TITLE
Recommendation to consider adopting the Fraud Prevention and Reporting Policy as an addition to the Ethics Guide for Long Beach City Officials and Employees.
DISCUSSION
There is currently no policy that addresses the reporting procedures for fraud, waste and abuse in the City of Long Beach (City). Without a defined Fraud Policy, there are no clearly defined processes for who is accountable for reporting fraud and how to investigate specific instances of fraud within the City.
The Office of the City Auditor has developed a framework for a fraud policy for the City Council to consider adding to the City's Ethics Guide for Long Beach City Officials & Employees. Establishing a citywide policy would allow the Council to emphasize the importance of identifying and immediately reporting suspected fraud, waste and abuse throughout the City as well as ensuring that all instances are handled appropriately and consistently. A defined policy would also provide clarification of the responsibilities of Department managers, supervisors, employees and the City Auditor's Office surrounding reporting and investigating fraud, waste, and abuse.
This policy would apply to all City employees, consultants, vendors, contractors and officials, as well as members, employees, consultants, vendors and contractors of City Boards and Commissions.
A sample Fraud Prevention and Reporting Policy is outlined in the attachment.
This matter was reviewed by Michael J. Mais, Assistant City Attorney.
TIMING CONSIDERATIONS
City Council action is requested on November 13,2012.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action at this time. Future use of the policy could help reduce fraud, waste, and abuse of City resources.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LAURA L. DOUD
CITY AUDITOR
APPROVED:
PATRICK H. WEST
CITY MANAGER