1.1 This Policy applies to all Mid and East Antrim Borough Council employees (permanent, temporary, agency assignees and voluntary).

Note for Elected Members:

1.2 If an Elected Member has concerns regarding malpractice, he/she is advised to refer to the Northern Ireland Code of Conduct for Councillor’s or seek the advice of the Chief Executive.

2. Background

2.1 This Policy outlines the commitment Mid and East Antrim Borough Council (hereafter referred to as ‘The Council’) places on the prevention and detection of fraud and irregularity, financial or otherwise.

2.2 All public servants are required to act honestly and with integrity, to safeguard the resources for which they are responsible and are required to conduct themselves in accordance with the seven principles of public life, set out in the first report of the Nolan Committee “Standards in Public Life”:

•  Selflessness;
•  Integrity;
• Objectivity;
• Accountability;
• Openness;
• Honesty; and
• Leadership.

2.3 The opportunity to commit fraud is ever present and must therefore be a concern to all members of staff.

It is everyone’s responsibility to prevent fraud and follow the Council’s procedures where a fraud is suspected or detected.

2.4 The Council has a zero tolerance approach to fraud and fraud of any kind will not be tolerated.

All suspected frauds will be thoroughly investigated with the aim of establishing the facts.

All cases of suspected or detected fraud should be reported immediately to the relevant person, as detailed in section six of this Policy.

Such cases will be fully investigated and followed up.

Every effort will be made to recover losses from fraudulent activity.

Where fraud is proven, appropriate disciplinary action will be taken.

2.6 The Code of Conduct also provides a framework for equality issues, tendering, hospitality, gifts, sponsorship and corruption.

2.7 With reference to corruption, the Code highlights that for an officer of Council, it is a serious criminal offence to receive or give any gift, loan, fee, reward or advantage for doing, or not doing anything, or showing favour or disfavour to any person in their official capacity.

If an allegation is made, it is for the officer to demonstrate that any such rewards have not been corruptly obtained.

3. Definition of Fraud

3.1 CIPFA defines Fraud as:

“The intentional distortion of financial statements or other records by persons, internal or external to the organisation, which is carried out to conceal the misappropriation of assets or otherwise for gain.”

3.2 Individuals outside, as well as inside the Council, can perpetrate fraud.

An attempt to commit fraud is a criminal act and is therefore treated as seriously as accomplished fraud.

3.3 The Fraud Act (2006) states that fraud can be committed in the following ways:

• Fraud by false representation – it is an offence to commit fraud by dishonestly making a false representation to make a gain for yourself or another, or to cause loss to another, or expose them to the risk of loss;
• Fraud by failing to disclose information – it is an offence to commit fraud be failing to disclose information to another person where there is a legal duty to disclose information; or
• Fraud by abuse of position – examples of abuse of position may include, for example, an officer who gives contracts or discounts to friends and family.

3.4 Concerns which should be reported include, but are not limited to, officers committing or attempting to commit:

• any dishonest or fraudulent act;
• forgery or alteration of documents, information or accounts;
• manipulation or falsification of information or records (e.g. financial statements, planning applications etc.);
• misappropriation of funds, supplies or other assets;
• false claims for salaries, wages or expenses;
• abuse of remote working arrangements or falsification of timekeeping ;
• impropriety in the handling or reporting of money,
• financial transactions or assets;
• profiting from an official position or duties, including accepting or seeking value from third parties;
• disclosure of official activities or information for personal or third-party advantage;
• bribery or corruption including the giving or receiving bribes or kickbacks;
• undeclared or improperly managed conflicts of interest;
• manipulating data systems, unauthorised access to systems or, phishing; and
• theft or misuse of property, facilities or services.

3.7 Frauds may be suspected or detected in a number of ways, including the following:

• By line managers or their staff applying the Financial Control Code or departmental internal control procedures;

• By internal audit;

• By the Northern Ireland Audit Office;

• By allegations from a third party, including suppliers, contractors or the public;

• Via whistleblowing reports submitted under the councils Raising Concerns policy; and

• Through routine monitoring, data analytics or system alerts.

3.8 All matters will be dealt with in confidence and in strict accordance with the terms of the Public Interest Disclosure (Northern Ireland) Order 1998.

This statute protects the legitimate personal interests of staff.

4. Aims of Fraud Policy

• To reduce the risk of fraud, loss, and impropriety within the Council to an absolute minimum and maintain that level of risk;

• To protect and safeguard the Council’s valuable resources by ensuring they are not lost through fraud or impropriety but are used for improving council services;

• To help create a counter-fraud culture by promoting the Council’s zero tolerance of fraud, and clearly defining the role and responsibilities of stakeholders;

• To ensure that where allegations of fraud, bribery or other financial impropriety arise, there is a clear process to ensure that they can be reported, are properly investigated and appropriate corrective action is taken; and

• To demonstrate the Council’s commitment to integrity, accountability and good governance in all its operations.

5.1 The Policy aligns with the core values that underpin the Council’s Corporate Plan 2024 - 2028.

Respect:

Establishing a culture of openness, trust and value.

Integrity:

To support the spirit which enables honesty, accountability and trust throughout.

6. Responsibilities

6.1 Council Responsibility

a. Under Article 35(1)(c) of the Local Government (Miscellaneous Provisions) (NI) Order 1992, the functions of the Local Government Staff Commission include ‘establishing and issuing a code of recommended practice as regards conduct of officers and Councils.’

b. Although the Accounting Officer bears overall responsibility and is liable to be called to account for specific failures, these responsibilities fall directly on management and may involve individual members of staff.

c. Fraud awareness training is part of staff induction and the Council is committed to providing ongoing training at appropriate levels on the issue of preventing fraud.

6.2 Staff Responsibilities

a. Failure of an employee to comply with the requirements of this policy may be considered a disciplinary matter and may be dealt with under the Council’s Disciplinary Procedure.

b. All financial transactions must be processed and authorised in accordance with the Council’s financial procedures.

c. Every member of staff has a responsibility to safeguard public funds, whether they are involved in handling cash, payment systems, receipts, stock, or interactions with contractors or suppliers.

d. Staff should remain vigilant and be alert to the possibility that unusual events or transactions may be indicators of fraud.

Where staff suspect that a fraud may be occurring or has identified an opportunity for fraud to be committed, they must report this to management promptly.

• Appendix 1 provides examples of fraud indicators to assist staff in recognising potential issues.
• Appendix 2 outlines common methods and types of fraud.
• Appendix 3 includes examples of good management practices that support fraud prevention and detection.

e. Staff should alert their line manager where they believe the opportunity for fraud or abuse exists because of poor procedures or lack of effective control.

If procedures are not improved, the Director of Corporate Support Services should be contacted.

Every effort will be made to protect the identity of the informants.

f. Where a member of staff suspects or detects fraud, they are required to immediately inform their line manager, who in turn is required to notify the Chief Executive or Director of Corporate Support Services.

g. If the member of staff feels unable to raise a particular concern with their line manager, for whatever reason, they are required to raise the concern with their director, who in turn is required to notify the Director of Corporate Support Services.

h. If these channels have been followed and the member of staff still has concerns, or the member of staff feels that the concern is so serious that they cannot discuss it with any of the above, they are required to discuss their concern directly with the Director of Corporate Support Services.

i. If a member of staff feels that they cannot discuss their concerns with any officer in the Council they are required to refer the matter to the Chair of the Council’s Audit & Scrutiny Committee, whose details can be found on the Council’s website. Alternatively, they can contact the Local Government Auditor within the Northern Ireland Audit Office or contact Council’s Internal Auditors, Deloitte, at their Belfast Office.

j. Staff should also assist in any investigations, by making available all relevant information and by cooperating in interviews.

Staff should treat all information relating to any investigation as confidential.

k. If staff are unsure what steps to take, they should ask their line manager.

l. The responsibility for the prevention and detection of fraud or abuse rests primarily with managers and supervisors throughout the Council, who should always be alert to the possibility of fraud or attempted fraud.

m. Managers are responsible for ensuring that an adequate system of internal control exists within their areas of responsibility and that mandatory controls are being complied with and are operating effectively.

Appendix 3 includes examples of good management practices that support fraud prevention and detection.

Where concerns exist, these should be notified promptly to the Director of Corporate Support Services

n. Managers are also responsible for:

• Identifying the risks to which systems and procedures are exposed;
• Assisting to develop and maintain effective controls to prevent and detect fraud;
• Ensuring that controls are being complied with;
• Ensuring the organisations objectives are achieved; and
• Ensuring that there is adequate separation of duties to ensure that total control of key functions is not vested in one individual.

o. Managers should be alert to the possibility that unusual events or transactions could be symptoms of fraud or attempted fraud.

Irregularities/fraud may also be highlighted as a result of specific management checks or be brought to management’s attention by a third party.

Managers are expected to familiarise themselves with the examples of fraud indicators provided in Appendix 1 and the common methods and types of fraud outlined in Appendix 2.

This awareness is essential for the early detection and prevention of fraudulent activity.

p. Staff must also be aware of the Council’ s ‘Raising Concerns’ policy and the related provisions detailed in “The Public Interest Disclosure (NI) Order 1998”, which allow staff to qualify for protection if they have a reasonable belief that there has been an instance of fraud or attempted fraud and disclose this.

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