FRAUD POLICY STATEMENT
This policy statement is about fraud prevention, detection and DSS’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, DSS staff must report all incidents of suspected or
potential fraud immediately to the Department’s Assurance and Compliance Branch.
All suspected fraudulent activity will be assessed and where appropriate investigated.
DSS 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:
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contacting a member of Assurance and Compliance Branch on 02 6146 8062
leaving an anonymous voicemail message on the DSS Fraud Hotline (1800
133 611); or
via email: Helpdesk.fraud@dss.gov.au (internal site) or
fraud@dss.gov.au (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 DSS’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 DSS 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 DSS’s Fraud Control Plan.
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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.
DSS 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 DSS 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, DSS has developed a comprehensive Fraud
Control Plan, being underpinned by its fraud risk assessment. The assessment
identifies DSS’s current fraud risks and contains strategies to manage them.
Employee Responsibilities
All DSS staff are required to adhere to Departmental Values of “respect,
professionalism, taking responsibility, innovation and learning”. In the normal day-today 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 DSS business
controls or processes that might facilitate fraud against the Commonwealth. In the
first instance, all breaches are reported to a DSS Manager. However, if that report
cannot be actioned by the Manager, it should be referred to the Assurance and
Compliance Branch.
DSS 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;
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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 DSS Values and APS Code of Conduct.
All DSS 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.
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Assurance and Compliance Branch
The Branch’s responsibilities include:
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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:
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Providing advice and guidance
Undertaking fraud risk assessments Conducting reviews of serious noncompliance by funded entities
Conducting investigations into allegations of fraud or impropriety
surrounding DSS program funding
Conducting investigations into allegations of criminal misconduct by DSS
staff
Gathering, collating, analysing and disseminating intelligence and
information
Preparing and disseminating papers to relevant committees and program
areas on trends, issues and lessons learned
Providing Fraud Awareness training to DSS staff.
Maintain and monitor the DSS 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 DSS Program Compliance Framework to enhance a compliance
culture within the department
Provide secretariat services to the DSS Compliance and Integrity Committee.
Further information
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Commonwealth Fraud Control Guidelines (2011);
Commonwealth Grant Guidelines - FMG 23;
Commonwealth Procurement Guidelines - FMG 1;
Crimes Act 1914 (Cth);
Criminal Code Act 1995 (Cth);
DSS Guidelines for Reporting Suspected Fraud;
DSS 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;
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