Introduction

This Fraud Protocol describes the policy and procedures that the GlobalRize Foundation carries out to prevent fraud and what actions will be taken if fraud is suspected. Because the finances for the foundation’s use comes from gifts from third parties, we carry a great responsibility regarding the management of these funds.

Because of our Christian identity, highly valuing good stewardship, we have the duty to carefully manage the means entrusted to us and to be able to answer for how they are used. Fraud reaches farther than just the misuse of funds. It not only damages the trust of everyone who supports us, but also disgraces the identity of the body of Christ of which we are a part. Every form of fraud has negative consequences for the image of GlobalRize and the concern of its donors and volunteers.

 

Fraud

There are many types of fraud. The essence is always the same: a matter that consists of a person or organization purposefully misleading/threatening with the goal of enriching itself, to the disadvantage of the other party. That happens, for example, by claiming that projects have been carried out when they have not been and declaring expenses that were not made or by remitting funds that were meant for the organization. The definition of fraud is not given as such in the Lawbook of Justice (in The Netherlands). It deals with things that are punishable by law that are denoted by terms such as forgery, swindling, deception, corruption, theft and embezzlement/misappropriation.

 

Measures to prevent Fraud

Internal procedures:

Division of functions is applied to our financial processes in the following manner:

The decision-making role lies with the directorate (the directorate decides about costs that will be made, gives instructions and authorizes spending).

The performance of tasks lies with the appropriate personnel or the financial administration (purchasing of products or services).

The registration role lies with the financial administration (entering invoices, making payments, process declarations).

The verification role lies with the directorate (checking bank transactions).

 

Payables and Receivables:

Transfer of funds will mainly occur through the bank and as little as possible with cash.

Payments will be authorized by the directorate.

Payments will be carried out by the administrator and a second pair of eyes.

On the occasion that the foundation receives cash gifts at an event, the amount will be counted by two persons. The total will be declared to and noted by the directorate, and the deposit to the bank will be carried out by the administration department.

 

Checks and responsibilities:

The accounts will be monitored by the treasurer.

GlobalRize has appointed an examining accountant to check the annual accounts and issue a statement.

The annual accounts are published every year on the GlobalRize website.

We are very much aware that fraud can happen not only with funds, but also with time, information and goods. Procedures to prevent these sorts of fraud are:

The rights and responsibilities of employees and employer are laid out in the Personnel Handbook.

There is a code of behavior established which includes the following:

Desired and undesired behavior, the possibility of requesting a Declaration of Behavior (from the authorities), the use of the internet and the security of private information.

Each employee carries the duty of confronting behavior that deviates from what has been agreed upon and/or notifying the management.

The management has the responsibility of monitoring employees; overseeing the compliance with agreements, bringing them to discussion, and continually being alert to signals that could indicate undesired behavior.

 

Suspicion of Fraud:

Reporting of suspicions of fraud will be initially brought to the directorate of GlobalRize. The directors have the responsibility to start an internal investigation and to inform the board of the report and the steps that are being taken. Dependent upon the nature of the fraud, the directors may decide to involve a third party expert, for example, an accountant. During the investigation, the accused will be placed on non-active status.

 

Procedures Dealing with Fraud:

If after an internal investigation it becomes established that fraud has occurred, the directorate in consultation with the board will decide upon the appropriate steps, which in most instances will mean the end of employment/the work relationship. Depending upon the nature and scope of the fraud, an official declaration to the police can be carried out so that the criminal case can be investigated.

In addition to the defrauded amount, GlobalRize will also add the costs incurred pursuing the fraud.

When other parties have also been disadvantaged, they will be informed as soon as possible.

Even if there is insufficient evidence of fraud, a decision may still be reached to break the working relationship if the situation has caused a break in trust.

It will determined how the supporters will be informed of fraud on a case by case basis.

 

Establishment and Publication of the Fraud Policy

The Fraud Policy will be published on our website and can be provided to our partners by request. The Fraud Policy will also be incorporated into the Personnel Handbook. The Fraud Policy was ratified in the board meeting on 28 June, 2019.