Guide on Grants, Contributions and Other Transfer Payments

Appendix D

Atlantic Canada Opportunities Agency (ACOA) - Suspected External Fraud

2031 (g) Suspected Fraud Procedures

Table of Contents

OVERVIEW

POLICY [P]

APPENDIX A

APPENDIX B

OVERVIEW

The Agency manages more than 39,000 approved projects, and only 0.15% have had fraud related difficulties. Nevertheless, it is ACOA's position is that where illegal acts are suspected, the matter will be immediately referred to the RCMP for investigation.

By definition, fraud is false representation of a matter of fact which is intended to create a deception for purposes of unlawful gain. It comprises all acts, omissions and concealments involving a breach of a legal or equitable duty and resulting in damage to another. It can involve misappropriation of assets or misrepresentations of financial information either to conceal misappropriation of assets or for other purposes, by such means as:

• manipulation, falsification or alteration of records or documents,
• suppression of information, transactions or documents,
• recording of transactions without substance, or
• misapplication of accounting principles.

Attempted fraud is also an offence; it contains the same elements as set out above for fraud.

POLICY [P]

At no point during the course of an investigation should any representative of the Agency infer or convey to the client or any third party, that a criminal offence has been committed. As is the case in any criminal matter, individuals are presumed innocent until proven guilty. The Account Manager's role is simply to provide an objective and unbiased assessment of the circumstances surrounding the activity or concern and then forwarding this information to the relevant authorities for determination of the next appropriate course of action.

Regional offices may have additional procedures for investigating suspected irregularities collecting evidence and the documentation and reporting thereof. Appendix A provides the essential steps which are to be followed when fraud is suspected. These steps will undoubtedly be expandedin accordance with Regional requirements.

Also as a minimum requirement, all suspected fraud cases forwarded to the RCMP shall contain the following information:

• Client name and address,
• Project Number(s),
• Project Description,
• Principal Outstanding,
• Background of how fraud was suspected, and
• Who initiated the investigation (ACOA or other outside party).

The Chief, Corporate Accounting will complete a monthly review of all active cases at the end of each month and will use the formats established in Appendix B.

APPENDIX A

A) Suspected External Fraud Checklist

• Account Manager advises his/her supervisor.
    
• Regional Vice President forwards a memo to the ACOA Legal Services Branch outlining the concern, providing a precis of the facts, and requesting advice regarding referral for formal investigation.
    
• Legal Services Branch advises the Regional Vice-President regarding referral to the RCMP and provides a copy to the Chief, Corporate Accounting).
    
• The Chief, Corporate Accounting forwards a letter to the RCMP requesting an investigation (See Pages 3 and 4 of this Appendix for a sample format). A copy of the correspondence is also provided to the Regional Vice-President and the Legal Services Branch.
    
• When a case is forwarded to the RCMP, the Legal Services Branch informs the President of the action taken (for information purposes only).
    
• RCMP will inform the Chief, Corporate Accounting as to the identity of the RCMP Investigation Officer assigned to the case.
    
• RCMP advises Chief, Corporate Accounting of the outcome/progress of the investigation.
    
• Chief, Corporate Accounting maintains and follows up on all active cases.

B) Royal Canadian Mounted Police

Commercial Crime Units in Atlantic Canada

Economic Crime Directorate

C) Atlantic Canada Opportunities Agency Suspected Illegal Activities Synopsis Of Events

D) Active Cases Where ACOA Initiated Investigation

PROTECTED A

E) Active Cases Where Investigation Initiated By Other Parties

PROTECTED "A"

APPENDIX B

A) Active Cases Where RCMP Initiated Investigation

PROTECTED "A"