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Prevention of Fraud
& Misappropriation

Prevention of Fraud and Misappropriation of Funds Policy

LETA/LEPA is an organisation based on Her Holiness Shri Mata Ji’s principles of spirituality and honesty. Our activities and efforts to enhance the lives of our participants and general community are supported entirely by volunteers who share the same values including honesty and loyalty however we believe that there could be opportunities for fraudulent activities and misappropriation of funds.

The purpose of this policy is to prevent fraud and misappropriation of funds in order to protect the funds and asset of LETA and also to protect its reputation which may be affected by incident of fraud.

Fraud is defined as dishonestly obtaining benefit by

• Financial theft;

• Improper or unauthorised expenditure’

• Forgery and alteration of documents with intent to obtain benefits

• Inappropriate and favourable treatment of suppliers for personal gain

• Falsification of accounts/records to hide theft;

• Misuse of property for personal benefit

Fraud can be perpetrated internally or externally.

Factors that can increase the risk of fraud are:

• Weak financial and other organisational management systems

• Inadequate resources to implement the management systems including financial management

• Excessive trust with lack of supervision and spot checks or periodic checks.

LETA/LEPA has a zero tolerance for fraud and dishonest activities.

Any incident of fraud will be investigated swiftly and thoroughly, and perpetrator(s) banned from the organisation and the matter referred to the authorities for further action based on severity of fraud and its impact on the organisation.

LETA/LEPA will implement management systems including policies and procedures in order to reduce incidents of fraud. Our organisation structure and financial delegation make multiple office bearers responsible for financial and governing authorities and thereby reducing the opportunities for fraud.

LETA/LEPA will strengthen its management system by training the volunteers into the management system.

LETA/LEPA will conduct periodic check of its finances via management reporting.

LETA/LEPA will strictly implement its financial delegation policy and Purchase policy to minimise risk of fraud.

LETA/LEPA will get its finances audited by an external auditor every year.

LETA/LEPA will review effectiveness of its policies, procedures and management system to make improvements.

This policy will remain in force until amended via a proposal approved at the Annual Collective Meeting.


Director / Trustee LETA

Date: 30/6/2019

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