Anti-Fraud And Bribery Policy - London Borough Of Brent
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYAnti-Fraud and BriberyPolicyDecember 20171
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYContentsExecutive Summary . 3Preamble – Your duties as an employee of the council, school or contractor workingfor the council 4Part 1 –The Principles of Public Life . . 6Part 2 –Anti-Fraud Policy . 7Policy Statement . 7Definitions . 7The Anti-Fraud Culture . 9Driving Down Fraud . 11Part 3 –Sanction Policy 17Policy Statement . 17Introduction . 17Evidential Stage Test . 18Public Interest Test . 18Members / Staff / Teachers / School Support Staff . 18Housing Fraud . 19Other Fraud . 19Proceeds of Crime . 20Part 4 –Bribery Policy . 21Policy Statement . 21Introduction . 21Commitment to Anti-Bribery . 21The Offences under the Bribery Act 2010 . 22Part 5 –Contact Details 232
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYExecutive SummaryWhilst the majority of public sector loss relates to the national tax and welfare systems, localgovernment has a significant role to play in reducing its own fraud losses to a minimum. Thisrequires every council employee, contractor, consultant, teacher, support staff, member andgovernor to protect the public funds which they administer from fraud and misappropriation.Staff and members, particularly those in leadership roles, are expected to maintain thehighest standards of integrity and to abide by the principles of public life. As stated by theCommittee on Standards in Public Life (2013):“High standards of behaviour need to be understood as a matter of personal responsibility,embedded in organisational processes and actively and consistently demonstrated,especially by those in leadership positions”.Brent council and its schools will not tolerate fraud or corruption and will invoke the strongestpossible sanctions against staff and members who commit fraud or whose standards ofconduct fall short of those expected. It is important for those in a leadership position,including members, to avoid inappropriate conduct in conflict of interest situations.The council acknowledges that it faces numerous fraud threats, both internally and externallyand it will implement sound control systems to prevent fraud and bribery. The council willtrain its staff to identify fraudulent claims for benefits and other assistance provided to thepublic and will maintain an appropriately skilled anti-fraud resource to deal with allegations offraud by staff, members and the public. All instances of proven fraud will be subject tosanctions in accordance with the council’s sanction policy.The council will ensure that where third parties are responsible for administering councilfunds or collecting income on behalf of the council, they will have adequate controlprocedures in place to protect those funds from fraud and abuse.This policy compliments those other policies which govern officer and member conduct,including the Staff Code of Conduct, Disciplinary Code, Financial Regulations, Anti MoneyLaundering Policy, Whistle Blowing Policy, Brent Members Code of Conduct and othercodes and protocols as set out in the council’s constitution.3
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYPreamble – Your duties as an employee of the council, school or contractor workingfor the councilAs an employee of the council or any of its maintained schools, you must comply with thestaff code of conduct. You must at all times, act with honesty and integrity.You must not commit fraud or theft against your employer, any public body or a client of thecouncil. This includes but is not limited to:Providing false information when applying for a job with the councilProviding false identity or right to work documentationMaking any false claim for pay or expensesForging or counterfeiting any document used to make a financial gain or cause a lossto the councilProviding false information or failing to provide the correct information for thepurposes of personal gain or the gain of othersFailing to declare a conflict of interestFalsifying time sheets and expense claimsMisusing a Disabled Persons Badge or Institutional Blue BadgeFraudulently claiming a benefit or grant administered by Brent or any other councilFraudulently claiming any benefit administered by the Department for Work andPensions, Her Majesty’s Revenue and Customs or National Health ServiceFraudulently obtaining, subletting or making an unlawful profit from any SocialHousingStealing from any client of the councilUsing council facilities for private purposes for yourself, friends family or othersClaiming concessions which you are not entitled toWorking for another organisation, running a business or being self-employed whilstexpected to be working for the council, including whilst off sickUsing council facilities to support a private business.Suspect fraud, corruption or money laundering?As an employee, agency staff, contractor, teacher or support staff in schools - If you suspectfraud or bribery in any of the council’s or school’s activities, either committed by a member ofthe public or a member of staff, you have a duty to inform the Audit and Investigations Team.You can do this either directly or via your manager. Fraud Hotline 020 8937 1279Audit and Investigations Team mailbox investigations@brent.gov.ukInternal fraud online reporting link; rms/fraud-affecting-the-brent-council/4
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYPart 1 - The Principles of Public LifePrincipleDescriptionPreambleThe principles of public life apply to anyone who works as a public office-holder. This includes all thosewho are elected or appointed to public office, nationally and locally, and all people appointed to work inthe civil service, local government, the police, courts and probation services, NDPBs, and in the health,education, social and care services. All public office-holders are both servants of the public and stewardsof public resources. The principles also have application to all those in other sectors delivering publicservices.SelflessnessHolders of public office should act solely in terms of the public interest.IntegrityHolders of public office must avoid placing themselves under any obligation to people or organisationsthat might try inappropriately to influence them in their work. They should not act or take decisions in orderto gain financial or other material benefits for themselves, their family, or their friends. They must declareand resolve any interests and relationships.ObjectivityHolders of public office must act and take decisions impartially, fairly and on merit, using the bestevidence and without discrimination or bias.AccountabilityHolders of public office are accountable to the public for their decisions and actions and must submitthemselves to the scrutiny necessary to ensure this.OpennessHolders of public office should act and take decisions in an open and transparent manner. Informationshould not be withheld from the public unless there are clear and lawful reasons for so doing.HonestyHolders of public office should be truthful.LeadershipHolders of public office should exhibit these principles in their own behaviour. They should activelypromote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs.5
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYPart 2 – Anti-Fraud PolicyPolicy StatementThe council is committed to the eradication of fraud, corruption and misappropriation and tothe promotion of high standards of integrity. Our desire is to be a model of public probity,affording maximum protection to the funds we administer.To deliver the council’s corporate strategy we need to maximise the financial resourcesavailable to us. In order to do this we must reduce fraud, error and misappropriation to anabsolute minimum.Furthermore, the council recognises its fiduciary responsibility to protect public funds and wewill implement secure systems and instil high standards of conduct in our staff. We will seekthe strongest possible sanctions against those who seek to defraud the council. Thisincludes our own members, staff including those in schools, contracting partners andexternal individuals and organisations.Our strategy to combat fraud, bribery and misappropriation is built upon three key themes:Acknowledge, Prevent and Pursue. These themes exist within the overall context of an AntiFraud Culture promoted by the council through its leaders, governance arrangements andgeneral approach to fraud.PurposeThis document sets out the council’s policy and strategy in relation to fraud and bribery. Ithas the full support of Members and the Corporate Management Team. It is designed tounderpin all our efforts to minimise the risk of fraud and corruption and its impact.DefinitionsTheftTheft is stealing any property belonging to the council or which has been entrusted to it (i.e.client funds), including cash, equipment, vehicles, data. Theft does not necessarily requirefraud to be committed. Theft also includes the stealing of property belonging to our staff ormembers whilst on council premises.FraudThe Fraud Act of 2006 introduced the first legal definitions of fraud. These legal definitionsare used for the criminal prosecution of fraud offences. The council also deals with fraud innon-criminal disciplinary matters. For the purposes of this policy fraud is considered to beany action taken by an individual, group or organisation which is designed to facilitatedishonest gain at the expense of the council, the residents of Brent or the wider nationalcommunity.BriberyBribery is the offering, promising or giving of a financial or other advantages designed toinduce an individual to take an improper decision or action. These inducements can takemany forms including cash, holidays, event tickets, meals.Financial malpractice/irregularityThis term is used to describe any actions which represent a deliberate, serious breach ofaccounting principles, financial regulations or any of the council’s financial governance6
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYarrangements. They do not have to result in personal gain. They will include situations whereundisclosed conflicts of interest result in some form of benefit.7
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYThe Anti-Fraud CultureIn 2013 the National Fraud Authority estimated that some 52 billion is lost to fraud acrossall sectors within the UK with just over 20 billion being attributed to the public sector. Ofthis, some 2 billion is estimated to be lost by local government. This figure excludes 350million of housing benefit fraud which, although currently administered by the council, willshortly form part of the government’s Universal Credit system of welfare support.The Latest NFI (Cabinet Office) report 2016 reported 198M of detected fraud in localgovernment local authorities, whilst being praised for their approach to anti-fraud, clearlyneed to do more to bring down the level of estimated losses and increase detection toreduce the gap. Furthermore, the recovery of fraud losses is relatively low and, hence, thefinancial damage done by fraudsters to local government finance and the community isimmense.Losses at an individual local authority level have not been estimated. However, it is safe toassume that Brent is no different to any other large local authority and is equally susceptibleto the full range of fraud affecting local government.The council must have a strong and identifiable Anti-Fraud Culture where the council’sleaders, both elected and employed, uphold the highest standards of conduct both in theirduties and in their own personal financial dealings.Leadership is the cornerstone of any organisation. Leaders set the example that the rest ofthe organisation follows. The elected councillors in this organisation are expected to set anexample to each other, our staff and the community that we serve.Similarly, there is a special onus upon the Executive, Council Management Team and SeniorOfficers to set examples of conduct, in their financial dealings, which are beyond reproachand fully accountable. This includes financial dealings away from the workplace. Forexample, it is difficult to set a good example if you are making false tax returns.We have already come a long way in developing our anti-fraud culture, our first anti-fraudstatement was agreed by the full council in 1997, the first full framework was produced in2003 and renewed in 2008. We are now building upon those foundations and taking steps toensure that we do not become complacent, identify new and emerging risks and continue todeal robustly with instances of fraud and irregularity.The council takes ultimate responsibility for the protection of our finances and those that areadministered on behalf of central government or the community. In turn, our managers havea duty to protect their service area from losses due to fraud and irregularity and areresponsible for assessing fraud risk, implementing proper internal controls and otherstrategies to mitigate risk. Our Managers are expected to be fully familiar with the servicesthey provide and must be cognisant of the fraud risks in their service area. Some serviceswill be at particular risk of attack from external sources, i.e. council tax, national nondomestic rate, renovation grants, direct payments and social housing. In fact, any servicewhich, either, pays money directly, reduces a liability or gives a service of value (i.e. acouncil property) where there is some sort of claim or application made, is at a high risk offraud.In addition, all council services are susceptible to internal fraud through, for example, falsepay, allowance or sickness claims and abuse of their position by officers for private gain orthe gain of relatives or friends. This is also equally true within schools.8
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYThe corporate framework, which underpins the operation of the council, has a number offacets that exist to fortify the council against fraud. These include: The Constitution, Financial Regulations including those for schools, Standing Ordersand the Scheme of DelegationAn established Audit CommitteeGovernance reviewsA Director of Finance and Corporate Services with statutory responsibility for theoversight of all financial affairsA Director of Legal and Procurement with statutory responsibility for monitoring thelegality of the council’s affairsDeclaration of interest and gifts and hospitality procedures for Members and OfficersEffective employee vetting procedures (recruitment checks and DBS whereappropriate and a detailed staff code of conductA corporate Induction programme for all staff which includes expected standards ofprobityEffective disciplinary proceduresInternal controls regularly reviewed and annually certificated by managersPeriodic checks by Internal AuditA confidential reporting code (Whistleblowing procedure)An anti-fraud and bribery policyA complaints procedure available to the publicPublic inspection of accounts and questions to the External AuditorAn external auditA dedicated audit and investigation team whose work programmes includes proactivework, determined by a formal risk assessmentParticipation in national anti-fraud initiativesThe promotion of awareness of anti-fraud and bribery issues, reinforced by trainingand publicityA proactive IT security function.The council takes a holistic approach to anti-fraud measures. Fraud prevention, detectionand system security are an integral part of the development of new systems and projects.Project Managers must consider the fraud and security threats and take advice whereappropriate when implementing any systems.The holistic approach extends to the investigation of allegations and the prevention of fraudthrough system reviews. The Audit and Investigations Team provide the council’s fraudinvestigation and internal audit functions in a seamless manner. They employ a multidisciplinary approach to the prevention, detection, investigation and remedy of fraudulentactivity. In addition the team are free to work with other agencies in pursuance of thecouncil’s anti-fraud aims.Our strategy to reduce fraud is based on three themes: Acknowledge, Prevent and Pursuewithin an over-riding anti-fraud culture. We will promote this culture across all our servicesareas and within the community as a whole. One pound lost to fraud means one pound lessfor public services. Fraud is not acceptable and will not be tolerated.9
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYDriving Down FraudTheCouncilAcknowledgeThe council has anestablished anti-fraud culture,fraud response and iscomfortable acknowledging itsfraud risks, dealing with fraudand publicising the results. Ithas invested resource into acorporate fraud team and willcontinue to commitappropriate resources totackle fraud.The anti-fraud effort will besupported by membersthrough endorsement of thispolicy, on-going commitmentto appropriate anti-fraudmeasures and via regularreports on anti-fraud mattersto the Audit Committee.The council recognises itsresponsibility for the properadministration of its finances.This not only includes directincome and expenditure butalso monies that weadminister on behalf of thegovernment, on behalf of ourclients and that for which weare the responsibleaccountable body.Fraudsters, both inside andoutside the organisation,attack all of these sources ofincome and expenditure andour valuable assets.PreventThe council is committed topreventing fraud throughsound governance, internalcontrol and robust employeevetting. The responsibility forimplementing adequateinternal controls rests withmanagement.Managers are expected toconsider their fraud risks on aregular basis and adapt thecontrols systems accordingly.The Audit and InvestigationsTeam will provide anti-fraudawareness training andadvise on preventativecontrols during both routineaudit work and followinginvestigations where controlweaknesses are identified.Managers are expected toimplement new controlswhere weaknesses havebeen identified. All significantinvestigations will be reportedto the Audit Committee andtaken into account whenassessing the council’soverall governancearrangements.PursueThe Audit and InvestigationsTeam is charged with leadingthe council's fight againstfraud.The team works to theDirector of Finance andCorporate Services and theChief Executive and will befree to examine all allegationsof theft, fraud, financialmisconduct, corruption andother behaviour affecting thefinances or integrity of thecouncil or of those funds forwhich we are responsible.The team will investigate anyallegation that may have adirect, or indirect, impact onthe finances for which we areresponsible. This will includecases where staff may havefinancial information relatingto organisations which are, orhave been, funded by thecouncil or with whom thecouncil have a contract.The council will be vigilant inall of these areas and willapply the principles ofprevention, detection,investigation and redressacross all its services. Thecouncil will not be afraid totackle difficult oruncomfortable cases and willtake a robust line and seekthe maximum appropriatesanction in all its areas ofoperation.The council’s fraud threatsare many and varied and canbe split into two broadheadings, internal andexternal. The internal threats10
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICYOurMembers
BRENT COUNCIL – ANTI-FRAUD AND BRIBERY POLICY 3 Executive Summary Whilst the majority of public sector loss relates to the national tax and welfare systems, local government has a significant role to play in reducing its own fraud losses to a minimum.
bribery and corruption and implications of an investigation. It is not intended to detail a comprehensive approach to preventing and detecting fraud, bribery and corruption. Issue Date: Page 6 of 21 Document Name: Anti-Fraud, Bribery and Corruption Policy Version No: 2 Definitions . The definitions applicable to this policy are as follows: 2.1 NHS Counter Fraud Authority . The NHS CFA is a new .
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bribery risks associated with the conduct of their business. The supplier must undertake a regular anti-bribery risk assessment in order to identify and mitigate the bribery risks associated with the conduct of its business. The supplier must ensure that all risks identified are managed and mitigated by the application of its anti-bribery controls. Due diligence The purpose of due diligence is .
ISO 37001 is an anti-bribery management system (ABMS) standard for organizations. It specifies various anti-bribery policies and procedures which an organization should implement to assist it prevent bribery, and identify and deal with any bribery which does occur. It is published by the International Organization for Standardization (ISO .
Bribery Act 2010, for offences committed on or after 1st July 2011. The Bribery Act 2010 reforms the criminal law of bribery, making it a criminal offence to: Give, promise or offer a bribe (s.1), and/or Request, agree to receive or accept a bribe (s.2). Corruption is generally considered to be an “umbrella” term covering such various activities as bribery, corrupt preferential treatment .
Anti Bribery Management System (ISO 37001) . An anti-bribery management system (ABMS) designed to introduce an anti bribery culture within an organization and implement appropriate controls, which will in turn increase the chance of detecting bribery and reduce its
Types of economic crime/fraud experienced Customer fraud was introduced as a category for the first time in our 2018 survey. It refers to fraud committed by the end-user and comprises economic crimes such as mortgage fraud, credit card fraud, claims fraud, cheque fraud, ID fraud and similar fraud types. Source: PwC analysis 2
Types of economic crime/fraud experienced Customer fraud was introduced as a category for the first time in our 2018 survey. It refers to fraud committed by the end-user and comprises economic crimes such as mortgage fraud, credit card fraud, claims fraud, cheque fraud, ID fraud and similar fraud types. Source: PwC analysis 2
