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AGENDA LEADERSHIP AND GOVERNANCE STANDING COMMITTEE MEETING

Wednesday 9 November 2016

Meeting to be held in the Central Highlands Regional Council Chambers, Emerald OfficeCommencing at 9.00am

INDEX OF CONTENTS

PRESENT........................................................................................................................................................2APOLOGIES ...................................................................................................................................................2LEAVE OF ABSENCE....................................................................................................................................2CONFIRMATION OF MINUTES OF PREVIOUS MEETING ..........................................................................2Leadership and Governance Standing Committee Meeting - 12 October 2016..............................................2BUSINESS ARISING OUT OF MINUTES ......................................................................................................2REVIEW OF OUTSTANDING MEETING ACTIONS ......................................................................................2MATERIAL PERSONAL INTEREST, CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS ....2PETITION (TO BE TABLED) ..........................................................................................................................2GOVERNANCE.............................................................................................................................................14Fraud Risk Framework ..................................................................................................................................14Review of Operational Plan 2016-2017.........................................................................................................65Operational Plan - Quarter One Performance Report ...................................................................................75GENERAL BUSINESS................................................................................................................................196LATE AGENDA ITEMS...............................................................................................................................196

Agenda - Leadership and Governance Standing Committee Meeting - 9 November 2016 - Page 2

PRESENT

APOLOGIES

LEAVE OF ABSENCE

CONFIRMATION OF MINUTES OF PREVIOUS MEETINGLeadership And Governance Standing Committee Meeting - 12 October 2016

BUSINESS ARISING OUT OF MINUTES

REVIEW OF OUTSTANDING MEETING ACTIONS

MATERIAL PERSONAL INTEREST, CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS

PETITION (TO BE TABLED)

Leadership and Governance Standing Committee Meeting

MINUTES

Meeting held in the Central Highlands Regional Council Chambers, Emerald Office

Wednesday 12 October 2016

Commenced at 9.00am


CENTRAL HIGHLANDS REGIONAL COUNCIL

LEADERSHIP AND GOVERNANCE STANDING COMMITTEE MEETING

WEDNESDAY 12 OCTOBER 2016

MINUTES CONTENTS

PRESENT .................................................................................................................................................... 3 APOLOGIES ................................................................................................................................................ 3 LEAVE OF ABSENCE ................................................................................................................................. 3 CONFIRMATION OF MINUTES OF PREVIOUS MEETING ......................................................................... 3 Leadership and Governance Standing Committee Meeting: 12 September 2016 ......................................... 3 BUSINESS ARISING OUT OF MINUTES .................................................................................................... 3 OUTSTANDING MEETING ACTIONS ......................................................................................................... 3 CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS ............................................................... 3 COMMUNITIES ............................................................................................................................................ 4 Waste Compliance Issues Update ................................................................................................................ 4 GOVERNANCE SECTION ........................................................................................................................... 4 Legislative Compliance ................................................................................................................................. 4 Operational Plan Review .............................................................................................................................. 5 GENERAL BUSINESS ................................................................................................................................. 5 CLOSED SESSION ...................................................................................................................................... 6 Native Title Update - October 2016 .............................................................................................................. 6 CLOSURE OF MEETING ............................................................................................................................. 7


MINUTES – LEADERSHIP AND GOVERNANCE STANDING COMMITTEE MEETING – WEDNESDAY 12 OCTOBER 2016 – PAGE 3

MINUTES – LEADERSHIP AND GOVERNANCE STANDING COMMITTEE MEETING HELD AT 9.00AM WEDNESDAY 12 OCTOBER 2016 IN THE CENTRAL HIGHLANDS REGIONAL COUNCIL CHAMBERS, EMERALD OFFICE PRESENT Councillors Councillor (Crs) K. Hayes (Mayor) D. Lacey (Chair), Councillors (Crs) C. Brimblecombe, A. McIndoe G. Nixon and C. Rolfe Officers Chief Executive Officer S. Mason, General Manager Corporate Services J. Bradshaw, General Manager Communities B. Duke, General Manager Commercial Services M. Webster, General Manager Infrastructure and Utilities G. Joubert, General Manager Central Highlands Development Corporation S. Hobbs, Executive Manager Governance M. Uren, Senior Advisor M. Grunsell, Manager Planning and Environment P. Jeston, Coordinator Environment and Waste, Communities K. Worsley, Governance Officer M. Ryan, Coordinator Communications A. Ferris, Minute Secretary S. Tomelty Observers Cr M Daniels APOLOGIES Nil LEAVE OF ABSENCE Resolution: Cr McIndoe moved and seconded by Cr Brimblecombe “That Cr Rolfe and Cr Hayes be granted leave of absence for the Leadership and Governance Standing Committee meeting on 9 November 2016.” LGSC 2016 / 10 / 12 / 01 Carried (6-0)

CONFIRMATION OF MINUTES OF PREVIOUS MEETING Leadership and Governance Standing Committee Meeting: 12 September 2016 Resolution: Cr Rolfe moved and seconded by Cr Brimblecombe “That the minutes of the previous Leadership and Governance Standing Committee Meeting held on 12 September be confirmed.” LGSC 2016 / 10 / 12 / 02 Carried (6-0)

BUSINESS ARISING OUT OF MINUTES Nil OUTSTANDING MEETING ACTIONS Noted by Council CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS Nil



Attendance: General Manager Central Highlands Development Corporation S. Hobbs attended the meeting at 9.09am. Cr Daniels attended the meeting at 9.11am. Co-ordinator Safety S. Schofield attended the meeting at 9.30am General Manager Central Highlands Development Corporation S. Hobbs left the meeting at 9.17am.

COMMUNITIES Waste Compliance Issues Update Executive summary: This information report to the Governance and Leadership Committee provides an update on actions being taken at Council's Waste Management Facilities with respect to compliance towards Department of Environment and Heritage Protection's (DEHP) environmental authority conditions. Council officers are working closely with DEHP officers regarding the Council’s attention to landfill improvements and a proposed statutory Notice to undertake an Environmental Evaluation of surface water impacts associated with stormwater releases from the landfill sites at Lochlees and Blackwater landfills.

Considered by Council.

Attendance: General Manager Central Highlands Development Corporation S. Hobbs attended the meeting at 9.25am. General Manager Central Highlands Development Corporation S. Hobbs left the meeting at 9.30am.

GOVERNANCE SECTION Legislative Compliance

Executive summary: Central Highlands Regional Council is committed to the highest standards of integrity, fairness and ethical conduct, including full compliance with all relevant legal requirements. Compliance with legislation is fundamental to effective and accountable governance and management of the organisation. Failure to abide by compliance obligations can result in serious consequences due to their non-negotiable and mandatory nature. Compliance assessment must be undertaken to ensure council adequately understands and can address its current compliance risk.

At council's Leadership and Governance Standing Committee meeting of 27 July 2016, a resolution was passed requiring the governance department to provide the Leadership and Governance Standing Committee with a status report on Council’s statutory compliance including environmental compliance. This report is provided to outline council's current compliance status and detail further upcoming works and presentations that will be occurring.


Attendance: Co-ordinator Safety S. Schofield left the meeting at 10.10am.

Manager Planning and Environment P. Jeston left the meeting at 10.10am.

Co-ordinator Environment and Waste Communities K. Worsley left the meeting at 10.10am

Governance Officer M. Ryan left the meeting at 10.10am.

General Manager Central Highlands Development Corporation S. Hobbs attended the meeting at 10.10am



Operational Plan Review

Adjournment

Meeting adjourned for morning tea at 10.43am

Meeting resumed at 11.00am

Executive Assistant (Mayor and Councillors) M Wills attended the meeting at 11.00am

General Manager Communities B. Duke left the meeting at 11.16am

General Manager Communities B. Duke returned to the meeting at 11.18am

Operational Plan Review Executive summary: The Leadership and Governance Standing Committee, at its meeting on 10 August 2016, requested a review of the outstanding 2015/16 operational plan activities that have not been achieved nor carried over. Additionally the Committee requested a review of the 2016/17 Operational Plan to ensure that all activities are adequately resourced and achievable. The purpose of this report is to provide the opportunity for the Leadership and Governance Standing Committee to scrutinise the recommendations and comments made by the Executive Leadership Team on the 2015/16 outstanding operational plan activities and the quantum of the 2016/17 operational plan activities with a view to making a recommendation to the General Council Meeting on 25 October 2016.

Resolution:

Cr Rolfe moved and seconded by Cr Nixon “That the Leadership and Governance Standing Committee makes the following decisions in relation to the 2015/2016 operational plan activities that were not completed and not captured in the 2016/2017 Operational Plan as per Appendix A (attached). That the Executive Leadership Team will scrutinise the 2016/17 Operational Plan Review and provide a recommendation to Council.” LGSC 2016 / 10 / 12 / 03 Carried (6-0)

Attendance

General Manager Commercial Services M Webster left the meeting at 11.38am.

Cr Daniels left the meeting at 11.38 and did not return

GENERAL BUSINESS (Verbal matters raised by Councillors either as a question, acknowledgement and or additional follow-up by officers)

Nil



CLOSED SESSION Into Closed Session Resolution Cr Nixon moved and seconded by Cr Rolfe “That Council close its meeting to the public in accordance with Section 275 (1)(h) of the Local Government Regulation 2012 and that Council staff involved in the closed discussions remain in the room.” LGSC 2016 / 10 / 12 / 04 Carried (6-0)

The meeting was closed at 11.38am Attendance General Manager Community Services B. Duke, Governance Officer M. Ryan, Governance Coordinator L. Fry, General Manager Infrastructure and Utilities G. Joubert, Coordinator Communications A. Ferris left the meeting at 11.40am Native Title Update - October 2016 Out of Closed Session Resolution: Cr Rolfe moved and seconded by Cr Brimblecombe “That the meeting now be re-opened to the public.” LGSC 2016 / 10 / 12 / 05 Carried (6-0)

The meeting was opened at 11.51am Native Title Update - October 2016

Executive summary

To ensure Council is provided with regular status updates on Native Title Claims and Determinations within the Central Highlands Regional Council area, a monthly update will be provided to the Leadership and Governance Standing Committee.

The following report provides updates in relation to the following Native Title Claims:

1. Barada Barna People – QUD380/2008 2. Barada Kabalbara Yetimarala #1 – QUD383/2013 3. Bidjara People #6 – QUD216/2008 4. Bidjara People #7 – QUD644/2012 5. Gaangalu Nation People – QUD400/2012 6. Gungarri People #4 7. Iman People #2 – QUD6162/1998 8. Wadja People – QUD422/2012 9. Wangan & Jangalingou People – QUD85/2004 10. Western Kangoulu - QUD229/2013

The report also covers the local government implications of a recent Indigenous Cultural Heritage Review and Native Title Compensation Decision and the review of Aboriginal Cultural Heritage Duty of Care Guidelines.




CLOSURE OF MEETING There being no further business, the Chair closed the meeting at 11.52am CONFIRMED CHAIR DATE



Appendix A: Major

Initiatives and Key

Operational Activities

Key Activity We Will Deliver How We Will Measure Our Performance

Responsible Department

Update / Comments on unlinked activity from 4th Qt

Update/Comment as at September 2016

2015/2016 Carry over activities recommendation

Confirmed as per resolution number LGSC 2016/10/12/03

Agreed Action

2015/16 Activities Not

Completed

1.3.3 Continue to hold general Council meetings outside of Emerald

Community Reference Group Action Plans integrated into CHRC Strategic Planning

General Manager - Communities

Still developmental work with CRGs and hence Action Plans behind target - this will be a 2016-17 carry over project

DELETE - policy direction of Council

Captured in the adopted 2016/2017 Operational Plan (1.1.1 / Governance) (5.1.1/Communities)

Agreement to remove from Operational Plan

For clarity, the “Key activity” is captured in 1.1.1 Governance and the “How we will measure our performance” is captured in 5.1.1 Communities.

2.1.1 Secure alternative options for Urban Water Supply Preferred option for water supply to Capella prepared and presented to Council Strategy session

General Manager - Infrastructure and Utilities

Recommenced options study for Capella after funding application unsuccessful.

Manage outside of the 2016/2017 Operational Plan


This activity is a Capex project - which will be managed outside of the Operational Plan and reported on in the Capex report.

2.2.1 Implement civic pride and identity strategies across the region for high traffic areas

Service level plan introduced and monitored


Project on hold due to staff disruptions and competing priorities - looking at rebadging for 2016-17 as part of overall asset management plans for Dept.

DELETE - incorporated into asset management plans and deliverables

Captured in the adopted 2016/2017 Operational Plan

Agreement to include in 2016/2017 Operational Plan

This activity is to be absorbed in Activity 1.1.2 (Liveability Strategy) within the 2016/2017 Operational Plan.

2.2.3 Enhance and Improve Town Entrances and Street Scapes to Promote Civic Pride and Aesthetic Appeal in all Regional Towns

Duaringa and Bluff town entrances budget allocation for completion


Budget allocation adjusted - now postponed until 2017-18 financial year.

Listed for completion in 2017-18

N/A Agreement to include in 2016/2017 Operational Plan

This activity is to be absorbed in Activity 1.1.2 (Liveability Strategy) within the 2016/2017 Operational Plan.

2.4.5 Collaborate with Resource Industry to improve roads in tenement areas prior to field development

Funding commitments secured to capital improvements on roads affected by Coal Seam Gas, Drilling and Exploration


Infrastructure Agreements issues still to be resolved to the satisfaction of both parties.



Activity is to be included in the 2016/2017 Operational Plan with the performance measure redefined to provide clarity.

2.5.2 Meet environmental outcomes for critical assets and community infrastructure demands

Prepare Scoping Study, Finalisation of Study and presentation to Council Prepare Scoping Study on Waste Water Facilities


Black Gully Detailed Design completion expected in August 16. Blackwater irrigation design completion expected in late July.

Captured in the adopted 2016/2017 Operational Plan (4.3.5)


Specifics of Black Gully project have been documented in 4.3.5 in the 2016/2017 Operational Plan. The overall activity - "Meet environmental outcomes for critical assets and community infrastructure demands" (and its intent) are required to be included as well.

4.4.1 Identify Mitigation Strategies for CHRC Essential Assets

Mitigation options identified and presented to Council.


Deferred to 2016/17 Request to amend this activity to include a project scope as part of the 2016/17 Operational Plan. The measure of performance would be to have the project scope completed and the target date of June 2017. Council essential assets are identified under the Disaster Management Act as Water, Sewer and Electricity Include the project fully in the 2017/18 Operational Plan and Budget. The activities for the 2017/18 year would be: (1) Identify Essential Assets (Water, Sewer and Electricity) at risk of flood and power outage.

Amend the 2016/2017 Operational Plan to include this activity.


To be included in the 2016/2017 Operational Plan.



(2) Mitigation options report completed.

4.4.2 Investigate Self-Funding Option for Insurance Cover for Flooding Events

Options paper presented to Council General Manager - Infrastructure and Utilities

In-depth discussion to take place with managers and new insurance provider to identify potential areas for self-insurance.



To be included in 4.4.4 in the 2016/2017 Operational Plan and noted that this body of work is being investigated by the Flood Mitigation Officer - Dana Gludze. The context of the activity is to include the work being undertaken by the Insurance Council of Australia and what flood insurance affordability schemes are being considered in other areas.

4.4.5 Develop 5 Year Strategy for Disaster Preparedness Strategy Implemented General Manager - Infrastructure and Utilities

Disaster Management guidelines and parameters are governed by the Disaster Management Act. Compliance is regulated under the Act.

Complete as regulated by legislation.

N/A Agreement to remove from Operational Plan

This activity is not consistent with legislative requirements. Plans are updated as required and are to be considered business as usual and therefore not required in the Operational Plan.

6.1.02 Investigate Options for Future Use of CHRC Saleyards Including Location and Function.

Report to Council on Future Activities and Location of CHRC Saleyards.

General Manager - Commercial Services

No Further action in this quarter - consideration also needs to occur in regard to location of proposed meatworks. Expected completion March 2017

Consideration also needs to occur in regard to location of proposed meatworks.



Activity is to be included as an additional deliverable in 2016/2017 Operational Plan. It is suggested that it could be included in 6.1.7 (financial sustainability) however the strategy is to be articulated better.

6.1.05 Shepton Quarry – Development application lodged and approved

Application lodged and development permit obtained

General Manager - Commercial Services

Development Application in Information Response Stage of the IDAS timeframes. GBA (Council’s Consultants) are preparing the Traffic Impact Assessment Report which will inform the Information Responses to CHRC as the assessment manager and State Assessment and Referral Agency (SARA) as the referral agency. Expected completion June 2017.

IDAS processes will determine timeframes. Application currently at information request stage. Will then require public notification and decision assessment. Anticipated finalisation of the development application by the end of the 2016/17 Financial Year.



The activity is currently progressing through the development application process and a report will be provided to council for a decision.

6.2.1 Efficient Initiation and Management of Tendering Process.

Contract register incorporated into Councils Record Management System.

General Manager - Corporate Services

Integration with records management systems is ongoing and should be complete in first quarter 2016/17

Integration with the records management system is complete. Full development of Contract Management Options is included with the new corporate software application.


Activity to be included in 6.2.10 - "Review and update Council's suite of contract documents for procurement arrangements" as an additional performance measure.



6.2.3 Develop Strategic Plant Replacement Program Strategy Adopted by Council General Manager - Corporate Services

The revised schedule did not meet budget requirements, and although consultation has been completed, more critical decisions are required on overall utilisation, before replacement program are finalised. While strategy has been applied, there remains unanswered questions on the disposal of items.

This will be included in outcome number 6.2.7 on fleet utilisation and efficiencies.

Captured in the adopted 2016/2017 Operational Plan


Activity is to be included as an additional perfomance measure under 6.2.9 in the 2016/2017 Operational Plan.

6.2.5 Manage potential Fraud and Corruption exposure across the region

Establish Fraud and Corruption Framework

Executive Manager - Governance

Behind schedule due to meeting changes. June Audit Committee meeting has now been rescheduled to August. Framework is ready and will be presented at this meeting.

Near finalisation - Business as usual to completion. Not recommended that this is included in the 2016-17 Operational Plan. Completion is captured within the internal audit actions matrix and minutes to ensure completion



Activity is captured in the Audit Committee matrix and is currently in the finalisation stage.

6.2.7 Undertake annual review of Governance Framework to ensure public accountability, transparency and conformance with policies and legislation

Establishment of Ethics Framework Executive Manager - Governance

Framework was placed on hold to await the completion of the Fraud and Corruption Framework.

Recommended that this is not included in the 2016-17 Operational Plan. The activity is captured as an individual performance objective in the Executive Manager Governance Performance Agreement for delivery by 31.12.16 and subsequently in Coordinator Governance individual performance deliverables



Activity is captured in the performance agreement for the Executive Manager Governance. Draft document is complete.

6.2.7 Undertake annual review of Governance Framework to ensure public accountability, transparency and conformance with policies and legislation

Roll out Implementation and Education of Ethics Framework


Completion of the Framework has been stalled due to staff turnover. Target reviewed for completion date of December 2016.

Recommended that this is not included in the 2016-17 Operational Plan. The activity is captured as an individual performance objective in the Executive Manager Governance Performance Agreement for delivery by 31.12.16 and subsequently in Coordinator Governance individual performance deliverables



Activity will be completed in conjunction with the code of conduct training (od). This education will be combined and delivered simultaneously.

7.2.1 Ensure Council policies reflect best practice and meet legislative compliance

All policies reviewed and recommended policy framework adopted


Completion of policy review delayed due to staff secondment. Process has recommenced with expected completion of September 2016.

The external portion of expert review of the policies has been completed together with a review of the adopted Council Policy Framework. The reviewed policies are now with policy owners for finalising before presentation through ELT and necessary transition through policy framework for finalisation. The remainder of the process is a business as usual function and it is recommended that this is not included in the 2016-2017 Operational Plan



This activity relates to business as usual. Currently all reviewed documents are back with the policy owners and will continue through the process to finalisation.



7.2.3 Through the Corporate Services Business Improvement Team, improve the efficiency and effectiveness of business processes delivered to the organisation

Number of Business Improvement initiatives implemented

General Manager - Corporate Services

This concept of business improvement is not reflective of the outcomes being achieved and limits improvements to being interpreted as technology change. While this will be a key part it is not the sole measure of effectiveness. After undertaking a significant review of the ICT strategic plan and priorities - there has been a realignment to focus on how better solutions can be achieved through a new corporate system. This has driven a change in approach and this key activity is to be withdrawn as defunct, and is to be closed out as finalised.

This item is complete and ongoing improvements will be incorporated in the new corporate software.


Activity is to be included in 7.2.8 as an additional performance measure as this activity is somewhat broader than the activities currently incorporated in 7.2.8. The strategy should be articulated to incorporate and focus on effectiveness.



GOVERNANCE

Fraud Risk Framework

Leadership and Governance Standing Committee Meeting

9 November 2016

Lila Fry / Mary-Anne Uren

EXECUTIVE SUMMARY:

The Auditor-General’s Fraud Management in Local Government Report was tabled in Queensland Parliament in June 2015 and recommendations made for improvements to mitigate the risk of fraud and corruption across Local Government. These recommendations were presented to Central Highlands Regional Council’s Audit Committee on 8 August and the Committee recommended that council develop and implement a Fraud Risk Management Framework. The Fraud and Corruption Control Policy, Fraud and Corruption Control Plan and all associated documents were presented to the Audit Committee to finalise the Fraud Risk Management Framework. This presentation resulted in a request for the inclusion of further information about confidentiality, anonymity and protection of disclosers. The Fraud and Corruption Risk Register has now been finalised and will be presented to the Audit Committee on 22 November 2016 and on an ongoing quarterly basis.

RECOMMENDATION:

THAT Central Highlands Regional Council adopts the Fraud and Corruption Control Policy, Fraud and Corruption Control Plan and associated documents as presented for completion of the Fraud Risk Management Framework.

INTRODUCTION

The purpose of this report is to present the finalised Fraud and Corruption Control Policy, Fraud and Corruption Control Plan and associated documents to complete the Fraud Risk Management Framework. Developing, adopting and reviewing policies is a prime responsibility of council under the Local Government Act 2009. The role includes setting local laws and the adoption of policies in the interest of public within the local government area. Policy documents (policies, procedures, guidelines) are reviewed annually or as required. Changes to relevant legislation and or council’s goals or operations are examples of circumstances that can trigger a requirement to review a policy document prior to its normal review date. Council’s Governance Framework ensures policies:

are developed in a consultative, comprehensive and consistent manner. underpin and support council’s strategic objectives as articulated in the Corporate Plan/Community

CH2022 Plan. provide a clear understanding of the council and management responsibilities in policy development

and review.


ensure consistency with and meet the compliance requirements of legislation and are consistent with council’s vision, mission and values.

The Fraud and Corruption Control Plan and documentation has been developed in accordance with Australian Standards (AS 8001-2008). The control plan provides guidance and direction to council officers and stakeholders on the processes for preventing, detecting and responding to instances of fraud in council. The plan aims to:

Reduce the potential for fraud and corruption within and against council. Build a culture which seeks to prevent fraud and corruption. Explain how council deals with suspected fraud and corruption through risk management practices. Provide guidance on how any suspected instances of fraud or corruption are dealt with by council.

BACKGROUND:

On 2 June 2015, the Auditor-General’s Fraud Management in Local Government Report was tabled in Queensland Parliament. The report reflected the results from a performance audit undertaken in early 2015 by the Queensland Audit Office (QAO). The scope of this audit was to ascertain whether Local Governments were effectively managing fraud risks. The QAO made recommendations for improvements in Councils, to mitigate the risk of fraud and corruption. These recommendations included: Establishing a Fraud Risk Management Framework incorporating the following key elements:

a. Fraud and corruption control plansb. Fraud risk assessmentsc. Preventative actionsd. Controls to detect fraud

and

1. Establish a Fraud Risk Register;2. Establish Fraud and Corruption Management policies and procedures; and3. Investigate data analytics capability for fraud detection.

CONSIDERATIONS: (Compliance/Risk Management)

Statutory:Local Government Act 2009 Local Government Regulation 2012 Public Interest Disclosure Act 2010Integrity Act 2009AS/NZS ISO 31000:2009 Risk Management – Principles and GuidelinesAS 8001-2008 – Fraud and Corruption Control

Policy:Not Applicable

Financial: (Including whole of life costs where applicable)Fraud awareness training has been developed in-house for implementation/education to all employees by 31 December 2016.

Social:Not Applicable

Corporate Plan:


5 – Proactive, Responsible Leadership6 – Strong Governance

RISK MANAGEMENT ASSESSMENT:This risk management analysis pertains to the context of council supporting the recommendation and implementing same.

Operational:Policies and procedures are reviewed regularly to assist in the mitigation of risk. Council has a policy and procedure review framework and that framework includes risk assessments of the content. Council also documents all policies and procedures that are developed using the framework and has allocated responsibilities for monitoring the review cycle and record management.

Strategic:Links to Corporate and Community Plan and Council’s Governance and Policy Frameworks.

Reputation:Provides for good governance which enhances community confidence in Local Government decision making processes.

Project:Not Applicable

Political:Development and implementation of policy documents and ensures compliance with relevant legislation, principles and guidelines.

Environmental:Not Applicable

CONSULTATION / ENGAGEMENT:

The Fraud Risk Management Framework has been developed in consultation with the Audit Committee Chair, Executive Leadership Team and content experts.

OPTIONS:

1. Adopt the documents as presented in completion of the Fraud Risk Framework.2. Not adopt the documents as presented in completion of the Fraud Risk Framework.

CONCLUSION:

The AS 8001-2008 Fraud and Corruption Control Standards have been embedded in Council’s Fraud Risk Management Framework, policies and procedures, to ensure that fraud risks are effectively managed and compliant with recommendations made by the Queensland Audit Office. The final component of the Fraud Risk Management Framework (Fraud and Corruption Risk Register), has now been finalised and will be presented to the Internal Audit Committee on 21 November 2016. To ensure adequate understanding of the framework, fraud and corruption awareness training will be made available to the whole of organisation via E3 learning. Fraud awareness training has been incorporated into council’s employee induction program and is being delivered to all new employees.


ATTACHMENTS:

1. Fraud and Corruption Control Policy2. Fraud and Corruption Control Plan3. Fraud Allegation Reporting Form4. Fraud Incident Register5. Fraud Investigation Procedure6. Fraud Investigation Tracking Form7. Fraud Monitoring Evaluation and Reporting Procedure8. Fraud Risk Assessment Procedure9. Current Fraud Risk Register

Lila FryCoordinator Governance Mary-Anne UrenExecutive Manager Governance

Adoption Date: Revokes: N/A

Review Date: Amended Date:

Fraud and Corruption Control Policy Page 1 of 2

COUNCIL POLICY

Fraud and Corruption Control Policy

POLICY NUMBER: DEPARTMENT: Chief Executive Officer

EFFECTIVE DATE: UNIT: Governance

1.0 Purpose and Scope

This policy outlines Council’s commitment to fraud and corruption prevention and management. This

policy is intended to facilitate a Council wide approach to fraud and corruption and applies to all areas

of the Council.

2.0 Reference AS 8001:2008, Fraud and Corruption Control Crime and Corruption Act 2001 Public Interest Disclosure Act 2010

3.0 Definitions 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.

Fraud means: Dishonest activity causing actual or potential financial loss to any person or entity

including theft of moneys and other property by employees or persons external to the entity and

whether or not deception is used at the time, immediately before or immediately following the activity.

This also includes the deliberate falsification, concealment, destruction or use of falsified

documentation used or intended for use for a normal business purpose or the improper use of

information or position.

Council means: Central Highlands Regional Council

4.0 Policy Statement Council will create an environment where management, employees and contractors take responsibility for fraud and corruption control. Council will create this environment by implementing a Fraud and Corruption Framework which will provide guidance on:

• the assessment of fraud and corruption risk within the Enterprise Risk Management Framework;

• the development of a Fraud and Corruption Control Plan that includes provision the anonymity of disclosers (employees or community members) of suspected fraud and corrupt conduct;

• the development of skills within Council to assist employees and management understand and identify fraud and corruption;

• undertaking analysis and reporting of fraud and corruption events.


Adoption Date: Revokes: N/A

Review Date: Amended Date:

Fraud and Corruption Control Policy Page 2 of 2

5.0 Policy Review

All policies will be reviewed annually or when any of the following evaluations occur:

• Relevant legislation, regulations, standards and policies are amended or replaced; and

• Other circumstances as determined from time to time by the Chief Executive Officer or through a resolution of Council.


Fraud and Corruption Control Plan

Effective Date:

Review Date 31 October

2016

_________________________________________________________________________________ Document Control This page will be re-issued every time amendments are made to controlled documents. Amended documents will have their revision status and issue date updated accordingly.

Version Clause(s) Changes Author Issue Date

0 Initial draft D.Williams 4 May 2016 1 Review Lila Fry 31 October 2016 2 3 4


Contents

Introduction ................................................................................................................................................................. 3

Definitions ................................................................................................................................................................... 3

Confidentiality, Anonymity and Protection ............................................................................................................. 3

Fraud and Corruption Strategies ............................................................................................................................. 4

a) Fraud control officer ...................................................................................................................... 4

b) External assistance to the Fraud Control Officer ........................................................................... 4

c) Fraud awareness .......................................................................................................................... 4

d) Relationship with the entity’s other plans ....................................................................................... 4

Fraud and Corruption Risk Management ............................................................................................................... 4

a) Regular program for fraud risk management ................................................................................. 4

b) Ongoing review of fraud control strategies .................................................................................... 4

c) Fraud risk assessment and/or Controls Review ............................................................................ 4

d) Implementation of proposed actions .............................................................................................. 4

Procedures for Reporting Fraud and Corruption .................................................................................................. 5

a) Internal reporting ........................................................................................................................... 5

b) External reporting .......................................................................................................................... 6

c) Vexatious, misleading or false reporting ........................................................................................ 6

d) Protection of employees reporting suspected fraud ....................................................................... 6

e) Reports to the police ..................................................................................................................... 6

f) Recovery of the proceeds of fraudulent conduct ........................................................................... 6

Conflict of interest ...................................................................................................................................................... 6

a) The impact of conflicts of interest .................................................................................................. 6

b) Register of interests ...................................................................................................................... 7

Procedure for investigations .................................................................................................................................... 7

a) Internal investigations ................................................................................................................... 7

b) External investigative resources .................................................................................................... 7

c) Documentation of the results of the investigation .......................................................................... 7

The Plan ...................................................................................................................................................................... 7

Central Highlands Regional Council Fraud and Corruption Control Plan ......................................................... 9

Communication Plan ............................................................................................................................................... 12

Review of Plan ......................................................................................................................................................... 13

Appendix ................................................................................................................................................................... 14

Detailed definitions ..............................................................................................................................14


Adoption Date: Review Date: Fraud and Corruption Control Plan Revokes: N/A Amended Date: Page 3 of 15

Introduction

Central Highlands Regional Council is committed to establishing and maintaining a culture within the organisation that will ensure that effective fraud and corruption prevention is an integral part of day to day operations. Central Highlands Regional Council will not tolerate fraud or corruption within the organisation. Any fraud or corruption that is detected will be reported to the relevant law enforcement agency. If someone is found to have committed fraud and/or misconduct their employment will be terminated if deemed appropriate by Central Highlands Regional Council.

Definitions

Fraud - is defined in the Australian Standard AS8001-2008: Fraud and Corruption Control as; Dishonest activity causing actual or potential financial loss to any person or entity including theft of moneys or other property by employees or persons external to the entity and where deception is used at the time, immediately before or immediately following the activity. This also includes the deliberate falsification, concealment, destruction or use of falsified documentation used or intended for use for a normal business purpose or the improper use of information or position. Corruption - is defined in Australian Standard AS8001-2008: Fraud and Corruption Control as; 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.

Confidentiality, Anonymity and Protection

Central Highlands Regional Council encourages the reporting of fraudulent or corrupt behaviour and is committed to protecting and supporting those making disclosures. Any person making a disclosure about such behaviour should feel confident and comfortable about the report and shall be protected from being victimised as a result of making the report. The Fraud Control Officer must protect the discloser in a number of ways including, but not limited to the following:

• Ensuring confidentiality in the investigation.

• Protecting, as far as legally possible, the staff member’s identity.

• Offering a staff member leave of absence while a matter is investigated. Upon receipt of an allegation of fraud and/or corruption, appropriate support for the discloser must be considered to safeguard against potential acts of reprisal. Others associated with the discloser (including those who may be suspected of being a discloser) should also be considered at this time. Protective measures implemented (including those above) must be proportionate to the risk of reprisal and the potential consequences of a reprisal. To the extent practicable, the identity of a discloser MUST NOT be revealed. In the case that the identity of the discloser may be apparent or necessary in investigating the allegations this should be discussed firstly with the discloser. With this in mind the officer responsible for the investigation will advise all involved parties of the legal provisions for protection and legal consequences attached as well as council disciplinary action applicable. To ensure the confidentiality of disclosers, council will accept reports in any manner, including anonymously. Reports from anonymous sources will be considered for investigation providing sufficient information has been received. Further information on confidentiality, anonymity and protection is detailed through this control plan and other Council documents (see point d) below).



Fraud and Corruption Strategies

a) Fraud control officer

The Executive Manager Governance (or delegate) undertakes the role of the Fraud Control Officer who is responsible for -

• the implementation of the Fraud and Corruption Control Policy and the Fraud and Corruption Control Plan;

• the implementation of any recommendations received from control reviews or fraud risk assessments as and when they are conducted;

• the facilitation of investigations in relation to reports of suspected fraud and corruption.

b) External assistance to the Fraud Control Officer

Central Highlands Regional Council is committed to providing sufficient resources for the fraud control officer to undertake investigations. This includes the fraud control officer obtaining external assistance (e.g. another officer under a shared service arrangement, forensic accountant, police or other relevant law enforcement) to investigate reports of fraud and corruption where required.

c) Fraud awareness

It is the aim of Central Highlands Regional Council that all employees are aware of and understand the Fraud and Corruption Control Policy and Fraud and Corruption Control Plan. It is also the aim of Central Highlands Regional Council that external parties that deal with Council on a regular basis are aware that Council takes fraud and corruption seriously and have a policy and plan in place.

d) Relationship with the entity’s other plans

This plan should be read in conjunction with the -

• Employee Code of Conduct ;

• Employee Handbook;

• Information Privacy Policy; and the

• Public Interest Disclosure Policy

Fraud and Corruption Risk Management

a) Regular program for fraud risk management

The fraud control officer will ensure that Central Highlands Regional Council fraud risk management program is maintained by ongoing reviews and assessments as outlined in the plan.

b) Ongoing review of fraud control strategies

Fraud control strategies are reviewed on an ongoing basis and should be formally reviewed at least once every 24 months.

c) Fraud risk assessment and/or Controls Review

A Controls Review or Fraud Risk Assessment will be conducted, at least, annually, to ensure current controls remain effective.

d) Implementation of proposed actions

Recommendations from the Controls Review or Fraud Risk Assessment will be considered and implemented as soon as is practicable.



Procedures for Reporting Fraud and Corruption

a) Internal reporting

Any employee who suspects, or becomes aware of, breaches of the Code of Conduct, including fraud and corruption, should report the matter without delay to a supervisor or manager.

A number of reporting options are available, including reporting the incident to:

• employee’s supervisor or manager;

• Chief Executive Officer;

• Fraud Control Officer; or

• making a public interest disclosure under the Public Interest Disclosure Act 2010.

Reports may also be submitted in writing or by email to:

Internal Mail: Private and Confidential Executive Manager Governance

Email: [email protected]

When submitting in writing, employees may wish to provide information on the alleged fraud using the Fraud Allegation Report Form available on Council’s intranet. The information provided includes -

• details of suspected offence; and

• details of suspected offender(s) where known. You do not have to identify yourself when making a disclosure. Disclosures can be made anonymously and must be investigated by Council. Council will not be able to inform the discloser of any action undertaken during an investigation or any anonymous reports of fraud or corruption. Council recognises that the reporting of fraud and corruption is a sensitive issue (especially against work colleagues). To affirm the integrity of this function therefore, Council will, as far as practicable, ensure the confidentiality of information provided. It will achieve this by maintaining the confidentiality of both the complainant and subject officer and by avoiding rumours, morale problems and the possibility of wilful destruction of evidence. Regardless of the reporting option exercised, Council will take all practical steps to protect the welfare of the person making the report.

The Public Interest Disclosure Act 2010, aims to ensure that government is open and accountable by providing protection for those who speak out about wrongdoing or, in other words, make a public interest disclosure. Council must develop procedures and take action to protect the discloser from retribution or reprisal, such as bullying or harassment, for making a disclosure.

Any person who is involved in receiving, handling or investigating a public interest disclosures must not disclose that information, intentionally or recklessly, to unauthorised person(s).

Identities may need to be disclosed where it is necessary -

• for full investigation of the public interest disclosure;

• for procedural fairness (after considering the risk of reprisal);

• to provide protection. Where any fraud or corruption is related to the Executive Manager Governance or fraud control officer, the employee must report any such evidence to the Chief Executive Officer. Where evidence of fraud or corruption relates to the Chief Executive Officer, the employee must report any such evidence to the Mayor.

Central Highland Regional Council’s Disciplinary Policy governs reports of suspected or actual fraud or corruption.



b) External reporting

A public interest disclosure can be made anonymously by a member of the public about a Council employee, either verbally or in writing to the Chief Executive Officer. Council shall make every effort to keep the information relating to the disclosure confidential. Council will not be able to inform you of any action it takes for anonymous public interest disclosures. Alternatively, any member of the public can make a public interest disclosure relating to fraud or corruption to the Crime and Corruption Commission Queensland. Reports may also be submitted in writing or by email to:

Mail: Private and Confidential

Executive Manager Governance Central Highlands Regional Council PO Box 21 Emerald Qld 4720

Email: [email protected] Telephone: 1300 242 686

c) Vexatious, misleading or false reporting

There may be occasions when a party may make an allegation of fraud against an employee (or contractor, volunteer, consultant or work experience student) with the intention of causing the person harm, damage or disruption.

Vexatious, misleading or false reporting can waste time and resources in investigating the matter. This can also cause the person who is subject to the allegation a significant amount of emotional trauma and stress.

Any vexatious, misleading or false reporting of any allegation of fraud will not be tolerated and will have serious consequences to the person bringing about such an allegation.

d) Protection of employees reporting suspected fraud

This plan is to be read in conjunction with the Public Interest Disclosure Policy which protects employees’ rights when they report suspected fraud and corruption.

e) Reports to the police

All confirmed reports of fraud and corruption will be reported to the relevant law enforcement agency (e.g. Queensland Police).

f) Recovery of the proceeds of fraudulent conduct

Central Highlands Regional Council will take all reasonable steps to recover the amount of the loss as a result of fraud from the perpetrator through civil recovery proceedings or other acceptable means.

Conflict of interest

a) The impact of conflicts of interest

Central Highlands Regional Council recognises the impact that conflicts of interest can have and therefore intend to be transparent with all transactions that occur. Central Highlands Regional Council’s Conflict of Interest Policy is available on the intranet and is also included in Council’s Employee Code of Conduct Policy.



b) Register of interests

Central Highlands Regional Council maintains a Register of Interests which includes any potential conflicts that may arise as a result of dealing with external parties in which Councillors and Executive Management have an interest (Section 289 Local Government Regulation 2012). This does not preclude Central Highlands Regional Council from dealing with those organisations, however it does make potential transactions more transparent.

Procedure for investigations

All reports, information, complaints and notifications concerning alleged fraud activity or corrupt behaviour are referred to the Chief Executive Officer through the investigation process in the first instance and reviewed by the Executive Manager Governance (or delegate). The reviewer will determine, where appropriate, the proposed investigation scope and appoint an investigation officer. An investigation is then initiated and conducted by the investigating officer. It is a reasonable and lawful workplace direction for Council to ask that employees participate in the investigation process. Witnesses are informed of their rights and obligations before an investigation, including information about the terms of reference of the investigation, employee’s legislative obligations, the investigation process, natural justice, interviews and what each party can expect from the other during an investigation. Substantiated allegations of fraud activity or corrupt behaviour may result in formal disciplinary action including dismissal. Any allegation involving criminal offences against the Council by employees or external parties must be referred to the Queensland Police Service.

a) Internal investigations

The fraud control officer is responsible for commencing investigations as a result of information received regarding alleged fraud and corruption.

b) External investigative resources

Central Highlands Regional Council may provide external resources as considered necessary by the fraud control officer to be able to complete an investigation.

c) Documentation of the results of the investigation

Documentation obtained or created as a result of investigations will be kept confidential until such time as it is required to be handed to a law enforcement agency. Such documents will also be made available to external investigative resources, if used during the investigation.

The Plan

The Fraud and Corruption Control Plan provides guidance and direction to Council officers and stakeholders on the processes for:

• preventing fraud and corruption; • detecting fraud and corruption in Council; and • responding to fraud and corruption in Council.

The plan aims to:

• reduce the potential for fraud and corruption within and against Council; • build a culture which seeks to prevent fraud and corruption; • explain how Council deals with suspected fraud and corruption through risk management practices;

and • provide guidance on how any suspected instances of fraud or corruption are dealt with by Council.



This plan comprises three stages: prevention, detection and response.

Components Distribution across three stages Prevention Detection Response 1. Integrated corporate policy � 2. Risk assessment � � 3. Internal controls � � � 4. Staff education and awareness � � 5. Public interest disclosures (PIDs) � 6. Investigations � � 7. Code of Conduct � 8. Internal reporting � � 9. External reporting � 10. Client and community awareness � The plan specifies the responsibilities of officers in so far as it -

• details the various responsibilities and accountabilities of managers and other groups within Council;

• requires Council officers to abide by Council’s Code of Conduct which prescribes standards of ethical conduct for all officers at Council; and

• obliges Council officers who suspect, or become aware of, breaches of the Code, including fraud and corruption, to report the matter without delay to a supervisor, manager or the fraud control officer.

Reports of suspected or actual fraud or corruption are governed by Council’s Grievance Policy and Procedure. An allegation by a Council officer of a substantial misuse of public resources may fall within the definition of a public interest disclosure and is covered by Council’s Public Interest Disclosure Policy and Procedure regarding management of internal public interest disclosures.



Central Highlands Regional Council Fraud and Corruption Control Plan

1. Prevention: This stage outlines the systems, frameworks and processes in place across Council to support the prevention of fraud and corruption.

Why What How Who When

Stage Element Components Action Plan Oversight Timeframes

PR

EV

EN

TIO

N

Integrated Policy

Fraud and Corruption Control Policy and Plan

Management to endorse and promote the plan and policy and to take ongoing action to ensure staff awareness of the plan.

Executive Manager Governance

Every two years

Relevant staff able to advise re: prevention to be involved in regular reviews of the plan.


Risk Assessment

Risk Profile and Management

Consideration of fraud and corruption risks to be included in the corporate risk register.

Executive Manager Governance Quarterly review

of risk Specific functional area fraud risks to be addressed in the Fraud and Corruption Risk Register.


Internal Controls

Corporate Governance Framework

Governance Framework to be reviewed and maintained.


Ongoing

Clear accountability and reporting framework to be maintained and reviewed regularly.


Framework to promote staff accountability for their own work processes to be maintained.


Where fraud and corruption risks are known to exist, work processes are to be clearly documented and available to Council officers.

Managers

Accountability and responsibility structures

Organisational chart to be kept up to date and available to all officers.

Manager Organisational Development

As Required

Delegations register to be kept up to date and made available to all officers.


Prevention of fraud and corruption to be included in job description documentation.


Executive Leadership Team and managers to demonstrate adherence to work procedures.

Executive Leadership Team

Supervisors to monitor adherence to work procedures and ensure training and advice is provided to staff on procedures where needed.

Managers

Recordkeeping to be monitored for adherence to recordkeeping policies.


Conflicts of interest and personal disclosures

Conflict of Interest Policy reviewed regularly. Executive Manager Governance

Annually

Conduct regular training on the contents and purpose of the plan.


Annually

Staff to be reminded annually to make appropriate declarations and Register of Interest or Gift Register to be maintained.


Annually

Committees Audit Committee to address fraud and corruption risk. Council Ongoing





PR

EV

EN

TIO

N

Internal Audit Internal Audit to regularly review processes and provide recommendations for improved systems.


Ongoing monitoring of recommendations

Staff education and awareness

Availability of policies and procedures

Policies, procedures, guidelines and other staff processes and information to be available on the intranet.


Ongoing and updated as policies are developed and updated

Training and awareness

Maintain a communication plan for fraud and corruption awareness.

Executive Manager Governance Ongoing

Corporate Plan to refer to values and ethical conduct.


Code of Conduct

Induction Program Information on fraud corruption prevention and control to be provided to all new staff.


Within 3 months of arrival

Staff Training Ethical culture and awareness of fraud and corruption prevention and control processes to be promoted through Code of Conduct Training.


Every two years when Code review is conducted

Staff Performance and Development

Culture, Values and organisational understanding to be included for each Council officer.


Annually

Client and community awareness

Availability of policies and procedures

Website to include policy. Executive Manager Governance

Ongoing Relevant corporate reports and publications to make reference to fraud and corruption prevention and control.

Training and Awareness

External parties dealing with Council are to be advised of Council’s Fraud and Corruption Control Policy.

Procurement Ongoing

RTI and Privacy Requests, and RTI Disclosure Log

Requests for information on the plan are to be actioned promptly. Required information is to be published on Council’s website.


Ongoing



2. Detection: This stage outlines mechanisms in place across Council to detect or expose fraud and corruption.



DE

TE

CT

ION

Internal controls

Formal and informal work processes

• Specific functional area processes, guidelines, instructions and risk assessment to be complied with;

• Ongoing awareness and training of work processes to be provided.

Managers Ongoing

Public Interest Disclosures

Management of Public Interest Disclosures

Public Interest Disclosure Policy and Procedures to be kept up to date and reviewed regularly.


Review annually

All staff to adhere to policy and procedures. Managers Ongoing

Management to take reasonable actions to minimise risks of victimisation and to ensure victimisation of disclosers is dealt with swiftly and appropriately.

Managers Ongoing

As per the Crime and Corruption Commission requirements.

Investigating officer

As required

Officers to report all suspected instances of improper conduct to fraud control officer/Executive Manager Governance (or delegate), Manager Organisational Development or Chief Executive Officer.

All Staff

As required Fraud control officer/Executive Manager Governance (or delegate) or Manager Organisational Development to advise Chief Executive Officer if alleged conduct amounts to improper conduct.


Chief Executive Officer to report improper conduct that amounts to corrupt conduct to the Crime and Corruption Commission.

CEO

Internal Reporting

Complaints

Disciplinary Policy to be kept up to date and reviewed regularly.


Review annually

All staff to adhere to policy and procedures Managers Ongoing

Performance Management Framework

Organisational Structure to be supported through adherence to official delegations, proper and full use of supervisory reporting relationships.

Managers Ongoing

Internal Audit

Internal Audit Plan to take into account risk incidents as reported in the Corporate Risk Register.


As per Internal Audit Plan

Internal Audit to conduct regular reviews of Council functions and processes to identify susceptible areas.

Audit Committee

Council to respond promptly to audit findings and recommendations.

Council

Culture of reporting to be supported and promoted through induction, training, the intranet, organisational planning and policies and procedures. Supervisors Ongoing

Corporate ownership and personal accountability to be actioned by all staff.



3. Response: This stage outlines the processes for responding to fraud and corruption within Council and channels for ensuring improvements or remedies for exposed or potential fraud and corruption are made.



RE

SP

ON

SE

Internal controls

Corporate Governance Framework

Review as necessary:

• Governance Framework;

• Council reporting process;

• Council evaluation process.


As required

Policies and procedures

Policies and procedures are to be reviewed to ensure they are relevant and to respond to recommendations from the internal auditor.

Managers and policy owners

As required and within review timeframes

Staff education and awareness

Training and awareness program

Awareness of internal controls/prevention mechanisms to be reinforced through training on any new processes or procedures


Ongoing

Council stance on fraud and corruption to be stated in relevant corporate communications.


Where appropriate

Investigation

Investigations conducted

Investigations conducted in accordance with -

• Performance Management Policy;

• Public Interest Disclosure Policy and Procedure.


As required

Investigation reports

Investigation outcomes/results are supported and implemented by means determined by Executive Leadership Team.

Executive Leadership Team

As required

Risk Assessment and Internal Reporting

Corporate Investigations Register

All incidences of alleged or proven fraud and/or corruption to be reported as a risk incident and recorded in the Corporate Investigations Register.


As required

Risk Reporting Risk incidents and quarterly risk reporting to be used in identifying risks, reviewing the risk profile and identifying risk mitigation strategies.


Quarterly

External Reporting

External Audit (QAO)

External auditing and financial statements to be consistent with relevant and applicable standards.

Audit Committee

Annually

CCC oversight reporting and complaints management

Reporting to Crime and Corruption Commission Queensland as per the Crime and Corruption Act 2001 and take appropriate actions as per Crime and Corruption Commission Queensland’s recommendations.


As required

Governance Publications

Fraud prevention and control matters to be reported in the -

• Annual report

• Corporate Plan

• Operational Plan.


As required

Communication Plan

Communication objectives -

1. To provide employees with a general awareness of the Fraud and Corruption Control Policy and Plan; 2. To ensure understanding of the organisation expectations regarding fraud and corruption; 3. To outline the requirements of, and references contained in the plan; 4. To promote an awareness and ownership of the responsibilities referenced within the plan. Key messages:

1. Central Highlands Regional Council will not tolerate fraud or corruption within the organisation. Any fraud or corruption that is detected will be reported to the relevant law enforcement agency;

2. The Fraud and Corruption Plan provides a reference to a range of internal controls used within Council to prevent, detect and respond to fraud and corruption;

3. Fraud and corruption risks are assessed and mitigating options are developed through risk management processes;

4. Reporting requirements regarding fraud and corruption are aligned, and use where possible, current complaints/Personal Interest Disclosures/misconduct and risk reporting processes.



Action Communication Channel Frequency

Introduction to fraud and corruption controls at CHRC

Induction. All new employees on or soon after commencing employment at Council

Fraud and Corruption Control Policy Fraud and Corruption Control Plan

Policy and Procedure Register. Ongoing

Importance of and mechanisms for fraud and corruption

Code of Conduct training for employees.

All Council employees annually

Specific areas of responsibility under the plan

Via plan owner. After review of plan

Review of Plan

This plan will be reviewed on an annual basis.



Appendix

Detailed definitions

Fraud: this definition provides a good explanation of the concept of fraud. However, for investigation purposes the definition of fraud is defined in Section 408C of the Queensland Criminal Code as: “(1) A person who dishonestly—

(a) applies to his or her own use or to the use of any person—

(i) property belonging to another; or

(ii) property belonging to the person, or which is in the person's possession, either solely or jointly with another person, subject to a trust, direction or condition or on account of any other person; or

(b) obtains property from any person; or

(c) induces any person to deliver property to any person; or

(d) gains a benefit or advantage, pecuniary or otherwise, for any person; or

(e) causes a detriment, pecuniary or otherwise, to any person; or

(f) induces any person to do any act which the person is lawfully entitled to abstain from doing; or

(g) induces any person to abstain from doing any act which that person is lawfully entitled to do; or

(h) makes off, knowing that payment on the spot is required or expected for any property lawfully supplied or returned, or for any service lawfully provided, without having paid and with intent to avoid payment; commits the crime of fraud.

(2) An offender guilty of the crime of fraud is liable to imprisonment for 5 years save in any of the following cases when the offender is liable to imprisonment for 12 years, that is to say—

(a) if the offender is a director or member of the governing body of a corporation, and the victim is the corporation;

(b) if the offender is an employee of another person, and the victim is the other person;

(c) if any property in relation to which the offence is committed came into the possession or control of the offender subject to a trust, direction or condition that it should be applied to any purpose or be paid to any person specified in the terms of trust, direction or condition or came into the offender's possession on account of any other person;

(d) if the property, or the yield to the offender from the dishonesty, or the detriment caused, is of a value of $30,000 or more.

(3) For the purposes of this section:

(a) property, without limiting the definition of property in section 1, includes credit, service, any benefit or advantage, anything evidencing a right to incur a debt or to recover or receive a benefit, and releases of obligations; and

(b) a person's act or omission in relation to property may be dishonest even though:

(i) he or she is willing to pay for the property; or

(ii) he or she intends to afterwards restore the property or to make restitution for the property or to afterwards fulfil his or her obligations or to make good any detriment; or

(iii) an owner or other person consents to doing any act or to making any omission; or

(iv) a mistake is made by another person; and

(c) a person's act or omission in relation to property is not taken to be dishonest, if when the person does the act or makes the omission, he or she does not know to whom the property belongs and believes on reasonable grounds that the owner cannot be



discovered by taking reasonable steps, unless the property came into his or her possession or control as trustee or personal representative; and

(d) persons to whom property belongs include the owner, any joint or part owner or owner in common, any person having a legal or equitable interest in or claim to the property and any person who, immediately before the offender's application of the property, had control of it; and

(e) obtain includes to get, gain, receive or acquire in any way; and

(f) if a person obtains property from any person or induces any person to deliver property to any person, it is immaterial in either case whether the owner passes or intends to pass ownership in the property or whether he or she intends to pass ownership in the property to any person.”


Adoption Date: [Date] Revokes: Nil

Amended Date:[Date] Review Date: [Date]

Fraud Allegation Reporting Form Page 1 of 2

FORM

Fraud Allegation Reporting Form

POLICY NUMBER: [automated #] DEPARTMENT: Chief Executive Officer

EFFECTIVE DATE: 01 Month Year UNIT: Governance

Purpose: This form is to be used by any Central Highlands Regional Council; Councillor, employee,

contractor or volunteer to report a suspicion of fraud or corruption.

While reporting to your immediate supervisor is encouraged, the completion of this form will facilitate a

comprehensive assessment of the matter.

DETAILS OF PERSON REPORTING ALLEGED FRAUD (OPTIONAL)

Name of Person reporting the Allegation:

Address:

Phone Number

Mobile:

Email Address:

DETAILS OF ALLEGED FRAUD

Person/s alleged to have committed

fraud:

Role with Council:

Date/s of alleged fraud:

Witnesses to the allegation: Y/N

If so, please provide their details

Any further details:


Adoption Date: [Date] Revokes: Nil

Amended Date:[Date] Review Date: [Date]

Fraud Allegation Reporting Form Page 2 of 2

Investigation Due Date:

Date Reported:

Signature of Reporting Person:

This form is to be forwarded to the Executive Manager Governance either by:

• Email: [email protected]

• Hard copy: Private and Confidential


Central Highlands Regional Council

P.O Box 21

Emerald QLD 4720


No.

How notified (e.g. anonymous,

line management, phone, etc)

and When Notified (i.e. date)

Date/s of suspected fraud

and time detected, if any

Informant details – Name and contact

phone number Manager notified?

Employee/s suspected of

fraud

Nature of suspected fraud

and estimated loss, if anyCEO notified?

Investigation commencement

date

Outcome of the

investigation

(if loss > $ 999, advice

to QAO)

Police notified? CCC notified?

Action taken against

Employee/s (if

applicable)

Risk

assessment

undertaken?

CHRC-FIR-

2015-01Phone - anonymous

During 2014 - various

dates alleged

Joe Smith

15 Smith Street

Big Town

0400 555 555

John Doe

Jane Citizen

Admin officer, Works

Depot

Theft of fuel from council

depot

Cannot estimate loss

5/01/2015

5/01/2015

Referred to LGAQ

investigator

Recommended

referral to Police and

CCC

1/02/2015

Report No.

1235/46

1/02/2015

Matter

referred to

Executive

Manager

Governance

to review

Fraud Incident Register

Adoption Date: [Date]

Revokes: N/A

Amended Date:

Review Date:


Page 1 of 2


Details new controls to prevent this type of

suspected fraud from occurring again

Responsible

persons for

implementing

these controls

within timelines

Has suspected

fraud been

included in a

report for

management?

Fuel store now kept locked. Only opened by

Works Manager or Assistant manager.

Logbook required to be completed for all

fuel taken including names of officer and

vehicle rego.

Works

Manager

Added to

monthly

Leadership

and

Governance

Standing

Committee

report.

Adoption Date: [Date]

Revokes: N/A

Amended Date:

Review Date:


Page 1 of 2


Adoption Date: [Date] Revokes: N/A

Amended Date: [Date] Review Date: [Date]

Fraud Investigation Procedure Page 1 of 6

PROCEDURE

Fraud Investigation Procedure

PROCEDURE NUMBER: DEPARTMENT: Chief Executive Officer

EFFECTIVE DATE: UNIT: Governance

1.0 Purpose and Scope

As statutorily required, council will investigate or otherwise formally enquire into all instances of

suspected fraud or corrupt conduct exposed as a result of receiving an allegation or detecting

fraudulent or corrupt activities.

This document outlines the key steps

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