COUNTER FRAUD POLICY

1. Introduction

The University is committed to the proper use of funds, both public and private.

As a consequence, it is essential that everyone associated with the University - including staff, students, employees, contractors and third-parties - are aware of the risk of fraud, corruption, theft and other activities involving dishonesty, in all its forms. The University aims to reduce instances of fraud to the absolute practical minimum - and to also put in place arrangements that hold any fraud to a minimum level on an ongoing basis. The University’s approach to counter-fraud is designed to be on a risk managed basis, balanced, comprehensive, cost-effective and professional, using specialist expertise if, as and when required

The University must operate within the framework of Economic Crime and Corporate Transparency Act 2023 (ECCTA). This includes a specific Failure to Prevent Fraud Offence.

2. Scope of the Policy

This policy applies to all University of Derby employees. The policy sets out the procedures that must be followed to enable the University to comply with its expectations and legal obligations.

3. Definition of Fraud, Corruption and Bribery

Fraud can be defined as

1. wrongful or criminal deception intended to result in financial or personal gain and
2. a person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities.

Both definitions are, clearly, directly applicable to the Higher Education sector. Corruption can be defined as dishonest or fraudulent conduct, typically involving bribery. Bribery can be defined as the offering, giving, receiving or soliciting of any item of value (money, goods, favours or other forms of recompense) to influence the actions of an official or other person in charge of a public or legal duty.

4. Policy Objectives

The eight key objectives of the University’s counter-fraud policy, in line with the Economic Crime and Corporate Transparency Act 2023, are:

1. Establishment of a counter-fraud culture, with top-level commitment
2. Maximum deterrence of fraud
3. Risk assessment and proportionate risk-based procedures for prevention of any fraud that cannot be deterred
4. Due diligence, monitoring and review to rapidly detect any fraud that cannot be prevented
5. Professional investigation of any detected fraud
6. Effective internal and external actions and sanctions against people found to be committing fraud, including legal action for criminal offences
7. Effective communication and training in relation to fraud, and
8. Effective methods of seeking redress when/where fraud has been perpetrated.

The overriding objective of the University’s counter-fraud activity is to ensure that

1. fraud is seen as unacceptable by stakeholders and
2. counter-fraud is seen to have the unwavering focus of the University as a whole.

This document sets out the University’s policy and procedures for dealing with suspected cases of fraud, including corruption, and includes summarised instructions about what to do, and who to contact/notify, should any fraud-related concerns arise. It does not include theft and other criminal/illegal acts involving dishonesty, which is the subject of a separate security policy document, details of which can be found under Section 8, covering associated policies, below).

At a practical level, fraud is deemed to be deliberate intent to deprive the University (and its associate activities) of money or goods through the falsification of any records or documents (e.g. submission of false invoices, inflated time records or travel claims and/or the use of purchase orders to obtain goods for personal use). This is an important distinction, intended to clarify the crucial difference between deliberate fraud and unintentional error.

5. University of Derby Policy

The University is absolutely committed to the highest standards of honesty, accountability, probity and openness in its governance. As a direct consequence of this, the University is committed (i) to reducing fraud associated with any of its activities, operations and locations to the absolute practical minimum and (ii) to the robust investigation of any fraud issues that should arise.

Any such investigation will be conducted without regard to factors such as position, title or length of service. Where any acts of fraud or corruption are proven, the University will make every endeavour to ensure that the perpetrator(s) are dealt with to the full extent of the law and University disciplinary policy/contractual processes (where a third-party is involved), and will also take every step to recover any and all losses in full. It is the responsibility of everyone associated with the University - including staff, students, employees, contractors and third parties - to report any fairly based suspicions of fraud or corruption.

The University has a “no retaliation“ policy for people reporting reasonably-held suspicions, and concerns can be raised if necessary under the University’s Whistleblowing Policy (details of which can be found under Section 9 covering associated policies)

6. Examples of Fraud Risks

These can include, but are not limited to:

• Fraud involving cash, physical assets or confidential information
• Misuse of accounts
• Knowingly or recklessly making false statements in documents submitted to regulatory bodies, including Companies House, in breach of the Economic Crime and Corporate Transparency Act 2023
• Procurement fraud
• Payroll fraud
• Financial accounting fraud, including fees
• Fraudulent expense claims 
• Reference, qualification and related employment fraud
• Recruitment and appointment fraud
• Bribery and corruption fraud
• Academic fraud including immigration, admissions, internships, examinations and awards
• Accommodation-related fraud, including preference and payment

7. Counter Fraud Actions

Where there is suspicion that fraud or corruption has occurred, or is about to occur, then it is essential that the appropriate person within the University is contacted immediately; a list of appropriate persons and how to contact them is contained in Appendix 1 to this policy.

• Do report your concerns, as above; reports will be treated as confidential.
• Do persist if your concerns remain.
• Do retain or copy any relevant document(s). 
• Don’t be afraid to seek advice from an appropriate person.
• Don’t confront an individual or individuals with your suspicions.
• Don’t discuss your concerns with colleagues or anyone else other than an appropriate person.
• Don’t contact the police directly - that decision is the responsibility of the appropriate person.
• Don’t under any circumstances suspend anyone if you are a line manager without direct advice from PEC and other appropriate person(s).

The University has a no retaliation policy for people reporting reasonably held concerns and suspicions, and any retaliation against such people - including victimisation and deterring/preventing reporting - will be treated as a Serious Offence under the University’s disciplinary processes. Equally, however, abuse of process by reporting malicious allegations will also be regarded as a disciplinary issue. Any contravention of the no-retaliation policy should be reported through the dedicated process contained in University’s Whistleblowing Policy.

8. In the Event of a Known or Suspected Fraud

The University’s fraud response process should be followed in the event of a known or suspected fraud.

9. Whistleblowing Policy

The University's Whistleblowing Policy is designed to allow staff, student and all members of the University to raise at high level concerns which they believe in good faith provides evidence of malpractice or impropriety.

Individuals discovering or suspecting malpractice, impropriety or wrongdoing are able to disclose the information without fear of reprisal. A disclosure in good faith which is subsequently not confirmed, will not lead to action against the person making the disclosure. The Counter Fraud policy links to both the Anti Money Laundering Policy and the Anti Bribery Policy as two specific areas where the University may be susceptible to fraudulent action.

10. Fraud with Academic Implications

Fraud can often be associated with direct financial gain, such as procurement and invoicing fraud. However, in the University/Higher Education sector, academic fraud is a further possibility, including fraud related to immigration, admissions, internships, examinations and awards. Such a fraudulent activity could be very high-profile, with potentially significant consequences for the University. In such cases, it is again essential that an appropriate person is contacted at the earliest opportunity, together with other senior University officer(s), as deemed appropriate.

Such a fraud may involve a number of stakeholders, including the police and professional bodies, but decisions regarding their involvement, generally, remain the purview of senior University officers.

To ensure that the investigation is not compromised, it is vital that the number of people aware of the investigation is kept to an absolute minimum. Notwithstanding, it should be recognised that some frauds of this nature will involve the police initiating their own investigation.

Appendix 1: University list of appropriate persons and how to contact them

Last reviewed: 05/09/2025

Policy Owner: Finance