Fraud and Corruption Policy

1. Purpose

The purpose of this policy is to protect the assets and reputation of Canberra Institute of Technology (CIT) by:

1. reinforcing the commitment and responsibility of the CIT Board (Board) and the senior management to identify fraudulent and corrupt activities and for establishing policies, controls and procedures for prevention and detection of these activities;
2. reinforcing the requirement for all employees and others to refrain from corrupt and fraudulent conduct and encourage the reporting of any instance of fraud or corrupt conduct;
3. providing a framework for conduct of investigations to ensure that all suspected fraudulent and corrupt activity is dealt with appropriately; and
4. assigning responsibility for the development of controls to prevent and detect fraud.

2. Scope

This policy applies to all officers and directors, employees (including, executives and managers) and contractors of the CIT and its subsidiary companies.

Any irregularity or suspected irregularity involving a vendor, consultants or any other third-party agencies doing business with the CIT or its officers, employees or contractors, is included in the scope of this policy.

The policy does not have regard to the officer's, employee's or contractor's length of service, title or relationship to the CIT.

This policy does not limit any rights or obligations which the CIT's officers, employees or contractors have at law.

3. Principles

CIT requires all officers, employees and contractors at all times to act honestly and with integrity and to safeguard the CIT’s resources for which they are responsible. The CIT is committed to protecting all revenue, expenditure and assets from any attempt to gain illegal financial or other benefits.

Any fraud or corruption committed against the CIT is a major concern and as a consequence all cases will be thoroughly investigated, and appropriate action will be taken against any officer, employee or contractor who is found guilty of corrupt or fraudulent conduct. This may include disciplinary action or referral to the appropriate law enforcement or regulatory agencies for independent investigation.

4. Documentation

• Fraud and Corruption Control Framework (PDF 502Kb)

5. Definitions

Corruption is defined for the purposes of this policy as any dishonest activity in which a person associated with CIT (e.g. director, executive, manager, employee or contractor) acts contrary to the interests of CIT and abuses their position of trust in order to achieve personal advantage or advantage for another person or organisation. This can also involve corrupt conduct by CIT, or a person purporting to act on behalf of and in the interests of CIT, in order to secure some form of improper advantage for the organisation either directly or indirectly.

Examples of corrupt conduct include, but are not limited to:

1. payment of secret commissions (bribes, facilitation payments or gratuities) in money, or some other value, to other businesses, individuals or public officials;
2. receipt of bribes or gratuities from other businesses, individuals or public officials;
3. release of confidential information, for other than a proper business purpose, possibly in exchange for either a financial or non-financial advantage;
4. an officer, employee or contractor of the CIT manipulating a tendering process to achieve a desired outcome; or
5. a conflict of interest involving an officer, employee or contractor of the CIT acting in his or her own self-interest rather than in the interests of the CIT.

Fraud is defined as dishonest activity causing actual or potential gain or loss to any person or organisation including theft of moneys or other property by persons internal and/or external to the organisation and/or where deception is used at the time, immediately before or immediately following the activity.

A fraud can typically result in actual or potential financial loss to any person or entity however this is not always the case.

Examples of fraud could include, but are not limited to:

1. misappropriation of funds, securities, or other assets including use of assets for private purposes;
2. causing a loss to the CIT or creating a liability for the CIT by deception;
3. impropriety in the handling or reporting of money or financial records;
4. profiting from insider knowledge of the CIT activities or intended activities;
5. accepting or seeking anything of value from contractors, vendors or persons providing services to the CIT;
6. false invoicing for services never rendered or backdating agreements;
7. submission of exaggerated or wholly fictitious accident, harassment or injury claims; or
8. misuse of personal leave entitlements.

6. Code of conduct

The ACT Public Service Code of Conduct also assist in preventing fraud and corruption within the organisation and it specifically obligations and duties on employees to discharge responsibilities that contribute to better public administration and to maintain a high degree of integrity to deliver services in an efficient, fair and accountable manner.

7. Fraud and corruption control

Board responsibility

The Board are ultimately responsible for setting the strategy and direction and have a responsibility to:

1. ensure that there is an effective fraud and corruption risk management framework in place;
2. understand the fraud and corruption risks to which the CIT is exposed;
3. maintain oversight of the fraud risk assessment and the controls in place to mitigate the risks identified; and
4. monitor reports on fraud risks, policies and control activities that include obtaining assurance that the controls are effective.

Chief Executive Officer (CEO) responsibility

The CEO is responsible for:

1. fostering an environment and culture within the CIT that makes active fraud and corruption control a responsibility of all officers, employees and contractors;
2. articulating clear standards and procedures to encourage the deterrence of fraud and corruption, including the development and regular review of a Fraud and Corruption Framework and a Fraud and Corruption Plan;
3. communicating and raising awareness of the risks relating to fraud and corruption with all employees and for ensuring compliance with CIT policies and procedures, adequate rotation of employees and levels of staffing are in place;
4. establishing and maintaining adequate internal controls that provide for the security and accountability of Organisation resources and prevent/reduce the opportunity for fraud and corruption to occur;
5. ensuring that the risk of fraud and corruption is being appropriately managed and controlled by all business units;
6. the detection, investigation and reporting of offences should they occur.

Officers, employees and contractors responsibility

All officers, employees and contractors are responsible for complying with CIT's policies and procedures, codes of personal conduct and ethics, avoidance of conflict of interest and maintaining vigilance in early detection, reporting and prevention of fraud and corruption.

1. Complying with this policy, related policies, CIT internal controls including limits of authority and avoidance of conflict of interest;
2. Maintaining vigilance in early detection, reporting and prevention of fraud and corruption, including raising concerns regarding improper conduct or inappropriate behaviour with their manager or through other reporting channels made available by CIT, such as public interest disclosure; and
3. Co-operating with any investigations related to suspected breaches of this policy.

8. Investigation protocols

If an investigation identifies that fraud or corruption has occurred, the Risk and Compliance team will escalate the matter in accordance with Fraud and Corruption Prevention Framework and associated policies.

Decisions to prosecute or refer the examination results to the appropriate law enforcement or regulatory agency will be made in conjunction with the Chief Executive Officer (CEO) and senior management, and in the case of a significant matter, with the CIT Board.

In the event of an investigation, members of the investigating team will have free and unrestricted access to all relevant CIT records and premises. They will have the authority to examine, copy and remove any information within the scope of the investigation.

9. Policy Contact Officer

Board Secretariat at citboard@cit.edu.au

10. Policy Review

The Audit and Risk Committee, being a sub-committee of the Governing Board will conduct a review of this policy every two years. Any proposed changes to this policy must be approved by the Board