PURPOSE: To ensure that the Topsham Public Library Board of Trustees (Trustees) and employees avoid fraud or related misconduct, and conduct themselves in accordance with high ethical standards in reporting, investigating and resolving fraud or related misconduct as defined in Section 1 of this policy.
STATEMENT OF POLICY:
Section 1. Fraud is defined as a willful or deliberate act with the intention of obtaining an unauthorized benefit, such as money or property, by deception or other unethical means.
All fraudulent acts or related misconduct are included under this policy and include, but are not limited to, such activities as:
- Embezzlement, theft, misappropriation or other financial irregularities.
- Forgery or alteration of documents (checks, time sheets, contractor agreements, purchase orders, other financial documents, electronic files).
- Improprieties in the handling or reporting of financial transactions.
- Misappropriation of funds, securities, supplies, inventory or any other asset (such as furniture, fixtures, equipment, materials), including assets of the Library, our patrons, suppliers, or others with whom we have a business relationship.
- Authorizing or receiving payment for goods not received or services not performed.
- Authorizing or receiving payments for hours not worked or expenses not accrued and documented.
- Profiteering as a result of insider knowledge of Library activities.
Section 2. Fraud and related misconduct will not be tolerated. Employees found to have participated in such conduct will be subject to disciplinary action, up to and including termination. Trustees found to have participated in such conduct will be subject to removal from the Library Board.
Section 3. Trustees and employees are expected to use their best efforts to recognize risks and exposures inherent to their areas of responsibility and to be aware of indications of fraud and related misconduct. Any reprisal against any employee or other reporting individual because that individual, in good faith, reported a violation is strictly forbidden. Any Trustee or employee who knows or has reason to know of fraud or related misconduct shall report that to the President of the Board of Trustees or the Library Director. If the President of the Library Board is involved in fraud or related misconduct, that shall be reported to the Library Director. If the Library Director is involved in fraud or related misconduct, that shall be reported to the President of the Board of Trustees.
Section 4. When fraud or related misconduct is reported to the Library Director or the President of the Board of Trustees, an appropriate investigation and all necessary action will be undertaken. All investigations of alleged wrongdoing will be conducted in accordance with applicable laws, and Library policies and procedures.
- All Trustees and employees necessary to the investigation will cooperate fully in the investigation.
- Trustees and employees should direct all inquiries from any individual who is believed to be involved in fraud or related misconduct, his or her representative, or his or her attorney, and all inquiries from the media to the Library Director or the President of the Board of Trustees, as appropriate.
- Neither the existence nor the results of investigations or other follow up activity will be disclosed or discussed with anyone other than the Trustees or those persons who have a legitimate need to know in order to perform their duties and responsibilities effectively.
- Legal counsel will be notified and involved in the investigation whenever appropriate.
- Once the investigation is completed the Trustees and/or Library Director will take one or more of the following steps:
A) Consult with legal counsel.
B) Take appropriate action and steps to minimize recurrence.
C) Report the results of the investigation to the Board of Trustees.
Approved June 10, 2008