Purpose
The District fraud policy is intended to develop controls to aid in the detection and prevention of fraud against the District. It is the intent of the District to promote consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and investigative process.
Scope
The policy applies to any act of fraud or suspected fraud involving employees, consultants, vendors, contractors or agencies conducting business with employees of such agencies and / or and other parties with a business relationship with the District. Any investigative action required will be conducted without regard to the suspected wrongdoer’s length of service, position, title or relationship to the District.
Policy
I. All personnel are responsible for the detection and prevention of fraud, misappropriations and other inappropriate conduct. Fraud is defined as the intentional, false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury. Each member of the management team (chiefs and classified administrative staff) will be familiar with the types of improprieties that might occur within his or her area of responsibility.
A. Any fraud that is detected or suspected must be reported immediately to the chief having authority or in the absence of a chief a member of the Board of Directors.
1. Persons receiving reports of fraud or suspected fraud shall evaluate the report for probable cause and shall make the appropriate reference to the investigation policy (Policy # 708).
II. Actions constituting Fraud are:
A. The terms defalcation, misappropriation and other fiscal wrongdoings refer to, but are not limited to:
1. Any dishonest or fraudulent act.
2. Forgery or alteration of any document or account belonging to the District.
3. Forgery or alteration of any check, bank draft or financial document to conceal an illegal act or for personnel gain or the gain of another.
4. Misappropriation of funds, financial insterments, property or assets.
5. Impropriety in the handling of or reporting of financial transactions with the intent to mislead for the purpose of concealment of an incompetent or dishonest act or in to furtherance an act of theft.
6. Profiteering as a result of insider knowledge or activities.
7. Disclosing confidential and proprietary information to outside parties.
8. Accepting or seeking anything of material value from contractors, vendors or persons providing services or materials to the District. Exception: Gifts having a value of less then $50.00 per person each year disclosed.
9. The destruction, removal or inappropriate use of records or property of the District.