POLICIES &

PROCEDURES

CITY OF FLINT, MICHIGAN

 

Fraud Policy

 

PURPOSE:

 

     The City of Flint is committed to protecting its revenue, property, information and other assets from any attempt, either by members of the public, contractors, sub-contractors, agents, intermediaries or its own employees, to gain by deceit, financial or other benefits. This policy prohibits fraud or misuse of City of Flint assets and sets forth specific guidelines and responsibilities regarding appropriate actions that must be followed for the investigation of fraud and other similar irregularities.

 

DEFINITIONS:

 

      As used in this policy, the terms listed below shall have the following definitions:

 

Embezzlement is any loss resulting from the misappropriation of City of Flint Assets.

 

Misappropriate is to take or make use of any item without authority or right.

 

Loss is defined as the City of Flint losing possession or control of any type of asset through fraudulent activities.

 

Fraud is the intentional misrepresentation or omission of facts for personal gain.

 

Employee(s) refers to all City of Flint employees, independent contractors, consultants, and temporary workers.

 

Assets refer to the entire property of the City, association, corporation, or estate applicable or subject to the payment of debts.  Assets include, but are not limited to, all City Vehicles and building properties, public water supply, computers and software, cash receivables, wages and benefits.

 

Equipment is defined as a fixed asset that is not consumable or expandable; it is movable, even though sometimes attached to other objects or buildings; and its removal does not create a readily observable physical impairment or deterioration.  Examples include, but are not limited to: Office equipment including computers, desk cabinets, printers and scanners, any electronic Data Processing equipment, Training/education equipment including scientific, medical, and laboratory equipment and furnishings, audio-visual, cameras and recording devices.  Equipment also includes, but is not limited to, all construction and maintenance equipment, air conditioners, athletic equipment, fire-fighting equipment, forklifts, lawn mowers, and tools.

 

 

STATEMENT OF POLICY:

 

The City of Flint has adopted a zero tolerance policy regarding fraud.  No employees of the City, City of Flint residents, or City of Flint property owners who reside outside the City limits shall remove any City of Flint asset from the property, misuse any City asset for ones personal gain, or willfully misappropriate any City of Flint Asset.  Any evidence supporting fraud, theft or embezzlement of City of Flint assets and equipment may be subject to the following actions including but not limited to: Suspension, termination, restitution, and criminal charges. Any utility fraud by the public will be subject to restitution and possible criminal charges.

 

PROHIBITED ACTS

 

Fraud and misuse of City of Flint assets are prohibited.  Examples of fraud and misuse of City assets include but are not limited to:

 

1.      Embezzlement

 

2.      Misappropriation, misapplication, destruction, removal, or concealment of City of Flint property.

 

3.      Alteration or falsification of documents.

 

4.      Theft of any asset (money, tangible property, water, etc.)

 

5.      Authorizing or receiving compensation for goods not received or services not performed.

 

6.      Authorizing or receiving compensation for hours not worked.

 

7.      Misrepresentation of fact

 

 

COMPLAINT PROCEDURE

 

1.      Employees and residents of the City of Flint shall read and understand this policy.  Additionally, suspected or known fraudulent acts by employees shall be reported to their respective supervisor or to the Risk Management office.  If the employee has reason to believe that their supervisor may be involved, the employee shall notify the Department Head or the Risk Management office.

 

2.      Supervisors shall a) communicate the provisions of this policy to all staff, b) take no action without consulting the Department Head, c) recommend appropriate temporary disciplinary action when there is evidence of wrong-doing, and d) if suspension or termination is recommended, consult with the Labor Relations representative.

 

3.      Supervisors and/or Department Heads shall communicate any suspected or known fraudulent act to the Risk Management Office. Risk Management may initiate internal investigative actions of the suspected act. The internal investigation may include but is not limited to surveillance, either electronic or visual.   Document research may include, but is not limited to, cash terminal journal rolls, ledgers, and accounting records.      

 

4.      All participants in a fraud investigation shall keep the details and results of the investigation confidential.

 

5.      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 the policy.  Any violation of this section may result in disciplinary action up to and including termination of employment.

 

PREVENTION

 

Each department will maintain an internal control environment to protect the department and the City from loss or other damages as a result of a fraudulent act.

 

False Allegations

 

False allegations of suspected fraud with the intent to disrupt or cause harm to another may be subject to disciplinary action up to and including termination of employment.

 

Corrective Actions and Discipline

 

Appropriate and timely action will be taken against those proven to have committed a fraudulent act.  These remedial actions may include, but are not limited to: 

 

1.      Disciplinary action (up to and including immediate termination of employment).

 

2.      Restitution for all losses, including investigation and legal expenses, to the fullest extent of the law. 

 

3.      Forwarding information to the appropriate authorities for criminal prosecution.

 

4.      Institution of civil action to recover losses.

 

5.      Where the City of Flint elects to take corrective or disciplinary action, it will proceed under the procedures in place under policy or under any collective bargaining agreement for the respective employment classification.

 

6.      The City of Flint may take corrective or disciplinary action without awaiting the resolution of criminal or civil proceedings arising from the fraudulent conduct.

 

Confidentiality

 

All investigations will be conducted in confidence insofar as reasonably possible.  The name or names of those communicating information about a fraudulent act and the name or names of those suspected of a fraudulent act will only be revealed when required by law in conjunction with the investigation or legal action.

 

 

ISSUED:                                                                                  DATE:

 

 

DEPARTMENT:  RISK MANAGEMENT

 

 

APPROVAL:                                                  

 

 

LAST REVISED: