RESOLUTION NO. 4-2016
TO ADOPT A FRAUD POLICY FOR THE CITY OF NORRIS AND NORRIS WATER COMMISSION
Municipal Technical Advisory Service has recommended that every incorporated municipality in the state should have a Fraud
WHEREAS the City of Norris agrees with the concept and necessity for having a Fraud Policy;
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:
Norris Fraud Policy
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.
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
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.
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.
2. This Resolution shall take effect on this the 9th day of May, 2016, the public welfare requiring