8. FRAUD RISK CONTROL

The Association, as with all community organizations that are funding through Government Funding Programs is entrusted by the community and government to protect our assets, revenues and expenditure. Fraud prevention and control must be the responsibility of all staff and the Executive Committee.

Fraudulent acts may involve theft, the making of false statements, evasion, the manufacturing of information or acts of omission.

8.2 Management and Staff Responsibilities

The Association does not tolerate or condone fraudulent conduct. Each Staff member is responsible for ensuring that the risk of fraud occurring is regularly assessed and risk prevention processes are implemented. This includes providing training and information to all staff on fraud detection and fraud prevention processes. Staff has a responsibility to report any incidents or suspicions of fraud occurring within the Association.

8.3 Fraud Risk Assessment

The purpose of the Assessment is to:

(a) Determine the effectiveness of existing control measures;

(b) Enable judgments to be made on any required fraud counter-measures.

When a fraud risk is identified, strategies will be put in place to address the risk.

Fraud risk assessment will be carried out on;

(a) Assets;

(b) Charity  motor vehicles;

(c) General resources;

(d) Financial procedures including: accounts payable, accounts receivable, petty cash; etc;

(e) Payroll;

(f) Personnel practices;

(g) Information technology;

(h) Purchases and inventory;

The fraud risk assessment process does not replace existing procedures, but is additional and complementary.

8.4 Investigating fraud

It is the responsibility of  each Staff Member to carry out the investigations of allegations of fraud. Where particular forensic or financial skills are required, The Association’s auditor may be used. Investigations into allegations of fraud will be dealt with in accordance with the Constitution of the Association.