Anti-fraud policy

The RSC complies with applicable legislation, and applicable guidance including Managing Public Money. Its trustees are required under charity law to safeguard the assets of the charity; this includes all linked charities. We are committed to conducting business fairly, openly and honestly and in accordance with the highest ethical and legal standards. This policy should be read in conjunction with associated policies, including the RSC’s Human Rights Policy and Code of Conduct for Associates. 

1. Purpose

The purpose of this policy is to set out our stance on fraud and our approach to preventing, detecting, reporting and investigating fraud.

This policy establishes the controls to ensure compliance with all applicable regulations, and to ensure our business is conducted in a socially responsible manner. This policy applies to all countries and territories. 

2. Policy statement

It is our policy to conduct all of our business in an honest and ethical manner. We have a ‘zero tolerance’ policy towards fraud.

We are committed to developing an anti-fraud culture and keeping the opportunities for fraud to the absolute minimum. We are committed to acting professionally, fairly and with integrity in all our business dealings and relationships wherever we operate, implementing, and enforcing effective systems to counter fraud. We require all employees, volunteers, members and third parties to act honestly and with integrity at all times. Employees and volunteers must safeguard the resources for which they are responsible.

We will uphold all laws relevant to countering fraud in all the jurisdictions in which we operate. However, we remain bound by the laws of the UK, including the Fraud Act 2006, and the Economic Crime and Corporate Transparency Act 2023 (“ECCTA 2023”), in respect of our conduct both at home and abroad.

The RSC has implemented procedures to prevent fraud by associated persons (employees, volunteers, agents, or third parties) under the ECCTA 2023.

3. Scope and definitions: who is covered by this policy?

This policy applies to all volunteers and third parties, and is consistent with the RSC’s internal policy on anti-fraud. 

Definitions

Third party means any individual or organisation the RSC deals with during the course of operations, including customers, grant applicants/holders, members, suppliers, agents, advisers, and government and public bodies. This list is not exhaustive.

The Fraud Act 2006 defines a general offence of fraud and sets out three ways by which fraud can be committed:

• fraud by false representation. A representation is false if it is untrue or misleading, and the person making it knows that it is, or might be, untrue or misleading.
• fraud by failing to disclose information.
• fraud by abuse of position. This applies to those occupying a position in which they are expected to safeguard, or not to act against, the financial interests of another person.

In each case, the offence is to act dishonestly with the intention of making a gain for oneself or another or causing a loss, or risk of loss, to another.  The criminal act is the attempt to deceive, and attempted fraud is therefore treated as seriously as accomplished fraud.

4. Examples of fraud captured by this policy (but not limited to)

Procurement fraud

• Volunteers or third parties creating false invoices, sales orders, receipts, purchase orders or supplier identities in order to obtain payment for goods and services that have not been supplied or to gain commission.
• Volunteers or third parties awarding a contract, or preferential terms, to a supplier in return for payments, personal discounts, commission or other benefits; or awarding a contract to a relative or other connected party.
• Grant reviewers fraudulently falsifying scores, or providing dishonest reviews, in order to influence a grant outcome e.g. to a relative or other connected party.
• Grant recipients not spending grant funds on purposes intended, or keeping funds for personal use (if that was not the purpose).

Fraudulently altering documents or records

• Grant applicants falsifying documents or fabricating information to support false applications. 
• Volunteers, or third parties altering vendor payment details to divert supplier payments to own bank account.
• Volunteers, or third parties fraudulently altering contracts, or other applicable documentation in return for a bribe or in order to favour a relative or friend.
• Volunteers, or third parties fraudulently altering or fabricating financial records.

Expenses fraud

• Volunteers, or third parties claiming expenses or allowances to which they are not entitled, including by falsifying receipts.

Fraud involving impersonation

• Individuals impersonating the RSC, another organisation or another person, in order to extract fees or funds for personal gain.
• Third parties submitting false applications from real or fictional individuals or organisations for grants.
  
  

5. How to raise a concern

Notification protocol

We require all those receiving RSC funds or representing the RSC, including our employees, volunteers, and third parties, to report any suspected or actual instances of fraud involving RSC assets, employees, or volunteers. Reports should be made to the counter fraud team. 

We will maintain a system for recording all reports of actual or suspected fraud, the action taken, details of any losses incurred and the outcome of any investigation. We will use this information to inform our review of the risks and the effectiveness of our controls.

6. Investigation

We will take all reports of actual or suspected fraud seriously, and will investigate to the fullest extent possible. The investigation pathway is dependent on the situation and suspected type of fraud (e.g. procurement, grants, expenses etc.)

As part of an investigation, the RSC reserves the right to seek further information or evidence from third parties. The RSC also reserves the right to share information with other charities and third parties if there are sufficient grounds to do so in order to support an investigation. Investigations will be carried out in consultation with the counter fraud team, assisted by other colleagues where appropriate.  

The RSC will always seek to take disciplinary and/or legal action against those found to have perpetrated or assisted with fraudulent or other improper activities in any of its activities. Dependent on the nature of the breach, this could be subject to disciplinary procedure (for example through the RSC’s Disciplinary Regulations for RSC members). The RSC will also seek to recover any assets lost through fraud.

External reporting obligations

We will fully meet our obligations to report fraud, bribery and corruption to third parties which may include the police authorities and local regulators where applicable.

Review 

This policy will be reviewed regularly in conjunction with the RSC’s internal policy on anti-fraud.