Dealing with Fraud, Corruption and Misconduct in the University Sector Presented by:

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

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

3. INTRODUCTION Why do we need measures to deal with fraud, corruption and misconduct? • Protection of University’s assets, interests and reputation. • Coordinated approach in dealing with FC&M. • Safeguarding of individuals reputation involved in process. • Ensure external reporting obligations are met.

4. FRAUD Fraudmeans: • 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

5. CORRUPTION Corruptionis 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.

6. MISCONDUCT Misconduct essentially occurs if a public officer: • CORRUPTLY ACTS OR CORRUPTLY FAILS TO ACT - in the performance of the functions of the public officer’s office or employment; • CORRUPTLY TAKES ADVANTAGE FOR OWN BENEFIT OR DETRIMENT TO ANOTHER - a public officer corruptly takes advantage of the public officer’s 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

7. 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.

8. HR MISCONDUCT • Academic misconduct • Serious misconduct in terms of EBA/HEWRR • General misconduct in terms of EBA/HEWRR

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

10. 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.

11. DIRECTOR, HUMAN RESOURCE SERVICES • Ensures that any action taken is in line with the University’s 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.

12. 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.

13. 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.

14. 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 FC&M to management. • Should assist with any enquiries and investigations pertaining to fraud, corruption or misconduct.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. 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.

23. Investigations Process Maps • Investigations Process Map – HR Misconduct • Investigations Process Map – Criminal Misconduct

24. 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

25. 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.