Skip to Content

Waste, Fraud, and Abuse

OverviewDefinitionsReporting Fraud, Waste, and AbuseCorrective and Disciplinary ActionsInvestigation of ReportsNon-retaliationTraining and AwarenessPolicy Review and Updates

Overview

Purpose

The purpose of these policies and procedures (P&Ps) is to establish clear standards, responsibilities, and processes for the prevention, detection, reporting, investigation, and resolution of fraud, waste, and abuse (FWA) involving Tribal funds, property, programs, records, and operations. The Hoopa Valley Public Utilities District (HVPUD) is committed to promoting ethical behavior, safeguarding Tribal assets, and ensuring the integrity of all services delivered to Tribal members and the community.

HVPUD prohibits all forms of fraud, waste, and abuse. All individuals subject to this policy must uphold the highest standards of honesty, transparency, and ethical conduct. Suspected violations must be reported immediately and will be investigated thoroughly. Retaliation against good-faith reporters is prohibited and subject to disciplinary action.


Scope

These FWA P&Ps apply to:

  • All HVPUD employees, programs, or the Board 
  • Any individual or organization entrusted with HVPUD resources or performing work on behalf of HVPUD

These FWA P&Ps supersede any other FWA P&Ps previously established by HVPUD or by its programs, or Board. 

Throughout this document, words like “must” and “should” are used. When the term “must” is used, no group or individual has the authority to deviate from the specific policy or procedure. The term “should” is used to convey that personnel are expected to follow the policy and procedures as written and are required to justify any deviations. Deviations should only occur when the specifics of the situation justify a reasonable departure from the policies and procedures.

Definitions

The following definitions are for standard wording referred to throughout HVPUD’s FWA P&Ps and apply to all instances where a word/phrase is used unless the context clearly indicates or requires a different meaning.

  • Fraud is defined as a dishonest and deliberate course of action that results in obtaining money, property, or an advantage to which HVPUD employees or officials committing the action would not normally be entitled. Fraud also encompasses intentional misleading or deceitful conduct that deprives HVPUD of its resources or rights. There are three categories of fraud. They include 1) financial statement fraud, 2) misappropriation of assets, and 3) corruption. 

    Examples of fraud include, but are not limited to:
    • Falsifying financial records to cover up theft
    • Theft or misuse of HVPUD money, equipment, supplies, and/or other materials
    • Intentionally misrepresenting the costs of goods or services provided
    • Falsifying payroll information
    • Use of HVPUD equipment or property for personal use/gain or non-business reasons
    • Submitting false vouchers for reimbursements
    • Soliciting or accepting a bribe or kickback
    • Intentional use of false weight or measures

  • Waste is defined as the needless, careless, or extravagant expenditure of HVPUD funds, incurring of unnecessary expenses, or mismanagement of HVPUD resources or property. Waste does not necessarily involve private use or personal gain, but it almost always signifies poor management decisions, practices, or controls.

    Examples of waste include, but are not limited to:  
    • Purchase of unneeded supplies or equipment outside of established limits
    • Purchase of goods at inflated prices without appropriate bids or research

  • Abuse is defined as the intentional, wrongful, or improper use or destruction of HVPUD resources, or improper practice that does not involve prosecutable fraud. Abuse can include the excessive or improper use of an employee or official's position in a manner other than its rightful or legal use. 

    Examples of abuse include, but are not limited to:  
    • Failure to report damage to HVPUD equipment or property
    • Using one's position in one HVPUD department to gain an advantage over another HVPUD resident when conducting personal business in another HVPUD department
    • Abuse of HVPUD time such as significant unauthorized time away from work or significant use of HVPUD time for personal business
    • Abusing the system of travel reimbursement
    • Receiving favors for awarding contracts to certain vendors
    • Using HVPUD property, information, or position for personal gain or resulting in extra or special charges to HVPUD
    • Appropriating or diverting any business opportunity or idea in which HVPUD might have an interest
    • Competing with HVPUD in an inappropriate way
    • Failure to disclose a conflict of interest
    • Participating in decision making where a conflict of interest resides
    • Improper use of supervisory authority in response to an employee taking action or refusing to take action

Reporting Fraud, Waste, and Abuse

Policy

  1. All employees and representatives of HVPUD must report suspected FWA immediately. 
  2. Failure to report known misconduct may result in disciplinary action.
  3. All FWA reports will first be reviewed by the Grants Compliance Officer. The Grants Compliance Officer will inform Management about the FWA report to coordinate next steps.
  4. All HVPUD employees, contractors, and other third parties who conduct any business on behalf of HVPUD are protected from retaliation for filing an FWA complaint or providing information to the FWA Program about improper activities. 
  5. It is a violation of this policy for any informant to make a baseless allegation of FWA activity, that is allegations made with reckless disregard for truth and that are intended to be disruptive or cause harm to another individual. Appropriate disciplinary action will be taken against any employee who violates this policy. Appropriate legal action may also be taken against an external party that violates this policy.
  6. Confidentiality
    1. HVPUD encourages personnel who report a violation to identify themselves when making a report to facilitate the investigation; however, reports may be submitted anonymously, if preferred.
    2. Reports will be kept confidential, to the extent possible, consistent with the need to conduct an adequate investigation, to comply with applicable laws, and to cooperate with law enforcement and/or government authorities, if applicable.

Procedures

  1. The reporter should provide, if available:
    1. Description of the suspected misconduct
    2. Date(s), location(s), and individual(s) involved
    3. Evidence or documentation (email, receipts, logs, etc.)
    4. Names of witnesses or others with relevant information
  3. Individuals reporting suspected fraudulent activity should refrain from confrontations with the suspect(s) and should not discuss the matter with others, unless specifically asked to by Management or the Grants Compliance Officer.
  4. Confidentiality Measures:
    1. Identities should be kept confidential to the maximum extent possible.
    2. Anonymous reports are permitted and investigated. HVPUD will have at least one anonymous reporting option available at all times such as an online form, dedicated email, voicemail, or physical drop box. 
    3. Report details are accessible only to authorized personnel.
  6. If Management or the Grants Compliance Officer suspects that an FWA report is false, then Management or HR should conduct an investigation to determine whether the FWA report was a baseless allegation and whether any disciplinary action is needed.

Corrective and Disciplinary Actions

Policies

  1. HVPUD will take appropriate corrective and disciplinary actions when FWA is substantiated. 
  2. Consequences will be proportional to the severity of the misconduct and consistent with Tribal policy and applicable laws.
  3. The Grants Compliance Officer or the investigating party will inform appropriate leadership, including but not limited to the General Manager. 
  4. Employees will be notified of decisions affecting their employment. 

Procedures

  1. Possible corrective actions include:
    1. Strengthening internal controls
    2. Revising departmental procedures
    3. Additional employee training
    4. Financial recovery or restitution
  3. Possible disciplinary actions include:
    1. Verbal or written reprimand
    2. Suspension
    3. Demotion
    4. Termination
    5. Civil recovery of damages
    6. Referral for criminal prosecution
  5. Notification of outcomes:
    1. After the report has been reviewed by leadership, the Grants Compliance Officer or the investigating party will inform the individual who submitted the report (if not anonymous) that the investigation has concluded.

Investigation of Reports

Policies

  1. HVPUD will promptly and thoroughly investigate all allegations of FWA. 
  2. Investigations will be fair, objective, documented, and conducted by authorized personnel. 
  3. Evidence will be preserved, and due process will be respected.

Procedures

  1. The preliminary assessment of all FWA reports will be conducted by the Grants Compliance Officer within 10 business days.
    1. The Grants Compliance Officer will determine whether the allegation warrants a full investigation.
    2. The determination, regardless of whether the allegation is investigated, will be documented and retained with the original FWA report. 
    3. All allegations are communicated to the General Manager on a monthly basis, or sooner if the Grants Compliance Officer deems it sensitive.
    4. If the allegation is related to any grant money or program the Grants Compliance Officer will alert any other key individuals or vendors who are tasked with overseeing the program.  
  3. The Grants Compliance Officer will assign investigators with appropriate expertise and independence. 
  4. The investigator will: 
    1. Collect and review evidence (documents, financial data, logs, etc.)
    2. Interview witnesses and involved parties
    3. Maintain strict confidentiality and secure documentation retention
  6. If necessary, HVPUD may:
    1. Temporarily suspend involved employees (with or without pay)
    2. Restrict access to financial systems, files, or facilities
    3. Freeze relevant accounts or equipment
    4. Take action to prevent destruction of evidence
  8. The investigation must conclude with a report that is communicated to the General Manager. The report must include:
    1. Scope and summary of allegations
    2. Methods used to gather evidence
    3. Findings and conclusions
    4. Recommended corrective or disciplinary actions
  10. The report and documentation related to findings will be securely stored in a locked area or on a secure server for a minimum of seven years.

Non-retaliation

Policies

  1. Employees who report suspected FWA in good faith are protected from retaliation. 
  2. Retaliatory actions will result in disciplinary measures.
  3. Complaints of retaliation must be investigated promptly.
  4. Supervisors must maintain a neutral and professional work environment.
  5. An outside mediator may be hired if there is conflict of interest that cannot be mitigated to the satisfaction of both parties. 

Procedures

  1. The Grants Compliance Officer will track and monitor FWA reporters for potential retaliation.
  2. Reports of retaliation will be communicated to the Grants Compliance Officer, or the most appropriate leadership position (General Manager etc.) if the Grants Compliance Officer is the party being reported for retaliation. 
  3. Retaliation report investigation will start within 10 business days from the origination of the complaint.
  4. The retaliation report, conclusion of the investigation, and supporting documentation must be retained for at least seven years. 

Training and Awareness

Policies

  1. All staff must receive training on identifying, preventing, and reporting FWA. Ongoing training ensures understanding of responsibilities and compliance expectations.
  2. Annual training is required for all employees. 

Procedures

  1. The Grants Compliance Officer will provide FWA training during the onboarding of the new staff or within the first 30 days of employment. This training will cover definitions, reporting methods, and examples of FWA.
  2. Annual training will be communicated and organized by the Grants Compliance Officer, and may include in-person, virtual, or written materials. 
  3. Documentation will be retained by HR of the onboarding and annual training and will include the participant(s), date, and training materials. 

Policy Review and Updates

Policies

  1. This policy must be reviewed annually to ensure effectiveness and compliance with HVPUD goals, regulatory requirements, and best practices.
  2. The updated policy will have the effective date listed. 

Procedures

  1. The Grants Compliance Officer will annually review this policy and provide recommendations for updates to the General Manager. 
  2. Once revised policies are approved by the General Manager, the updated policy is distributed to all employees. 

50,000+ companies run Odoo to grow their businesses.

Join us and make your company a better place.

Contact us