Anti-fraud Policy and Procedures

1.     INTRODUCTION  

This document sets out the agreed policy and procedures of The Hesket Newmarket Community Shop Limited against fraud and other forms of dishonesty.

It applies to Shareholders, Members, Members of the Management Committee, employees and volunteers. The Society will not accept any form of dishonesty or other levels of fraud.  Any such matter will be treated by the Management Committee most seriously. Anybody associated with the Society who commits any act of dishonesty, theft or fraud, or who participates in any such action or becomes aware of any such actions and does not immediately report it to the Management Committee or any member thereof, will themselves be subject to disciplinary action as deemed appropriate by the Management Committee.

Who we are: We (or ‘us’ or ‘our’) means the Hesket Newmarket Community Shop Limited, Community Benefit Society.

What do we mean by a ‘member’: References to a ‘member’ relates to shareholders of Hesket Newmarket Community Shop Limited, Community Benefit Society. 

What do we mean by the ‘Society’:  Any reference to the ‘society’ means Hesket Newmarket Community Shop Limited, Community Benefit Society.

The Anti-fraud Policy is to be read in conjunction with the following Society documents:

The Society’s Rules – These can be found on the FCA website Mutuals Public Register: Hesket Newmarket Community Shop Limited.

1. The Society’s Governance Policy

2. The Society’s Privacy Policy

3. The Society’s Complaints, Disputes and Concerns Policy 

2.     STATEMENT of INTENT and RESPONSIBILITIES

Hesket Newmarket Community Shop Limited is committed to the detection, deterrence, investigation and prosecution (where appropriate) of all forms of fraud and corruption. The Society fosters an environment of openness, honesty and integrity of Members, Members of the Management Committee, employees and volunteers, and any users of the shop, and seeks to reduce and eliminate any opportunity for dishonesty or fraud. Members, members of the Management Committee, employees and volunteers are expected to lead by example in upholding and adhering to the Societies policies, procedures and practices.

This policy will apply equally to members of the public, service users and external organisations (such as suppliers and contractors) who are expected to act with good faith and integrity and carry on about their business, without intent to commit fraud against the Society.

The Society will ensure that its financial and administrative processes are carried out in a transparent manner, reported honestly, accurately, and with accountability in that all decisions will be taken objectively and free of personal interest.

All members of the Society, employees and volunteers have a responsibility for the implementation of this policy and to report to the Management Committee any breach of the policy that they become aware of.

The Society has procedures by which any concern whatsoever may be raised by Members, members of the Management Committee, employees and volunteers. Details can be found in the Hesket Newmarket Community Shop Limited Disputes and Complaints Procedures.

3.     DEFINITIONS

A.  Fraud:

An intent to acquire money or goods through dishonestly falsifying, or attempting to falsify, records or documents. The deliberate changing of financial records or other statements by or with a member of the public or someone who works for or is a volunteer for the Society. The attempt to deceive and any attempted fraud is treated as seriously as a fraud that has taken place.

B. Corruption /Bribery:

The offering, giving, soliciting or acceptance of an inducement or reward (including any gift, loan, fee, or advantage) which may influence the action of any person. This is more completely defined in the Bribery Act, 2010.

C.  Theft:

Dishonestly acquiring, using or disposing of physical assets/stock or intellectual property belonging to the Society or to any individual members of the Society.

D.  Misuse of equipment:

Deliberately misusing, misappropriating any materials or equipment belonging to the Society for financial or material benefit, individually or collectively for personal or third-party benefit.

E.  Abuse of position:

Through a position of trust, exploiting a situation within the Society for personal financial or material benefit. 

Examples of internal fraud:

1. A member of the Management Committee, a Member, an employee or volunteer withholding cash, cheques ordonations meant for the Society for themselves.

2. The Society credit/debit cards or other financial instruments being misused by Members of the Management Committee, employees, volunteers or Members.

3. Members of the Management Committee, Members, employees or volunteers claiming false or inappropriateexpenses.

Examples of external fraud:

1. Individually or in concert with others hijacking the Society’s bank account/s or creating a falsewebsite with a donation link.

2. A contractor under-delivers or over-charges for goods or services.

3. Fraudsters extract money from the Society by impersonating a contractor that the Society currently use and convinces/attempts to convince the Society to change the bank account details that they have on filefor that contractor to a fraudulent account.

4. Cyber fraud including phishing emails where a fraudster impersonates someone or a reputable company to get the Society to reveal security information; ransoming of Society data; hacking a Society’s computer or network

5. Unauthorised fundraising in name of the Society, such as creating a fake page on a fundraising website or a fake street collection.

4.     RESPONSIBILITIES

There are responsibilities in relation to the prevention of fraud, theft, misuse of equipment and abuse of position,specific responsibilities are as follows:

a. Members of the Management Committee are responsible for establishing and maintaining systems appropriate to internal control that supports the achievement of the Society’s strategies, policies, aims and objectives.

The systems of internal control are designed to respond to and manage the range of risks that the Society may encounter. The system of internal control is based on a continuing process to identify the principal risks, to evaluate the nature and extent of those risks and to manage them effectively. Managing fraud risk is seen in the context of the management of this wider range of risks.

The Management Committee responsibilities are detailed in the Society’s Governance Policy.

b. Every Member, employee and volunteer has personal responsibility for:

Acting with propriety in the use of the Society’s resources and the handling and use of funds whether they are involved with cash, receipts, payments or dealing with suppliers.

Conducting themselves with selflessness, integrity, objectivity, accountability, openness, honesty and leadership.

Being alert to the possibility that unusual events or transactions could be indicators of fraud or cyber phishing.

Alerting their line manager or a member of the Management Committee when they believe the opportunity for fraud of any nature exists.  For example, that may be due to poor procedures or lack of effective oversight.

Reporting details immediately to their line manager or a member of the Management Committee if they suspect that a fraud has been committed or see any suspicious acts or events.

Cooperating fully with the person appointed to conduct internal checks, or review or fraud investigations.

5.     INVESTIGATIONS

All investigations will follow the Society’s Complaints, Disputes and Concerns Policy.

5.     REVIEW

This policy will be reviewed as necessary at least on an annual basis.

Signature:  Philippa Groves                        Signature: Michelle Boundy  

Chair                                                               Secretary

Date: 12/11/24                                                Date: 12/11/24