[R.O. 2011 § 130.460; Ord. No. 11-175 § 2, 9-7-2011]
A.
The City of St. Charles (the "City") is
committed to protecting its revenue, property, information and other
assets from any attempt, either by members of the public, contractors,
vendors, agents, elected officials, appointed officials or employees,
to gain by deceit, financial or other benefits at the expense of City
taxpayers.
B.
Elected officials, appointed officials
and employees shall, at all times, comply with all applicable laws
and regulations. The City will not condone the activities of elected
officials, appointed officials or employees who achieve results through
violation of the law or unethical business dealings. The City does
not permit any activity that fails to withstand the closest possible
public scrutiny.
C.
This policy sets out specific guidelines
and responsibilities regarding appropriate actions that must be followed
for the investigation of fraud and other similar irregularities.
[R.O. 2011 § 130.470; Ord. No. 11-175 § 2, 9-7-2011]
As used in this Article, the following
terms shall have these prescribed meanings:
Defined by the Association of Certified Fraud Examiners as
the use of one's occupation for personal enrichment through the deliberate
misuse or misapplication of the employing organization's resources
or assets. There are three (3) major categories of occupational fraud:
ASSET MISAPPROPRIATIONS: Theft or
misuse of an organization's assets.
Cash.
FRAUDULENT DISBURSEMENTS: Perpetrator
causes organization to disburse funds through some trick or device
(e.g., submitting false invoices/timecards/sheets, expense reimbursement
schemes, check tampering, etc.).
SKIMMING: Cash is stolen from an
organization before it is recorded on the organization's books and
records.
CASH LARCENY: Cash is stolen from
an organization after it has been recorded on the organization's books
and records.
CORRUPTION: Wrongfully use influence
in a business transaction in order to procure some benefit for themselves
or another person, contrary to duty to employer or the rights of another.
CONFLICTS OF INTEREST: An undisclosed
economic or personal interest in a transaction that adversely affects
the employer.
BRIBERY: The offering, giving, receiving,
or soliciting of any thing of value to influence an official act or
a business decision.
ILLEGAL GRATUITIES: A party who benefits
from an official act or a business decision gives a gift to a person
who made the decision. An illegal gratuity does not require proof
of an intent to influence.
ECONOMIC EXTORTION: An employee demands
that a vendor/contractor/etc. pay to influence an official act or
a business decision.
FRAUDULENT STATEMENTS: Falsification
of an organization's financial statements.
Any activity involving questionable behavior or business
dealings by members of the public, contractors, vendors, agents or
employees, that put City revenue, property, information and other
assets at risk of waste or abuse.
[R.O. 2011 § 130.480; Ord. No. 11-175 § 2, 9-7-2011]
This policy applies to all elected
officials, appointed officials and employees of the City as well as
any entity or person doing business with the City.
[R.O. 2011 § 130.490; Ord. No. 11-175 § 2, 9-7-2011]
A.
It is the City's intent to fully investigate
any suspected acts of fraud or other similar irregularity. An objective
and impartial investigation will be conducted regardless of the position,
title, length of service or relationship with the City of any party
who might be or becomes involved in or becomes/is the subject of such
investigation.
B.
Each elected official, department director,
supervisory employee and employee whose job responsibilities may require
is responsible for instituting and maintaining a system of internal
control to provide reasonable assurance for the prevention and detection
of fraud, misappropriations and other irregularities. Management should
be familiar with the types of improprieties that might occur within
their area of responsibility and be alert for any indications of such
conduct.
C.
The City Attorney has the primary responsibility
for the investigation of all activity defined in this policy.
D.
The City Attorney will notify the Audit
Committee of the City Council of a reported allegation of fraudulent
or irregular conduct upon the commencement of the investigation to
the extent practical. Throughout the investigation the Chairperson
will be informed of pertinent investigative findings.
E.
Upon conclusion of the investigation, the
results will be reported to the Audit Committee of the City Council
and others as determined necessary by the City Attorney.
F.
At the direction of the Audit Committee
of the City Council, the City Attorney will pursue every reasonable
effort, including court ordered restitution, to obtain recovery of
the City losses from the offender, or other appropriate source.
[R.O. 2011 § 130.500; Ord. No. 11-175 § 2, 9-7-2011]
A.
All Employees.
1.
Any employee who has knowledge of
an occurrence of irregular conduct, or has reason to suspect that
a fraud has occurred, shall immediately notify his/her supervisor.
If the employee has reason to believe that their supervisor may be
involved or does not feel comfortable reporting the occurrence to
their supervisor, the employee shall immediately notify City Attorney
or report the occurrence through the fraud hotline (phone number and
website).
2.
Employees have a duty to cooperate
during an investigation.
3.
Employees who knowingly make false
allegations are subject to discipline.
B.
City Management/Elected Officials. Upon
notification from an employee of suspected fraud, or if management
has reason to suspect that a fraud has occurred, they shall immediately
notify the City Attorney or report the occurrence through the fraud
hotline (phone number and website).
C.
City Attorney.
1.
Upon notification or discovery of
a suspected fraud, the City Attorney will promptly review the suspected
fraud.
2.
After an initial review and a determination
that the suspected fraud warrants additional investigation, the City
Attorney will notify the Audit Committee of the City Council to the
extent practical. Throughout the investigation the Audit Committee
will be informed of pertinent investigative findings, as appropriate.
3.
Upon conclusion of the investigation,
the results will be reported by the City Attorney to the Audit Committee
of the City Council and others as determined necessary.
4.
The City Attorney will pursue every
reasonable effort, including court ordered restitution, to obtain
recovery of the City losses from the offender, or other appropriate
source.
D.
Security Of Evidence. Once a suspected
fraud is reported, the City Attorney will meet with appropriate City
management. City management in coordination with the City Attorney
shall take immediate action to prevent the theft, alteration, or destruction
of relevant records. Such actions include, but are not necessarily
limited to, removing the records and placing them in a secure location,
limiting access to the location where the records currently exist,
and preventing the individual suspected of committing the fraud from
having access to the records.
E.
Personnel Actions. If a suspicion of fraud
is substantiated by the investigation, disciplinary action shall be
taken by City management, in consultation with the Human Resources
and the City Attorney.
F.
Whistle-Blower Protection.
1.
Under Section 610.021(16), RSMo.,
records relating to municipal hotlines established for the reporting
of abuse and wrongdoing are considered closed records and are not
open to the public. Therefore, "whistle-blowers" can stay anonymous.
2.
In addition, no employer or person
acting on behalf of an employer shall dismiss or threaten to dismiss
an employee, discipline or suspend or threaten to discipline or suspend
an employee, impose any penalty upon an employee or intimidate or
coerce an employee because the employee has acted in accordance with
the requirements of this policy. The violation of this Section will
result in discipline up to and including dismissal.
G.
Media Issues.
1.
Any City employee or elected official
contacted by the media with respect to a fraud investigation shall
refer the media to the City Attorney. The alleged fraud or audit investigation
shall not be discussed with the media by any person other than through
the City Attorney.
2.
The City Attorney will not discuss
the details of any ongoing fraud investigation with the media that
may compromise the integrity of the investigation.
H.
Documentation.
1.
At the conclusion of the investigation,
the results will be reported to the Chairperson of the Audit Committee
of the City Council and others as determined necessary by the City
Attorney.
2.
The City Attorney may also make recommendations
to the appropriate City management/elected official to assist in the
prevention of future similar occurrences.
I.
Completion Of The Investigation. Upon completion
of the investigation, including all legal and personnel actions, any
records, documents and other evidentiary material will be returned
by the City Attorney to the appropriate department.
J.
Reporting To External Auditors. The City
Attorney will report to the external auditors of the City all information
relating to investigations as deemed appropriate.
