Housing Association Guide Part 1 - Appendix 11
Contents
1.01Government has a responsibility - to show that it puts in place appropriate controls to ensure that the principles of regularity, propriety and value for money are met. Appropriate risk assessment provides a useful tool to determine the capacity of organisations to manage resources effectively.
1.02HM Treasury defines Regularity as - the requirement for all items of expenditure and receipts to be dealt with in accordance with the legislation authorising them – Regularity is about compliance with appropriate authorities.
1.03Propriety can be defined as - Fitness; Aptness; or Correctness of behaviours or morals. The Nolan Committee defined it as encompassing not only financial rectitude, but a sense of the values and behaviour appropriate to the public sector. Annex A provides details of some characteristics that identify ‘proper behaviour’.
1.04Associations must maintain - the highest standards of probity in all of their dealings. It should act to maintain the good reputation of the sector and not bring it into disrepute, foster positive relations with stakeholders, conduct its business so that it is accessible, accountable and transparent to residents and other stakeholders and only enter into relationships with other organisations when the rights and obligations are clear to all.
1.05Fraud - Associations need to have effective systems of controls to address the risk of fraud including the development of a fraud response policy backed up by appropriate training and development of members and staff. Associations should take note that references to “Board Responsibility” are descriptions of the accountability of all members and steps should be taken to ensure that:
- Board members are aware of the descriptions of the accountability; and
- Arrangements are in place to draw them to the attention of new members when appointed.
Associations are also required to report to the Department all cases of suspected and actual frauds involving an Association. Annexes B, C, D and E provide further details on Fraud.
1.06Fraud Investigation: Best Practice Issues – although this does not purport to be comprehensive guidance on control procedures and fraud investigations it does however provide the opportunity for Associations to learn from the experience of others and by adopting some of the procedures and techniques, Associations’ financial control, internal audit and investigation procedures will be enhanced.
- Where fraud occurs or is suspected prompt and vigorous investigations should be carried out by officers independent of the work area under investigation.
- The investigation should be carried out by fully trained and experienced investigators with a working knowledge of interviewing suspects and collecting evidence in accordance with the provisions of the Police and Criminal Evidence (Northern Ireland) Order 1989.
- The PSNI should be informed and advice sought at the earliest possible juncture.
- All aspects of the suspected fraudster’s work should be investigated, not just the area where the fraud was discovered.
- The investigation will obviously cover the period the officer was responsible for the processes under investigation but consideration should also be given to investigating earlier periods of employment.
- Potential evidence, including computer files and record of amendments relevant to the case should be retained and not disposed of per the normal routine procedures for disposal.
- Control weaknesses discovered in procedures during the investigation should be strengthened immediately.
1.07Public Accountability and Paramilitary Organisations - Staff and board members of Associations are reminded of the need for continued vigilance to ensure that funds provided by Government for housing purposes are not used to further the aims or to extend the influence of paramilitary organisations. This means that Government funds shall not be used to support groups which have sufficiently close links with paramilitary organisations as to give rise to a grave risk that to give support to them would have the effect of improving the standing and furthering the aims of a paramilitary organisation. Where such conditions prevail the DSD shall be entitled to withhold payment of grant or other public funds.
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