbers
com e into poss e ssion of information which may indicat e that a fraudu le nt or
corrupt act is b e ing p e rp e trat e d against F l intshir e County Counci l , th e y must
r e port this to e ith e r th e Chi e f Ex e cutiv e , th e I nt e rnal Audit Manag e r, th e
r e l e vant Chi e f Offic e r, or th e Counc il ’s Mon i toring Offic e r (Chi e f Offic e r
Governance). Th e offic e r in r e c e ipt of th e r e port shou l d e nsur e that any
subs e qu e nt inv e stigation fo ll ows th e r e quir e m e nts of this fraud r e spons e p l an.
§4?- Und e r no circumstanc e s shou l d a M e mb e r discuss a susp e ct e d fraud with oth e r
M e mb e rs or th e pr e ss.
4t4-Q7 t Third Party Responsibilities (Partners, Consultants, Suppliers,
Contractors, Volunteers and employees of these)
7 4.10 Where a Third Party comes into possession of information which may indicate
that a fraudulent or corrupt act is being perpetrated against Flintshire County
Council, they must report this to either the Chief Executive, the Internal Audit
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Manager, the relevant Chief Officer, or the Council’s Monitoring Officer (Chief
Officer Governance).
4 .11 8 Manag e m e nt’s Senior Accountable Officers Rote Responsibilities
684 4.11 As soon as a complaint or an allegation is received by a manager
(including referrals made by Members as in 4.1), it is their responsibility to
inform the Internal Audit Manager in accordance with Finance Procedure Rule
4.3 11.17( e ) and People and Resources (where the allegation relates to an
employee m e mb e r of staff ) to undertake an initial risk assessment of the facts.
This enquiry should be carried out as quickly as possible, with the objectives of
either substantiating or repudiating the allegation that has been made.
68.2 4.12. At no time during the preliminary investigation should the manager
confront the alleged suspect, nor put evidence at risk. Under no circumstances
should a manager discuss a suspected employee fraud with other staff
members or peer managers.
4.13. 68.3 If there are suspicions that similar frauds are or could be being
committed the situation should be discussed with the Internal Audit Manager.
Trade Union Responsibilities
4.14 Should any employee who is a member of a recognised Trade Union have any
concerns regarding their own behaviour, or that of others, in relation to any
potential fraudulent activity then they can seek advice and assistance from their
Trade Union.
4.15 Whilst discussions between the Trade Union member and their Trade Union
are confidential, the disclosure of any potential fraudulent activity to a Trade
Union Official will result in it being disclosed to the Organisation for them to
investigate it fully. Disclosure of information to the Trade Unions will protect the
identity of the individual making the disclosure and they will receive the full
support of their Trade Union throughout the ensuing process
5
7S. What will Hhappen next Next ?
795.1 After the initial assessment has been carried out and where evidence suggests
there is a potential fraud or irregularity, a detailed investigation will need to be
undertaken. Depending on the nature of the allegation the options for this will
be
• Appoint an Investigating Officer; this will usually be a senior officer in the
relevant service and will be appointed action e d by People and Resources.
He/she will carry out the investigation (for investigations under the
disciplinary policy) in conjunction with People and Resources;
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• Internal Audit carry out the investigation (for all fraud related investigations)
in conjunction with the Investigating Officer;
• The matter is referred to the Police (in conjunction with Internal Audit where
required);
• The matter is referred to an external agency for investigation ecke.g.
Housing Benefit fraudr or National Anti-Fraud Network (NAFN).
640. How will the inv e stigation — Investigation
proc ee d Proceed ?
6.1404- Every case is unique. The Internal Audit Manager will work with the
appointed Investigating Officer and People and Resources to ensure the most
appropriate course of action is taken.
Considerations will include:
• The preparation of an investigation plan;
• The potential requirement to suspend a member of staff, in accordance with
the Council’s Disciplinary Procedure, while the investigation is undertaken;
• The need to secure evidence (including documents, computer records,
CCTV recordings tap e s, ete etc.) ;
• The commissioning of specialist services from both within and outside the
Council (e.g. surveillance experts, forensic IT specialists, specific service
areas or subject matter experts);
• Carrying out interviews to gather information and witness statements (any
interviews must be conducted fairly and will, where possible, be tape-
recorded);
•_ Potential referral to other internal or external agencies, e.g. Housing Benefit
Fraud team, the Department for Work & Pensions, the Police, Standards
Committee . National Anti-Fraud Networks
• Consider whether RIPA (Regulation of Investigatory Powers Act) approval
is reguired. This is usually where surveillance needs to be undertaken^ and
• Advise and assist management in implementing new procedures and
internal controls where necessary.
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744. Investigation outcom e s Outcomes (Recovery and
Sanctions)
Allegations against an Eemployee
7.144t 4 If an allegation is substantiated following an investigation, the
disciplinary process will be instigated.
7.244-7$ At the same time, if there is evidence that fraud has been committed
against the Council, the Internal Audit Manager will formally consider referring
the matter to the Police (if not already done so at initial assessment stage), and
liaise with them over whether formal charges will be brought and an
investigation taken forward to possible prosecution. A referral to the Police will
be carried out, normally following consultation with the H e ad of Senior
Manager, Human Resources and Organisational Chi e f Off i c e rs for P e op le &
R e sourc e s, andth e Development, the Chief Officer Governance and the Chief
Executive .
7.344-r3 In appropriate circumstances the Council will consider taking civil action
against the accused employee to recover any debt caused as a result of their
actions.
Allegation against a Councillor
7AM-A Any allegations which are substantiated against a Councillor will be
considered under their cod e Code of conduct Conduct by the Council’s
Monitoring Officer and could result in a referral to the standards committee,
Public Service Ombudsman for Wales or the Police.
Allegation against a Ccontractor or Ssupplier
7.544-r5 If an allegation of fraud against the Council by a contractor or supplier is
substantiated, it will be referred to the police and may result in prosecution.
7.644-7$ In addition to the criminal route, wherever applicable, the action taken by
the Council will also follow a civil route, in order to recover assets or monies
obtained by the potential offender.
External Audit
744-.7 In some cases it may be necessary to immediately inform the Council’s External
Auditor of the fraud or corruption. This will be the responsibility of the Internal
Audit Manager.
Audit Committee
744-. 8 Except in special circumstances, after taking into consideration issues of
confidentiality, fraud investigations will normally be reported in outline to the
Audit Committee every quarter. Where it would be proper to do so, the Chair of
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the Audit Committee will be briefed immediately with any sensitive/serious
matters.
744-. 9 Any variation from the approved Ffraud and f lrreqularit\ r e spons e Response
pfaftPlan, together with reasons for the variation, will be reported to the Audit
Committee where it would be appropriate to do so.
Press and Publicity
744^J0 The Business and Corporat e Communications Team will deal with the
press and publicity in all matters regarding fraud and corruption. Where
appropriate,, the details of all successful prosecutions for fraud will be released
to the media through the Business and Corporat e Communications Team. Such
disclosures will maintain the confidentiality of the initial referral. Staff^-aad
Managers or Members must not directly disclose to the press the details of any
cases suspected or under investigation.
74441 Disclosure of details to the media without the express authority of the
Business and Corporat e Communications Team could be regarded as a
disciplinary matter. The aim is to publicise the Council’s intolerance of fraud or
corruption both within the Council and by users of its services. It also serves to
publicise our successes against those who would perpetrate such fraud or
corruption against the Council.
84 2 . Conclusion
8.1424- The Fraud and Irregularity Response Plan for the Council’s Workforce,
Service Teams and Senior Accountable Officers Emp l oy ee sStaff —aad
Manag e m e nt , is part of a number of policies listed below (s e e app e nd i x a)
which i n conjunction w i th th e Anti-Fraud and Corruption Strat e gy, th e
Whist le b l owing Po l icy, th e Cod e s of Conduct (Emp l oy ee s and M e mb e rs), th e
Pros e cution Po l icy and th e Emp l oy ee Discip l inary Po l icy wi ll supports the
Council’s objectives in countering and investigating corporate fraud and
corruption.
• Anti-Fraud and Corruption Strategy
• Whistleblowing Policy
• Codes of Conduct (StafT Officers and Members)
• Prosecution Policy
• Employee Disciplinary Policy
• Code of Corporate Governance
• Financial Procedure Rules
• Contract Procedure Rules
• - M e mb e rs Cod e of Conduct
• - Emp l oy ee s Cod e of Conduct
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However no guidance such as this can be expected to cover all eventualities
and, therefore, if you have any issues or are unsure of the action to take in a
given situation you should immediately contact the Internal Audit Manager.
94^._ R e vi e w of Fraud and I rr e gularity R e spons e
Rlan Monitorinq
9.14£y4 The Fraud and Irregularity Response Plan will be subject to annual
review and update.
9.2 All related policies such as the Whistleblowing Policy and Anti-Fraud and
Corruption Strategy can be found on the Council’s Website ana the Infonet
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Response Plan
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