[R.O. 2012 §110.140; Ord. No. 3359 §2, 4-14-2008]
A.
Purpose. The purpose of this policy is to establish expectations,
standards and procedures within the City of Union to minimize the
risk of internal and external fraud as well as theft of City assets
or fraudulent financial reporting. This policy addresses the responsibility
of City employees for detecting and reporting fraud or suspected fraud,
corruption or dishonest activities and provides a means for individuals
outside of the City government organization to report improprieties
to the City. The City of Union is committed to protecting itself and
the public from fraud, corruption and dishonest activities through
development and adherence to policies and procedures for the prevention,
detection, investigation, remediation and prosecution of fraud and
corruption.
B.
Policy. The City of Union officials, both elected and appointed,
are responsible for the prevention and detection of fraud, misappropriations
and other inappropriate conduct. City Officials also recognize that
a key preventative measure in the fight against fraud and corruption
is to employ individuals who have the highest standards in terms of
propriety, honesty and integrity. Further, all employees of the City
government have a duty to the residents of the City of Union to ensure
that City resources are prudently used in accordance with the law
and City policies. The City is committed to implementing sound financial
management systems and procedures designed to safeguard the financial
resources of the City through its own initiatives and by positive
and prompt response to independent audit recommendations. The Board
of Aldermen of the City of Union is committed to ensuring the highest
standards of integrity and ethical organizational behavior on the
part of its officials and employees, establishing effective financial
management controls, and engaging in such actions as necessary to
prevent, detect, investigate and remedy instance of fraud and corruption
against the City of Union.
C.
Fraud And Corruption. For purposes of this policy, "fraud" is defined as an intentional, false representation
or concealment of a material fact that leads to a financial advantage
to the perpetrator or another upon whose behalf he or she acts. Fraud
shall include acts of theft, larceny, embezzlement, fraudulent conversion,
false pretenses, forgery, corrupt practices and falsification of accounts.
For purposes of this policy, corruption shall include the offering,
giving, soliciting or acceptance of any inducement or reward that
may influence the actions taken by an employee and shall include other
acts as described herein. Fraud and/or corruption shall also include:
1.
Forgery or alternation of a check, bank draft or other financial
document or account belonging to the City of Union.
2.
Falsifying time sheets, expense reports or other report documents.
3.
Misappropriation of funds, securities, supplies or other assets.
4.
Impropriety in handling or reporting of money or financial transactions.
5.
Unauthorized disclosure of confidential, personal or proprietary
information to others.
6.
Accepting or seeking anything of material value from contractors,
vendors or persons providing services/materials to the City of Union.
7.
Destruction, removal or inappropriate use of records, furniture,
fixtures, equipment and/or any similar or related irregularity.
D.
Preventive Measures. City Officials of the City of Union recognize that the implementation of preventive and deterrent measures guard against corruption and fraudulent activities occurring within the City government. In an effort to eliminate opportunities that serve as a catalyst for dishonest activities, management will continuously evaluate the effectiveness of internal control practices and procedures. Internal controls include documentation and consistent application of accounting procedures; careful adherence to City Code financial management requirements; maintenance of financial records in accordance with recognized governmental accounting standards; thorough documentation of financial transactions; segregation of financial duties among municipal employees and official to the extent practical for a small organization; securing financial records and documents including blank checks and access to credit cards; securing confidential personnel information; securing access to financial accounting systems through use of password protection and limiting access; periodically modifying passwords; requiring multiple signatures for payment of funds; implementing purchasing procedures which ensure proper authorization for approval of purchases; cash handling policies refined to provide for enhanced financial control over receipting and recognition; conducting internal auditing of financial transactions from time to time and cooperating fully with external auditors. The City has adopted and enforces Conflicts of Interest (Section 110.010 of this City Code) to guard against conflicts of interest and other prohibited acts.
E.
Reporting Suspicious Activities. City employees have an
obligation to report criminal conduct and/or suspicious activity with
no expectation of retaliation or reprisal. When suspected fraud, corruption
or dishonest incidents or practices are observed by or made known
to any employee, the incident or practice is to be reported in writing
promptly and directly to the City Administrator or to the Mayor if
the suspected activity involves the City Administrator. Individuals
other than employees of the City who have knowledge of suspicious
activities should report the inappropriate activity directly to the
City Administrator or to the Mayor if the suspected activity involves
the City Administrator.
F.
No Reprisals For Reporting Suspicious Activities. It is
the policy of the City of Union that no employee shall be subject
to recrimination or any other form of punishment on the basis that
they reported what was reasonably believed to be an act of wrongdoing,
violation of policies or violation of the City's Code of Ethics. However,
an employee will be subject to disciplinary action if the City reasonably
concludes that the report of wrongdoing was knowingly fabricated by
the employee or was knowingly distorted, exaggerated or minimized
to either injure someone else or to protect the reporting party or
others. An employee whose report of misconduct contains admissions
of personal wrongdoing will not, however, be guaranteed protection
from the disciplinary action. The weight to be given to the confession
will depend on all the facts known to the City at the time it makes
its disciplinary decisions. In determining what, if any, disciplinary
action may be taken against an employee, the City will take into account
an employee's own admission of wrongdoing; provided however, that
the reporting employee's conduct was not previously known to the City
or its discovery was not imminent and that the admission was complete
and truthful.
G.
Investigation. The City of Union will promptly and thoroughly
investigate situations involving possible fraud, corruption or related
dishonest activity utilizing such internal and external resources,
including law enforcement officials and agencies, as may be indicated
by the nature of the reported suspicious activity. The investigation
requires the full cooperation of all City personnel. If this investigation
uncovers evidence showing fraud, corruption or dishonest activities,
the City Administrator (if not directly involved in the allegations)
will determine what disciplinary or legal actions should be taken
and report same to the Board of Aldermen. If the City Administrator
is directly involved in the allegations, the Mayor and Board of Aldermen
will determine what disciplinary or legal actions should be taken.
H.
Conclusion. The City of Union shall constantly seek to improve
its financial management, internal controls and monitoring systems
in order to deter, detect, investigate and remedy fraud and corruption.
The City will ensure that these policies and procedures are fairly
administered, widely publicized and provided to all City employees.
The policies and procedures will be monitored and updated to keep
pace with future developments in prevention, deterrence and detection
of fraud and corruption.
