FRAUD POLICY STATEMENT
This policy statement is about fraud prevention, detection and FaHCSIA’s response to fraud under the Commonwealth Fraud Control Guidelines. The aim is to make fraud prevention everyone’s business and to encourage all employees to report suspected fraud to protect the Department’s property, assets and public money against internal and external fraud.
Under Financial Rule 6.4.2, FaHCSIA staff must report all incidents of suspected or potential fraud immediately to the Department’s Compliance Branch. All suspected fraudulent activity will be assessed and where appropriate investigated. FaHCSIA employees must provide assistance during the course of suspected fraud investigations unless issues of self-incrimination arise.
Staff can report their concerns directly to the Assurance and Compliance Branch by:
· contacting a member of Assurance and Compliance Branch on 02 6146 8062
· leaving an anonymous voicemail message on the FaHCSIA Fraud Hotline (1800 133 611); or
· via email: (internal site) or
· (external site).
Section 16 of the Public Service Act 1999 (Cth) provides protection for all employees who report breaches of the code of conduct. This protection also applies to staff reporting fraud and is complimented by FaHCSIA’s ‘Whistleblowing Policy’ and procedures. All staff can feel secure a report will be treated in the strictest confidence under the whistleblower procedures.
More information about how to report fraud, including the steps staff should take to retain evidence and make notes on events, can be found in the FaHCSIA Guidelines for Reporting Suspected Fraud.
This Fraud Policy Statement is part of the Department’s overall fraud control framework and should be read in conjunction with FaHCSIA’s Fraud Control Plan.
Fraud
Fraud is defined as:
“Dishonestly obtaining a benefit or causing a loss by deception or other means.”
Fraud is not only a criminal offence but reduces funds available for delivering public goods and services and can undermine public confidence in the Government. Internal fraud also constitutes a breach of the APS Code of Conduct.
FaHCSIA recognises its obligations under Section 44 of Financial Management Accountability Act 1997 (Cth) which requires the Department’s Secretary to promote the efficient, effective, ethical and economical use of Commonwealth resources. This includes FaHCSIA providing information management and fraud awareness training to establish and, where necessary, raise the accepted level of ethical standards and behaviour.
Fraud Control Plan
In accordance with the Guidelines, FaHCSIA has developed a comprehensive Fraud Control Plan, being underpinned by its fraud risk assessment. The assessment identifies FaHCSIA’s current fraud risks and contains strategies to manage them.
Employee Responsibilities
All FaHCSIA staff are required to adhere to Departmental Values of “respect, professionalism, taking responsibility, innovation and learning”. In the normal day-to-day work, staff should resolve ethical dilemmas through application of the APS Code of Conduct. Staff should also be aware that the Fraud Control Framework, the Chief Executive Instructions, Financial Rules and Financial Management Accountability Act 1997 are applicable to their employment.
Financial Rule 6.4.3 requires all staff to report any weaknesses in FaHCSIA business controls or processes that might facilitate fraud against the Commonwealth. In the first instance, all breaches are reported to a FaHCSIA Manager. However, if that report cannot be actioned by the Manager, it should be referred to the Assurance and Compliance Branch.
FaHCSIA staff should foster an environment that promotes the highest standards of ethical behaviour. Where process shortfalls exist, program managers are the risk owners who have a responsibility to develop and implement new strategies to minimise fraud risks. For example;
· All managers have a responsibility to ensure workplace mechanisms are in place that assess and minimise the risk of fraud through education and promoting staff awareness of the FaHCSIA Values and APS Code of Conduct.
· All FaHCSIA staff have a responsibility to report suspected fraud to Assurance and Compliance Branch. The Guidelines for reporting suspected fraud provides the steps staff must take to report fraud and what to avoid.
Assurance and Compliance Branch
The Branch’s responsibilities include:
· Support of program areas and the Network on issues of non-compliance, fraud, funding risks, due diligence and matters of internal serious misconduct. This includes:
o Providing advice and guidance
o Undertaking fraud risk assessments Conducting reviews of serious non-compliance by funded entities
o Conducting investigations into allegations of fraud or impropriety surrounding FaHCSIA program funding
o Conducting investigations into allegations of criminal misconduct by FaHCSIA staff
o Gathering, collating, analysing and disseminating intelligence and information
o Preparing and disseminating papers to relevant committees and program areas on trends, issues and lessons learned
o Providing Fraud Awareness training to FaHCSIA staff.
· Maintain and monitor the FaHCSIA Fraud Control Plan
· Maintain an integrated Case Management and Intelligence System
· Manage relationships with external stakeholders, including the Australian Crime Commission; law enforcement and prosecuting authorities
· Maintain the FaHCSIA Program Compliance Framework to enhance a compliance culture within the department
· Provide secretariat services to the FaHCSIA Compliance and Integrity Committee.
Further information
§ Commonwealth Fraud Control Guidelines (2011);
§ Commonwealth Grant Guidelines - FMG 23;
§ Commonwealth Procurement Guidelines - FMG 1;
§ Crimes Act 1914 (Cth);
§ Criminal Code Act 1995 (Cth);
§ FaHCSIA Guidelines for Reporting Suspected Fraud;
§ FaHCSIA Whistleblowing Procedures;
§ Financial Management and Accountability Act 1997 (Cth).
§ Fraud Control in Australian Government Entities Better Practice Guide, 2011;
§ Freedom of Information Act 1982 (Cth);
§ Privacy Act 1988 (Cth);
§ Public Service Act 1999 (Cth) – Sections 10, 13, 14 and 16;
July 2013 / policy statement version 2 / Page 2