Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
PSFA launches new risk and prevention services, applying COVID-19 fraud lessons to new schemes
Conclusion
PSFA also informed us that it would soon launch its ‘risk, threat and prevention service’, which it wants to provide departments with further support on early risk assessments.50 The Cabinet Office made an announcement on 24 May, shortly after our evidence session, confirming the launch of this new team and that it was starting work immediately.51 PSFA brought to our attention the work of a cross-government ‘tiger team’ of experts, which undertook IFIAs and fraud risk assessments, and provided initial prevention advice on government’s energy schemes.52 HM Treasury told us that some of the lessons learned from government’s experience of administering the COVID-19 schemes have already informed the design of some new initiatives to minimise fraud. For example, government, in its energy schemes, used discounted energy bills, administered by the energy suppliers, to provide support to those in need rather than giving out cash up front.53 Deterrence
Government Response Summary
The government accepts the importance of early risk assessment and confirms the PSFA has launched its Risk, Threat and Prevention Service. It also commits to doubling counter-fraud specialists, launching a fraud leadership qualification, providing further training, and strengthening compliance reviews to improve capabilities and outcomes across public bodies.
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.