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HomeMy WebLinkAboutStaff Report 3.C 12/05/2005-14 CITY OF PETALU'MA CALIFORNIA V e eeernber 5, 2005 r AGENDA BILL Agenda Title: MeetinLY.Date: raud in the Workplace Policy December 5, 2005 Meeting Time: ® 3:00 PM ❑ 7:00 PM Category (check one): ® Consent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department: Director: Contact'Person: Phone Number: Admin Services St wen. Carmichael Steven Carmichael 778-4323 Cost of Proposal: Account Number: N/A N/A Amount Budgeted: Name of Fund: Attachments to Agenda Packet;Item: Draft Policy Summary Statement: The, attached Fraud in the Workplace Policy was drafted at the suggestion of the City's external auditors. They have reviewed this policy and agree with it's contents. This is the latest new requirement by the .Governmental Accounting Standards Board (GASB) to move governmental accounting closer to private accounting standards. Recommended City Council Action/Sugizested Motion,: Approve draft policy. Reviewed, by Admin. Svcs. Dir: Review�Al Attornev: �� 12S D te: ate: Todav's Date: Revision .# and Date Revised: # Approved by Citv Manager.: Date: File Code: U City of Petaluma, CA Administrative Policy Subject: Fraud in the Workplace Policy Number: Established Date: 11-15-05 Last Revision Date: 11-15-05 Authority: City Manager City Manager I. PURPOSE: To establish policy and procedures for clarifying acts that^are considered to be fraudulent, describing the steps to ,bestaken when fraud or other related dishonest activities are suspected, and providing procedures to follow in accounting for missing funds, restitution and recoveries. L1. GENERAL POLICY: A. The City `of Petaluma is committed to protecting its assets against the risk of loss or misuse. .Accordingly, it is the policy of ,the City. of Petaluma to identify and promptly investigate any possibility of fraudulent or related dishonest activities against the City 'and, when appropriate, to pursue legal remedies available under the law. B. DEFINITIONS 1. Fraud —'Fraud and other similar irregularities include, but are not limited to: a. Claim for reimbursement of.expenses that are not -job-related or authorized by the current Memorandum of Understanding. b. Forgery ,or unauthorized alteration of documents (checks, promissory'notes, time sheets, independent contractoragreements, purchase orders, budgets, etc.). C. Misappropriation of City assets (funds, securities', supplies, furniture, equipment, etc.). d. Improprieties in the handling or reporting of money transactions. C. Authorizing or receiving payment for goods not received or services not performed. f. Computer-related activity involving unauthorized alteration, destruction,: forgery, or manipulation of data or misappropriation of City -owned software. 9. Misrepresentation of information on documents. h. Any apparent violation of Fede - ral, State, or Local laws related to dishonest activities or fraud. Seeking or accepting anythingof material value from those doing business with the City including vendors, consultants, contractors, lessees, applicants, and*gtantees. Materiality is determined by,the City's Conflict of Interest Code which incorporates, the Fair Political Practices Commission's regulations. 2. Employee — In this context, employee refer . s to any individual or group of individuals who receive compensation, either full- or'part-timq, from the City of Petaluma. The term also includes, any volunteer who provides, services to the City through an official arrangement with the City or a City organization. 3_ Management — In this context, management refers to any administrator, manager, director,,gupervisor, or other individual who manages, or supervises funds or other resources, including human resources. 4. Internal Auditor — In this context, Internal Auditor refers to any person or• persons assigned by the City Manager to investigate any fraud or similar i activity. External Auditor —.In this: context, External Auditor refers to =independent audit professionals who perf6rm annual audits of the City's financial statements. C. it is the City's intent to fully investigate any suspected. acts of fraud, misappropriation, or other similar irregularity. An obje6tive 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 become involved in or becomes the subject of such investigation. D. Each department of the City 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. E. The Internal Auditor, in conjunction with the City Attorney, has the primary responsibility for the investigation of all activity as defined. in this policy. N f a 0 F. Throughout the investigation, the Internal Auditor will inform the City Manager of pertinent investigative findings. G. Employees will be granted whistle -blower protection when acting in accordance with this policy. When informed of.a suspected impropriety, neither the City nor any person acting on'behalf of the City shall: 1. Dismiss or threaten to dismiss the employee, 2. Discipline; suspend'; or threaten to discipline or suspend the employee, 3. Impose any penalty upon the employee; or 4. Intimidate, or coerce the employee. Violations of the whistle -blower protection will result in discipline up to and including dismissal. H. Upon conclusion of the -investigation; the results will be reported to the City Manager. I. The City Managerjollowing review=of investigation results, will take appropriate action regarding employee misconduct. Disciplinary action can include termination, and referral of the case to the District Attorney's Office for possible prosecution. J. The City will pursue every reasonable effort, including court ordered restitution, to obtain recovery of City losses from the offender, or other appropriate sources. III. RECEIVING REIMBURSEMENT: A. The person receiving the reimbursement must be the person who incurred the cost. B. If you need petty case reimbursement, come to the cashier's window. If there are other customers waiting in line, you will receive service in the order of your arrival. NO reimbursement will be made inside the Finance office. C. All request forms must include Pentamation Accounting Code(s). D. Reimbursement for classes will not be done through Petty Cash. Classes should be paid for with a`Department credit card or via an Accounts Payable check. E. Due to Federal, State and other funding agencies reporting requirements, petty cash is not available as a reimbursement method involving the above. All reimbursements ,for these costs will be made through Accounts Payable.