Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Update Committee on counter-fraud review outcomes and actions addressing departmental weaknesses and resourcing.
Conclusion
Departmental counter-fraud staff often lack the credibility and authority needed to exert influence at senior levels. Historically, counter-fraud experts have focused on investigating suspected fraud and have not been brought into wider policy making and design. Many departments lack senior counter-fraud professionals with influence in their organisations and counter-fraud staff have often struggled to get the attention, understanding and support needed from senior decision-makers. In part, this is because the counter-fraud profession itself is relatively young and needs time to reinforce itself as a function. But many of those working in the counter- fraud function are not members of the profession and have not been trained or assessed against the professional standards. The Cabinet Office and HM Treasury have said that government will conduct annual workforce and performance reviews to provide insights on areas outside tax and welfare that demand attention and support. HM Treasury, starting with an expectation of a return of £3 for every £1 spent, also says that it will, where possible, expect increasing returns on its counter- fraud investments. Recommendation 3: The Public Sector Fraud Authority should: a) update the Committee in 12 months on the outcomes of its next annual Workforce and Performance Review and whether public bodies start to invest the right amount in their counter-fraud and corruption capability and achieve value for money from their efforts. b) set out what it has done to address any identified weaknesses in the effectiveness of departments’ efforts to tackle fraud and corruption, including their understanding of risks, resourcing of counter-fraud and delivery of counter-fraud outcomes.
Government Response Summary
The government agrees and is implementing the recommendation. The PSFA will update on its Workforce and Performance Review, review compliance, launch a risk and prevention service, double specialists, launch a fraud leadership qualification, and coordinate reviews of department resourcing and outcomes, developing financial targets.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The government will prioritise action with public bodies based on its understanding of fraud, as informed by the Workforce and Performance Review. The PSFA works with public bodies to help them understand fraud and corruption risks and their impact. It will prioritise work with departments where the impacts appear greatest. It will review public sector organisations’ compliance against the Counter Fraud Functional Standard to identify organisational weaknesses and obstacles to deliver counter-fraud outcomes. The PSFA has also launched its Risk, Threat and Prevention Service which offers targeted support to ministerial departments, public bodies or specific schemes to support them in developing and implementing preventative and detective fraud controls. The government is taking steps to ensure departments are adequately resourced to deliver counter-fraud outcomes. The government aims to double the number of qualified fraud risk assessors against current figures. The PSFA will launch the world’s first fraud leadership qualification, as well as further standards and training for public bodies to improve counter fraud and corruption capability. The PSFA has also supported departments in the recruitment of senior officials in counter fraud roles. This support aims to embed counter fraud expertise and skill in the development of new counter fraud teams and grow the Counter Fraud Function. To address existing challenges to the delivery of counter-fraud outcomes, the PSFA will coordinate reviews of department resourcing, action plan progress, and develop outcome metrics for counter fraud activities. It will work with departments to develop financial targets to demonstrate the impact of counter fraud investments. The PSFA is rolling out a strengthened process for reviewing the extent of compliance against the Counter Fraud Functional Standard to assess whether departments and public bodies are complying to PSFA’s mandatory processes.