FPOL13 Losses and Special Payments by Provide Community

Losses and Special Payments

Version: V6

Ratified by: Finance & Investment Committee

Date ratified: 03/04/2024

Job Title of author: Director of Finance

Reviewed by Committee or Expert Group Finance & Investment Committee

Equality Impact Assessed by: Director of Finance

1. Introduction

Losses and Special Payments are items that ideally should not arise. The GROUP’s Standing Financial Instructions define the framework within which the GROUP can deal with these issues.

In considering Losses and Special Payments, it is important to look beyond whether the proposed write-off or payment represents value for money. The need for corrective action must also be assessed to minimise the number and cost of any future cases.

The Executive Finance Director is responsible for maintaining a Losses and Special Payments Register and for ensuring that the appropriate checklists are completed. The Executive Finance Director will report any entries made into the Losses and Special Payments Register, to the first available Audit Committee in accordance with the GROUP’s Scheme of Delegation. Power to write off losses and make special payments should be exercised in accordance with the Scheme of Delegation.

2. Definitions

Fraud is where any person who dishonestly makes a false representation to make a gain for himself or another or dishonestly fails to disclose to another person, information which he is under a legal duty to disclose, or commits fraud by abuse of position, including any offence as defined in the Fraud Act 2006.

Bribery is the giving or receiving a financial or other advantage in connection with the ‘improper performance’ of trust or a function that is expected to be performed impartially or in good faith. Where the Provide Group is engaged in commercial activity it could be considered guilty of a corporate bribery offence if an employee, agent, subsidiary or any other person acting on its behalf bribes another person intending to obtain or retain business or an advantage in the conduct of business for the Provide Group and it cannot demonstrate that it has adequate procedures in place to prevent such. The adequate procedures that the Provide Group is required to have in place to prevent bribery being committed on their behalf are performed by six principles – proportionate procedures, toplevel commitment, risk assessment, communication (including training), monitoring and review. The Provide Group does not tolerate any bribery on its behalf, even if this might result in a loss of business for it. Criminal liability must be prevented at all times.

3. Counter Fraud

If any member of staff has good reason to suspect a colleague, patient or other person of fraud, bribery and / or corruption, involving the Provide Group, they should report their genuine concerns to the LCFS or Chief Finance Officer immediately. The LCFS will then decide on the next course of action and advise the member of staff accordingly. All calls are dealt with in the strictest of confidence and callers may remain anonymous.

Suspicions of fraud, bribery or corruption should be reported to the Local Counter Fraud Specialists on 01473 945843, Provide Group Chief Finance Officer or NHS Fraud and Corruption Reporting Line via an online reporting form: http://www.reportnhsfraud.nhs.uk/ or telephone 0800 028 4060. Further details including email addresses for those responsible can be found on the Provide Intranet.

Individuals suspected of committing an offence of fraud, bribery or corruption may be subject to criminal and/or disciplinary investigation, which could result in criminal and/or disciplinary action being taken, including prosecution and/or dismissal. For more information, please refer to the Local Anti-Fraud, Bribery and Corruption Policy or to the Provide Counter Fraud intranet page https://www.providecommunityplatform.co.uk/Interact/Pages/Content/Document.aspx?id =2254&SearchId=530713.

4. Losses

There are four main categories of loss:

• Loss of cash

• Fruitless payments (including abandoned capital schemes)

• Bad Debts and claims abandoned

• Damage to, or loss of, Group property or equipment

Prevention of loss is a prime requirement of sound financial control and control systems are designed to seek to achieve this. Internal checks, regular supervision and audit must be used to ensure that losses are minimised.

When a loss occurs, the responsible budget holder will:

• Attempt to recover it

• Find out the cause and take appropriate corrective action e.g. correcting any weakness in controls or supervision

• Notify the Chief Finance Officer of the event, with a written statement outlining what happened and any action taken

• If arson or theft is suspected, the budget holder must notify the police

• If fraud is suspected, the Chief Finance Officer must notify the Counter Fraud Specialist

The Chief Finance Officer shall:

• Establish whether an insurance claim can be made

• Ensure that the appropriate check list has been completed by the responsible budget holder if the loss is more than £1,000

• Enter details in the Losses and Special Payments Register

• Report any entries in the Register for to the first available Audit Committee Meeting

5. Special Payments

Special Payments are those that fall outside of the normal day to day business of the Group. There are four main categories:

• Compensation payments made under legal obligation

• Extra-contractual payments made to contractors

• Ex-gratia payments (including personal injury, loss of/damage to personal effects and payments on termination of employment

• Extra statutory and extra regulationary payments

Special Payments must only be authorised in accordance with the Scheme of Delegation after a careful appraisal of the facts. There must be no feasible alternative to making the payment. The soundness of the control systems and the efficiency with which they have been operated must be examined and necessary steps taken to correct any failings.

Requests for any special payments, together with any supporting documentation, giving reasons why the special payment is to be considered, together with any corrective action to be taken must be sent by the budget holder to the Chief Finance Officer

The Chief Finance Officer shall:

• Establish whether an insurance claim can be made

• Ensure that the appropriate check list has been completed by the responsible budget holder if the loss is more than £1,000

• Enter details in the Losses and Special Payments Register

EQUALITY IMPACT ASSESSMENT

TEMPLATE: Stage 1: ‘Screening’

Name of project/policy/strategy (hereafter referred to as “initiative”):

Losses and Special Payments

Provide a brief summary (bullet points) of the aims of the initiative and main activities: Provides guidance on how to record and report losses and special payments

Project/Policy Manager: Director of Finance

Date: March 2024

This stage establishes whether a proposed initiative will have an impact from an equality perspective on any particular group of people or community – i.e. on the grounds of race (incl. religion/faith), gender (incl. sexual orientation), age, disability, or whether it is “equality neutral” (i.e. have no effect either positive or negative). In the case of gender, consider whether men and women are affected differently.

Q1. Who will benefit from this initiative? Is there likely to be a positive impact on specific groups/communities (whether or not they are the intended beneficiaries), and if so, how? Or is it clear at this stage that it will be equality “neutral”? i.e. will have no particular effect on any group.

Neutral

Q2. Is there likely to be an adverse impact on one or more minority/under-represented or community groups as a result of this initiative? If so, who may be affected and why? Or is it clear at this stage that it will be equality “neutral”?

Neutral

Q3. Is the impact of the initiative – whether positive or negative - significant enough to warrant a more detailed assessment (Stage 2 – see guidance)? If not, will there be monitoring and review to assess the impact over a period time? Briefly (bullet points) give reasons for your answer and any steps you are taking to address particular issues, including any consultation with staff or external groups/agencies.

Guidelines: Things to consider

Equality impact assessments at Provide take account of relevant equality legislation and include age, (i.e. young and old,); race and ethnicity, gender, disability, religion and faith, and sexual orientation.

The initiative may have a positive, negative or neutral impact, i.e. have no particular effect on the group/community.

Where a negative (i.e. adverse) impact is identified, it may be appropriate to make a more detailed EIA (see Stage 2), or, as important, take early action to redress this – e.g. by abandoning or modifying the initiative. NB: If the initiative contravenes equality legislation, it must be abandoned or modified.

Where an initiative has a positive impact on groups/community relations, the EIA should make this explicit, to enable the outcomes to be monitored over its lifespan.

Where there is a positive impact on particular groups does this mean there could be an adverse impact on others, and if so can this be justified? - e.g. are there other existing or planned initiatives which redress this?

It may not be possible to provide detailed answers to some of these questions at the start of the initiative. The EIA may identify a lack of relevant data, and that data-gathering is a specific action required to inform the initiative as it develops, and also to form part of a continuing evaluation and review process.

It is envisaged that it will be relatively rare for full impact assessments to be carried out at Provide. Usually, where there are particular problems identified in the screening stage, it is envisaged that the approach will be amended at this stage, and/or setting up a monitoring/evaluation system to review a policy’s impact over time.