1. Version Log – Version 08/07/2026 Approved

2. Introduction

The Eastern and Midland Regional Assembly is committed to maintain high legal, ethical and moral standards, to adhere to the principles of integrity, objectivity and honesty and is opposed to fraud and corruption in the way that it conducts its business. All members of staff are required to share this commitment. The objective of this policy is to promote a culture which deters fraudulent activity and to facilitate the prevention and detection of fraud and the development of procedures which will aid in the investigation of fraud and related offences, and which will ensure that such cases are dealt with timely and appropriately.

This Anti-fraud policy sets out a process by which staff of the Regional Assembly can report fraud or suspected fraud. It summarises the responsibilities of management and employees and outlines the procedures to be followed where suspicion of fraud is raised.

[A procedure is in place for the disclosure of situations of conflict of interests.]

3. Scope

This policy applies to all staff of the Eastern and Midland Regional Assembly. For the purposes of this policy:

• Staff means any person who is employed under a contract at or for the regional Assembly.
• All individuals covered by this policy are responsible for upholding its principles. Specific responsibilities are detailed in a specific section.
• Third parties, vendors, contractors and consultants are expected to have a high standard of ethics and not operate fraudulently within their function.

4. Definition of Fraud and Corruption

The term fraud is commonly used to describe a wide range of misconducts including theft, corruption, embezzlement, bribery, forgery, misrepresentation, collusion, money laundering and concealment of material facts. It often involves the use of deception to make a personal gain for oneself, a connected person or a third party, or a loss for another – intention is the key element that distinguishes fraud from irregularity.

Fraud does not just have a potential financial impact, but it can cause damage to the reputation of an organisation responsible for managing funds effectively and efficiently. This is of particular importance for a public organisation responsible for the management of Public and EU funds.

Corruption is the abuse of power for private gain. Conflict of interests exists where the impartial and objective exercise of the official functions of a person are compromised for reasons involving family, emotional life, political or national affinity, economic interest, or any other shared interest with e.g. an applicant for or a recipient of EU funds.

While it is not possible to list all categories of fraud and corruption, some categories include:

• misappropriation of the assets of the Regional Assembly including the unauthorised or illegal use of confidential or proprietary information.
• financial fraud including misrepresentation of expense claims and the creation of and payments to fictitious vendors.
• accepting or offering a bribe or accepting gifts or other favours under circumstances that might lead to the inference that the gift or favour was intended to influence an employee’s decision-making while serving the regional Assembly.
• Colluding with vendors or 3rd parties in providing preferred pricing, engaging in contract rigging, inflating invoices, or raising invoices for which goods have not been received.
• blackmail or extortion.
• computer fraud.
• bribery and corruption.
• knowingly creating and/or distributing false or misleading financial reports.
• violation of the Regional Assembly’s procedures with the aim of personal gain or to the detriment of the Regional Assembly.

Section 170 of the Local Government Act 2001 states: An employee or member of a local authority shall not seek, exact or accept from any person, other than from the local authority concerned, any remuneration, fee, reward or other favour or anything done or not done by virtue of his or her employment or office.

Disclosure – The New Ethics Framework, Part 15 of the Local Government Act requires all relevant staff (Administrative Officers and above) to complete a “declaration of interests” by the last day of February each year. A public register is compiled from all information submitted.

Code of Conduct – the public is entitled to expect conduct of the highest standards from all those involved in the local government service. A Code of Conduct has been issued to each member of staff dealing with conduct and standards of integrity. Employees should have regard to and be guided by the Code in performing their duties.

4.1 Conflicts of Interest

Conflicts of interest can arise in a number of scenarios, specifically in relation to (i) decisions on the allocation of funding by the Programme Monitoring Committee, Managing Authority, Accounting Function and intermediate Bodies and (ii) procurement for EU JTF co-financed services. Conflicts of interest in the spending and management of the EU’s budget are defined as existing:

“Where the impartial and objective exercise of the functions of a financial actor or other person … is compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other shared interest with a recipient.”

While conflicts of interest are not necessarily criminal offences such as theft or fraud they can potentially, if not identified and managed appropriately, reach this criminal threshold.

5. Policy Statement

It is the policy of the Eastern and Midland Regional Assembly to promote a culture of integrity and honesty and to safeguard the Regional Assembly’s resources and the EU Just Transition Fund Programme by ensuring that opportunities for fraud and corruption are reduced to the lowest possible level of risk through the following:

• operating an effective system of governance and internal control.
• promoting the necessity and requirement for high standards of personal conduct through the employee code of conduct.
• dissemination of related policies, procedures and guidelines.
• ensuring the appropriate segregation of duties across the Regional Assembly.
• delegating approval authority across a range of personnel.
• promoting a culture of transparency including the application of procedures in accordance with the Protected Disclosures Act 2014 (‘the 2014 Act’) and the Protected Disclosures (Amendment) Act 2022 (‘the 2022 Act) for those reporting allegations of fraud;
• timely and appropriate management of any allegation of fraud in accordance with relevant Local Government and Management Agency and the Irish Anti-Fraud Coordination Service (Department of Finance) policies and procedures.
• equal and fair treatment of all personnel who become the subject of a fraud allegation.
• suspicions or allegations of potential fraud will be treated as confidential and will not be discussed with anyone inside or outside the Regional Assembly outside of the investigation, unless specifically directed to do so as a result of the investigation into the alleged incident.

Persons who cover up, obstruct, fail to report or monitor a fraud that they become aware of, will be considered to be an accessory after the fact and may be subject to disciplinary action. Persons who threaten retaliation against a person reporting a suspected fraud shall be subject to disciplinary action. Persons reporting a fraud knowing it to be false shall be subject to disciplinary action.

6. Assessment of Risk

In order to identify, evaluate, mitigate, and monitor the fraud and corruption risks that EMRA faces risk assessments should be undertaken as deemed appropriate for the various functions which the organisation performs. A risk assessment is a systematic process that involves establishing the context, identifying the risks, analysing the risks, evaluating the risks, and treating the risks. The outcome of a risk assessment is a risk register that documents the identified risks, their likelihood and consequences, the existing and additional controls, and the action plans to mitigate them. Risk assessments should be reviewed annually to give an appraisal of risk level faced and to guide policy and the level of controls to give context to defining what actions and measures are appropriate.

Risk assessment is an integral part of any organisation’s anti-fraud and corruption management plan. EMRA will retain a risk register of identified risks which will be annually assessed and has an Anti-Fraud committee which will review risk assessments. Managers should regularly examine the risks in the areas they control. This will enable them to assess:

• What may go wrong
• The area’s most vulnerable to fraud and corruption
• The likelihood of corruption occurring and the possible impact

Fraud and corruption could occur within the following areas:

6.1 Personnel

Poor management controls and supervision practices can reduce the ethical tone of an organisation and support the feeling among staff that certain irregular practices are acceptable because no-one is going to find out / do anything about it. Regular monitoring and reviewing should be incorporated into daily management practice.

6.2 Information Systems

Supervisors should have an understanding of systems in their area and should ensure that sufficient controls are in place.

Controls within a system are best defined at system design and implementation. Information systems should be designed to prevent erroneous data being entered and also detect errors arising from program or machine faults. External organisational controls must also be present to strengthen the detection of fraudulent data entry.

6.3 Tenders, contracts and the purchase and disposal of assets

Risks of corruption occur if there are inadequate procedures/separation of functions for advertising or assessing tenders or awarding contracts. Certain suppliers may be given preferential treatment or orders split to avoid going to tender. It is important that policies in these areas comply with legislation and regulatory requirements.

6.4 Financial Systems and Procedures

Financial risks in the organisation include payment for goods and services not supplied, theft of goods, misdirection of payments, or misuse of corporate credit cards. It is important that there are controls in place to reduce the opportunity for financial loss.

If there are poor reconciliation procedures, the risk of financial loss increases. Restricting access reduces risk and increases individual accountability.

6.5 Use of Equipment and Resources for personal use

Risk in this area may include the improper use of computer equipment for private purposes, use of photocopiers for private purposes, staff operating their own business in work time, using the organisation’s equipment and materials.

7. Reporting Fraud

The Eastern and Midland Regional Assembly has procedures in place for reporting fraud, both internally and to the European Anti-Fraud Office by the EU Programmes Division in the case of incidents concerning the EU Just Transition Fund. All reports will be dealt with in the strictest of confidence and in accordance with the Protected Disclosures Act 2014. Staff reporting irregularities or suspected frauds are protected from reprisals.

7.1 Template for Reporting Fraud

When submitting a report of suspected fraud, the following headers are provided to assist with providing and/or gathering information which may be required to investigate the report.

• Date and time of the report
• Name and contact details of the person making the report (Optional)
• Name and position of the person or entity suspected of fraud
• Description of the fraudulent activity, including the type, amount, date, location, and evidence of the fraud
• Impact or potential impact of the fraud on the organisation, such as financial loss, reputational damage, legal liability, etc.
• Any other relevant information or comments

7.2 Channels for Reporting Fraud

Reporting fraud is an essential part of doing business in an ethical and transparent way. To facilitate the reporting of fraud multiple channels for reporting fraud are available.

• Direct Supervisor / Line Manager; In general fraud or suspicion of fraud should be reported to a staff member’s direct supervisor.
• Senior Management / Director; Should the staff member feel more comfortable they may report fraud directly to senior management, the assistant directors, or the director of EMRA.

7.2.1 Reporting via the Irregularity Management System (IMS)

For cases involving EU funds, EMRA utilises the Irregularity Management System (IMS) to fulfil its legal obligation to report irregularities and suspected fraud to the European Commission. The IMS process follows a “four eyes” principle, whereby at least two staff members are involved in submitting an irregularity, to ensure accuracy and integrity. Each case is entered by two designated inputters and reviewed and approved by two approvers. Inputters and approvers are determined and listed as part of documentation stored within the team for managing EU Funds. The procedure begins when an irregularity is identified. The inputters collect and enter all required information into the IMS, referencing the relevant classification (e.g., suspected fraud, administrative irregularity). Approvers then review the submission for completeness and accuracy before electronic submission to IMS. The IMS tracks the case through all stages, including follow-up reporting and closure, ensuring compliance with EU regulations. Cases are closed once all administrative or judicial proceedings are finalized, or if the case is determined not to constitute an irregularity. This process supports transparency, accountability, and effective management of EU funds in line with regulatory requirements.

7.3 Anonymous Reporting

EMRA encourages individuals to report suspected fraud anonymously if they feel uncomfortable disclosing their identity. This may be done by submitting a report in writing via an anonymous email account to the info@emra.ie or by email directly to any relevant member of senior staff.

7.4 Protected Disclosure

The Protected Disclosures Act, 2014 requires every public body to establish and maintain procedures for dealing with protected disclosures. EMRA is committed to protecting individuals who report suspected fraud in good faith. Retaliation against a whistleblower is strictly prohibited, and any instances of retaliation should be reported immediately. Retaliation against a whistleblower would be considered a serious form of misconduct and appropriate disciplinary may be taken in such instances.

The Protected Disclosures Interim Policy and Procedure was adopted by EMRA under the provisions of Section 21 (1) of the Protected Disclosures Act, 2014.

7.5 Investigation, Communication and Recording

Upon receiving a report of suspected fraud, EMRA will initiate a thorough and impartial investigation. If necessary, third parties may be enlisted to assist with or lead the investigation as appropriate. Once the investigation is complete the findings will be communicated to the appropriate parties and if fraud is identified appropriate actions including disciplinary and legal action may be taken. Investigations will be handled with utmost confidentiality and records of investigations will be maintained in accordance with best practice and legal requirements.

Upon investigation and evaluation of the situation, a report will be issued to the:

• Director
• Assistant Directors
• Local Government Auditor

Where there is sufficient evidence of fraud or corruption, or there is strong suspicion, but internal investigations are unable to obtain further evidence required, the Gardaí may be involved, where it is in the Assembly’s/Public interest.

At the conclusion of any fraud or corruption investigation, relevant systems and procedures will be reviewed, and controls will be strengthened to reduce the possibility of a re-occurrence.

8. Responsibilities

All EMRA staff share the responsibility of preventing, detecting, and investigating fraud. All employees must be aware of the organization’s anti-fraud policy and procedures and must comply with them. Employees must also report any suspected fraud to their supervisor or an appropriate staff member. In addition to these shared responsibilities there are specific responsibilities on certain groups in EMRA.

8.1 The Director

It is the responsibility of the assembly Director to ensure that anti-fraud policies and procedures are in place and to ensure that adequate resources are allocated to fraud prevention and detection.

8.2 Management

It is the responsibility of Management and all senior staff, Senior Staff Officers and above, to be familiar with the types of improprieties that might occur in their area and be alert for any indication that improper activity, misappropriation or dishonest activity is or was in existence in his or her area and put in place controls for the prevention and detection of fraud. All senior staff are required to support and work with Regional Assembly Management, other involved agencies and law enforcement agencies in the detection, reporting and investigation of dishonest or fraudulent activity including the prosecution of offenders. If a fraud is detected in an area, the Assistant Director for that unit is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrence of improper actions.

8.3 Employees

It is the responsibility of all employees to conduct their Regional Assembly business in such a way as to prevent fraud occurring in the workplace. Employees must also be alert to the possibilities for fraud and be on guard for any indications that improper or dishonest activity is taking place. Employees have a responsibility to report any suspicion of fraud, without delay, according to the procedures detailed in this policy.

In addition, all EMRA staff members are required to be aware of and comply with the terms of the Code of Conduct for Local Authority staff members (Annex 1). The code of conduct covers areas such as general conduct and behaviour, managing conflicts of interest, planning matters, accepting gifts and hospitality, personal dealings with the local authority, having regard for council resources, attendance, and outside employment, and maintaining satisfactory working relationships. The code of conduct for Local Authority staff members can be viewed at this link or at Annex 1 of this document: https://assets.gov.ie/111393/06d590da-ebb9-42c0-b480-96cc485888e4.pdf

9. Specific Responsibilities concerning the EU Just Transition Fund Programme

In accordance with Article 74 of regulation 2021/1060 the managing authority must have effective and proportionate anti-fraud measures and procedures in place which take account of the risks identified in that respect. In Annex XXII of Regulation 2021/1060. Auditors will assess the implementation of effective and proportionate anti-fraud measures underpinned by a fraud risk assessment.

Within the EMRA, overall responsibility for managing the risk of fraud and corruption relating to the EU Just Transition Fund has been delegated to the EU and Corporate Affairs Division which has the responsibility for:

• Undertaking an annual review, with the help of an internal risk assessment team, of the fraud risk.
• Establishing an effective anti-fraud policy
• Ensuring ongoing fraud awareness of staff and training.
• Ensuring that the MA refers promptly investigations to competent investigation bodies when they occur.
• Undertaking a thorough risk assessment and putting in place proportionate anti-fraud measures as a result of that assessment. The risk assessment will be developed in conjunction with the EU Just Transition Fund Intermediate Bodies. The process includes:
  • Prevention
  • Detection and investigation
  • Sanction and redress
  • Learning lessons, knowledge sharing and Improvement
• Ensuring fraud awareness of MA and IB staff and training.

Administrative and Staff Officers of the Programme unit along with the Assistant Director, EU and Corporate Affairs are responsible for the day-to-day management of fraud risks and action plans, as set out in the fraud risk assessment and particularly for

• Ensuring that an adequate system of internal control exists within their area of responsibility.
• Preventing and detecting fraud.
• Ensuring due diligence and implementing precautionary actions in case of suspicion of fraud.
• Taking corrective measures, including any administrative penalties, as relevant.

The MA will use IT tools (such as ARACHNE) to detect risky operations and will ensure staff are aware of the Anti-Fraud Policy, fraud risks and receive counter-fraud training. The Intermediate Bodies will carry out vigorous and prompt reviews of all cases of suspected and actual fraud which occur with a view to improve the internal management and control system where necessary. On completion of each investigation the MA will be provided with a report, including recommendations. Confirmation of implementation of the recommendations is reportable to the Risk Committee. In addition, regular best practice will be reviewed at meetings of the Risk Committee and implemented wherever possible.

When a major modification to the Management and Control system is being considered, a Risk Management exercise will be undertaken to assess the consequences of such a modification.

The Accounting Function has access to a system which records and stores reliable information on each operation, they receive adequate information from the MA on the procedures and verifications carried out in relation to expenditure.

The Audit Authority has a responsibility to act in accordance with professional standards in assessing the risk of fraud and the adequacy of the control framework in place.

From Article 69 of the “REGULATION (EU) 2021/1060 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL”

Member States shall ensure the legality and regularity of expenditure included in the accounts submitted to the Commission and shall take all required actions to prevent, detect and correct and report on irregularities including fraud. Those actions comprise the collection of information on the beneficial owners of the recipients of Union funding in accordance with Annex XVII. The rules related to the collection and processing of such data shall comply with applicable data protection rules. The Commission, the European Anti-Fraud Office and the Court of Auditors shall have the necessary access to that information.

From Article 70 of the “REGULATION (EU) 2021/1060 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL”

The Commission shall carry out audits up to three calendar years following the acceptance of the accounts in which the expenditure concerned was included. That period shall not apply to operations where there is a suspicion of fraud.

10. Anti-fraud measures

The Eastern and Midland Regional Assembly has put in place proportionate anti-fraud measures. For the EU JTF Programme this is based on a thorough fraud risk assessment (cf. the Commission’s guidance on the implementation of Article 125.4 c). In particular, it uses IT tools to detect risky operations (such as ARACHNE) and ensures that staff is aware of fraud risks and receives anti-fraud training. All employees will be provided with procedural training on fraud awareness and prevention. This training will cover the following topics:

• What is fraud?
• How to identify fraud
• How to report fraud

Internal controls: The organisation has a system of internal controls in place to prevent fraud. These controls include, but are not limited to:

• Separation of duties
• Authorisation and approval procedures
• Physical and electronic security
• Regular audits and reviews

The Regional Assembly carries out a vigorous and prompt review into all cases of suspected and actual fraud which have occurred with a view to improve the internal management and control system where necessary.

11. Review and Revision

The Anti-Fraud Policy and relevant procedures will undergo annual reviews to ensure its relevance and effectiveness. Updates will be made to address emerging risks and changing circumstances.

12. Conclusion

Fraud can manifest itself in many different ways. The Eastern and Midland Regional Assembly has a zero-tolerance policy to fraud and corruption and has in place a control system that is designed to prevent and detect, as far as is practicable, acts of fraud and correct their impact, should they occur. We will continue to review our rules and procedures and will make sure that this policy document is annually reviewed to ensure it remains effective.