Fraud and Corruption Prevention Policy and Procedure

The DCITHS Fraud and Corruption Control Framework governs fraud and corruption prevention, detection, and response by the Department. The framework aligns with Treasury Circular TC18-02 Fraud and corruption control policy. The framework incorporates the attributes of fraud control under the stages of Planning and Resourcing; Prevention; Detection and Response, as follows:

Further details of Prevention, Detection and Response are set out below.

This policy sets out the appropriate structures and responsibilities required for the prevention and detection of fraud and corruption.

The Department endeavours to prevent fraud and corruption by maintaining effective financial and operational controls, and by encouraging a “speak up culture” to support employees to report incidents of potential and actual fraud and corruption.

Risk assessment

Employees must familiarise themselves with the DCITHS Risk Management Framework.

Awareness

All employees are required to:

• undergo pre-employment screening, and
• complete the Code of Ethics and Conduct training and all other mandatory training required to understand their responsibilities under this policy.

Conflicts of interest and disclosure

A conflict of interest may arise in situations where there is a conflict between public duty and private interest. Employees must be aware of their obligations of declaring conflicts. All conflicts of interest (actual or perceived) should be managed in accordance with the guidance in the DCITHS Code of Ethics and Conduct and the Conflicts of Interest Policy.

Conflicts of interest can be declared by completing the Commitment and Declaration of Interest Form on myCareer.

Business Relationships

Employees who engage third parties to provide goods, services or labour to the Department are required to conduct all procurement and business relationships with honesty and fairness in accordance with this policy.

Reporting

All employees are required to report any instances of suspected fraud or corruption. Employees can make reports of fraud and corruption in accordance with the Public Interest Disclosure Policy and Annexure A of this policy.

All suspected instances of fraud and/or corruption which come to the attention of a manager no matter where located, must be reported to either the Secretary, the Disclosure Coordinator, or a Disclosure Officer as set out in the Public Interest Disclosure Policy and Annexure A. Where there are reasonable grounds to suspect corruption or a criminal offence has occurred or is about to occur, the Deputy Secretary, Corporate Services must report the matter to the appropriate external body. The Department will ensure all reported allegations of fraud and/or corruption are reviewed and dealt with appropriately.

The Department is committed to an open environment where all staff can confidently report any suspected improper conduct without fear of detrimental action. The Department endeavours to protect staff making reports from any form of detrimental action.

The Department will not tolerate detrimental action against its staff for making a report under this policy.

Internal audit systems

The Chief Risk Officer has oversight of the organisation’s risk framework and providing the necessary oversight and reporting on risk management practices within the Department.

The Department’s Chief Audit Executive oversees the Annual Internal Audit Plan that includes assessing the adequacy and effectiveness of internal controls and reporting on deficiencies and weaknesses that require corrective action.

Internal audits/reviews regularly examine samples of medium and high-risk processes across the Department to assess the adequacy of controls and to detect irregularities. Outcomes of audits/reviews are reported to the Audit and Risk Committee (ARC).

The Department’s internal audits are reviewed by the ARC. The Deputy Secretary, Corporate Services will monitor the implementation of recommendations from Internal Audit to safeguard the Department against fraud and corruption.

Investigations

All reports of alleged fraud and corrupt conduct will be dealt with appropriately and treated confidentially. The Department’s Chief People Officer will review and determine the appropriate nature and scope of any investigation to be conducted under the oversight of the Deputy Secretary, Corporate Services or the Secretary, including any decision to appoint an external investigator.

In most cases the Department will investigate to make findings about whether the alleged fraud or corrupt conduct occurred, who was involved, who was responsible, and whether the people involved, or the agency, engaged in serious wrongdoing.

There may be circumstances where we decide that the report should be referred to another agency, such as an integrity agency.

The findings of an investigation will be provided by the Chief People Officer to the decision maker who will be determined based on the matter under investigation, however it will generally be either the Secretary or the Deputy Secretary, Corporate Services. They will consider:

• what steps will be taken to address any recommendations in the findings
• who will be responsible for ensuring any corrective action takes place. 

At the conclusion of the investigation, the reporter may be advised of the outcome and any corrective action that will be taken by the organisation, subject to confidentiality requirements.

Disciplinary actions

Substantiated allegations of fraud and corruption, or attempted fraud and corruption, may result in disciplinary action.

Consequences for committing or attempting fraud and/or corruption may include, but are not limited to:

• dismissal
• warnings
• repayment of misappropriated funds and other costs
• referral to the ICAC and/or prosecution agencies.

Actions of fraud and corruption may result in criminal prosecution.

Individuals found to have committed an offence under any relevant legislation may also be subject to penalties and actions as prescribed by the legislation.