Anti - Fraud and Corruption Policy

Transcription

1 Anti - Fraud and Corruption Policy This policy applies Trust Wide

2 Document control page Policy number Name of policy Names of linked procedures Accountable Director Author with contact details Status (draft/ ratified) Ratifying Dec 2015 Committee/ date Review date Dec 2017 Brief description of changes following review Equality Impact Assessment Anti-fraud, bribery and corruption policy Associated relevant policies (e.g. NHS Protect policies, whistleblowing policy, disciplinary policy, SFIs, SOs) Chief Finance Officer Jon Cohen LCFS Lead on and Rob Walker on Ratified Policy outlining the roles and responsibilities for the prevention and detection of fraud, bribery and corruption within the Trust The Trust aims to design and implement services, policies and measures that meet the diverse needs of our service, population and workforce, ensuring that none are placed at a disadvantage over others. This Policy has been Equality Impact Assessed and does not discriminate. Version control Version Development Timeline Date number V1 New Policy April 2002 V2 Ratified by Audit Committee May 2003 V3 Final Version March 2009 V4 Full Review May 2011 V5 Updated in line with Policy review Oct 2013 V5.1 Minor Change Company name change April 2017 Page 2 of 13

3 Contents Page Page 1 Foreword 4 2 Introduction 4 3 Definitions 5 4 Public Service Values 5 5 Roles and Responsibilities Chief Executive Chief Finance Officer Internal and External Audit Human Resources Local Counter Fraud Specialist (LCFS) Area Anti-Fraud Specialists (AAFS) Managers All Employees Information Management and Technology 9 6 The Trust s Policy 9 7 The Response Plan Bribery and Corruption Reporting Fraud, Bribery or Corruption 10 8 Sanctions and Redress 11 9 Review Monitoring and Auditing of Policy Effectiveness Dissemination of the Policy Review of the Policy Contacts and Telephone Numbers 13 Page 3 of 13

4 Anti - Fraud and Corruption Policy 1. Foreword This document provides the Trust with a policy for dealing with suspected fraud and other fraudulent acts, dishonesty or damage to property involving employees, contractors, consultants, vendors and other internal and external stakeholders. It also sets out at Section 5 Responsibilities and Section 7 the actions taken by the Trust, Managers and Employees if the suspect theft, fraud bribery or Corruption has taken place. The Trust is committed to reducing fraud, bribery and corruption in the NHS and will seek the appropriate disciplinary, regulatory, civil and criminal sanctions against fraudsters and where possible will attempt to recover losses. This policy is supported and endorsed by senior management. The aims of the policy is to provide a guide for employees and managers on what fraud is in the NHS, what everyone s responsibility is to prevent fraud, bribery and corruption, how to report it and its intended outcomes. This Trust will designate or appoint an individual as the Local Counter Fraud Specialist (LCFS), whom staff may contact confidentially if they suspect a fraudulent act. The Current Local Counter fraud specialists are Jon Cohen jon.cohen@kpmg.co.uk on and Rob Walker rob.walker@kpmg.co.uk on Introduction One of the basic principles of public sector organisations is the proper use of public funds. It is, therefore, important that all working in the public sector are aware of the risk of, and means of, enforcing the rules against fraud. This document sets out the Trust s policy for detected or suspected illegalities. The Trust already has procedures in place to reduce the likelihood of fraudulent acts occurring. These include Standing Orders (SOs), Standing Financial Instructions (SFIs), documented procedures, a system of internal control, internal and external audit. The main objectives of countering fraud in the NHS are summarised below: The creation of an anti-fraud culture; Maximum deterrence of fraud; Page 4 of 13

5 Successful prevention of fraud which cannot be deterred; Prompt detection of fraud which cannot be prevented; Professional investigation of detected fraud; Effective sanctions, including appropriate legal action against people committing fraud; and, Effective methods for seeking redress in respect of money defrauded. 3. Definitions NHS Protect has responsibility for policy and operational matters relating to the prevention, detection and investigation of fraud, bribery and corruption in the NHS and that any investigations will be handled in accordance with NHS Protect guidance. This set out in the NHS Protect strategy, tackling crime against the NHS: A strategic approach. This Trust Policy covers all instances of fraud, corruption and theft. The definition for these is as follows: Theft the dishonest taking of property belonging to another with the intention of depriving that other permanently of its possession; Fraud dishonestly making a false representation, failing to disclose information or abusing a position held, with the intention of making a financial gain or causing a financial loss; Bribery and Corruption offering, promising or giving a payment of benefit-in-kind in order to influence others to use their position in an improper way to gain an advantage. 4. Public service values The three fundamental public service values underpinning NHS and all public sector work, specified by the NHS Code of Conduct for Boards are: Accountability: Everything done by those who work in the Trust must be able to withstand public and parliamentary scrutiny. Page 5 of 13

6 Probity: Openness: Absolute honesty and integrity should be exercised in dealing with NHS patients, assets, staff, suppliers and customers. The organisation s activities should be sufficiently public and transparent to promote confidence between the Trust and its patients, staff and the public. All those who work in the Trust should be aware of, and act in accordance with these values. In addition, staff are expected to: Act impartially in their work; Refuse gifts, benefits, hospitality or sponsorship of any kind which might reasonably be seen to compromise their personal judgement or integrity, and to avoid seeking exert influence to obtain preferential consideration. All such gifts should be returned and hospitality refused; Declare and register gifts, benefits, or sponsorship of any kind, in accordance with time limits agreed locally provided that they are worth at least 20, whether refused or accepted. In addition, gifts should be declared if several small gifts worth a total of over 50 are received from the same or closely related source in a 12 month period; Declare and record financial or personal interest (eg company shares, research grant) in any organisation with which they have to deal, and be prepared to withdraw from those dealings if required, thereby ensuring that their professional judgement is not influenced by such considerations; Ensure that offers of sponsorship that could possibly breach the Code be reported to the Chief Executive when seeking approval to the sponsorship; Not misuse their official position or information acquired in the course of their official duties, to further their private interests or those of others; Ensure professional registration (if applicable) and/or status are not used in the promotion of commercial products or services; Beware of bias generated through sponsorship, where this might impinge on professional judgement or impartiality; Neither agree to practice under any conditions, which compromise professional independence or judgement, nor impose such conditions on other professionals. Page 6 of 13

7 5 Roles and responsibilities 5.1 Chief Executive Chief Executive as the organisation s accountable officer, has the overall responsibility for funds entrusted to it. This includes instances of fraud, bribery and corruption. The Chief Executive must ensure adequate policies and procedures are in place to protect the organisation and the public funds the Trust receives. 5.2 Chief Finance Officer The Chief Finance Officer (CFO) has powers to approve financial transactions initiated by directorates across the organisation. The CFO prepares, documents and maintains detailed financial procedures and systems and that they apply the principles of separation of duties and internal checks to supplement those procedures and systems. The CFO will report annually to the Board and, where applicable, the Council of Governors on the adequacy of internal financial controls and risk management as part of the Board s overall responsibility to prepare an annual governance statement for inclusion in the NHS body s annual report. The CFO will, depending on the outcome of initial investigations, inform appropriate senior management of suspected cases of fraud, bribery and corruption, especially in cases where the loss may be above an agreed limit or where the incident may lead to adverse publicity. 5.3 Internal and external audit The role of internal and external audit includes reviewing controls and systems and ensuring compliance with financial instructions. Internal and External audit must pass on any suspicions of fraud, bribery or corruption to the Local Counter Fraud Specialist (LCFS). 5.4 Human resources Human Resources staff should liaise with LCFS staff in any case of any suspected cases of fraud, bribery and corruption, including liaison with the LCFS and the conduct of any investigation. The local protocol is that the HR manager should contact LCFS contacts as soon as any such case is identified so disciplinary and fraud investigations can take place concurrently. Page 7 of 13

8 5.5 Local Counter Fraud Specialist (LCFS) LCFS is responsible for taking forward all anti-fraud work locally in accordance with national standards and reports directly to the CFO. Adhering to NHS Protect standards is important in ensuring that the Trust has appropriate anti-fraud, bribery and corruption arrangements in place and that the LCFS will look to achieve the highest standards possible in their work. The LCFS will work with key colleagues and stakeholders to promote anti-fraud work, apply effective preventative measures and investigate allegations of fraud and corruption. The LCFS will conduct risk assessments in relation to their work to prevent fraud, bribery and corruption. It is the LCFS s responsibility to investigate any suspected fraud or corruption ensuring that the investigation complies with the requirements of the Crown Prosecution Service in collation of evidence and is appropriately recorded on the NHS Protect First system. 5.6 Area Anti-Fraud Specialists (AAFS) Area Anti-Fraud Specialists (AAFSs) are the frontline face of NHS Protect for all heath bodies within their region. The AAFS is responsible for the management and vetting of all local investigation case papers and evidence and witness statements submitted for the consideration of prosecutions. They can be contacted via LCFS contacts. The AAFSs ensure that local investigations are conducted within operational and legislative guidelines to the highest standards for all allegations of fraud in the NHS. The AAFS allocates, supervises and monitors fraud referrals and notifications to the LCFS and provides support as to the direction of ensuing investigations as required and oversees the LCFS s performance. The AAFS ensures that all information and intelligence gained from local investigative work is reported and escalated as appropriate at both local and national level so that fraud trends can be mapped and used to fraudproof future policies and procedures. 5.7 Managers All managers are responsible for ensuring that policies, procedures and processes within their local area are adhered to and kept under constant review. Managers have a responsibility to ensure that staff are aware of fraud, bribery and corruption and understand the importance of protecting Page 8 of 13

9 the organisation from it. Managers will also be responsible for the enforcement of disciplinary action for staff who do not comply with policies and procedures. Managers should report any instances of actual or suspected fraud, bribery or corruption brought to their attention to the LCFS immediately. Managers must not investigate any suspected financial crimes themselves. 5.8 All employees Employees are required to comply with the Trust s policies and procedures and apply best practice in order to prevent fraud, bribery and corruption (for example in the areas of procurement, personal expenses and ethical business behaviour). Employees who are involved in or manage internal control systems should receive adequate training and support in order to carry out their responsibilities. If an employee suspects that fraud, bribery or corruption has taken place, they should ensure it is reported to the LCFS and/or to NHS Protect as explained below. 5.9 Information management and technology Most Trust systems operate on computer based systems. The Computer Misuse Act 1990 sets out specific offences relating to unauthorised access, use of computers to commit other offences such as fraud and impairing the operation of a computer. Fraudulent use of information technology must be reported by the Chief Information Officer to the LCFS. 6. The Trust s Policy The Trust is absolutely committed to maintaining an honest, open and well- intentioned atmosphere within the Trust. It i s therefore, also committed to the elimination of any fraud within the Trust by employees or contractors, and to the rigorous investigation and punishment of any such cases. The Trust wishes to encourage anyone having reasonable suspicions of fraud to report them. It is also the Trust s policy, which will be rigorously reinforced, that no employee will suffer in any way as a result of reporting reasonably held suspicions. All members of staff can, therefore, be confident that they will not suffer in any way as a result of reporting reasonably held suspicions. For the purposes of this policy reasonably held suspicions shall mean any Page 9 of 13

10 suspicions other than those which are totally groundless (and raised maliciously). Reference to staff or employee(s) within this document includes employees of the Trust and non-executive directors of the Trust and contractors, consultants, vendors and other internal and external stakeholders. 7 The Response Plan 7.1 Bribery and corruption The Trust has conducted risk assessments in line with Ministry of Justice guidance to assess how bribery and corruption may affect the organisation. Proportionate procedures have been put in place to mitigate identified risks. The Trust s procedures in relation to declarations of interest and the hospitality/gifts register is set out in section 2 of this document. 7.2 Reporting fraud, bribery or corruption Each employee has a responsibility to ensure that they inform immediately the appropriate level of management where an actual or suspected fraud or other irregularity has occurred. The employee should normally discuss his/her suspicions with their Line Manager Head of Department; If an employee suspects his/her Head of Department the employee should report the suspicions to someone more senior or directly to the Chief Finance Officer or discuss the matter with the LCFS. The local LCFS contacts are Jon Cohen jon.cohen@kpmg.co.uk on and Rob Walker rob.walker@kpmg.co.uk on The LCFS is authorised to treat enquiries confidentiality and anonymously if so requested by the employee; If an employee suspects the Chief Finance Officer the employee should contact the Chief Executive or the LCFS; If the employee suspects the LCFS the employee should contact the Chief Finance Officer; If the suspicion involves an Executive Director the matter should be reported to the Chair of the Audit Committee (or in the Chair s absence to another member of the Audit Committee); Page 10 of 13

11 Suspected fraud, bribery and corruption can also be reported to NHS Protect using the NHS Fraud and Corruption Reporting Line on freephone or by filling in an online form at as an alternative to internal reporting procedures and if staff wish to remain anonymous. Under no circumstances should employees: Take it upon themselves to investigate any suspected fraud or irregularity. Staff may wish to refer to the Trust s Raising Concerns Policy. A copy is available on the Trust s Intranet; Speak to representatives of the press, radio, TV or other third party unless expressly authorised by the Chief Executive. Staff should note that they might be in breach of the Trust s Standing Orders and Standing Financial Instructions. 8 Sanctions and redress The Trust will seek to apply the appropriate sanction and redress ensuring that where possible losses as a result of fraud, bribery or corruption are recovered in full. Redress can take the form of confiscation and compensation orders, a civil order for repayment, or a local agreement between the Trust and the offender to repay monies lost. Civil sanctions can be taken against those who commit fraud, bribery and corruption to recover money and/or assets which have been fraudulently obtained, including interest and costs; The LCFS will work in partnership with the AAFs and NHS Protect, the police and/or the Crown Prosecution Service to bring a case to court against an alleged offender. Outcomes can range from a criminal conviction to fines and imprisonment; Disciplinary procedures will be initiated where an employee is suspected of being involved in a fraudulent or illegal act. Details of the Code of conduct are available at the trust intranet site; If warranted, staff may be reported to their professional body as a result of a successful investigation/prosecution. Page 11 of 13

12 9 Review 9.1 Monitoring and auditing of policy effectiveness Monitoring is essential to ensuring that controls are appropriate and robust enough to prevent or reduce fraud, bribery and corruption. Arrangements include: reviewing system controls on an ongoing basis and identifying weaknesses in processes as part of system upgrade, internal and external audit work; identifying weaknesses in systems following disciplinary and/or LCFS investigations. Where deficiencies are identified as a result of monitoring, appropriate recommendations and action plans are developed with the responsible officers. Responsibilities and the timescale for action must be reported to the audit committee on a regular basis to allow independent scrutiny of action and progress. 9.2 Dissemination of the policy This policy should be made available to all staff and managers meaning all officers, whether permanent or temporary. It is important that staff are aware of this policy and understand its importance. 9.3 Review of the policy This policy should be reviewed in December 2017 is the responsibility of the Chief Finance Officer. Page 12 of 13

13 10 Contact names and telephone numbers Capacity Name Number LCFS Jon Cohen LCFS Rob Walker Chief Finance Sam Proffitt Officer Chief Executive Simon Barber Trust Chairman Bernard Pilkington Audit Committee Brian Marshall Chairman NHS Reporting line On-line form Page 13 of 13