Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Government counter-fraud standards enhance professional capability and provide public transparency
Conclusion
In 2018, Cabinet Office established the GCFF, which in turn launched a set of Counter Fraud Functional Standards to set out minimum expectations for how government organisations should manage their fraud and corruption risks. In October 2018, government also launched the GCFP to support the development of capability for counter- fraud professionals across government. The GCFP grants membership to the profession based on the evaluation of knowledge and skills codified by the GCFP standards.36 We asked PSFA about the impact of introducing government counter-fraud functional and professional standards. PSFA told us that the functional standards have provided the public with transparency on the basics of what they can expect public bodies to do to 28 Qq 23, 79 29 Qq 18–19; C&AG’s Report, para 1.20 30 Qq 40, 42; C&AG’s Report, para 1.14 and 1.16 31 Q 18 32 Qq 31, 56, 58 33 Q 31; C&AG’s Report, para 19 34 Q 58 35 Qq 29–30; C&AG’s Report, para 1.9 36 C&AG’s Report, para 2.5 Tackling fraud and corruption against government 13 counter fraud and corruption. PSFA’s assessments prior to the onset of the pandemic suggested that use of and compliance with the functional standards was on the increase. It plans to repeat its assessments to establish recent trends. On the professional standards, PSFA explained that they have led to an upskilling of the counter-fraud practitioners across government by sharing with them the available skills, knowledge and experience of the profession. PSFA told us that, internationally, the UK is the first country in the world to have a counter-fraud profession, as well as the first to have a professional standard for fraud prevention.37
Government Response Summary
The government agrees and details several actions, including prioritising support based on fraud understanding, launching a Risk, Threat and Prevention Service, developing a fraud leadership qualification, and strengthening the process for reviewing compliance against Counter Fraud Functional Standards.
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.