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Introduction

The Stoic Foundation is committed to preventing, detecting, and responding to all forms of fraud in its operations. This policy outlines our approach to maintaining the highest standards of integrity and ethical conduct in our philanthropic charitable activities.

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Policy Statement

The Stoic Foundation has zero tolerance for fraud and is committed to:

1. Promoting a culture of honesty and ethical behaviour;

2. Implementing effective fraud prevention and detection controls;

3. Investigating all suspected cases of fraud;

4. Taking appropriate disciplinary and legal action against perpetrators of fraud.

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Definition of Fraud

For the purposes of this policy, fraud is defined as any intentional act or omission designed to deceive the Foundation, donors, beneficiaries, or other stakeholders, resulting in financial loss or damage to the Foundation's reputation.

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Types of Fraud Relevant to the Stoic Foundation

1. Financial fraud (e.g., embezzlement, misuse of funds);

2. Grant fraud (e.g., misrepresentation in grant applications or reporting);

3. Donation fraud (e.g., fake donation schemes, misappropriation of donations);

4. Procurement fraud (e.g., bid rigging, kickbacks);

5. Identity fraud (e.g., impersonation of Foundation staff or beneficiaries).

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Fraud Prevention Measures

Internal Controls

1. Segregation of duties in financial transactions and grant-making processes;

2. Regular reconciliation of accounts and financial records;

3. Strict authorization procedures for expenditures and fund transfers;

4. Secure systems for donor and beneficiary information management.

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Due Diligence

1. Thorough vetting of potential grant recipients and partners;

2. Background checks on new employees and volunteers;

3. Regular review of vendor relationships and contracts.

 

Transparency

1. Clear documentation of all financial transactions and grant decisions;

2. Regular internal and external audits;

3. Open communication channels for reporting concerns.

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Fraud Detection

1. Implementation of data analytics to identify unusual patterns or transactions;

2. Regular monitoring of high-risk areas (e.g., cash handling, grant disbursements);

3. Whistleblower hotline for anonymous reporting of suspected fraud.

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Reporting and Investigation Procedures

1. All staff members have a duty to report suspected fraud immediately to their supervisor or Governor or the designated Fraud Response Officer;

2. The Assignee will conduct a preliminary assessment of all reports;

3. If warranted, a full investigation will be launched, involving external experts if necessary;

4. All investigations will be conducted confidentially and with respect for the rights of all parties involved.

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Response to Fraud

1. Immediate action to stop fraudulent activity and prevent further losses;

2. Recovery of misappropriated assets where possible;

3. Disciplinary action against employees found to have committed fraud, up to and including termination;

4. Reporting of criminal activities to law enforcement authorities;

5. Review and strengthening of internal controls to prevent recurrence.

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Training and Awareness

1. Regular fraud awareness training for all staff members;

2. Inclusion of anti-fraud measures in new employee orientation;

3. Periodic communications to reinforce the importance of fraud prevention.

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Policy Review

This Anti-Fraud Policy will be reviewed annually and updated as necessary to ensure its effectiveness in preventing and detecting fraud within the Stoic Foundation.

 

By implementing this comprehensive Anti-Fraud Policy, the Stoic Foundation demonstrates its commitment to maintaining the highest standards of integrity and accountability in its charitable operations, ensuring that all resources are used effectively and ethically in pursuit of its mission.