Source · Select Committees · Public Accounts Committee
Recommendation 26
26
The Cabinet Office told us that the Counter Fraud Function is aiming to introduce a...
Conclusion
The Cabinet Office told us that the Counter Fraud Function is aiming to introduce a minimum standard for fraud risk assessments across government.74 But it is also still working to increase awareness of the Counter Fraud Function.75 For example, consultation with the Function’s central team of experts is at the discretion of each department, though Cabinet Office recognised some departments will be able to draw on their own internal counter fraud expertise.76 BEIS told us that despite the increased risk of fraud and error compared to its usual operations it did not consult the Function when designing the Bounce Back Loan Scheme. However BEIS did not think any additional counter fraud expertise or analysis would have changed its position given Ministers had already made the decision to tolerate the increased risk to ensure speedy delivery.77
Government Response
Not Addressed
HM Government
Not Addressed
4: PAC conclusion: Departments do not make enough use of counter fraud expertise when designing new initiatives to ensure they minimise losses to the taxpayer. 4: PAC recommendation: HM Treasury and Cabinet Office should, within six months, introduce mandatory fraud impact assessments that require formal sign off from the Counter Fraud Function for all Government Major Project Portfolio programmes and for all other schemes that departments identify as having a moderate to high risk of fraud or error. A summary of these assessments should be published. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: February 2022 4.2 The Government Counter Fraud Function (GCFF) and HM Treasury agree Fraud Impact Assessments should be in place early in development for major spend initiatives, not restricted to Major Project Portfolio programmes. Guidance is being jointly developed for policy officials to increase the use of upfront Fraud Risk Assessments. The GCFF will work with the National Audit Office to design Fraud Impact Assessments, full implementation of this during 2022-23 is dependent on future funding. 4.3 A summary of major initiatives involved in this process will be published in future Fraud Landscape Reports. 4.4 The government has an agreed Standard on Fraud Risk Assessment - the first in the world. This provides a structure to assess and articulate risks of fraud and error within each spend area. The introduction of a Fraud Impact Assessment will be integrated into the Standard. Over time, Fraud Risk Assessments undertaken in government will be assessed against this standard. 4.5 In its next refresh, Managing Public Money (MPM) will be amended to make Fraud Risk Assessments mandatory for major projects. This will strengthen the accounting officer responsibilities for managing fraud risks, building on the explicit reference to government standards for Fraud Risk Assessment introduced into the MPM refresh published on 18 May 2021. 4.6 This will complement the requirement for accounting officers to complete Accounting Officer Assessments for projects and proposals in the Government Major Project Portfolio and to publish a summary of these assessments, which includes fraud risks regarded as appropriate by the accounting officer. 11