Dealing with Fraud, Corruption and Misconduct in the

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Dealing with Fraud, Corruption and Misconduct in
the University Sector Presented by Phillip
Draber Director, Risk Management Audit
Assurance (RMAA) Edith Cowan University
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CONTENT

• Introduction
• Key Definitions
• Roles and Responsibilities
• Complainant Protection and Confidentiality
• Initial Inquiry and Preliminary Investigation
  Process
• Investigation File Management
• Evidence

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INTRODUCTION

• Why do we need measures to deal with fraud,
  corruption and misconduct?
• Protection of Universitys assets, interests and
  reputation.
• Coordinated approach in dealing with FCM.
• Safeguarding of individuals reputation involved
  in process.
• Ensure external reporting obligations are met.

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FRAUD

• Fraud means
• Inducing a course of action by deceit or other
  dishonest conduct
• Involves acts or omissions or the making of false
  statements
• Can be orally or in writing
• Object to obtain a benefit or evade a liability

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CORRUPTION

• Corruption is defined in section 83 of the
  Criminal Code (WA) and is taken to mean any
  public officer who, without lawful authority or a
  reasonable excuse
• acts upon any knowledge or information obtained
  by reason of his or her office or employment
• acts in any matter, in the performance or
  discharge of the functions of his or her office
  or employment, in relation to which he or she
  has, directly or indirectly, any pecuniary
  interest or
• acts corruptly in the performance or discharge of
  the functions of his or her office or
• employment, so as to gain a benefit, whether
  pecuniary or otherwise, for himself or herself or
  any person, or so as to cause a detriment,
  whether pecuniary or otherwise, to any person, is
  guilty of a crime and is liable to imprisonment
  for 3 years.

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MISCONDUCT

• Misconduct essentially occurs if a public
  officer
• CORRUPTLY ACTS OR CORRUPTLY FAILS TO ACT - in the
  performance of the functions of the public
  officers office or employment
• CORRUPTLY TAKES ADVANTAGE FOR OWN BENEFIT OR
  DETRIMENT TO ANOTHER - a public officer corruptly
  takes advantage of the public officers office or
  employment as a public officer to obtain a
  benefit for himself or herself or for another
  person or to cause a detriment to any person or
• COMMITS OFFENCE IN OFFICIAL CAPACITY - a public
  officer whilst acting or purporting to act in his
  or her official capacity, commits an offence
  punishable by 2 or more years imprisonment.
• ECU has powers to deal with Criminal and HR
  Misconduct

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CRIMINAL MISCONDUCT

• Any misbehaviour of a kind that involves an act
  of fraud and or corruption.
• Corruption and Crime Commission (CCC) misconduct.
• An act by an employee whilst acting or purporting
  to act in his or her official capacity, which act
  is punishable upon conviction for the offence by
  imprisonment.

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HR MISCONDUCT

• Academic misconduct
• Serious misconduct in terms of EBA/HEWRR
• General misconduct in terms of EBA/HEWRR

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ROLES AND RESPONSIBILITIES

• Vice-Chancellor
• Director, Human Resource Services
• Director, RMAA
• Senior Executives and Managers
• University Staff
• Misconduct Case Management Team (MCMT)

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VICE CHANCELLOR

• Ultimate responsibility for the prevention and
  detection of fraud, corruption and misconduct.
• Responsible for ensuring that appropriate and
  effective internal control systems are in place.
• Responsible for ensuring that external agencies
  are notified.

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DIRECTOR, HUMAN RESOURCE SERVICES

• Ensures that any action taken is in line with the
  Universitys industrial relations instruments.
• Conducts preliminary investigations into HR
  misconduct within the University.
• Ensures that acts of suspected criminal
  misconduct are reported to the Director, RMAA.

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DIRECTOR, RISK MANAGEMENT AND AUDIT ASSURANCE

• Conducts preliminary investigations into
  criminal" misconduct within the University.
• Ensures that the necessary reports are forwarded
  to the Corruption and Crime Commission (CCC).
• Point of contact between the University and the
  CCC.

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SENIOR EXECUTIVES AND MANAGERS

• Responsible for the prevention and detection of
  acts of misconduct, fraud and corruption.
• Should ensure there are sufficient controls that
  minimise such activities within their areas of
  responsibility.
• Should report suspected acts to the Directors or
  Executive Deans.
• May perform initial enquiries.
• Should promote staff awareness of ethical
  principles subscribed to by the University
  including Codes of Conduct.
• Should educate staff about fraud and corruption
  prevention and detection.
• Should promote a positive and appropriate
  attitude towards compliance with laws, rules and
  regulations.
• Should be aware of common indicators and symptoms
  of fraud, corruption or other wrongful acts and
  respond to those indicators as appropriate.

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UNIVERSITY STAFF

• Should comply with controls, policies and
  procedures.
• Should be aware of the signs of acts of
  misconduct, fraud and corruption.
• Should report suspected acts of FCM to
  management.
• Should assist with any enquiries and
  investigations pertaining to fraud, corruption or
  misconduct.

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MISCONDUCT CASE MANAGEMENT TEAM (MCMT)

• Responsibilities
• Should establish prevention and detective
  strategies to deter acts of misconduct, fraud and
  corruption.
• Establish controls to detect and prevent acts of
  misconduct, fraud and corruption.
• Outline investigation and reporting processes in
  connection with acts of misconduct, fraud and
  corruption.
• Oversee formal investigations by the Office of
  Risk Management and Audit assurance into any
  reported allegations of criminal misconduct.
• Ensures that any acts of suspected CCC
  Misconduct are reported to the Vice Chancellor
  as soon as is practically possible to ensure that
  the necessary notifications are made to the
  Corruption and Crime Commission.
• Advises the Vice-Chancellor of any requirement to
  report any allegations to any relevant external
  agencies.

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MISCONDUCT CASE MANAGEMENT TEAM (MCMT)

• Composition of MCMT dependant upon
• The nature of the allegation made
• The position of the person against whom the
  allegation has been made.

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MCMT CRIMINAL MISCONDUCT (ACADEMIC STAFF)

• Deputy Vice Chancellor (Academic)
• Director, RMAA
• Director, Human Resource Services for
  employee-relations issues
• The Senior Executive or Director accountable for
  the area subject to investigation
• Other persons who, in the opinion of the
  aforementioned standing members of the MCMT, are
  appropriate.

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MCMT HR MISCONDUCT (ACADEMIC STAFF)

• Director, Human Resource Services
• The Senior Executive or Director accountable for
  the area subject to investigation
• Other persons who, in the opinion of the
  aforementioned standing members of the MCMT, are
  appropriate.

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MCMT CRIMINAL MISCONDUCT (GENERAL STAFF)

• Deputy Vice Chancellor (Academic)
• Director, RMAA
• Director, Human Resource Services for
  employee-relations issues
• The Senior Executive or Director accountable for
  the area subject to investigation
• Other persons who, in the opinion of the
  aforementioned standing members of the MCMT, are
  appropriate.

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MCMT HR MISCONDUCT (GENERAL STAFF)

• Director, Human Resource Services
• The Senior Executive or Director accountable for
  the area subject to investigation
• Other persons who, in the opinion of the
  aforementioned standing members of the MCMT, are
  appropriate.

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COMPLAINANT PROTECTION

• Governed by the procedures set out in the Public
  Interest Disclosure Act (WA) 2003.
• Provides protection for complainants including,
  confidentiality, employment protection and, where
  appropriate, immunity from any criminal or civil
  liability.
• Complainants notified of action or any
  contemplated action to be taken by the
  University.

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CONFIDENTIALITY

• Adherence to the requirements of the Public
  Interest Disclosure Act (WA) 2003.
• Protects the interests of both informants
  (whistleblowers) and persons in respect of whom a
  public interest disclosure has been made.

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Investigations Process Maps

• Investigations Process Map HR Misconduct
• Investigations Process Map Criminal Misconduct

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INVESTIGATION FILE MANAGEMENT

• Investigations file should contain the following
• Original Informant documentation
• A Running sheet
• File notes
• Witness statements
• Letters
• Seized documents
• Respondent statements
• An evidence log
• Photographs/Sketches

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EVIDENCE

• Complaints about suspected fraudulent and corrupt
  behaviour should preferably be written, dated and
  signed by the complainant.
• Physical exhibits should be secured and recorded
• Original documentary evidence should be secured
  and preserved in original condition.
• Discussions with persons of interest should occur
  in the presence of an appropriate third party and
  the employees representative.