HomeMy WebLinkAboutPR 20644: ADOPTION OF FRAUD POLICY Cityuf
//
ort rthu� —
texas
www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: January 8, 2019
To: The Honorable Mayor and City Council
Through: Mr. Harvey Robinson, Interim City Manager
From: Andrew Vasquez, Finance Director
RE: P.R. 20644—Adoption of Fraud Policy
Introduction:
Financial management is essential for managing and protecting the financial resources and
assets of the City. Effective financial management requires an adequate system of internal
controls to ensure transparency and reliability of financial reporting and that funds are used for
intended purposes. Most fraud, abuse, and questionable practices are identified through
reporting by employees or members of the public. The approval and adoption of the Fraud
Policy formally and practically demonstrates the City's commitment to sound fiscal
management and stewardship by adhering to the highest standards of ethics and accountability.
Background:
The City's external auditors, as part of their annual audit, perform a review the City's internal
control. They have noted the City's lack of a Fraud Policy in their management report. Staff
has drafted a fraud policy and it has been vetted by executive finance staff and the legal
department. The proposed Fraud Policy provides comprehensive and detailed policy and
procedures including definitions of fraud and abuse, clear responsibilities of city's officials,
management, and employees. It also provides guidelines and steps for investigating
allegations, whistleblower protection, and reporting of results.
Budget Impact:
None.
Employee Impact:
The Fraud Policy will be posted on the City's web page. Periodic review of the Fraud Policy
will be part of the City's ongoing antifraud education program.
Recommendation:
It is recommended that City Council approve the Fraud Policy, as discussed and/or outlined
above.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 XPort Arthur,Texas 77641-1089 X409.983.8101 XFAX 409.982.6743
P. R. No. 20644
01/15/19 bw
Page 1 of 3
RESOLUTION NO.
A RESOLUTION ADOPTING THE CITY OF
PORT ARTHUR'S ANTI-FRAUD POLICY.
WHEREAS, the City of Port Arthur has a responsibility to ensure it handles public funds
in an appropriate and responsible manner; and,
WHEREAS, pursuant to Chapter 103 of the Texas Local Government Code, the City of
Port Arthur is required to have an audit prepared annually. The City's auditor has recommended
to the City Council that it should adopt financial and internal control policies that promote sound
financial management practices designed to meet the City's goals and objectives; and,
WHEREAS, it is beneficial for the City to adopt written financial policies and
implement internal controls to assist the City Council and officials with the sound financial
management of the City; and,
WHEREAS, the City is committed to protecting its revenue, property, information, and
other assets from any attempt of the public, contractors, vendors, or its own officers, elected
officials and employees, to gain financial or other benefits by fraud or deceit; and,
WHEREAS, the City desires to set out specific guidelines and responsibilities regarding
appropriate actions to be followed for the investigation of fraud and similar irregularities; and,
WHEREAS, City staff has prepared an Anti-Fraud Policy for the City of Port Arthur that
outlines procedures, safeguards, and internal controls for public fund management; and,
WHEREAS, the City of Port Arthur's Anti-Fraud Policy has been reviewed for legal
compliance and law enforcement purposes, and is attached hereto as Exhibit"A".
NOW THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF CITY OF
PORT ARTHUR:
P. R. No. 20644
01/15/19 bw
Page 2 of 3
THAT,the facts and opinions in the preamble are true and correct; and,
THAT, the City Council hereby approves the Anti-Fraud Policy in substantially the same
form as Exhibit"A"; and,
THAT, a copy of the caption of this resolution be spread upon the minutes of City
Council.
READ, ADOPTED, AND APPROVED THIS day of
2019 at a Regular Meeting of City Council of the City of Port Arthur, Texas, by the following
vote:
AYES: Mayor
Councilmembers:
NOES:
Derrick Freeman
Mayor
ATTEST:
Sherri Bellard
City Secretary
APPROVED AS TO FORM:
Vat�
Valecia izen
City Attorney
P. R. No. 20644
01/15/19 bw
Page 3 of 3
APPROVED FOR ADMINISTRATION:
Harvey Robinson
Interim City Manager
Andre Vasquez, CPA
Director of Finance
Harold Hankins
Assistant Finance Director-Accounting,
Auditing, and Financial Reporting
EXHIBIT A
(Anti-Fraud Policy)
WILL BE PRESENTED AT OR BEFORE
THE COUNCIL MEETING
