CEI 1.2 Fraud Control

1. Scope of these instructions

These Chief Executive's Instructions (CEI) outline the policy on fraud control within the department and the responsibilities of all officials of the Department of Agriculture, Fisheries and Forestry (the department) with respect to preventing, detecting and reporting fraud.

The document 'All about fraud control' outlines the requirements in more detail and provides practical guidance on the department's fraud control policies.

2. Policy principles

The core principles relating to the use and protection of property and resources of the department are:

• resources are to be used efficiently, effectively and ethically
• the responsibility for preventing, detecting and reporting fraud rests with all officials
• the maintenance of ethical standards, vigilance and risk awareness are key elements in the prevention and early detection of fraud.

All officials should ensure that fraud against the Australian Government and the department is minimised, and if fraud is detected it is effectively investigated, appropriately prosecuted and that losses are minimised.

3. Target audience

These CEIs are applicable to all officials in the department.

4. Departmental instructions

4.1. Responsibilities

Officials must:

• take personal responsibility and be accountable for their actions and work activities (as required by the APS Code of Conduct and the APS Values)
• ensure their day-to-day work activities reflect the highest of ethical standards
• actively consider fraud detection and prevention in their work activities
• become familiar with and recognise their obligations and responsibilities under the department's Fraud Control Plan
• report fraud when it occurs and remedy any weaknesses in controls.

Executive Managers and Executive Directors must:

• consider and manage fraud risk factors during the development and ongoing running of their business programs
• raise the awareness of staff on fraud control obligations
• annually review and update fraud risk assessments for their business areas and inform the Fraud, Investigations and Security Team of any changes to levels of fraud risk
• in consultation with the Fraud, Investigations and Security Team, pursue the recovery of losses caused by illegal activity, through the appropriate criminal or civil recovery process and pursue appropriate civil, administrative or disciplinary penalties.

The Fraud, Investigations and Security Team must:

• conduct a fraud risk assessment in accordance with the requirements of the Commonwealth Fraud Control Guidelines
• develop a Fraud Control Plan to manage the risks identified from the risk assessment process
• regularly update the Fraud Control Plan to take into account major fraud risks identified through the risk assessment process
• monitor the progress of all fraud investigations undertaken
• keep the secretary and the appropriate manager informed of progress
• report the outcomes of investigations to the appropriate manager and, where appropriate, the secretary
• collect statistical information relating to fraud and report it to the Australian Institute of Criminology in accordance with the Commonwealth Fraud Control Guidelines
• investigate allegations of fraud that fall within the Australian Federal Police Case Categorisation and Prioritisation Model definition of 'routine' or 'minor'
• refer allegations of fraud that involve serious or complex crime against the Commonwealth to the Australian Federal Police
• conduct all investigations into fraud according to the Australian Government Investigation Standards
• advise the secretary of all fraud related cases that have been accepted for prosecution by either the Australian Federal Police or the Commonwealth Department of Public Prosecutions
• conduct an ongoing program aimed at increasing awareness of fraud related matters.

5. Breaches

Employees are bound by section 13 of the Public Service Act 1999 (the Code of Conduct) and section 44 of the Financial Management and Accountability Act 1997 (FMA Act) and Commonwealth Procurement Guidelines to use Commonwealth resources in an efficient, effective and ethical manner. Officials who do not comply with this CEI may be found to be in breach of these provisions and sanctions may apply.

6. References

6.1. Legislation

• Financial Management and Accountability Act 1997
• Public Service Act 1999
• Crimes Act 1914
• Criminal Code Act 1995

6.2. Internal guidance/instruction

• DAFF Fraud Control Plan (as updated)
• Departmental policies on official conduct

6.3. External Guidance/instruction

• Finance Circular 2011/05 – Chief Executive's Instructions
• Commonwealth Fraud Control Guidelines 2002 (or as amended)
• ANAO Audit Report 42 2009-10 – Fraud Control in Australian Government Agencies (May 2010)
• ANAO Better Practice Guide – Fraud Control in Australian Government Agencies (August 2004)
• Australian Government Investigation Standards (only available as hardcopy)
• Prosecution Policy of the Commonwealth
• Australian Federal Policy Case Categorisation and Prioritisation Model

6.4. Related CEIs

• CEI 1.6 - Recordkeeping
• CEI 2.1 – Risk management
• CEI 3.1 – Procurement
• CEI 3.2 - Payment of Accounts
• CEI 3.3 – Gifts
• CEI 3.4 – Official travel
• CEI 3.5 - Corporate Credit Card

7. Definitions

Change History