RESPONSIBLE CITY AGENCY: Finance Division, Finance Director
KEYWORDS: Fraud, misappropriation, theft, irregularity, misuse, misapplication, resources, assets.
1. General
1.1 Salt Lake City Corporation does not tolerate fraud, misappropriation, theft, misuse, or misapplication of City resources or assets by any employee, vendor, or contractor.
1.2 This policy is established to facilitate the development of controls that will aid in the detection and prevention of fraud against the City. It is the intent of the City to promote consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and conduct of investigations.
1.3 This policy applies to any irregularity, or suspected irregularity, involving employees, consultants, vendors, contractors, and/or any other parties with a business relationship with the City.
1.4 Employees who violate this policy will be disciplined, up to and including termination.
1.5 Vendors or contractors violating this policy will be subjected to potential termination of their contract, and action to recover all amounts inappropriately received, and/or prosecution.
2. Fraud
2.1 Fraud is defined as the use of an employee’s occupation or influence for personal
enrichment through the deliberate misuse of the employee’s position and/or misuse or misapplication of the City’s resources or assets. Each employee or member of management will be familiar with the types of improprieties that might occur within his or her area of responsibility, and be alert for any indication of irregularity.
2.2 Fraud includes, but is not limited to the following activities:
A. Any fraudulent act.
B. Misappropriation of funds, securities, supplies, or other assets.
C. Impropriety in the handling or reporting of money or financial transactions.
D. Profiteering as a result of insider knowledge of City activities.
E. Disclosing to other persons investment activities engaged in or contemplated by the City.
F. Accepting or seeking anything of value, including gifts from contractors, vendors, or persons providing services/materials to the City (See Procurement Policy 10.2B).
G. Destruction, removal, or inappropriate use of records, furniture, fixtures, and equipment.
H. Payroll fraud including misuse of time or submitting a fraudulent time card.
I. Any similar or related irregularity.
3. Controls
3.1 The Finance Division will establish and maintain proper internal controls through
City policies and procedures to aid management and employees in preventing, detecting and reporting suspected fraud.
3.2 All employees will be given copies of this policy and the Fraud Reporting and Investigation Procedures as part of the new hire orientation.
CURRENT REFERENCES: Fraud Reporting and Investigation Procedures, Small Purchase Check Procedures, Petty Cash Procedures.
DATE SIGNED BY MAYOR: December 17, 2008