The GBPLD is committed to the highest possible standards of openness, transparency, and accountability in all its affairs. We wish to promote a culture of honesty and opposition to fraud in all its forms. The purpose of this policy is to provide:
- A clear definition of what we mean by “fraud”.
- A definitive statement to staff forbidding fraudulent activity in all its forms.
- A summary to staff of their responsibilities for identifying exposures to fraudulent activities and for establishing controls and procedures for preventing such fraudulent activity and/or detecting such fraudulent activity when it occurs.
- Guidance to employees as to action which should be taken where they suspect any fraudulent activity.
- Clear guidance as to responsibilities for conducting investigations into fraud related activities. Protection to employees in circumstances where they may be victimized as a consequence of reporting, or being a witness to, fraudulent activities.
Definition
GBPLD defines fraud as: "The theft or misuse of GBPLD funds or other resources by an employee, officer, vendor, contractor, or an independent third-party provider, which may or may not also involve misstatement of financial documents or records to conceal the theft or misuse.”
For example, fraud includes but is not limited to the following:
- Theft of funds or any other GBPLD property.
- Falsification of costs or expenses.
- Forgery or alteration of documents.
- Destruction or removal of records to conceal fraudulent behavior.
- Inappropriate personal use of GBPLD assets.
- Employees seeking or accepting cash, gifts, or other benefits from third parties in exchange for preferment of the third parties in their dealings with GBPLD.
- Blackmail or extortion.
- Paying excessive prices or fees to third parties with the aim of personal gain.
Responsibilities of Employees
Managers
It is the responsibility of managers to be familiar with the types of fraud that might occur in their area, be alert for any indication of fraud or improper activity, and maintain controls to avoid such occurrences. Managers are required to ensure that all staff under their control are given a copy of this policy in a language they can understand and acknowledge its receipt. Managers should also ensure that staff are encouraged to report suspected issues of fraud.
All Staff
It is the responsibility of all employees to carry out their work in such a way as to prevent fraud from occurring in the workplace. Employees must also be alert for occurrences of fraud, be aware that unusual transactions or behaviors could be indications of fraud, and report potential cases of fraud as outlined below.
Reporting Suspected Fraud
Employees are required to report issues of suspected fraud. Employees should report their suspicions as follows:
- To the Chief Executive Officer.
- To the President of the GBPLD Board of Trustees.
Employees who suspect fraud should not do any of the following:
- Contact the suspected individual(s) directly in an effort to determine facts, demand explanations, or restitution.
- Discuss the issue with anyone within GBPLD other than the people listed above.
- Discuss the issue with anyone outside of GBPLD, except as required by law.
Additional information can be found in the GBPLD Whistleblower Policy (2.45).
Dealing with Reports of Suspected Fraud
Any suspicions of fraud will be taken seriously by GBPLD. GBPLD expects its managers to deal firmly and quickly with any reports of suspected fraud. Managers receiving reports of suspected fraud must immediately identify the issue and propose actions to the President of the GBPLD Board of Trustees.
Investigation Guidelines
Arrangements must be made for a comprehensive investigation of the issue. The following are responsible for managing these investigations:
- President of the GBPLD Board of Trustees who will bring the issue to:
- Compliance Officer and Secretary of the GBPLD Board of Trustees, or if either of these individuals is implicated to another member of the Executive Committee of the Board.
- The employee’s immediate supervisor if the supervisor is not implicated.
- The President of the GBPLD Board of Trustees will assign responsibility to the senior management team and/or other GBPLD Board members to investigate and report back.
All work of the investigation team should be documented, including transcripts of interviews conducted. The conclusion of all fraud investigations must be documented and reported to the GBPLD Board of Trustees. The person(s) who initially reported the suspicions should be informed of the outcome of the investigation, but this should be done only once the report and proposed course of action has been finalized.
Safeguards for Employees
Harassment or Victimization
GBPLD recognizes that the decision to report a suspicion can be a difficult one to make, not least because of the fear of reprisal from those responsible for the malpractice. GBPLD, in accordance with its Human Resource Policies, will not tolerate harassment or victimization and will take all practical steps to protect those who raise an issue in good faith. The Whistleblower Protection Act has been expanded to include grant recipients. Under Title 41, United States Code, Section 4712, it is illegal for an employee of a Federal contractor, subcontractor grantee, or subgrantee or personal services contractor to be discharged, demoted, or otherwise discriminated against for making a protected whistleblower disclosure. Also, under Presidential Policy Directive (PPD-19), an action affecting access to classified information cannot be taken in reprisal for protected whistleblowing.
Confidentiality
GBPLD will endeavor to protect an individual’s identity when he or she raises an issue and does not want their name to be disclosed. It should be understood, however, that an investigation of any malpractice may need to identify the source of the information and a statement by the individual may be required as part of the evidence.
Anonymous Allegations
GBPLD discourages anonymous allegations. Issues expressed anonymously will be considered at the discretion of the GBPLD Board Trustees. In exercising this discretion, the factors considered will include:
- The seriousness of the issues raised.
- The credibility of the allegations and the supporting facts.
- The likelihood of confirming the allegation from attributable sources.
Untrue Allegations
If an allegation is made in good faith, but it is not confirmed by an investigation, GBPLD guarantees that no action will be taken against the complainant. If, however, individuals make malicious or vexatious allegations, disciplinary action will be considered against the individual making the allegation.
Actions Arising from Fraud Investigations
Disciplinary Procedures
Persons judged guilty of fraud or who have committed gross misconduct may be dismissed. Where appropriate, GBPLD will refer significant fraud to the local law enforcement agencies to initiate criminal prosecution.
Recovery of losses
Where GBPLD has suffered loss, full restitution will be sought of any benefit or advantage obtained and the recovery of costs will be sought from the individual(s) or organizations responsible for the loss. If the individual or organization cannot or will not make good the loss, consideration will be given to taking civil legal action to recover losses. This is in addition to any criminal proceedings which may result.
Review of this Policy
The contents of this Anti-Fraud Policy will be reviewed by the GBPLD Board of Trustees on an annual basis.
References
Referenced GBPLD policies include:
- GBPLD Whistleblower Policy (2.45)
Approved by the Board 4/9/2024