Document 3 AAC Fraud Report AR.pdf

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Agenda Item 4.1

Meeting of 30 August 2019

ASSURANCE AND AUDIT COMMITTEE
FOR ENDORSEMENT
Title
Annual certification for preventing, detecting and dealing with fraud.
Purpose/Issue
To advise that the department has appropriate mechanisms and processes in
place to prevent, detect, and effectively respond to fraud so the accountable
authority can provide certification of compliance with PGPA Rule 17AG(2)(b).
Recommendation(s)  That the Committee:
Note the mechanisms in place to prevent, detect and respond to fraud.
Attachment(s)
A – Certificate of Compliance
Report demonstrating compliance with legislative requirements
B – High fraud risks by division
Chart of which risk each division assessed as a high risk
C – Enterprise fraud risk profile
List of identified fraud risks and the average fraud risk ratings

D – High fraud risk treatments
Chart of the treatments proposed by each division to control high risk

Prepared by
Section 47F  Fraud Control Officer
Sponsored by
Janean Richards, Chief Operating Officer

Background
This Fraud Control Report demonstrates that the department has undertaken a number of measures to
deal appropriately with fraud in 2018-19.  The 2018-19 Certificate of Compliance is at Attachment A.
Paragraph 17AG(2)(b) of the Public Governance, Performance and Accountability Rule 2014, requires
that the department’s annual report includes certification from the Accountable Authority that:
  fraud risk assessments have been undertaken and fraud control plans have been prepared;
  that there are appropriate mechanisms for preventing, detecting, investigating or otherwise dealing
with fraud;
  that alleged fraud is recorded or reported upon; and
  all reasonable measures have been taken to deal appropriately with fraud.

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Attachment A – 2018-19 Certificate of Compliance

PGPA Act s26,
•  A Fraud Control
•  If a Fraud Control Plan
Department of
Nil to report
Not applicable  All reasonable measures to prevent, detect and deal with fraud relating to the department have been taken during 2018-19.
PGPA Rule s10
Plan must be
was not implemented in line
Industry,

The department’s fraud control and anti-corruption measures comply with the mandatory requirements of the PGPA Rule

implemented in line
with the Commonwealth
Innovation and

and the better practice measures as outlined in the Commonwealth Fraud Control Framework 2017 and the Australian
Fraud Control
with the
Fraud Control Framework
Science

Government Investigation Standards 2014.
Commonwealth
2017

Fraud Control
•  If instances of fraud were
Nil to report
Not applicable  In accordance with 10(a) PGPA Rule the department has conducted fraud risk assessments regularly, and when there was a
Framework 2017
not reported to the
substantial change in the structure, functions or activities of the department during 2018-19.
Certificate of Compliance
inbox when relevant
In accordance with 10(b) PGPA Rule the department had developed and implemented Fraud and Corruption Control Plan
2018-20 that deals with identified risks.  That plan was in place during 2018-19 and was available on the department’s
internet page and intranet.
In accordance with 10(c) (i) PGPA Rule the department had appropriate mechanisms for preventing fraud, and making staff
aware of what constitutes fraud by developing and advertising the online fraud and corruption awareness online module, by
participating in the International Fraud Awareness Week and by ongoing communications utilising the intranet throughout
2018-19.
In accordance with 10(c) (ii) PGPA Rule, the risk of fraud and corruption was taken into account in planning and conducting
activities of the department.  This was achieved through the roll-out of fraud and corruption risk assessments across every
division, the development of the SES Fraud Risk Management Guidance, Enterprise Fraud Risk Profile and treatment plans for
each division.
In accordance with 10(d) (f) PGPA Rule, the department had in place an appropriate mechanism for detecting incidents of
fraud or suspected fraud, including a process for officials of the entity and other persons to report suspected fraud
confidentially.  These mechanisms included: Passive detection activities including the development and roll-out of new online
two-way, anonymous reporting tool (whispli) and streamlining the fraud report process.  Active detection - the department
engaged an intelligence analyst to develop an active detection capability during 2018-19,
Section 47E(a)


In accordance with 10(e) PGPA Rule, the department had an appropriate mechanism for investigating or otherwise dealing
with incidents of fraud or suspected fraud.  The department’s fraud investigations capability includes the engagement of
qualified and experienced fraud investigators, maintenance of an Exhibits Facility, better practice complaint management
practices, administration of a compliant Case Management System and better practice investigation standards which comply
with the requirements of legislation and the Australian Government Investigation Standards 2014.
PGPA Act s46
• All significant
• Have there been any

instances of non-
significant instances of fraud
No
Significant
compliance to the
identified?
instances of non-
framework or finance
compliance and
laws reported to the
• Have these instances been
the Annual
Minister
reported in the
Report for
department's Annual
(N/A)
Commonwealth
Report?
Entities

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Appendix B - High fraud risks by division 2018-20

Section 47E(a)

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Attachment C – Enterprise fraud risk profile (EFRP) - 2018-20
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Attachment D – High fraud risk treatments (consolidated list)

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