A performance audit to assess the effectiveness of the Department of Foreign Affairs and Trade’s (DFAT) fraud control arrangements has found them to be largely effective.
The audit is one in a series of three performance audits reviewing fraud control arrangements in selected departments, the Department of Foreign Affairs and Trade; the Department of Home Affairs; and the Department of Social Services.
In his report, Fraud Control Arrangements in the Department of Foreign Affairs and Trade, `Auditor-General, Grant Hehir says the audit series is intended to provide assurance to the Parliament regarding the fraud control arrangements of selected Australian Government Departments.
“Fraud control arrangements in the Department of Foreign Affairs and Trade are largely effective,” Mr Hehir said.
“The Department’s arrangements comply with the mandatory requirements of the Commonwealth Fraud Control Framework, are largely consistent with the whole of government better practice fraud guidance, and the accountable authority has taken steps to promote a fraud aware culture,” he said.
“Further attention is required to address low levels of compliance with mandatory fraud awareness training requirements and to improve consistency with internal requirements by identifying fraud control owners and updating investigations procedures.”
Mr Hehir said DFAT’s investigative procedures were largely consistent with the Australian Government Investigations Standards, but its policy and procedures for conducting investigations of suspected internal fraud required updating.
He made three recommendations to the Department, that it’s department-level fraud risk assessments identify control owners by position, in line with its risk management guide; that it update its policy and processes for fraud investigations to fully meet Australian Government Investigations Standards requirements; and it improve staff compliance relating to mandatory fraud awareness training.
The Auditor-General’s report can be accessed online at this PS News link and the 61-page printed report at this link.
The audit team was Tracy Cussen, Ailsa McPherson, Michael Fitzgerald, Hannah Climas, and Michelle Page.
