Administrative Policy #3.19 - Whistleblower Policy - Financial Matters

Purpose

The City of Corvallis is committed to the highest standards of integrity, ethical behavior, and compliance with the law.  Employees of the City are expected to report known or suspected financial irregularities.  It is important that when an employee makes a good-faith report of known or suspected financial irregularities, the employee feels safe and protected from retaliation.  This Policy provides the process for communication of suspected financial irregularities.  The Whistleblower's Protection Law set forth in Oregon Revised Statutes (ORS) 659A.200-236 protects employees who in good faith file an allegation that fraud is occurring or has occurred.  A person found to be making a frivolous report under this Policy will be subject to disciplinary action.

Employees with complaints unrelated to financial irregularities are also protected from retaliation, and such complaints are governed by the associated Administrative Policies on Harassment-Free Workplace, Prevention of Violence in the Workplace, Discrimination, Respectful Workplace, Ethics, Complaints on Employee Behavior, and Worker Safety.

Policy

All employees of the City are expected to report known or suspected financial irregularities to Human Resources.  Human Resources is required to forward the report to the City Finance Director.  All reports will be responded to within five working days indicating the course of action to be taken.

All parties involved in the investigation of a suspected financial irregularity must handle the report and investigation with appropriate confidentiality and objectivity.  Disclosure of the name of the employee making an allegation of financial irregularity without written consent of the employee is prohibited per ORS 659A.218.

Employees who report a suspected financial irregularity are protected from retaliation by co-workers, the City, or any representative thereof.  In addition, employees reporting fraud in good faith are protected by ORS 659A.200-236.

Procedures

If any employee is aware of or suspects a financial irregularity, they should follow these procedures:

a. The employee must notify Human Resources in writing (by email, hand delivery, or U.S. Post, in the format with which the employee is most comfortable.  Human Resources is required to forward the report to the City Finance Director.  In the event the suspected financial irregularity is within the Human Resources Department, reporting shall be to the City Manager.  In the event the suspected financial irregularity is within the City Manager’s Office or the City Council, the report shall be made to the City’s third-party auditors (information available in the prior year’s audit report, published on the City’s Web site).

b.   The Finance Department will:

1. Determine whether an investigation is warranted,
2. Determine if duties need to be changed during the course of the investigation and work with Human Resources if so,
3. Determine who should appropriately conduct the investigation,
4. Conduct the investigation or, if appropriate, forward the complaint to the department specified in this Policy,
5. Issue a final report on the findings to Human Resources and the City Manager.

c.   If, at any time prior to or during the investigation, it appears that criminal activity may have occurred, the investigator will submit all information gathered to that point to the Police Department to complete the investigation.

d.   In the event that the suspected financial irregularity is within the Finance Department, Human Resources and the City Manager shall determine who should conduct the investigation.

e.   At the conclusion of the investigation, Human Resources, Finance, and the City Manager shall finalize a report to the employee’s supervisor and determine appropriate corrective or disciplinary actions based upon report findings and recommendations.  These actions may include loss recovery.

f.    At the conclusion of the investigation, the Finance Department shall ensure that appropriate controls are put in place and monitored to minimize the probability that a similar incident will occur in the future.

g.   At all times, ORS 659A.200-236 shall be adhered to, ensuring protection of the reporting employee.

Discipline

An employee found to have perpetrated a financial irregularity is subject to the disciplinary process.  Discipline may include financial restitution and/or criminal prosecution.  If a violation is of a serious enough nature, an employee may be disciplined up to and including termination.

Definitions

Review/Update

The Human Resources and Finance Directors will update this Administrative Policy as needed and submit to City Manager for review and approval.

Last reviewed: 12-2018

For More Information