Fraud and Corruption Prevention Policy

1.      Introduction

The University of Newcastle is committed to "upholding the highest standards of academic, personal and business integrity … and to practising the values of honesty, trust, fairness, respect and responsibility" (Building Distinction 2007 – 2011). It therefore promotes an organisational culture that will not tolerate any act of maladministration, fraud or corrupt conduct.

The University of Newcastle is established under NSW legislation; it is regarded as a "public authority", and as such falls within the jurisdiction of the (NSW) Independent Commission Against Corruption Act (ICAC Act). Under the ICAC Act, the University must comply with statutory reporting obligations. In addition, allegations or complaints of corrupt conduct against the University of Newcastle may be investigated by ICAC.

This policy supports the University’s commitment to integrity and honesty. It must be read in conjunction with the ICAC Act and the Fraud and Corruption Prevention Procedure.

2.      Policy Intent

This policy is designed to mitigate the University of Newcastle’s exposure to maladministration, fraud or corrupt conduct committed by employees, students, clients, vendors or other third parties.

It is also designed to protect the University of Newcastle’s reputation and that of its clients and other stakeholders.

3.      Policy Scope

This policy applies to all faculties and divisions, business units and subsidiaries of the University of Newcastle. It also applies to all persons employed or engaged by the University of Newcastle, or studying at the University.

4.      Relevant Definitions

In the context of this policy:

fraud means an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage [1].

corruption means dishonest activity in which a director, executive, manager, employee or contractor of an entity acts contrary to the interests of the entity and abuses his/her position of trust in order to achieve some personal gain or advantage for him or herself or for another person or entity [2].

maladministration means action or inaction of a serious nature that is: (i) contrary to the law; (ii) unreasonable, unjust or oppressive or improperly discriminatory; or (iii) based wholly or partly on improper motives [3].

5.      Policy

       5.2.     Responsibilities

       5.3.     Reporting and Protected Disclosures

       5.4.     Relevant Examples

The University acknowledges the following activities as examples of fraudulent and/or corrupt behaviour. It recognises that this list is not exhaustive:

• the use of false payment instructions, invoices or cheques to receive a payment to one’s own account, or to a third party account in exchange for a benefit;
• the manipulation of accounts in order to obtain customer funds unlawfully;
• the use of inside knowledge to obtain a financial advantage for oneself or an associate;
• the theft of passwords to payment systems and their use to make unauthorised funds transfers;
• false accounting, including material and deliberate misstatement of financial information;
• the acceptance or provision of bribes or kickbacks in exchange for business with an adviser, contractor or supplier, whether or not it is to the benefit of the University of Newcastle.
• failure to declare a conflict of interest during a tender process;
• requesting a card-holder to purchase goods on one’s behalf when the person making the request has the authority to approve the transaction;
• the use of a University credit card for personal expenses;
• the falsification of data;
• plagiarism - the presentation of the thoughts or works of another as one's own;
• using a substitute to undertake, in full or part, an examination or other assessment item;
• reusing one's own work that has been submitted previously and already counted towards another course without permission;
• making contact with another person, contrary to instructions, during an examination or other assessment item;
• bringing material or device(s) into an examination or other assessment item other than such as may be specified for that assessment item;
• making use of computer software or other material and device(s) during an examination or other assessment item other than such as may be specified for that assessment item;
• unauthorised disclosure of confidential information; and
• improperly exercising a delegated power.

6.      Essential Supporting Documents

The University of Newcastle Act

(NSW) Independent Commission Against Corruption Act (ICAC Act)

Australian Standard on Fraud and Corruption Control AS8001-2003

International Auditing and Assurance Standards Board, (2004), International Standard on Auditing 240, ‘The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements’:

7.      Related Documents

Avoiding Conflicts of Interest - Policy 000420

Code of Conduct Staff - Policy 000059

Complaint Resolution - Policy 000745

Internal Reporting - Policy 000618

Receipt of Gifts by Members of the University - Policy 000281

Student Misconduct Rule 000935

Notes:

1. International Auditing and Assurance Standards Board, (2004), International Standard on Auditing 240, ‘The Auditor’s Responsibility To Consider Fraud In An Audit Of Financial Statements’, International Federation of Accountants.
2. Definition used in Australian Standard on Fraud and Corruption Control AS8001-2003.
3. Protected Disclosures Act 1994 (NSW) s11.