Controlling risks in common government programs, activities and functions
Table of contents
How you approach designing an effective and proportionate control environment will depend on the type of program, activity or function being delivered. There is generally no template solution, i.e. the controls and the overall control environment should be designed to mitigate the specific fraud or corruption risks identified.
That being said, there are a number of common types of programs, activities and functions that are delivered across government, e.g. grants and procurement, which enables us to also identify common types of risks and mitigations in these areas. By understanding these, we can more quickly assess fraud and corruption risk and identify vulnerabilities early. Controls can then be embedded into the design of these programs, activities and functions to:
- safeguard them against fraud and corruption
- improve our ability to deliver desired outcomes
- reduce the costs in delivering services, and
- maintain public trust in government services and institutions.
The following resources can help you identify and mitigate common fraud and corruption risks in specific types of programs, activities and functions.
Government procurement is regarded as one of the highest risk areas for fraud and corruption due to the large amount of money involved.
The Procurement Administration Counter Fraud Toolkit identifies common fraud and corruption risks that may occur during the pre-award phase of the procurement lifecycle, and provides examples of a range of measures that can help mitigate these risks.
Grant design and administration are subject to different types of fraud and corruption risk. These range from undisclosed conflicts of interest, improper use of grant funding, or an intentional failure to follow grant agreement conditions and requirements.
The Grants Administration Counter Fraud Toolkit provides officials with practical guidance on how to manage fraud and corruption risks associated with grants administered by the Australian Government.
Economic recessions and cost of living stress can intensify the factors that lead to fraud, including financial pressure, opportunity and rationalisation.
The Economic Recovery Counter Fraud Toolkit is a practical resource that helps officials consider and mitigate fraud risks when designing and delivering economic recovery and stimulus measures.
In disaster relief and recovery situations, it is essential that government services and support reach those in need quickly. Sadly, government responses to disasters also come with an inherently high risk of fraud. Relief programs are an attractive target for those seeking dishonest financial gain.
Building on lessons learned during the response to the 2019 Black Summer Bushfires and 2020 COVID-19 pandemic, the Disaster Relief and Recovery Counter Fraud Toolkit assists Australian Government entities designing and delivering disaster relief and recovery measures.
Government programs, goods and services are often delivered through contracts with third party individuals, organisations and businesses. These outsourced services are often at high risk of fraud and corruption.
Entities should take measures to ensure contractors and third parties meet appropriate standards of integrity and accountability by undertaking due diligence activities to inform their decision-making. The Suitability Assessment Toolkit provides a range of tools that help entities make informed decisions about whether third parties are suitable to be engaged. These include tools aimed to assist:
- policymakers by identifying provisions and processes that can be incorporated into policy and legislative frameworks to allow for effective assessment of suitability
- decision-makers by equipping them with practical options that can help them exercise due diligence when making a decision about suitability or assessing compliance.
Entities are strongly encouraged to include suitability reassessment clauses in Commonwealth contracts. These clauses set out the third party’s obligations to undergo continual suitability checks and notify the entity of any significant events, including change of personnel within the contractor or service provider.