Whistleblower Policy

FRAUD AND WHISTLEBLOWER POLICY 

HILC is committed to the highest standard of business conduct by its employees, management, and directorate.  This Fraud Policy is established as guidance for the detection and prevention of fraud and is intended to promote consistent HILC behavior by assigning responsibility for the development of controls and conduct of investigations.  The policy applies to any fraud, or suspected fraud, involving employees, management, and board members, as well as other parties having a business relationship with HILC.  Employees at all levels are responsible for setting the appropriate tone of intolerance for fraudulent acts by complying with all laws, regulations and HILC policies.  

Actions Constituting Fraud

Fraud is defined in this policy as a willful or deliberate act or failure to act to obtain an unauthorized benefit.  The term “fraud” includes, but is not limited to, the following:

• Any dishonest or fraudulent act
• Forgery or alteration of any document or account belonging to HILC.
• Forgery or alteration of a check, bank draft, or any other financial document
• Misappropriation of funds, securities, supplies, or other assets
• Impropriety in the handling or reporting of money or financial transactions.
• Fictitious items claimed on employee expense reports/vouchers.
• Disclosing proprietary confidential information to outside parties
• Misappropriation of HILC’s intellectual property or consumer information
• Accepting or seeking anything of material value from consumers or other persons seeking services, as a condition of providing those services
• Accepting or seeking anything of material value from vendors, contractors, or other persons seeking to provide or provide services/materials to HILC.
• Destruction, removal or inappropriate use of records, furniture, fixtures, or equipment
• Authorizing or receiving compensation for hours not worked
• Any similar or related inappropriate conduct
• Filing false financial statements

If there is a question as to whether an employee’s or third-party individual’s action constitutes fraud, the Executive Director should be contacted for guidance.  If there is a question as to whether an employee’s action constitutes fraud, third-party inquiries and guidance should be sought as to the best course of action, then the Audit Committee Chair should be contacted with information obtained to review and agree on the best course of action.

Whistleblower Policy

HILC requires its directors, managers, and employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities.  As employees and representatives of HILC, each individual must practice honesty and integrity in fulfilling his/her responsibilities and comply with all applicable laws and regulations. 

It is the responsibility of all directors, managers, and employees to report fraudulent activities or suspected fraudulent activities (as defined in the preceding section of the manual) in accordance with this Whistleblower Policy. 

No Retaliation

No director, manger, employee or consultant who in good faith reports a fraudulent activity shall suffer harassment, retaliation or an adverse employment consequence.  An employee who retaliates against someone who has reported a fraudulent activity in good faith is subject to discipline up to and including termination of employment. This Whistleblower Policy is intended to encourage and enable employees and others to raise serious concerns within HILC, prior to seeking resolution outside HILC. =

Acting in Good Faith

Anyone filing a complaint concerning a fraudulent activity or a suspected fraudulent activity must be acting in good faith and have reasonable grounds for believing the information disclosed indicates evidence of fraud.  Any allegations that prove not to be substantiated and which prove to have been made maliciously or knowingly to be false will be viewed as a serious disciplinary offense.

Reporting Fraudulent Activities

An employee who discovers or suspects fraudulent activity should contact directly or submit an anonymous report to HILC’s Executive Director immediately or, if uncomfortable with that reporting line, to the Executive Director and\or the Audit Committee Chair.  The employee or other complainant may remain anonymous to the extent reasonable and consistent with conducting a proper investigation.  

In accordance with the Whistleblower Policy, any employee or other complainant reporting suspected or actual fraudulent activity should (i) not contact the suspected individual(s) in an effort to determine facts and (ii) not discuss the case, facts, suspicions or allegations with anyone unless directed by HILC’s legal counsel or the lead investigator (e.g., Director of Operations, Audit Committee Chair).  Any inquiries concerning the activity under investigation from the suspected individual, his or her attorney or representative, or any other inquirer should be referred directly to HILC’s legal counsel or the lead investigator.  

The recipient of the complaint (e.g., Executive Director, Audit Committee Chair) will notify the complainant (so long as that individual is known) and acknowledge receipt of the reported fraudulent activity or suspected fraudulent activity within five business days.  All reports will be promptly investigated.  

Investigation Responsibilities

The Executive Director has the primary responsibility for the investigation of all suspected fraudulent acts caused by employees or third parties, with oversight by the Executive Director, and Audit Committee Chair.  The Audit Committee Chair has the primary responsibility for the investigation of all suspected fraudulent acts caused by HILC’s management, including the Executive Director. 

In conducting an investigation, the Executive Director and the Audit Committee Chair (i) may contact other pertinent staff our individuals deemed knowledgeable of the suspected fraudulent activity for assistance and (ii) has the authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets and other storage facilities (including electronic storage) on the premises without the prior knowledge or consent of any individual who is suspected of fraudulent actions.

All results of investigations conducted by the Executive Director will be communicated orally and/or in writing to appropriate designated personnel (e.g., Executive Director) and the Audit Committee Chair.  All results of investigations, conducted by either the Director of Operations or the Audit Committee Chair, will be communicated orally and/or in writing to the board’s Audit Committee and, if needed, to the entire board through the Audit Committee.

In instances where the investigation indicates possible criminal activity, decisions to refer the investigation results to the appropriate law enforcement and/or regulatory agency will be made in conjunction with legal counsel and senior management or the Audit Committee (depending on who is being investigated), as will finally disposition of the case.

All participants in a fraud investigation shall keep the details and results of the investigation confidential.  Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know, in order to protect the reputations of persons suspected of fraudulent activity, but subsequently found innocent of wrongdoing and to protect HILC from potential civil liability.  

Any person contacted by the media with respect to an investigation into fraudulent activity shall refer the media to the Executive Director or the Audit Committee Chair, whoever is more appropriate given the circumstances of the investigation.  The suspected fraud or investigation shall not be discussed with the media by any person other than the two aforementioned individuals, in consultation with legal counsel.

Decisions related to any remedial or disciplinary action to be taken is to be made by the individual’s management.  Any individual who engages in fraudulent activity may be subject to any combination of the following remedial and disciplinary actions:

• Termination: If an investigation results in a recommendation to terminate an individual, the recommendation will be reviewed for approval by the board of directors before action is taken.
• Criminal Investigation and Further Legal Action: All individuals that are proven to have engaged in fraudulent activity may be pursued to the full extent of the law initiated with the filing of a formal law enforcement report.  
• The requirement to Make Full Restitution and Recovery: The board of directors may require that individuals engaging in fraudulent activity make full restitution and recovery of any misappropriations made in the conduct of or as a result of, the fraudulent activity.