HomeMy WebLinkAbout2016-05-02-Resolutions 16-155_Financial Policy - Anti-Fraud and DefamationTHE CITY OF WAUKEE,IOWA
RESOLUTION 16-155
APPROVING CITY OF WAUKEE FINANCIAL POLICY —ANTI-FRAUD AND
DEFAMATION POLICY)OF THE STANDARD ADMINISTRATIVE POLICY AND
PROCKDURESMANUAL
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE,IOP'A
WHEREAS,the City of Waukee,iowa is a duly organized municipality within Dallas
County;AND,
WHEREAS,the Waukee City Council shall approve operating policies and procedures;
AND,
WHEREAS,City staff has presented the City Council with an Anti-Fraud and Defamation
Policy,attached hereto as Exhibit A,and recommends approval.
NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session
this 2"day of May,2016,that the City of Waukee Financial Policy —Anti-Fraud and
Defamation Policy,of the Standard Administrative Policy and Procedures Manual is hereby
approved.
Attest:
William .Pe d,Mayor
Rebecca D.Schuett,City Clerk
ROLL CALL VOTE
Shane Blanchard
Brian Harrison
Shelly Hughes
Larry R.Lyon
Rick Peterson
AYK
X
X
X
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NAY ABSENT ABSTAIN
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Standard Administrative Policy
R Procedures Manual
Title:FINANCIAL POLICY
Section:ANTI-FRAUD &DEFAMATION POLICY
Date of Version:April 11,2016
Resolution No.:¹16-???
SECTION 1 —Policy and Purpose
Management is responsible for the detection and prevention of fraud,misappropriations,and
other irregularities.Each member of the management team will be familiar with the types of
improprieties that might occur within his or her area of responsibility and/or department,and
be alert for any indication of irregularity.
It is the policy of the City of Waukee that any irregularity that is detected or suspected must be
reported immediately to the respective Department Director,Finance Director,or the City
Administrator.The Finance Director and/or City Administrator shall coordinate all
investigations with the appropriate law enforcement agency,City Attorney,or other affected
areas,both internal and external.The City will operate under a zero tolerance policy regarding
fraud.
The City intends to establish and maintain an environment of fairness,ethics and honesty for
our employees,our citizens,our suppliers and anyone else with whom we have a relationship.
To maintain such an environment requires the active assistance of every employee and
director on a daily basis.
SECTION 2 —Definition
For the purposes of this Policy,fraud is defined as the use of deception by an individual with
the intention of obtaining an advantage for him/herself or for a third party or parties,avoiding
an obligation,or causing loss to another party.The term fraud is used to describe offenses
such as,but not limited to,deception,bribery,forgery,extortion,corruption,theft,conspiracy,
embezzlement,misappropriation,false representation,concealment of material facts,and
collusion.Defamation is defined as the act of false or unjustified injury of the good reputation
of another person or institution,as by slander or libel.
The impact of misconduct and dishonesty or fraudulent behavior may include:
1.Obtaining property,financial advantage or any other benefit by deception or
abuse of authority granted by virtue of official position or duty.
2.Charging the City of Waukee for goods and services that have not been
delivered.
3.Development or application of local policies or practices knowingly inconsistent
with the objectives of the City's practices or objectives.
4.Seeking to obtain confidential information about a colleague or others,with
intent to use it for unauthorized purposes.
5.Knowingly providing false,misleading or incomplete information to the City,its
donors,partners,or other business relations,or deliberately failing to provide
information where there is an obligation to do so.
6.Non-permitted use of the City's computers,vehicles,telephones,or any other
property or services outside of professional duties or without specific
authorization.
7.Hacking into,or interfering with the City's server or computer system.
The costs of fraudulent behavior include:
1.The actual financial loss incurred
2.Damage to the reputation of the City or City's employees.
3.Negative publicity.
4.The cost of investigation.
5.Loss of employees.
6.Loss of public confidence
7.Damaged relationships with City's contractors,suppliers and citizens.
8.Litigation costs.
SECTION 3 —Zero Tolerance Policy
The City of Waukee has adopted a zero tolerance policy regarding fraudulent acts.No
employee of the City shall remove any City assets from the property,misuse any City assets for
one's personal gain,willfully misappropriate any City assets,or participate in an action which its
sole purpose is to damage the City's relationships and/or reputation.Any evidence supporting
fraud,theft,embezzlement and defamation towards the City's assets may be subject to the
following actions including but not limited to:suspension,termination,restitution,and criminal
charges.Any City employee who is aware of fraud being committed against the City by anyone
shall report such activity to the Department Director,Finance Director,City Administrator or
appropriate law enforcement official and/or regulatory agency.
SECTION 4 —Investigation Responsibilities
Depending on the act in question either the respective Department Director,City
Administrator,appropriate law enforcement official and/or regulatory agency has the primary
responsibility for the investigation of all suspected fraudulent acts as defined in this policy.If
the investigation substantiates the fraudulent activities have occurred,the investigative level
will report these results to the appropriate designated personnel,and,if appropriate,to the
City Council.If,during an administrative investigation of an employee,information is found or
developed indicating the employee may have committed a criminal offense,the information
will immediately be referred to the appropriate law enforcement agency for investigation.The
Department Director having supervisory authority over an employee suspected of committing a
criminal act will immediately notify the City Administrator of the possible criminal act.
Decisions to prosecute or refer the examination results to the appropriate law enforcement
and/or regulatory agency for independent investigation will be made in conjunction with legal
counsel and City Administrator,as will final decisions on disposition of the case.
Final determination regarding action against an employee,vendor,recipient or other person
found to have committed fraud or corruption will be made by the City Administrator and/or
legal counsel.
Depending on the seriousness of the offense and the facts of each individual case,action
against an employee can range from written reprimand and a probationary period to legal
action,either civil or criminal.In all cases,involving monetary losses to the City of Waukee,the
City will pursue recovery of the losses.
SECTION 5 —False Allegations
False allegations of suspected fraud and/or defamation with the intent to disrupt or cause harm
to another,may be subject to disciplinary action up to and including termination of
employment.
SECTION 6 —Confidentiality
All information received regarding these acts will remain confidential and only reported to
appropriate personnel and/or law enforcement agencies.Any employee who suspects
dishonest or fraudulent activity will notify the respective Department Director immediately,
and should not attempt to personally conduct investigations or interviews/interrogations
related to any suspected fraudulent act.
Investigation results will not be disclosed or discussed with anyone other than those who have a
legitimate need to know.This is important in order to avoid damaging the reputations of
persons suspected but subsequently found innocent of wrongful conduct and to protect the
City of Waukee from potential civil liability.
SECTION 7 —Reporting Procedures
Great care must be taken in the investigation of suspected improprieties or irregularities,so as
to avoid mistaken accusations or alerting suspected individuals that an investigation is under
way.An employee who discovers or suspects fraudulent activity will contact their respective
Department Director or City Administrator immediately.The employee or other complainant
may remain anonymous.All inquiries concerning the activity under investigation from the
suspected individual,his or her attorney or representative,or any other inquirer should be
directed to the respective Department Director,City Administrator,or the City Attorney.
No information concerning the status of an investigation will be given out.The proper response
to any inquires is,ul am not at liberty to discuss this matter."Under no circumstances should
any reference be made to the allegation/crime/fraud/forgery/misappropriation/etc.
The reporting individual should be informed of the following:
1.Do not contact the suspected individual in an effort to determine facts or
demand restitution.
2.Do not discuss the case,facts,suspicions,or allegations with anyone unless
specifically asked to do so by the City Attorney or head of the investigation.
SECTION 8 —Deterring Fraud and Corruption
The City of Waukee has established internal controls,policies and procedures in an effort to
deter,prevent and detect fraud and corruption.All new employees,temporary,seasonal and
contract employees,as well as volunteers,are subject to background investigations including a
criminal background check,and a financial background for positions which process cash
transactions.The City will also verify all applicants'employment history,education and
personalreferences prior to making an offer of employment.
All vendors,contractors and suppliers must be active,in good standing and authorized to
transact business in the City.Beginning July,1,2016,all contractual agreements with the City,
above 549,000 which require competitive bidding,shall contain a provision prohibiting
fraudulent or corruptive acts and will include information about reporting fraud and corruption.
Bid packages have a statement requiring non-collusion.
New employees will receive a copy of the Anti-Fraud and Defamation Policy as part of
orientation at the commencement of employment.
SECTION 9 —Administration
The City Administrator or his/her designated personnel is responsible for the administration,
revision,interpretation,and application of this policy.The policy will be reviewed and revised
as needed.