The Wales Audit Office
Whistleblowing Update
March 2015
Welcome to the fourth Wales
Audit Office Whistleblowing
Update
Following the publication of the last edition in March
2014 the year has passed against a backdrop of further
significant whistleblowing developments, both inside and
outside the Wales Audit Office.
This edition brings you up to date with these key
issues; all you need to know about the current world of
whistleblowing in two minutes!
Your MP is now a Prescribed
Person under a change to PIDA
Decline in Employment Tribunal
Cases
PIDA allows workers to pursue claims against their
employer for any detriment arising in consequence of
their raising a valid concern. Claims must be made to
an Employment Tribunal and there is no cap on the
compensation that can be awarded.
In early 2013, fees were introduced for claimants and,
based on early data published by the Ministry of Justice,
this has caused a significant reduction in the number of
all claims being pursued at Employment Tribunal. For
example, the number of claims submitted in the quarter
ending June 2014 were 70 per cent less than in the
same quarter in 2013.
We will follow the long term impact this change has on
the effectiveness of PIDA with interest.
A change to the Public Interest Disclosure Act (1998)
(PIDA) in April 2014 means that workers can raise any
issue about wrongdoing with any Member of Parliament
and they are protected when they do so.
This change makes it easier for workers who speak
up about suspected or actual wrongdoing to raise their
concern directly with any MP.
The Wales Audit Office Whistleblowing Update ‒ March 2015
The Public Accounts Committee
notes the ‘shocking’ treatment of
some whistleblowers
Greater reporting requirements
anticipated for Regulators and
Prescribed Persons
In August 2014 the UK Public Accounts Committee
(PAC) issued its ninth report on whistleblowing in
public services.
The UK government is currently looking at the role
Prescribed Persons and regulators have in the context of
the effectiveness of whistleblowing law and regulation.
The Chair of the Committee
said whistleblowing is
an important source
of intelligence to help
government identify
wrongdoing and risks to
public service delivery.
However, many concerns
go unreported and the
intelligence that does
exist is not routinely
collected and shared. The
Committee concluded that
whistleblowers are often
treated ‘shockingly’ and government departments have
sometimes failed to protect some whistleblowers from
being victimised.
Key recommendations from the report include:
• greater protection of whistleblowers and sanctions for
those who victimise them;
• support and advice for whistleblowers, including
access to legal advice and counselling;
• transparency of process in relation to how to raise
concerns and feedback on investigations and
outcomes; and
• better leadership from the Cabinet Office to improve
guidance and consistency.
The government has found that the confidentiality
duty that binds Prescribed Persons, and lack of
legal obligation to investigate a disclosure, mean
that whistleblowers do not have confidence that
their reports will be investigated. This is cited as a
reason for the whistleblowing framework ‘failing’ to
protect whistleblowers. However, the government also
recognises that part of the problem is lack of information
and not lack of action.
The government intends to secure improvements by
introducing regulations to require Prescribed Persons
and Regulators to report annually on whistleblowing
issues.
The purpose of the reporting requirement is to:
• ensure more systematic processes across all
prescribed bodies in the way public interest
disclosures are handled, thereby working towards
a consistent standard of best practice for handling
disclosures; and
• provide greater reassurance to the whistle-blower that
action is being taken by the prescribed person and as
a result increase the confidence in the actions of the
prescribed person.
Secondary legislation will be laid in Parliament after the
Small Business, Enterprise and Employment Bill receives
Royal Assent in 2015. We will evaluate the impact the
legislative changes have on the Wales Audit Office as
soon as further information becomes available.
The Wales Audit Office Whistleblowing Update ‒ March 2015
What role does internal audit
play in whistleblowing?
How good is your whistleblowing
policy?
Have you wondered how much involvement internal
audit teams should have in whistleblowing? As we were
going to press with the March 2014 Update, the Institute
of Internal Auditors published its view of the role internal
audit should play in whistleblowing. The Institute of
Internal Auditors’ whistleblowing and corporate
governance report can be accessed here.
The NAO has developed a methodology for critically
evaluating how well a public bodies’ whistleblowing
policy works. The NAO used the methodology to rate 39
whistleblowing policies across government against a set
of standard criteria.
Traditionally internal audit’s work has included:
• investigation of allegations, especially if related to
fraud or corruption;
• dealing with disclosures if those with day to day
responsibility (e.g. HR, or legal) are implicated;
• supporting the board or the audit committee’s
oversight role; and
• incorporating key control weaknesses identified into
the audit planning framework.
But there are dangers and potential conflicts of interest
that need to be considered in determining internal
audit’s role. The Institute of Internal Auditors believes
that whistleblowing policies and procedures are an
important element in a healthy corporate culture and
that internal audit’s independence from the executive
and objectivity give it the potential to be involved in
whistleblowing arrangements, for example in a screening
role, as a channel of communication or in carrying out
investigations.
The NAO identified common areas of strength and areas
for improvement. They often found strong performance
in setting a positive environment for whistleblowing to
occur. In general, the policies were drafted to promote
engagement with users. They also clearly expressed the
importance of whistleblowing to the organisation, and
highlighted the moral obligation to report concerns.
However, the policies reviewed by the NAO sometimes
failed to outline suitable alternatives to line managers
when making a disclosure or explain when the
confidentiality of a whistleblower may be compromised.
Some policies did not mention the risks and limitations
of disclosures outside the organisation or highlight the
benefits of seeking independent advice.
A copy of the NAO’s report ‘Making a whistleblowing
policy work’ can be accessed here.
But boards also require independent assurance that the
organisation’s whistleblowing policies and procedures
are effective in achieving the appropriate outcomes.
Internal audit cannot give that assurance if it is directly
involved in managing or carrying out those procedures.
Internal audit should therefore either provide assurance
to the board or play an integral part in the process of
internal whistleblowing in their organisations.
The Wales Audit Office Whistleblowing Update ‒ March 2015
How effective are whistleblowing
arrangements in Welsh Local
Government?
This is the question the Wales Audit Office has been
addressing during 2014. Building upon best practice
set out in a British Standard on Whistleblowing
arrangements and other good practice (including the
NAO’s work) we evaluated the strength of whistleblowing
arrangements within Welsh Unitary Authorities in the first
half of 2014.
The timing of our work was particularly helpful since
many authorities were in the process of reviewing their
policies and procedures and benefited from our sharing
of best practice. A smaller number of authorities lagged
behind in terms of the currency of their policies and
procedures and our reviews prompted remedial action.
The numbers of disclosures received by unitary
authorities from their workers has been identified as very
low, typically three or less in a year.
Whistleblowing communications
to the Wales Audit Office in 2014
Under PIDA the Auditor General is recognised in law as
a ‘Prescribed Person’ who can receive disclosures from
individuals employed by our audited bodies.
The disclosure must be about:
‘The proper conduct of public business,
value for money, fraud and corruption in
relation to the provision of public services’
The Auditor General’s staff receive and help to
investigate disclosures received by the Wales Audit
Office. A dedicated helpline has been installed at the
Wales Audit Office which is 01244 525980. An e-mail
account also exists: whistleblowing@wao.gov.uk.
These contact points are also publicised on the Wales
Audit Office website.
The updating of policies provides the ideal opportunity
to raise awareness and we identified a particular need to
reach individuals with limited IT access, such as those
in care homes. Our review also highlighted disparities
between whistleblowing policies and procedures
between unitary authorities and schools falling within the
education authorities’ remit.
Many of our improvement recommendations related
to the need for better staff training both in terms of
awareness of how to raise a concern with management
but also to strengthen the quality of investigations
into disclosures received. There is also an important
opportunity to provide better and timelier feedback
to those who do raise a concern and this will further
strengthen confidence in whistleblowing policies and
procedures.
Between January and December 2014 we received
a total of 27 communications via our whistleblowing
arrangements.
Six communications were anonymous and it was not
possible to determine whether the individuals fell within
the remit of PIDA. Another three individuals did not
respond to requests for further clarification and details
to enable us to take their concerns forward effectively.
A total of five were considered to fall within the scope
of PIDA and the remainder was general or audit related
correspondence.
The Wales Audit Office Whistleblowing Update ‒ March 2015
Whistleblowing Good Practice
Guide Issued
In November 2014 the
‘Whistleblowing in the
Public Sector – a Good
Practice Guide for
Workers and Employers’
was published.
Comments and feedback
We hope you found this latest Whistleblowing Update
interesting and helpful. If you would like to know more
about whistleblowing and the Wales Audit Office, how
we can support improvement or have any comments or
feedback about this update, please get in touch at
whistleblowing@wao.gov.uk or contact our
Whistleblowing Manager, Ian Hughes, on 07976 315933.
The guide has been
produced by the Northern
Ireland Audit Office in
conjunction with the Wales
Audit Office, NAO and Audit
Scotland.
The guide is very easy to
read and is crammed full of good practice backed up with
short impactful case studies. It’s a must read for both
workers and managers. If you are only going to read one
whistleblowing related document this year, make sure it’s
this one.
Wales Audit Office
Whistleblowers Charter
The Wales Audit Office has established its own
arrangements for responding to concerns raised by
those working for us, either as employees or contractors.
They are set out in our Whistleblowers Charter.
Individuals can raise concerns with a range of Wales
Audit Office officers through the process set out in the
Charter.
The Charter has also recently been updated and
published, with contact details for Steve Burnett who is
the Board’s nominated Senior Independent Director with
responsibility for receiving internal disclosures outside of
the normal management route.
One important aspect of producing this annual
Whistleblowing Update is to report on the number of
cases dealt with under our Whistleblowers Charter and
any significant action taken by management in response.
This year no concerns were raised with management
using the Whistleblowers Charter. As usual care
must be taken to interpret low caseload data. It could
reflect a very satisfactory position or be an indicator
of poor awareness or confidence in an organisation’s
arrangements.
The Wales Audit Office Whistleblowing Update ‒ March 2015