Source · Select Committees · Public Accounts Committee
Recommendation 5
5
HM Treasury and Cabinet Office do not know whether departments are adequately resourced to tackle...
Conclusion
HM Treasury and Cabinet Office do not know whether departments are adequately resourced to tackle fraud and error. There are currently 16,000 members of the Counter Fraud Function within the public sector, with 77% of counter fraud professionals working in DWP or HMRC. Although Cabinet Office understands where counter fraud resources are deployed across the rest of government, it admits it does not yet know whether the capabilities are all in the right place. Cabinet Office has begun work to strengthen departments’ capabilities in response to increased fraud and error risk from COVID-19 support schemes. Where departments have additional funding to build their counter fraud capacity, this has not been made available in a timely manner. For example, it is unacceptable that it took HM Treasury 12 months to approve the funding for HMRC’s Taxpayer Protection Taskforce despite knowing since March 2020 that the fraud risks for CJRS and SEISS were heightened. Though all the government professions have a role to play in minimising fraud it is imperative that government does more to ensure trained counter fraud professionals are deployed where they are most needed. Recommendation: HM Treasury and Cabinet Office should write to the Committee within three months setting out how they will work with departments to build their counter fraud capacity and ensure that each Department’s resourcing is properly aligned with its risk exposure.
Government Response
Not Addressed
HM Government
Not Addressed
5: PAC conclusion: HM Treasury and Cabinet Office do not know whether departments are adequately resourced to tackle fraud and error. 5: PAC recommendation: HM Treasury and Cabinet Office should write to the Committee within three months setting out how they will work with departments to build their counter fraud capacity and ensure that each Department’s resourcing is properly aligned with its risk exposure. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2021 5.2 The government will write to the Committee in November 2021 setting out how it will be working with departments and across the system to help build their counter fraud capacity and capability. This will involve working closely with the Government Counter Fraud Profession, who set standards for professionals, and evaluate their knowledge, skills and experience to inform our understanding of capacity specific to relevant disciplines (fraud, risk, investigation, intelligence, measurement etc.) 5.3 However, accounting officers decide whether their capacity is commensurate with their risks. Accounting officers and senior responsible owners own and manage scheme risks and as such are responsible for understanding and minimising them. They should prioritise their resources according to their risks and take decisions on the right level of capacity and control. 5.4 The Spending Review process provides departments with the opportunity to assess their individual fraud capacity and resourcing levels. Departments have the opportunity to submit bids to obtain the right counter fraud tools and resources. Bids will be subject to HM Treasury scrutiny, and HM Treasury encourages departments to work closely with the Counter Fraud Function to assess their individual capacity and capability before any bids are submitted to HM Treasury. 5.5 Following the Spending Review 2021, HM Treasury and the Counter Fraud Function will review the counter fraud capacity in departments and arms-length bodies (ALBs) and the outcomes that this delivers. This will be overseen by the Fraud Ministerial Board.