Introduction
The RSPCA Mid Norfolk & North Suffolk Branch (‘the Branch’) makes every attempt to comply with applicable legislation, including the Fraud Act (2006), the Bribery Act (2010), and with other regulatory requirements and applicable guidance including Managing Public Money.
The Trustees are required under charity law to safeguard the assets of the charity, and the Branch is committed to conducting business fairly, openly and honestly, in accordance with the highest ethical and legal standards.
Purpose
The purpose of this policy is to set out the Branch’s stance on fraud, bribery and corruption and its approach to preventing, detecting, reporting and investigating fraud, bribery and corruption.
Scope
This policy applies to all Branch activities and is applicable to, and must be followed by, all staff (including consultants and contractors), volunteers, Patrons, Ambassadors and Trustees. Failure to comply could result in disciplinary action, including dismissal from the Branch. The Branch requires all those receiving RSPCA funds, or those representing the Branch, including its suppliers, grant recipients, partners, contractors and agents, to act in accordance with this policy.
Policy
The Branch takes a measured response towards fraud, bribery and corruption. This means that the Branch:
- does not accept any level of fraud, bribery or corruption within the organisation or by any other individual or organisation receiving RSPCA funds or representing the Branch; and;
- if applicable, will seek to take disciplinary and/or legal action against those found to have knowingly and/or deliberately perpetrated, been involved in, or assisted with fraudulent or other improper activities in any of its operations.
The Branch is committed to developing an anti-fraud culture and keeping the opportunities for fraud, bribery and corruption to the absolute minimum. The Branch requires all staff, volunteers, Patrons, Ambassadors and Trustees to act honestly and with integrity at all times and to safeguard the resources for which they are responsible.
Risk and Internal Control Systems
The Branch will seek to assess the nature and extent of its exposure to the risks of internal and external fraud, bribery and corruption. It will regularly review these risks, using information on actual or suspected instances of fraud, bribery and corruption to inform its review.
The Branch will seek to put in place efficient and effective systems, procedures and internal controls to: encourage an anti-fraud culture; prevent and detect fraud, bribery and corruption; and reduce the risks to an acceptable level.
The Branch will seek to equip its staff with the skills, knowledge and expertise to manage its fraud risk effectively. It will provide adequate training to make staff aware of the risks of fraud, bribery and corruption, and of their responsibilities in preventing, detecting, and reporting it.
The Branch will make all those receiving RSPCA funds or representing the Branch, including its suppliers, grant recipients, partners, volunteers, contractors and Trustees aware of this policy.
The Branch will work with relevant stakeholders, including comparable organisations, and relevant regulators (as required) to tackle fraud.
The Branch will regularly review and evaluate the effectiveness of its systems, procedures and internal controls for managing the risk of fraud. It will do this through risk management and assurance processes and audit arrangements.
Awareness and Training
An important contribution to the continuing success of an Anti-Fraud & Corruption policy, and its general credibility, lies in the effectiveness of programmed awareness/training, of Trustees, staff and volunteers throughout the organisation. This will be achieved through the delivery of both induction and awareness training for all personnel involved in internal control systems to ensure that their responsibilities and duties in this respect are regularly highlighted and reinforced.
Reporting – Internal
All staff must immediately report any suspected or actual instances of fraud, bribery or corruption. This includes offers to pay bribes, solicitation of bribes and demands to make facilitation payments. Failure to report could result in disciplinary action.
The Branch also requires all those receiving RSPCA funds or representing the Branch, including its suppliers, grant recipients, partners, volunteers, contractors and Trustees to report any suspected or actual instances of fraud, bribery or corruption involving Branch assets or staff.
Reports should be made to the Chief Executive Officer. If staff are not comfortable reporting their concerns to the CEO, concerns should be raised to a Branch Officer (Chair of Trustees, Vice-Chair of Trustees, Hon. Branch Treasurer and/or Hon. Branch Secretary) or the Branch Partnerships Manager.
The Branch will not penalise anyone for raising a concern in good faith, even if it turns out to be unfounded. Any member of staff who harasses or victimises someone for raising a concern in good faith will themselves be subject to disciplinary action. Please refer to the ‘Speak Up’ Policy.
The Branch will maintain a system for recording: all reports of actual or suspected fraud, bribery and corruption; the action taken; and the outcome of any investigation. It will use this information to inform its review of the risks and the effectiveness of its controls.
Reporting – External
The Branch will fully meet its obligations to report fraud, bribery and corruption to third parties.
Investigation
The Branch will take all reports of actual or suspected fraud, bribery and corruption seriously, and investigate proportionately and appropriately as set out in the ‘Speak Up’ Policy. This sets out the responsibilities for investigating, fraud, bribery and corruption and the procedures that should be followed for investigating and external reporting.
The Branch will always seek to take disciplinary and/or legal action against those found to have perpetrated or assisted with fraudulent or other improper activities in any of its operations. For staff, this may include dismissal. It will also seek to recover any assets lost through fraud.
Approval of losses
All losses as the result of fraud must be recorded on the Loss Register and be approved by the CEO and Board of Trustees.
Specific Risk Mitigation Measures
To manage the exposure to bribery and corruption, all gifts and hospitality received by staff and given to public officials must be approved in line with the delegated authorities and recorded on the Gifts & Hospitality Register.
Conflicts of interest are known to increase the risk of fraud. Therefore all staff who have an interest in an actual or potential supplier (whether personally, or through family members, close friends or associates) must report that conflict of interest to the CEO, who can in turn report this to the Branch Officers.
Responsibilities
Trustees
- The Trustees are responsible for establishing and maintaining a sound system of internal control that supports the achievement of Branch policies, aims and objectives.
- The system of internal control is designed to respond to, and manage the whole range of risks that the Charity faces.
- The system of internal control is based on an on-going process designed to identify the principal risks, to evaluate the nature and extent of those risks and to manage them effectively. Managing fraud risk is seen in the context of the management of this wider range of risks.
The Chief Executive Officer (CEO)
Overall responsibility for managing the risk of fraud has been delegated to the CEO. The responsibilities include:
- Undertaking a regular review of the fraud risks associated with each of the key organisational objectives.
- Establishing an effective anti-fraud response plan, in proportion to the level of fraud risk identified.
- The design of an effective control environment to prevent fraud.
- Establishing appropriate mechanisms for:
- reporting fraud risk issues
- reporting significant incidents of fraud or attempted fraud to the Board of Trustees
- Liaising with the Treasurer and if appropriate auditors.
- Making sure that all staff are aware of this Anti-Fraud, Bribery and Corruption Policy and know what their responsibilities are in relation to combating fraud;
- Ensuring that appropriate anti-fraud training is made available to Trustees, staff and volunteers as required; and
- Ensuring that appropriate action is taken to minimise the risk of previous frauds occurring in future.
Senior Management Team (SMT)
The Senior Management Team is responsible for:
- Ensuring that an adequate system of internal control exists within their areas of responsibility and that controls operate effectively;
- Preventing and detecting fraud as far as possible;
- Assessing the types of risk involved in the operations for which they are responsible;
- Reviewing the control systems for which they are responsible regularly;
- Ensuring that controls are being complied with and their systems continue to operate effectively; and
- Implementing new controls to reduce the risk of similar fraud occurring where frauds have taken place.
Staff and Volunteers
Every member of staff or volunteer is responsible for:
- Acting with propriety in the use of Branch resources and the handling and use of funds whether they are involved with cash, receipts, payments or dealing with suppliers;
- Conducting themselves in accordance with the values and behavior principles set out above;
- Being alert to the possibility that unusual events or transactions could be indicators of fraud;
- Alerting their manager when they believe the opportunity for fraud exists, e.g. because of poor procedures or lack of effective oversight;
- Reporting details immediately if they suspect that a fraud has been committed or see any suspicious acts or events; and
- Cooperating fully with whoever is conducting internal checks or reviews or fraud investigations.
Third Parties
The Branch also requires all those receiving RSPCA funds or representing the Branch (e.g. consultants, contractors, volunteers, Patrons and ambassadors) , including our suppliers and grant recipients, to report to any suspected or actual instances of fraud, bribery or corruption involving Branch assets or staff.
Definitions
- Fraud is knowingly making an untrue or misleading representation with the intention ofmaking a gain for oneself or another or causing a loss, or risk of loss, to another.
- Bribery is giving or offering someone a financial or other advantage to encourage that person to perform their functions or activities improperly, or to reward someone for having already done so.
- A facilitation payment is a type of bribe. An example is an unofficial payment or other advantage given to an official to undertake or speed up the performance of their normal duties.
- Corruption is the misuse of entrusted power for personal gain. This would include dishonest or fraudulent behavior by those in positions of power, such as managers or Trustees. It would include offering, giving and receiving bribes to influence the actions of someone in a position of power or influence, and the diversion of funds for private gain.
- A conflict of interest is where an individual has private interests that may or actually do influence the decisions that they make as an employee or representative of an organisation.
- Theft: Dishonestly acquiring, suing or disposing of physical or intellectual property belonging to the Branch to individual members, supporters or clients of the Branch.
- Misuse of Equipment: Deliberately misusing materials or equipment belonging to the Branch.
- Abuse of Position: Exploiting a position of trust within the organisation.