Progress

• Strategy
• Strategic risks
• Framework
• Risk Management Manual
• Intranet site
• Risk Management Champions
• Business Planning processes

Your role

• Be familiar with the Agency’s risk management strategy and policy;
• Alert managers to the presence of risks and participate in their management; and
• Use the tools available to identify and manage risks in the workplace
• Give us feedback

National

ability

Fraud control

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Fraud Control

“Dishonestly obtaining a benefit, or causing a loss, by deception or other means”

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Fraud against the Commonwealth

Includes (but is not limited to):

• Theft
• Accounting fraud (false invoices, misappropriations etc.)
• Unlawful use of, or unlawfully obtaining, property, equipment, material or services
• Causing a loss, or avoiding and/or creating a liability
• Providing false or misleading information to the Commonwealth, or failing to provide it when there is an obligation to do so
• Misuse of Commonwealth assets, equipment or facilities
• Making or using false, forged or falsified documents
• Wrongfully using Commonwealth information or intellectual property
• Bribery, corruption or abuse of office

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Fraud and Error

• Fraud is a criminal offence
• Fraud is based on deception

An error is not fraud

If you make a mistake:

• Tell your supervisor about the error
• Follow it up with an email
• Keep a record of the email

NDIA’s Approach to Fraud Control

• Fraud Control Framework & Plan
• APS Values and Code of Conduct
• Fraud Policy Statement
• Fraud Awareness Education
• Financial rules
• Governance arrangements — Prevention and detection strategies

Internal Fraud

Involves fraud occurring within the Agency or Scheme

Examples:

• Falsifying a medical certificate or statutory declaration
• Cheating on a flex sheet
• Unauthorised disclosure of information
• Claiming travel allowance you are not entitle to
• Failing to record, or incorrect recording of, leave
• Misuse of Cabcharge vouchers
• Use of the Corporate credit card for personal gain

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… and more

— Using office printers for non-work related printing

— Internet — unreasonable personal use of internet, including emails and communicator/Lync

— Failing to secure portable assets such as TVs during relocation/renovations

— Personal use of pool vehicles/fuel cards

— Stealing laptops/phones/GPS devices

False information

Providing false information includes:

• Backdating and post signing of records
• Altering funding agreements/contracts etc. after the event
• Submitting information in reports, acquittals, returns etc. that the author knew did or did not happen, and is untrue

Internal Fraud - Penalties

Internal fraud can result in criminal prosecution, and/or investigation under the APS Code of Conduct.

Penalties can include:

• Dismissal
• Demotion
• Loss of Commonwealth contributed superannuation
• Criminal conviction
• Imprisonment

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Corruption & Collusion

How can it happen?

• Internal/external collusion — if a staff member colludes with an external supplier to procure goods/services to get a personal benefit

• “kick-backs” — payments made by service provider organisations to their employees/executive using Commonwealth funding

• Acceptance of gifts/hospitality over specified amounts

Conflict of Interest

A conflict of interest occurs when an employee is influenced, or may be perceived to be influenced, by personal interests when conducting his/her official duties

• If you have a conflict of interest, or are unsure, talk to your manager

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External Fraud

Fraud conducted to the Agency or Scheme by

• Participants
• Providers

Examples:

• Community organisations receiving funds from the Agency and fraudulently misusing the money
• Providing false or misleading financial information/reports to the Agency
• Overcharging the Commonwealth for services
• Submitting false invoices
• Misuse of assets (including unauthorised acquisition or disposal)
• Submitting audit reports that are not independent or are inaccurate

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Things to watch out for

Things to watch out for:

• Breeches to funding agreement/grants guidelines
• Delays in providing reports or answering communications
• Failure to submit reports required
• Lack of records for invoices and purchase orders
• Conflicts of interest in the Board/CEO
• Complaints from ex-staff or clients
• Poor internal controls and lack of policies in organisations
• High staff turnover
• Poor governance – no separation of duties, one person performing multiple roles

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External fraud - penalties

Penalties and sanctions may include:

• Criminal conviction
• Imprisonment
• Fine
• Repayment of monies
• Confiscation of assets

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Your role

• Report any weaknesses in Agency business controls or processes that might facilitate fraud against the Commonwealth to the NDIA Fraud Manager [redacted — s22(1)(a)(ii)].

• You can report any suspected fraudulent or unethical behaviour to your immediate supervisor or the NDIA Fraud Manager [redacted — s22(1)(a)(ii)].

Reporting suspected fraud

You can provide information about suspected fraudulent or unethical behaviour impacting NDIA or the Scheme via

• Phone: 1800 650 717.

Information may be provided anonymously.

What not to do

DO NOT

• Attempt to investigate the fraud yourself
• Alert the suspect
• Mark or unnecessarily handle documents or material — keep in original condition
• Discuss the matter with anyone, including colleagues, other than for appropriate reporting purposes

Contacts

Risk, Assurance & Fraud team

Director: [redacted — s22(1)(a)(ii)] Fraud Control Manager: [redacted — s22(1)(a)(ii)]

Fraud hotline: 1800 650 717

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