Fraud Investigation Procedure

Approving authority Vice Chancellor

Approval date 3 December 2018 (5/2018 meeting)
Advisor General Counsel
Next scheduled review 2020
Document URL http://policies.griffith.edu.au/pdf/Fraud Investigation Procedure.pdf
TRIM document 2023/0001088

Description The Fraud Investigation Procedure sets out the operational approach to
managing fraud and corruption related investigations within the University. It
provides an overview of how fraud related investigations will be managed and
defines management responsibilities.

Related documents

Code of Conduct
Conflict of Interest Policy
Fraud and Corruption Control Framework
Academic Staff Enterprise Agreement
General Staff Enterprise Agreement
General Staff Misconduct Committee Guidelines (Section 45 General Staff Enterprise Agreement)
Gifts and Benefits Policy
Losses Policy
Personal Relationships in the Workplace
Public Interest Disclosure Policy
Risk Management Policy
Financial Accountability Act 2009
Crime and Corruption Act 2001
Commonwealth Crimes Act 1914
Queensland Criminal Code
Public Sector Ethics Act 1994
Public Interest Disclosure Act 2010
Crime & Corruption Commission Corruption in Focus

[Definition] [Objective] [Scope] [Fraud Triggers] [First Response Process] [Decision to

Investigate Further] [Crime and Corruption Commission Reporting] [Independent Investigation]
[Investigation Report] [Further Actions] [Record Keeping] [Review] [Appendix A] [Appendix B]

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1. DEFINITION

For the purpose of this document, the following key definitions are applied in conjunction with
the corrupt conduct, corruption and fraud definitions outlined in the Fraud and Corruption
Control Framework:

Ethical culture of Integrity is based on an organisational culture of consistently exhibiting

strong moral principles which ensures that as an organisation we have consistent standards of
honesty and adherence to University policies and procedures.
Investigation is a search for evidence relating to a specific fraud allegation(s) to determine the
facts relating to the matter and to assist in deciding what, if any, action should be taken in
relation to the matter(s).

2. OBJECTIVE

Griffith is committed to an ethical culture of integrity This Fraud Investigation Procedure

(Procedure) supports the University’s culture of integrity and ethical decision-making and our
responsibilities in properly responding to any fraud and corruption allegations. This Procedure
sets out the University’s principles and responsibilities for investigations of alleged fraud and
corruption. This procedure is underpinned by the Fraud and Corruption Control Framework.

3. SCOPE
This Procedure applies to Council and University Committee members, students, and staff of
the University and its controlled entities. For the purpose of this Procedure and the Fraud and
Corruption Control Framework, ‘staff’ means continuing, fixed-term and casual staff, including
senior management, executive, academic, general, visiting, honorary and adjunct, conjoint
appointments and volunteers participating in University business or activities.

4. FRAUD TRIGGERS

Fraud can occur in many ways; it may involve one or more internal and external parties and
may be executed by one person or involve a number of parties. Irrespective of how fraud is
perpetrated, in most circumstances, fraud arises due to pressure, opportunity and / or
rationalisation. The observing officer who identifies potential fraud triggers or who reasonably
suspects fraudulent or corrupt activity, should remain calm and avoid alerting the perpetrator or
perpetrators that they have become aware of the fraudulent behaviour.

5. FIRST RESPONSE PROCESS

First response is the time when someone becomes aware of a suspected fraud or corrupt
activity, until the submission of a report. Refer Appendix A for Initial Response Process
flowchart.

Except for first response actions, the University’s authorised officer – Chief Operating Officer
will assess the allegation of fraudulent or corrupt behaviour to determine the appropriate course
of action and resolution. The Chief Operating Officer may delegate assessment tasks to relevant

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 senior officers. Each allegation will be examined to determine whether fraudulent or corrupt
behaviour has occurred.

i. Reporting of a Potential Fraud

All members of the University community play an important role in identifying and reporting
suspicious actions or wrong doing. While the majority of fraud and corruption is identified by
staff, potential fraudulent or corrupt behaviour can also be detected by external
stakeholders.
The University strongly encourages and expects staff to identify and make public interest
disclosures about suspected wrongdoing to assist in the prevention of fraud and corruption.
Reporting concerns internally to a supervisor is usually the most effective way to correct
wrongdoing as this enables the University to quickly investigate and address concerns. The
Public Interest Disclosure policy sets out other options for reporting suspected wrongdoing,
including to the independent whistleblower hotline ‘Your Call.’
It is important to maintain confidentiality and not to discuss the matter, other than for the
purpose of making a report. Maintaining confidentiality protects the discloser against
reprisals and also protects other people affected by the disclosure.
The Public Interest Disclosure policy provides advice on the options for making a disclosure
to a proper authority if internal fraud or corrupt conduct is suspected.
Information about whistleblowing is available on the University’s Integrity Program and the
University’s Public Interest Disclosure website.
‘Your Call’ has been engaged by the University to impartially and confidentially manage
disclosures and to facilitate disclosers to provide information or concerns without fear of
reprisal. Disclosers may opt to remain anonymous. The Your Call service may be contacted
on 1300 790 228 (business days 9.00am to 12.00am) or online at
www.yourcall.com.au/report. The organisational identification for the University is
GRIFFITH.
External stakeholders who have reason to suspect fraud or corruption or that opportunities
for the same exist at the University are encouraged to report their concerns using the Your
Call service or via email to the Chief Operating Officer:
complaints@griffith.edu.au or telephone: +61 7 373 57111
It is important to ensure that, irrespective of how the fraud is discovered, the observer should
simply report the facts as they are understood to the proper authority and not try to investigate
the matter further as the discovery may be far more serious than it initially appears and may
involve many parties. Observers should only intervene if it is necessary to prevent harm to
any person and it is safe to do so.

ii. Capturing Available Evidence

Observers should capture as much information as possible about the suspected wrongdoing
to include in their disclosure but only if it is safe to do so. An accurate record should be made
based on immediate knowledge of the incident and without making any further inquiries. The
following checklist can act as a guide for capturing all relevant information observed or
identified:
Party involved in incident observed:
• Internal or external to the University
• Name, position, and business unit
• Time and date of incident and/or loss
• Details of other witnesses to incident
Details of questionable incident observed:
• Incident observed through phone / email / person / other
• Details of questionable incident (who, what, when, where, how)
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 • Specific requests made (where relevant)
• Location of the observer when incident occurred
• Details of any conversations or interactions that the observer was involved in or
overheard (where relevant)
Evidence of questionable incident observed (only if available):
• Copies of documents, exhibits or records
• Photos, videos, screenshots or other image-based evidence (which should be legally
acquired)
• Phone recordings, text messages, emails or any other electronic communication available
• Data stored in computer systems or other electronic devices
• Any other available evidence that may support the concerns raised

iii. Submitting a Report

Time is of the essence when dealing with suspected fraudulent or corrupt action. It is important
that the observer uses one of the options for making a disclosure (see Section 5(i) of this
Procedure) to ensure reporting and appropriate escalation occurs as soon as possible after
the suspicion arises.
Managers or supervisors receiving a first communication about alleged fraud and corruption
should:
• maintain a log of all actions taken since the information was received and encourage the
observer to do the same.
• prepare accurate file notes of conversations or other communication that have occurred;
these notes may be required for investigation or court proceedings at a later stage.
• only advise / involve those who absolutely need to know.
• promptly advise the appropriate line manager / supervisor or submit a verbal or written
disclosure to:
▪ The Chief Operating Officer
Email: coo@griffith.edu.au | Telephone (07) 373 57343;
▪ The Director, Audit, Risk and Compliance
Email d.raniga@griffith.edu.au | Telephone (07) 373 58513;
▪ The Manager, Internal Audit
Email d.constantinous@griffith.edu.au | Telephone (07) 373 56402;

▪ The Vice Chancellor, in the case of a disclosure about the Chief Operating
Officer
Email vc@griffith.edu.au | Telephone (07) 555 28178; or
▪ The Chancellor, in the case of a disclosure about the Vice Chancellor
Email chancellor@griffith.edu.au | Telephone (07) 373 58502

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6. DECISION TO INVESTIGATE FURTHER

The Chief Operating Officer should be informed of all alleged internal fraud and corrupt conduct
incidents (public interest disclosures). The Chief Operating Officer will comply with the
procedures for assessing, investigating and documenting disclosures as detailed in the Public
Interest Disclosure Policy. The Chief Operating Officer will to the greatest extent possible keep
the disclosure and the identity of the disclosure confidential. The Chief Operating Officer may
delegate tasks and/or undertake consultations with relevant senior officers as necessary for
the purpose of the initial investigation of the disclosure. All findings from the initial investigation
will be documented in an Initial Evaluation Report. The report will also recommend an
independent investigation of the incident if required, and whether the investigation should be
conducted under the protection of legal professional privilege. Further, a review of internal
controls relevant to the incident will also be undertaken.

7. CRIME AND CORRUPTION COMMISSION REPORTING

The Chief Operating Officer will advise the Vice Chancellor, who will determine whether to
notify the Crime and Corruption Commission (CCC). The Crime and Corruption Act 2001
places a duty to notify the CCC of any reasonable suspicion of corrupt conduct. Reporting to
the CCC occurs prior to determining whether an offence has occurred.

Section 44.3 of the Crime and Corruption Act 2001 provides that if the University is satisfied
that a complaint is frivolous or vexatious or lacks substance or credibility or that dealing with
the complaint would be an unjustifiable use of resources, then the University may take no
action or discontinue action. However the University must advise the complainant of the
University’s reasons for taking no action. For further guidance refer to the CCC website
Corruption in Focus section 3.2.

8. INDEPENDENT INVESTIGATION

When an independent investigation of the incident is recommended, the following steps will
be undertaken to ensure the investigation is carried out in an appropriate manner, dependent
on whether the fraud perpetrated was internal or external to the University. Refer Appendix B
for Independent Investigation Process flowchart.

For example, the planning for the investigation of a fraud may include the preparation of terms
of reference in the following form.

i. Terms of Reference
Where an independent investigation is recommended, matters to be considered and
confirmed by the Chief Operating Officer as part of the independent investigation planning
process should include:
• Qualification, competency and relationship of the investigating personnel
• Specific issues and matters to be examined in depth;
• Identification of functional areas and key staff to be involved;
• Identification and engagement of specialist qualified independent expertise or support
required;

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 • Ensure investigation reviews prior periods (if applicable) to identify whether further fraud
instances have occurred and to assess the magnitude of the loss to the University
• Expected costs and time period for the investigation;
• Confirmation of the powers and responsibilities of the investigator(s);
• Milestones, key review points and report back dates;
• Determine clearly the deliverables required.
ii. Purpose of investigation
The purpose of any investigation will be to:
• Establish and document the relevant facts;
• Make a finding of fact based on the available evidence; and
• Provide recommendations to the University.
iii. Principles of Procedural Fairness
The principles of procedural fairness and natural justice are designed to ensure that decision
making is fair and reasonable and avoids bias. Before any final determination is made, a
person who is the subject of a report will be:
• Told the substance of the allegation;
• Told the substance of any adverse comment arising out of an investigation that may be
included in a report, memo, or letter;
• Given a reasonable opportunity to answer any allegation and respond to any negative
findings; and
• The presumption of innocence is maintained throughout the investigation unless the
allegations are proved to be substantiated.
iv. Key Considerations
The following should be considered prior to the commencement of any investigation:
• If there is any doubt about the University’s authority to gather information, appropriate
legal advice should be sought;
• Provisions, directives, guidelines and procedures required by law and relevant staff
enterprise agreements are observed throughout the process.
• There is appropriate confidentiality to ensure the integrity of the inquiry and to minimise
the impact of the investigation. Prudent handling of materials and information minimises
the risk of evidence being contaminated, possible reprisals against any discloser,
prejudice against the subject officer or prejudgement of the outcomes.
• Evidence collected during an investigation must be performed in accordance with the
rules of evidence and protected so that it will stand up as evidence in a court of law.

9. INVESTIGATION REPORT

At the completion of an investigation, the information gathered is assessed by the investigator

and a formal report prepared. All recommendations within the report are supported by
evidence. Reports are logical and provide a sound basis for decisions to be made on the
merits of the case and on the balance of probabilities.
i. Allegation is not substantiated

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 If based on the evidence, the report finds the allegations to be unsubstantiated, the Chief
Operating Officer may direct the investigation to be closed off with a file note and no further
action will be taken.
ii. Allegation is substantiated

The investigation report will be reviewed by the Chief Operating Officer who, in consultation
with appropriate Senior Management, will assess what further action will be taken. Fraud and
corruption, when proven, is a breach of the Code of Conduct and may lead to performance
management or disciplinary action. Such action could range from counselling to termination
of employment and reporting to external authorities, as appropriate.

iii. Reporting to External Agencies

• Queensland Police Service - Reporting to the Queensland Police Service will occur once
it is determined that an offence has been committed under the Criminal Code or any other
Act. Reporting may be made early to prevent further harm to the University.
• Queensland Audit Office – Reporting to the Queensland Audit Office is based on whether
a loss has been incurred.
• Crime and Corruption Commission – Reporting to the Crime and Corruption Commission
occurs when there is a reasonable suspicion that corrupt conduct has occurred. (See
section 7 of this Procedure for further information).

10. FURTHER ACTIONS

i. Review of Control Environment
As part of any investigation undertaken, a review will be undertaken of the control environment
including systems and processes, and any further controls improvements necessary in order
to avoid recurrence. This includes updating the relevant risk registers.
ii. Review of Adequacy of and Impact to the Fraud and Corruption Control Framework and
the Integrity Program
The investigators will also review and recommend any changes required to these procedures
or component documents and the Integrity Program, following from the lessons learned from
the investigation.
iii. Recovery of Losses
The University will make every attempt to recover any funds misappropriated through all
means available to it.

iv. Insurance
Where an incident of fraud has been first identified, the University may be able to recover
some or all of the loss and associated costs of the investigation through insurance. The
University’s Insurance Manager should be consulted for additional information and guidance.

11. RECORD KEEPING

All records relating to investigations should be securely stored in a central location by the
relevant Chief Investigator and maintained for a period of seven years. Access to and review
of these files will be determined on an ‘as needs’ basis by the Director, Audit, Risk and
Compliance in consultation with the Chief Operating Officer.

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12. REVIEW
This procedure will be reviewed every two years for adequacy and effectiveness. Furthermore, it
shall be reviewed after any significant incident of fraud.

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Appendix A: INITIAL RESPONSE PROCESS

Potential fraud
event identified.

Refer to
External or Does the suspicious event Whistleblower
External Event Internal Event Yes
Internal? involve your supervisor? hotline or next
line supervision.
Report and
provide evidence No
of event Hotline or next
immediately to level Supervisor
Report suspicion notify Vice
Supervisor.
to Supervisor. President
(Corporate
Services)
Supervisor assesses Supervisor
information captures
provided. Initial due evidence if safe
diligence performed. to do so.
Supervisor reports
findings to Vice
President (Corporate
Services).

Vice President
(Corporate Services)
prepares an initial
evaluation report.

Is further
Yes investigation No
required?

Refer independent Finalise and

investigation close.
process flowchart.

Include
information in
Fraud Activity
Report to Audit
Committee.

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Appendix B: INDEPENDENT INVESTIGATION PROCESS

A decision has been

made to commence an
independent
investigation

The Vice Chancellor upon

advice from VP
Corporate Services will
report the matter to the
CCC.

The Vice President

(Corporate Services) will
define the terms of
reference and purpose of
investigation.

The Vice President

(Corporate Services)
appoints an independent
investigator.

The investigation is
undertaken by the
appointed independent
investigator.

Investigation report
provided to Vice
President (Corporate
Services)

Vice President (Corporate Services) in Following the The adequacy of the fraud
Vice President
conjunction with Senior Management will investigation a review framework and integrity Include information in
Is the allegation (Corporate Services)
Yes assess what further actions needs to be of the control program is assessed and any Fraud Activity Report to
substantiated? reports to external
taken, including the recovery of funds environment is improvements are made as the Audit Committee.
agencies if required.
through insurance or other means. undertaken necessary.
No

Investigation is closed
off with a file note.

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