New research conducted by the Independent Broad-based Anti-corruption Commission (IBAC) into the funding of community organisations to deliver human services has revealed the system is open to risks of corruption.
IBAC said its Report, Corruption risks associated with Government funded human services delivered by community service organisations, identified corruption risks in the Community Service Organisations (CSOs) sector and outlined a range of corruption prevention strategies to help mitigate them.
“Government provides partial or full funding to thousands of CSOs within the not-for-profit sector to deliver a diverse range of human services to people across Victoria,” IBAC said.
“The community expects these organisations to act with integrity in how they engage with their clients and use public funds,” it said.
“CSOs should provide high-quality services and support to their clients and, in turn, also benefit the broader Victorian community.”
IBAC said the Report examined services funded by the Department of Families, Fairness and Housing (DFFH) and the Department of Health (DH).
“However, the insights and risks identified will be of interest to all Government Departments and Agencies delivering services through funded non-Government Agencies,” the Commission said.
“The Report highlights opportunities for Departments, funding Agencies, CSO boards and CSOs to strengthen the ways they prevent and detect corruption.”
It said these opportunities included ensuring CSOs had appropriate conflict of interest frameworks; protecting information through training and awareness of information security risks; strengthening awareness of corruption risks; ensuring the governance and oversight of CSO procurement processes and contract management was appropriate; and risk assessments of CSOs being undertaken by Government Department and funding Agencies.
IBAC said the risks and drivers identified in its Report did not apply to all CSOs and the Report did not assess the extent of corruption occurring within the sector.
IBAC’s 56-page Report can be accessed at this PS News link.