TOSL engineering limited's Fraud policy
BACKGROUND
The corporate fraud policy is established to facilitate the development of controls that will aid in the detection and prevention of fraud against TOSL Engineering Ltd. It is the intent of TOSL Engineering Ltd to promote consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and conduct of investigations.
SCOPE OF POLICY
This policy applies to any irregularity, or suspected irregularity, involving employees as well as shareholders, consultants, vendors, contractors, outside agencies doing business with employees of such agencies, and/or any other parties with a business relationship with TOSL Engineering Ltd (also called the Company). Any investigative activity required will be conducted without regard to the suspected wrongdoer's length of service, position/title, or relationship to the Company.
POLICY
Management is responsible for the detection and prevention of fraud, misappropriations, and other irregularities. Fraud is defined as the intentional, false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury. Each member of the management team will be familiar with the types of improprieties that might occur within his or her area of responsibility, and be alert for any indication of irregularity.
Any irregularity that is detected or suspected must be reported immediately to the Internal Auditor, who coordinates all investigations.
ACTIONS CONSTITUTIONG FRAUD
The terms defalcation, misappropriation, and other fiscal irregularities refer to, but are not limited to:
- Any dishonest or fraudulent act
- Misappropriation of funds, securities, supplies, or other assets
- Impropriety in the handling or reporting of money or financial transactions
- Profiteering as a result of insider knowledge of company activities
- Disclosing confidential and proprietary information to outside parties
- Disclosing to other persons securities activities engaged in or contemplated by the company
- Accepting or seeking anything of material value from contractors, vendors, or persons providing services/materials to the Company. Exception: Gifts less than $300.00 in value.
- Destruction, removal, or inappropriate use of records, furniture, fixtures, and equipment; and/or Any similar or related irregularity
OTHER IRREGULARITIES
Irregularities concerning an employee's moral, ethical, or behavioral conduct should by resolved by the Human Resource Department.
If there is any question as to whether an action constitutes fraud, contact the Internal Auditor for guidance.
INVESTIGATION RESPONSIBILITIES
Internal Audit has the primary responsibility for the investigation of all suspected fraudulent acts as defined in the policy. If the investigation substantiates that fraudulent activities have occurred, the internal auditor will issue reports to appropriate designated personnel and, if appropriate, to the Board of Directors through the Audit Committee.
CONFIDENTIALITY
Internal Audit treats all information received confidentially. Any employee who suspects dishonest or fraudulent activity will notify the Internal Audit Unit immediately, and should not attempt to personally conduct investigations or interviews/interrogations related to any suspected fraudulent act (see REPORTING PROCEDURE section below).
Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know. This is important in order to avoid damaging the reputations of persons suspected but subsequently found innocent of wrongful conduct and to protect the Company from potential civil liability.
AUTHORIZATION FOR INVESTIGATING SUSPECTED FRAUD
Members of the Investigation Unit will have:
- Free and unrestricted access to all Company records and premises, whether owned or rented; and
- The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities on the premises without prior knowledge or consent of any individual who might use or have custody of any such items or facilities when it is within the scope of their investigation.
REPORTING PROCEDURES
Great care must be taken hi the investigation of suspected improprieties or irregularities so as to avoid mistaken accusations or alerting suspected individuals that an investigation is under way.
An employee who discovers or suspects fraudulent activity will contact the Internal Audit Unit immediately. The employee or other complainant may remain anonymous. No information concerning the status of an investigation will be given out. The proper response to any inquiries is: "I am not at liberty to discuss this matter." Under no circumstances should any reference be made to "the allegation," "the crime," "the fraud," "the forgery," "the misappropriation," or any other specific reference.
TERMINATION
If an investigation results in a recommendation to terminate an individual, the recommendation will be reviewed for approval by the CEO, the designated representative from Human Resources and the Company's Lawyer and, if necessary, by outside counsel, before any such action is taken. The Internal Audit Unit does not have the authority to terminate an employee. The decision to terminate an employee is made by the employee's management.
ADMINISTRATION
The CEO of TOSL Engineering Ltd is responsible for the administration, revision, interpretation, and application of this policy. The policy will be reviewed annually and revised as needed.
