WHEREAS, the Municipal Technical Advisory Service has recommended that every incorporated municipality in the state should have a Fraud Policy, and

WHEREAS the City of Norris agrees with the concept and necessity for having a Fraud Policy; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Norris, meeting in regular session on this 9th day of May, 2016 in Norris, Tennessee, that the following policy be adopted:

Section 1.                                             Norris Fraud Policy


BACKGROUND                  This Fraud Policy is established to facilitate the development of controls that will aid in the detection and prevention of fraud against the City of Norris/Norris Water Commission.   It is the intent of the City of                                    Norris/Norris Water Commission to promote consistent municipal behavior by providing guidelines and assigning responsibility for the development of controls and conduct of investigations.

SCOPE OF POLICY            This policy applies to any irregularity, or suspected irregularity, involving employees as well as consultants, vendors, contractors, outside agencies doing business with employees of such agencies, and/or any other parties with a                                                         business relationship with the City of Norris/Norris Water Commission.

                                                Any investigative activity required will be conducted without regard to the  suspected wrongdoer's length of service, position/title, or relationship to the City of Norris/Norris Water Commission.                                                             


POLICY                                 Management is responsible for the detection and prevention of fraud,                      misappropriations, and other irregularities.  Fraud is defined as the intentional,              false representation, or concealment of a material fact for the purpose of                       inducing another to act upon it to his or her injury.            

                                                Any irregularity that is detected or suspected must be report immediately to the                   City Manager, who coordinates all investigations with Legal Counsel and other      affected areas, both internal and external.   Any irregularity involving the City Manager must be reported immediately to the Mayor of the City of Norris.   Any irregularity that is detected or suspected that is not reported by a City Employee may result in disciplinary action of that employee.


ACTIONS CONSTITUTING FRAUD                                                                                                             

                                                The terms defalcation, misappropriation, and other fiscal irregularities refer to, but are not limited to:

                                                Any dishonest or fraudulent act

                                                Misappropriation of funds, securities, supplies, or other assets

Impropriety in the handling or reporting of money or financial transactions

                                                Profiteering as a result of insider knowledge of municipal activities

                                                Disclosing confidential information to outside parties

                                                Accepting or seeking anything of material value from contractors, vendors,             or persons providing services/materials to the City of Norris/Norris Water Commission

                                                Destruction, removal, or inappropriate use of records, furniture, fixtures, and equipment; and/or

                                                Any similar or related irregularity


                                                Irregularities concerning an employee's moral, ethical, or behavioral conduct should be resolved by the Department Supervisor and the City Manager.

                                                If there is any question as to whether an action constitutes fraud, contact the    City Manager.  



                                                The City Manager has the primary responsibility for the investigation of all suspected fraudulent acts as defined in this policy.  If the investigation substantiates that fraudulent activities have occurred, reports will be issued to appropriate designated personnel and Norris City Council and/or Norris         Water Commission, and if appropriate, the State of Tennessee Comptroller  of   the Treasury by the City Manager.  If the suspected fraudulent activities involve the City Manager, the Mayor would be in charge of the investigation and reports will be issued to the appropriate designated personnel and Norris City Council and/or Norris Water Commission, and if appropriate, the State of Tennessee Comptroller  of  the Treasury by the Mayor.

Decisions to prosecute or refer the examination results to the appropriate law enforcement and/or regulatory agencies for independent investigation will be made in conjunction with legal counsel and Norris City Council, as will final decisions on disposition of the case.

CONFIDENTIALITY           The Department Heads and/or City Manager treat all information received confidentially.  Any employee who suspects dishonest or fraudulent activity will notify the Department Head and/or City Manager immediately, and should not attempt to personally conduct investigations/interrogations related to any suspected fraudulent act.

                                                Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know.  This is important in order to avoid damaging the reputations of persons suspected but subsequently found innocent of wrongful conduct and to property the City of Norris/Norris Water Commission from potential civil liability.


Section 2. This Resolution shall take effect on this the 9th day of May, 2016, the public welfare requiring it.