Fraud and Corruption Prevention Policy and Procedure
The Department of Creative Industries, Tourism, Hospitality and Sport (DCITHS) has a zero-tolerance approach to fraud and corruption and is committed to ensuring the ethical conduct of all employees by preventing, detecting and investigating all forms of fraud and corruption that may occur.
Purpose
This policy outlines the Department of Creative Industries, Tourism, Hospitality and Sport (‘The Department’)’s approach to the prevention, identification and reporting of suspected and actual instances of fraud and corruption. The Department has a zero-tolerance approach to fraud and corruption.
Scope
This Policy applies globally to all staff anywhere the Department may undertake business. Some Australian laws may apply to your conduct outside of Australia, in addition to the operation of relevant local laws.
Definitions
ARC is the Audit and Risk Committee.
Corrupt conduct is improper acts or omissions, improper use of influence or position and/or improper use of information. Corrupt conduct can include but is not limited to:
- bribery (staff must refer to the Anti-Bribery Policy)
- blackmail
- theft (including data and information theft);
- embezzlement
- revenue or tax evasion
- currency violations
- fraud.
Fraud is when a person acts dishonestly while obtaining a benefit or causing a loss by deception or other means. For example, misuse of assets (including information).
Staff includes officers, employees, contractors (including dispatch labour), consultants, suppliers of labour who are employed by, or provide goods, services or labour to, the Department.
Responsibilities
The Department is committed to a ‘speak up’ culture. Annexure B sets out the processes for reporting suspected fraud and corruption.
All staff must:
- comply with this policy by refraining from engaging in fraud and corruption
- act honestly in their use of public resources and maintain the highest ethical standards
- act in accordance with the DCITHS Code of Ethics and Conduct
- take practical steps to avoid or manage the risks associated with fraud and corruption in the workplace, and report all suspected cases
- act in a manner that promotes and encourages the reporting of fraudulent and corrupt conduct.
Managers:
- are accountable for effectively managing fraud control and corruption prevention
- must ensure all staff are aware of their responsibilities.
Fraud and Corruption Control Framework
The DCITHS Fraud and Corruption Control Framework governs fraud and corruption prevention, detection, and response by the Department. The framework incorporates the attributes of fraud control under the stages of:
- Planning and Resourcing
- Prevention
- Detection
- Response.
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.
Risk assessment
Staff must familiarise themselves with the DCITHS Risk Management Framework.
Awareness
All staff are required to:
- undergo pre-employment screening involving police checks, certification (for roles requiring certification) and referee checks; and
- complete our Code of Ethics and Conduct training and any 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. Staff must be aware of their obligations of declaring conflicts (as set out in the DCITHS Code of Ethics and Conduct).
Business relationships
Staff 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 staff are required to report any instances of suspected fraud or corruption. Staff can make reports of fraud and corruption in accordance with the Public Interest Disclosure Policy and Annexure B 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 Deputy Secretary, Engagement, Operations and Governance, Executive Director, Governance, or the General Counsel. Where there are reasonable grounds to suspect corruption or a criminal offence has occurred or is about to occur, the Chief Operating Officer 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 reprisal. The Department endeavours to protect staff making reports from any form of reprisal and /or prejudice in their employment/engagement.
The Department will not tolerate reprisal action against its staff for making a report under this policy.
Internal audit systems
The Deputy Secretary, Engagement, Operations and Governance has oversight of the organisation’s risk framework and providing the necessary oversight and reporting on risk management practices within the Department.
In alignment with the Department Risk Management Plan, the Deputy Secretary, Engagement, Operations and Governance also oversights 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 ARC.
The Department’s internal audits are reviewed by the ARC. The Executive Director, Governance will monitor the implementation of recommendations from Internal Audit to safeguard the Department against fraud and corruption
Investigations
All reports of alleged fraudulent and corrupt conduct will be investigated and treated confidentially. Information will only be provided to parties that have a legitimate role in the review/investigation process. At the conclusion of the investigation, the complainant may be advised of the outcome recommended by the organisation.
Disciplinary systems
Substantiated allegations of fraud and corruption, or attempted fraud and corruption, will 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 Independent Commission Against Corruption (ICAC) or prosecution agencies.
Actions of fraud and corruption may result in criminal prosecution.
Breach
A breach of this policy may lead to disciplinary action including termination of employment or engagement.
Individuals found to have committed an offence under any relevant legislation may also be subject to penalties as prescribed by the legislation, which can include imprisonment.
Variation
The Department may vary this policy from time to time as appropriate.
| Team/Person | Latest Version | Next Review Date |
|---|---|---|
| Deputy Secretary, Engagement, Operations and Governance | March 2022 | March 2023 |
Annexures
Annexure A
Legislation
- Government Sector Employment Act 2013
- Public Interest and Disclosures Act 1994
- Independent Commission Against Corruption Act 1988
- Government Sector Finance Act 2018
Secondary materials
- Standards Australia AS8001-2021 Fraud and Corruption Control
- NSW Auditor-General Better Practice Guide Fraud Control Improvement Kit: Managing your fraud control obligations (2015)
- DCITHS Code of Ethics and Conduct
- NSW Procurement Policy Framework for NSW Government Agencies
Annexure B
Reporting Fraud and Corruption
If a staff member within Australia suspects fraudulent or corrupt conduct, they should report the matter to their direct supervisor. If a staff member is uncomfortable reporting the matter to any of their supervisors or managers, they must report the conduct either directly to the Deputy Secretary, Engagement, Operations and Governance, Executive Director, Governance, or the General Counsel or; using the Public Interest Disclosure webform.
The Public Interest Disclosures Internal Reporting Policy explains how staff can report suspected fraud and corruption in such a way as to obtain protection under the Public Interest Disclosures Act 1994. The Executive Director, People & Culture can provide advice as to whether the matter should be dealt with as a Public Interest Disclosure or as an employee grievance under the Grievance Handling policy.
Where staff do not wish to use internal reporting options, reports can be made directly to Independent Commission Against Corruption, NSW Police, Audit Office of NSW, NSW Ombudsman, or the NSW Information Commissioner.
Staff should be aware that reporting matters to the Secretary of the Department of Enterprise, Investment and Trade may not automatically constitute a Public Interest Disclosure.
To make a report of suspected fraud and corruption, individuals can either complete the online Public Interest Disclosures form or make a written submission regarding the situation.