Source · Select Committees · Public Accounts Committee
Recommendation 13
13
We asked HM Treasury and Cabinet Office about the capability and capacity of counter fraud...
Conclusion
We asked HM Treasury and Cabinet Office about the capability and capacity of counter fraud resources across the public sector. Cabinet Office explained that traditionally Departments have decided individually what level of capability they need, but as fraud is a quickly evolving and complex crime this approach is not optimal.33 Cabinet Office told us that there are currently 16,000 members of the Counter Fraud Function, and 91% of these individuals work for HMRC and DWP on tax and welfare as these are government’s highest 28 Q 17 29 Letter from Mark Cheeseman page 3 30 Q 72; Letter from Mark Cheeseman page 2 31 C&AG’s Guide, page 4 32 C&AG Guide, page 5 33 Q 31 Fraud and Error 13 areas of known loss. The Government Counter Fraud Profession has 6,823 members from 42 organisations across central and local government and policing.34 Cabinet Office told us that 77% of these professionals work in DWP or HMRC.35
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. 11