GUEST ARTICLE
Dealing With Apathy

GUEST ARTICLE
Do Your Survey Questions Spoil Your Survey Results?

Sample Fraudulent or Dishonest Conduct & Whistleblower Policy Statement

In the May issue of The Canadian Association e-zine, AXI president Wayne Amundson suggested it may be time to consider whistleblower policies in associations.  He also indicated that a sample would be included in the next issue if possible, and thanks to Nat Bartholomew, a partner with Langan Associates, here it is.

XYZ Organization will investigate any possible fraudulent or dishonest use or misuse of XYZ Organization resources or property by management, staff, volunteers, or members. Anyone found to have engaged in a fraudulent or dishonest conduct is subject to disciplinary action by XYZ Organization up to and including civil or criminal prosecution when warranted.

All members of the XYZ Organization community are encouraged to report possible fraudulent or dishonest conduct (i.e., a whistleblower). An employee should report his or her concerns to a supervisor or manager. If for any reason an employee finds it difficult to report his or her concern to a manager or supervisor, the employee can report it directly to FILL IN THE BLANK (e.g., the Executive Director, Director of Finance, etc.).

Managers or supervisors are required to report suspected fraudulent or dishonest conduct to the FILL IN THE BLANK (e.g., the Executive Director, Director of Finance, etc.).

For more information about definitions, rights and responsibilities, procedures, and contacts read the following.

Definitions

Baseless Allegations: allegations made with reckless disregard for their truth or falsity. People making such allegations may be subject to institutional disciplinary action and /or legal claims by individuals accused of such conduct.

Fraudulent or Dishonest Conduct: a deliberate act or failure to act with the intention of obtaining an unauthorized benefit. Examples of such conduct include, but are not limited to:

• forgery or alteration of documents

• unauthorized alteration or manipulation of computer files

• fraudulent financial reporting

• pursuit of a benefit or advantage in violation of the XYZ Organization’s conflict of interest policy

• misappropriation or misuse of XYZ Organization resources, such as funds, supplies, or other assets

• authorizing or receiving compensation for goods not received or services not performed

• authorizing or receiving compensation for hours not worked

Whistleblower: an employee who informs a manager, supervisor or the FILL IN THE BLANK (e.g., Executive Director, Director of Finance, etc.) about an activity which that person believes to be fraudulent or dishonest.

Rights and Responsibilities

Managers or Supervisors

Managers or supervisors are required to report suspected fraudulent or dishonest conduct to the FILL IN THE BLANK (e.g., Executive Director, Director of Finance, etc.). In addition, managers or supervisors are responsible for maintaining a system of management controls, which detect and deter fraudulent or dishonest conduct. Failure by a manager or supervisor to establish management controls or report misconduct within the scope of this policy may result in adverse personnel action against the manager or supervisor, up to and including dismissal. The FILL IN THE BLANK (e.g., Executive Director, Director of Finance, etc.) is available to assist management in establishing management systems and recognizing improper conduct.

Reasonable care should be taken in dealing with suspected misconduct to avoid:

• baseless allegations

• premature notice to persons suspected of misconduct and/or disclosure of suspected misconduct to others not involved with the investigation

• violations of a person's rights under law

• Accordingly, a manager or supervisor faced with a suspected misconduct:

• should not contact the person suspected to further investigate the matter or demand restitution

• should not discuss the case with anyone other than the FILL IN THE BLANK (e.g., Executive Director, Director of Finance, etc.), the Office of General Counsel, or a duly authorized law enforcement officer

• should direct all inquiries from any attorney retained by the suspected individual to the General Counsel

• should direct all inquiries from the media to XYZ Organization’s Public Relations Office, or in the event that Public Relations cannot be contacted, to the Office of General Counsel.

Whistleblower Protection

XYZ Organization will protect whistleblowers as defined below.

• XYZ Organization will use best efforts to protect whistleblowers against retaliation, as described below. It cannot guarantee confidentiality, however, and there is no such thing as an "unofficial" or "off the record" report. XYZ Organization will keep the whistleblower's identity confidential, unless (1) the person agrees to be identified; (2) identification is necessary to allow XYZ Organization or law enforcement officials to investigate or respond effectively to the report; (3) identification is required by law; or (4) the person accused of Fraud Policy violations is entitled to the information as a matter of legal right in disciplinary proceedings.

• XYZ Organization employees may not retaliate against a whistleblower with the intent or effect of adversely affecting the terms or conditions of employment (including but not limited to, threats of physical harm, loss of job, punitive work assignments, or impact on salary or wages). Whistleblowers who believe that they have been retaliated against may file a written complaint with the FILL IN THE BLANK (e.g., Executive Director, Director of Finance, etc.). A proven complaint of retaliation shall result in a proper remedy for the person harmed and the initiation of disciplinary action, up to and including dismissal, against the retaliating person. This protection from retaliation is not intended to prohibit managers or supervisors from taking action, including disciplinary action, in the usual scope of their duties and based on valid performance-related factors.

• Whistleblowers must be cautious to avoid baseless allegations (as described earlier in the definitions section of this policy).

Contacts

Questions related to the interpretation of this policy should be directed to: FILL IN THE BLANK (e.g., Executive Director, Director of Finance, etc.).

Effective Date

Original: March X, 2003
Revised: April X, 2003

NOTE:  This sample policy should only be used as a guide towards developing a policy for your organization.  Should you need further information or assistance, please contact Nat Bartholomew, CPA, Partner, Langan Associates and Managing Editor of Langan Associates Weekly e-Newsletter at bartholomewn@langancpa.com

Used with permission.

OUR MISSION

To build better
associations and non-profits by 
delivering unique
and unparalleled expertise, programs
and services
to their staff and
volunteers.